Benson Hill (BHIL), the foodtech firm led by CEO Matt Crisp, reported a robust revenue increase in its first quarter 2023 results, reflecting the momentum generated in the previous year. According to Crisp, the company is confident that 2023 may represent an inflection point for proprietary revenue growth and margin expansion, leveraging its closed-loop model and expecting a more significant contribution from partnership and licensing agreements.
The financial results for Q1 2023, excluding the pending divestiture of the Fresh business announced on January 3, 2023, show revenues of $134.6 million, a significant increase of $68.5 million or 103.6%. This growth is primarily driven by strong customer demand and increased availability of proprietary soy ingredients, meal, and edible oil products, leading to an 80% surge in proprietary revenues to $25.3 million. In addition, non-proprietary revenues also experienced a substantial rise of over 100%, fueled by good soy and yellow pea commodity prices and efficient operational execution.
BHIL reported a gross profit of $9.5 million, an increase of $18.5 million. After excluding a $5.2 million favorable impact from open mark-to-market timing differences, gross profit stood at $4.3 million with gross margins at approximately 3.4%. While the robust top-line growth and proprietary revenue mix contributed to this profitability, ongoing inflationary and supply chain pressures somewhat offset the gains.
Operating expenses fell to $28.8 million, reflecting a decrease of $3.7 million mainly due to actions associated with the company’s Liquidity Improvement Plan. Of these operating expenses, around $6.1 million were non-cash items, primarily stock compensation and depreciation. Selling, general and administrative expenses also dropped by 20.2% to $16.2 million. Conversely, R&D expenses marginally increased by 2.8% to $12.6 million.
Benson Hill reported a net loss from continuing operations of $4.8 million, marking a 72.2% decrease in loss. Adjusted EBITDA was a loss of $10.7 million, approximating a loss of $16.0 million, excluding the impact of open mark-to-market timing differences. Cash, restricted cash, and marketable securities as of March 31, 2023, were reported at $131.0 million.
BHIL has reaffirmed its 2023 guidance for proprietary revenues to be $100 million to $110 million, representing a 40% to 50% increase over the prior year. Non-proprietary revenues are expected to decline moderately as the company focuses on proprietary products.
The consolidated gross profit is expected to be between $20 million and $30 million, driven by anticipated increases in proprietary sales, more significant contributions from partnership and licensing agreements, and favorable soy commodity markets. However, this outlook considers ongoing inflationary pressures and supply chain logistics challenges.
Furthermore, the company’s actions under the Liquidity Improvement Plan are expected to realize an annual run rate cash savings of over $10 million, thus lowering full-year operating expenses to between $115 million and $120 million. Consequently, management has improved its expected net loss from continuing operations to a range of $115 million to $125 million, with Adjusted EBITDA loss and free cash flow outflow expected to be in the range of $53 million to $58 million and $110 million to $118 million, respectively.
Image provided by Benson Hill
You must log in to post a comment.