Benson Hill, Inc. has reported its FY 2022. Matt Crisp, Chief Executive Officer of Benson Hill, expects the year ahead to bring continued revenue growth and increased margins. Despite supply chain costs impacting profitability in specific food ingredient categories, Benson Hill’s innovations continue to attract strong demand. In addition, the company is finalizing capital management changes designed to reduce debt, interest, and operating expenses while fully funding the business. As of December 31, 2022, Benson Hill recorded the Fresh business as discontinued operations. Sales drove the company’s performance for proprietary and non-proprietary soy and yellow pea products. Management expects continued strong demand for its proprietary products in 2023, resulting in a 40 percent to 50 percent increase in proprietary revenues.
Consolidated gross profit for the company is expected to be in the range of $20 million to $30 million in 2023. This is driven by anticipated increases in proprietary sales, increased revenues from partnership and licensing agreements, and favorable soy commodity markets for non-proprietary product sales. Benson Hill expects a net loss of $125 million to $135 million and an Adjusted EBITDA loss of $63 million to $68 million. Benson Hill is working on a plan designed to lower the cost of capital, increase the return on capital, and reduce costs. The company intends to utilize its current shelf registration statement, including its ATM facility or alternative equity financing, for up to $100 million to fully supplement the cash needed to fund the business to profitability in 2025. The company also plans to explore strategic options for its Seymour, Indiana, soy crush facility to deploy capital more effectively within the closed-loop operations, reduce costs, and increase return on capital.
Benson Hill FY 2022 Main Results:
- Revenues were $381.2 million, an increase of $290.3 million, or 319 percent.
- Strong customer demand and greater availability of proprietary soy ingredients, meal, and edible oil products resulted in nearly doubling proprietary revenues to $72.6 million.
- Non-proprietary revenues increased significantly due to good soy and yellow pea commodity prices and operational excellence associated with the startup of two soy production facilities.
- Gross profit was $3.5 million, an increase of $9.4 million.
- Excluding approximately $4.9 million in losses due to open mark-to-market timing differences, gross profit was $8.5 million, and gross margins were 2.2 percent.
- Good top-line growth, proprietary revenue mix, and contributions from partnership and licensing agreements were partially offset by cost pressures in the supply chain and the impact of adverse weather in December.
- All year-over-year operating expense increases were related to non-cash items.
- Inclusive of open mark-to-market timing differences, the net loss from continuing operations was $99.7 million, a decrease in loss of $22.5 million or 18 percent.
- Adjusted EBITDA was a loss of $81.6 million or $76.7 million, excluding the impact from open mark-to-market timing differences, which was in line with the prior year.
- Cash, restricted cash, and marketable securities of $175.0 million were on hand as of December 31, 2022.
Photo by Meredith Petrick on Unsplash
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