Beyond Meat has pushed back the release of its third-quarter results to allow more time to “quantify” a previously announced impairment charge.
The California-based alternative-protein supplier now plans to publish the results for the three months to 27 September on 11 November. The original schedule was today (4 November).
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In a filing with the US Securities and Exchange Commission (SEC) on 24 October, the company disclosed that the non-cash impairment charge was related to “certain of its long-lived assets” and was expected to be a “material” amount.
Beyond Meat said in an update yesterday that it is “not yet able to reasonably quantify the amount, and requires additional time, resources and effort to finalise its assessment”.
It was yet another blow for Beyond Meat’s shares, which fell 16% on the Nasdaq exchange yesterday to close at $1.39.
The shares had fallen below $1.00 in October, flouting listing rules if levels below that level were to be maintained. Despite a short-lived rally last month, the shares are still down around 63% this year.
Prior to that rally, Beyond Meat had seen a significant dilution of its share price linked to a September announcement, and then completion of, a debt-for-equity swap.
It said in the October filing: “The company’s recoverability test, conducted in accordance with ASC 360, preliminarily indicated that the carrying amount of certain of its long-lived assets was not recoverable from the projected undiscounted future cash flows of the relevant asset group.”
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By GlobalDataThe impairment notice was accompanied by a preliminary update for the third-quarter results.
Beyond Meat projected revenue of about $70m for the period, in line with the $68m-$73m outlook issued in August, but down from $81m a year earlier.
The company said it also expected a gross margin of around 10-11%, compared to 17.7% in the same period last year.
Beyond Meat has not reported a net profit since it went public in 2019 and did not provide an earnings estimate in the October SEC filing.
Along with the repeated losses and falling revenues, the company has previously announced an exit from China, job cuts and external financing.
Earlier this year, the company revealed it had secured a $100m financing package from Unprocessed Foods, a unit of the non-profit Ahimsa Foundation, with an option to take a minority stake in Beyond Meat.
John Boken at consultancy AlixPartners was hired in August as an external advisor, described as an executive with “corporate turnaround and restructuring experience”.
Volumes dropped across all the group’s sales channels in the first six months of fiscal 2025, most notably in US retail, while Beyond Meat reported yet another bottom-line net loss of $82.2m in the first half.
