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Beyond Meat seeks to raise up to $200 million via Goldman Sachs

Beyond meat raising $200 beyond burger

Beyond Meat is seeking to raise up to $200 million in an equity offering for general corporate and working capital purposes. The sale could take place at any time with Goldman Sachs acting as selling agent.

First quarter results show continued cash burn

The announcement comes after Beyond Meat reported its fifth consecutive quarter of year-on-year sales declines, although the company expects sales growth to improve in the second half of 2023. The El Segundo, California-based business saw a 7.3% year-on-year decline in the volume of products it sold, and in February revealed it had burned through more than $400m of cash in 2022 as it tried to revive volumes with price cuts.

Beyond Meat’s shares have slumped from highs of more than $239 in the months following its initial public offering in July 2019, and are now trading at just over $10.

The company is currently implementing a turnaround plan, with the aim of becoming cash flow positive by the second half of the year. To achieve this, Beyond Meat has increased automation in production, reduced headcount and strengthened its sourcing network to reduce costs.

Despite these challenges, CEO Ethan Brown remains optimistic about the company’s future, stating that they are making tangible progress in their cost reduction programme and are committed to pursuing their vision of transforming the $1.4 trillion global meat industry.

International sales surprised positively

In terms of strategic partnerships and long-term opportunities, Beyond Meat executives have expressed encouragement by the success of their plant-based platform in Europe, particularly with the McPlant Burger and McPlant Nuggets at McDonald’s in Germany and other European countries.

However, the company still faces challenges in convincing US consumers of the health benefits of plant-based products, which may be a key factor in driving demand in the American market.

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