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Benson Hill Latest News: Q3 Financials

Benson Hill navigated a challenging third quarter with decreased revenues and a strategic shift towards an asset-light model
Key Takeaways:
  • Benson Hill Q3 Financials: Benson Hill announced a decrease in Q3 revenues by 7.5%, with a notable decline in non-proprietary revenues but an increase in proprietary revenues by 27.2%.
  • Operational Adjustments: The company managed a challenging third quarter with strategies like divesting non-core technologies and expecting higher soy white flake sales in Q4, aligning with prior gross profit guidance.
  • Financial Highlights: A reported net loss improvement, decreased operating expenses by approximately 14.7%, excluding non-recurring items, and a cash reserve of $86.2 million as of September 30, 2023.
  • 2023 Outlook: Benson Hill updated its 2023 guidance with expected consolidated revenues between $440 million and $450 million and an adjusted EBITDA loss between $50 million and $55 million.
  • Corporate Strategy: The company is accelerating its transition to an asset-light business model to address persistent market challenges and focus on feed markets through its CropOS® platform.

Benson Hill, Inc., a food technology company renowned for leveraging plant genetics, has released its operating and financial results for the third quarter, ending September 30, 2023. Despite a decrease in reported revenues by 7.5% to $113.1 million, the company has effectively navigated a challenging quarter marked by soft soy crush margins and dampened demand for its proprietary products due to market headwinds.

The company’s CEO, Deanie Elsner, highlighted the strategic sale of certain non-core licensing technologies and an anticipated increase in soy white flake ingredient sales for the fourth quarter. These measures align the company’s performance with its previous gross profit guidance. However, the persistence of market challenges has catalyzed Benson Hill’s decision to fast-track its shift towards an asset-light business model, focusing on broadacre animal feed markets through its innovative CropOS® platform.

The third-quarter financial results, excluding the Fresh business’s divestiture completed on June 30, 2023, reflect a mixed picture. While proprietary revenues surged by 27.2% to $33.1 million due to increased product availability and the sale of proprietary soybeans into the commodity market, gross profit declined to $4.1 million, a $1.8 million decrease. This downturn in gross profit, excluding specific favorable impacts, amounted to a loss of $0.2 million, attributable to the sale of proprietary products at suboptimal margins and various non-recurring supply chain issues.

Benson Hill reported a decrease in operating expenses to $28.4 million, with a $2 million reduction credited to the Liquidity Improvement Plan’s cost-cutting measures. The net loss from continuing operations improved by $7.2 million, resulting in a $19.2 million loss. Gross profit rose by $13.9 million, buoyed by gains from open mark-to-market timing differences and improved operating results. Benson Hill has revised its 2023 guidance positively, anticipating enhanced performance in Q4 and sustained benefits from the Liquidity Improvement Plan. The company continues to push the boundaries of food technology with its CropOS® platform, aiming to provide sustainable and accessible food options that meet global market demands.

Benson Hill Latest News

Benson Hill Vows To Transform its Business Model (2023/11/15)

Benson Hill plans to strengthen its financial foundation and transition to an asset-light business model. The company aims to tap into the broadacre animal feed markets, which will expand its product repertoire. Benson Hill aims to manage high-cost debt effectively and broaden its Liquidity Improvement Plan. The company has concluded an external study on several non-GMO, Ultra-High protein-low oligosaccharide (UHP-LO) commercial soybean variants. Benson Hill’s Board of Directors has appointed Deanie Elsner as the Chief Executive Officer, praising her ability to steer the company toward growth and stability. 

Sells Seymour Soybean Crush Facility (2023/11/01)

Benson Hill Inc, a food tech company, sold its Seymour soybean crush facility to White River Soy Processing for $36 million. The sale is part of Benson Hill’s Liquidity Improvement Plan and will help the company settle debts and reduce expenses. However, Benson Hill will honor its contracts with farmer partners in Indiana and its proprietary soybeans will continue to be processed at the facility under a grain supply and licensing agreement. Approximately 30 Benson Hill team members will join White River to ensure uninterrupted service. The deal was finalized on Oct. 31, 2023.

Benson Hill Faces NYSE Non-Compliance Notice Over Share Price (2023/09/18)

Benson Hill, a food tech company, has received a non-compliance notice from the NYSE due to its average closing share price falling below $1.00 per share over a consecutive 30-day period. The notice doesn’t result in immediate delisting, and Benson Hill plans to respond to the NYSE within ten business days to cure the deficiency. The company has six months to regain compliance. Benson Hill is currently undergoing a strategic review and expects to share an update on this by late October. To regain compliance, the company must have a closing share price of at least $1.00 over a 30 trading-day period.

Reports Q2 2023 & Reaffirms Annual Outlook (2023/08/10)

Benson Hill, Inc. (NYSE: BHIL) announced its Q2 2023 financial and operational results. The company reported $109 million in Q2 revenues, a 16.5% increase YoY. Benson Hill’s gross profit stood at $3 million, but adjusted figures show a gross profit of $6.1 million with a margin of 5.6%. Operating expenses rose to $40.4 million, but excluding goodwill impairment, they dropped to $21.2 million. The net loss from continuing operations was $49.1 million, with an Adjusted EBITDA loss of $16.1 million. Benson Hill has reaffirmed its 2023 guidance, projecting consolidated revenues between $390 million to $430 million.

Benson Hill Unveils Second Annual ESG Report (2023/06/30)

The company has unveiled its second annual Environmental, Social, and Governance (ESG) Report. This release demonstrates Benson Hill’s ongoing commitment to transparency and provides a comprehensive overview of the company’s data, milestones, and strategic partnerships since its inaugural ESG Report.

Adrienne Elsner Steps In as Interim CEO of Benson Hill (2023/06/19)

Benson Hill, Inc. (NYSE: BHIL), a food technology firm focused on unlocking the natural genetic diversity of plants, announced today that Adrienne “Deanie” Elsner has been appointed Interim Chief Executive Officer (CEO). Elsner succeeds co-founder Matt Crisp, who steps down with immediate effect, although he will continue to serve as a consultant to the board for a year to ensure a smooth transition.

Benson Hill Reports Q1 2023 (2023/05/11)

Benson Hill reported robust revenue growth in Q1 2023, with revenues of $134.6 million, up 103.6% YoY. The growth was driven by strong customer demand and increased availability of proprietary soy ingredients and non-proprietary products. Gross profit was $9.5 million, with gross margins at around 3.4%. The company is confident that 2023 may represent an inflection point for proprietary revenue growth and margin expansion. BHIL has reaffirmed its 2023 guidance for proprietary revenues to be $100 million to $110 million.

Reports Its Financial Results For 2022 (2023/03/14)

The company reported its FY 2022 with strong customer demand and increased revenues. Despite supply chain costs affecting profitability, the company’s innovations continue to attract strong demand. The company is finalizing capital management changes to reduce debt and operating expenses while fully funding the business. Proprietary products are expected to increase revenues by 40-50% in 2023, driving consolidated gross profit to $20 million to $30 million. The company plans to utilize its current shelf registration statement for up to $100 million to fully supplement the cash needed to fund the business to profitability in 2025. Revenues were $381.2 million, an increase of 319%. Gross profit was $3.5 million. The net loss from continuing operations was $99.7 million. Cash, restricted cash, and marketable securities of $175.0 million were on hand as of December 31, 2022.

BioMar’s Ink Collaboration for Aquafeed (2023/01/27)

BioMar has partnered with Benson Hill to advance sustainability objectives in aquaculture farming. Benson Hill’s closed-loop business model and non-GMO ingredients are ideal for BioMar’s responsible sourcing endeavors. Denofa is supplying BioMar with Benson Hill components to reduce the impact of aquafeed production on wild fish stocks.

Image provided by Benson Hill

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