Latest news with #LubiKutua
Yahoo
09-05-2025
- Business
- Yahoo
Beyond Meat Shelves Full-Year Outlook After $7M Hit — CEO Warns Of 'Unforeseen' Economic Headwinds, But Downplays Tariff Threat
Beyond Meat Inc. (NASDAQ:BYND) missed analyst expectations in the first quarter of the ongoing fiscal year and withdrew its full-year revenue guidance, citing the ongoing economic uncertainties. However, the CEO forecasted a 'relatively minimal' tariff impact on the firm. What Happened: The plant-based meat company withdrew its full-year guidance and limited its revised outlook to the second quarter net revenue expectations only. 'As with many other companies, we are experiencing an elevated level of uncertainty in our operating environment as a result of the uncertain and volatile macroeconomic conditions, which could have unforeseen impacts on our actual realized results,' said the CEO, Lubi Kutua. Meanwhile, while addressing tariff impact questions from the analysts during its earnings call, Kutua said, 'We've done some analysis to try to understand what the implications might be. Look, there's no guarantees, but I think at this point, we think the direct impact on our business is relatively minimal.' The company incurred extraordinary or transient expenses worth $7 million during the first quarter, which included expenses related to the suspension of its operational activities in China. 'Gross profit and gross margin included approximately $5.2 million of extraordinary charges related to specific strategic inventory reduction initiatives and expenses related to the suspension of our operational activities in China,' said the CEO. 73 million, which fell short of the estimated $75.01 million, after the market closed on Wednesday. The company also reported an adjusted loss of 67 cents per share, exceeding the anticipated loss of 48 cents. At the close of the first quarter, Beyond Meat held $115.8 million in cash, cash equivalents, and restricted cash, while its total outstanding debt stood at $1.1 billion. Beyond Meat expects second-quarter net revenue to be in the range of $80 million to $85 million versus estimates of $93.47 million, according to Benzinga Pro. BYND shares have fallen by 34.03% on a year-to-date basis and 69.06% over a year. On Wednesday, the shares ended at $2.54 apiece and dropped by 4.72% in after-hours. Meanwhile, the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), tracking the Nasdaq 100 index, rose 0.39% in the same session. The stock was 1.97% lower in premarket on Thursday. Benzinga Edge Stock Rankings shows that BYND had a weaker price trend over the short, medium, and long term. Its momentum ranking was weaker at 5.12th percentile, whereas its value ranking was also poor at 32.41th percentile; the details of other metrics are available here. Read Next:Photo: courtesy of Beyond Meat. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? BEYOND MEAT (BYND): Free Stock Analysis Report This article Beyond Meat Shelves Full-Year Outlook After $7M Hit — CEO Warns Of 'Unforeseen' Economic Headwinds, But Downplays Tariff Threat originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
08-05-2025
- Business
- Business Times
Cash-strapped Beyond Meat gets US$100 million from diet non-profit
[NEW YORK] Beyond Meat raised US$100 million in debt financing from a plant-based diets advocate, as the company continues to search for funds to shore up its liquidity. The lender, Unprocessed Foods, is an affiliate of Ahimsa Foundation, an organisation 'focused on advocating for plant-based diets,' the plant-based meat supplier said on Wednesday (May 7) when it reported earnings that missed analysts' estimates. The same foundation also provided US$16 million capital to help out the maker of plant-based eggs Eat Just nearly two years ago. 'The overall macro environment is challenging for alt-protein, but we are confident of the leadership and the outlook,' said Shaleen Shah, president at Ahimsa Foundation in response to a Bloomberg News inquiry. 'This is the right side of the history. The way animals are grown and processed is unsustainable and alt-protein is the way forward.' Ahimsa has made numerous investments across the vegan food spectrum, he added. Beyond Meat had been in discussions with private credit lenders to raise as much as US$250 million, Bloomberg reported in February, after a previous attempt last year was unsuccessful. The El Segundo, California-based producer of meat substitutes faces the maturity of a US$1.15 billion of convertible bonds in 2027. The company, which has about US$116 million of cash and cash equivalents as at the end of March, will continue to 'evaluate potential transactions' to address the debt, it said on Wednesday. The senior secured delayed draw term loan has an initial interest of 12 per cent in so-called 'payable in kind' form, which allows the company to preserve cash as it doesn't have to pay interest periodically but instead it accumulates to be repaid when the principal is due. The maturity could be extended until 2035, but amounts drawn after 2030 would pay 17.5 per cent interest, chief financial officer Lubi Kutua said in the call with analysts. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Beyond Meat also offered the lender rights to purchase up to 12.5 per cent of its shares, according to a regulatory filing on Wednesday. The exercise price will range between US$2 to US$3.75. Its shares fell 5.1 per cent at 6.14 pm in extended trading in New York. The stock has declined 32 per cent so far this year to Wednesday's close. Consumer caution The loan from Ahimsa comes as the company reported an increasingly dimmed revenue outlook. First-quarter revenue of US$68.7 million fell short of the average analyst estimate, with US retail volume declining 23 per cent from a year earlier. The company attributed this to 'weak category demand'. The plant-based meat supplier withdrew its full-year outlook, citing 'elevated levels of uncertainty within its operating environment.' It now projects second-quarter revenue in a range of US$80 million to US$85 million. Consumer caution is eating into grocery spending as consumers pull away from expensive meat alternatives. Food inflation is at the highest level on record, while the University of Michigan Consumer Sentiment Index is at its third-lowest reading ever at 52.2. Beyond Meat's products remain more expensive than the animal proteins they are competing with. BLOOMBERG
