BEYOND MEAT 2024 Q2
Earnings Overview & AI Insights

Earnings Performance

Ethan Brown, founder, president, chief executive and chief executive officer; and Lubi Kutua, chief financial officer and treasurer. Ethan Brown: "I am proud to report a strong quarter of progress against our 2024 plan, including exceeding our Q2 revenue objective" In the second quarter of 2024, Beyond Meat's gross margin was 14.7%, substantially higher than the 2.2% outcome in the same quarter last year. Net revenues of $93.2 million exceeded the top end of our $85 million to $90 million guidance range, but still reflected an 8.8% decline from the year ago period. Operating expenses in the second. quarter fell to $47.6 million as we continue to pursue efficiencies throughout the organization. Q2 provides a very clear proof point that our operations are making progress toward getting leaner and more efficient. We realized $11.4 million more in gross profit despite lower revenue and $8.4 million less in operating expenses. Beyond IV is a clear manifestation of our product strategy. We are targeting a reduction in operating expenses in the remainingder of 2024 compared to the equivalent period in the equivalent inÂ23. Beyond IV products use protein source from yellow peas, brown rice, red lentils and faba beans, and fat from avocado oil to deliver 21 grams of clean protein with just 2 grams of saturated fat. Beyond Sun Sausage is not intended to replace beef, pork, or poultry, but rather is its own delicious, satisfying protein option. Beyond Meat is built on the same protein blend from yellow peas, brown rice, red lentils, and faba beans mixed with avocado oil. It delivers 12 grams of protein and only 1 gram of saturated fat, delivered in three bold flavors: Cajun, Pineapple Jalapeño, Pesto. Beyond Burger, Beyond Beef and Beyond Dinner Sausage are part of a marketing campaign to heighten awareness of the health benefits of Beyond Meat. For Q2, net revenue per pound in the U.S. channel was up 20.5% as compared to the year ago, and 11.7% sequentially in the first quarter of this year. The company has also completed the consolidation of its production network, which is our fourth priority. Lubi Kutua -- Chief Financial Officer and Treasurer -- will provide an overview of the company's second quarter financial results. Lubi will also provide an update on our 2024 outlook. The company's U.S. retail channel net revenues decreased 7.5% to $44.9% in the second quarter of 2024. U.S. Foodservice channel net revenues decreased 18.9% to $10.3 million in the second quarter of 2024. Volume of products sold decreased 20%, primarily reflecting ongoing demand softness in the plant-based meat category. International retail channel revenues decreased 12.1% to $17.6 million compared to $20.9 million year ago period. The company's gross profit in the second quarter of 2024 was $13.7 million or gross margin of 14.7% compared to $2.3 million in the year ago period. Net loss was $34.5 million or $0.53 per common share share in second quarter of 2024. Operating expenses were $47.6 million in the second quarter of 2024 compared to $56 million in same period. In the second quarter, inventory fell to $119.5.5% at the end of Q1 of this year and by $87.6% from Q2 of last year. Net cash used in operating activities was $47.8 million in the 6 months ended June 29, 2024, compared to $88.3m in the same period.