Beyond Meat plans to raise $200m in offering

BLOOMBERG

Beyond Meat Inc seeks to raise as much as $200 million in an equity offering as the plant-based burger maker contends with falling sales and a decline in cash reserves.
The company filed a prospectus supplement with the US Securities and Exchange Commission, according to a statement. The proceeds will be used for “general corporate and working capital purposes,” it said.
The announcement came on the heels of first-quarter sales that beat Wall Street’s expectations. Goldman Sachs will serve as the sales agent in the offering, Beyond Meat said. The sales can be made at any time, and could be carried out over the counter or in privately negotiated transactions.
Beyond Meat, which has struggled to keep consumers’ attention, is in the midst of a turnaround plan and is aiming for cash-flow positive operations by the second half of 2023. The company is making progress on that goal, Chief Executive Officer Ethan Brown said in comments to analysts and in the company’s earnings statement.
Cash and short-term investments fell to $258.6 million, down from about $310 million at the end of last year. That measure has slipped for eight consecutive quarters.
With high levels of inflation eroding purchasing power, Beyond Meat has reduced prices, but that has eaten into profitability. The company’s latest results show that while retail sales are still falling, there are positive signs in international food service, where revenue doubled.
The company posted revenue of $92.2 million in the first quarter, above the average analyst estimate of $90.7 million compiled by Bloomberg. It also posted a loss of $45.8 million, excluding items such as taxes and interest.

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