Beyond Meat Delays Q4 Results Over Inventory Accounting

Credit: Nadya Kubik/Shutterstock.com

Beyond Meat has announced a hold of its fourth-quarter and full-year results while it completes an accounting reappraisal focused connected inventory.

In a SEC filing yesterday (16 March), nan California-based alternative-protein supplier said it cannot record its yearly study for nan twelvemonth ended 31 December connected clip “without unreasonable effort aliases expense”.

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It needs “additional time” to complete activity connected its “inventory balances”, including sums group speech for “excess and obsolete inventory”.

Beyond Meat is aiming to complete nan reappraisal and record nan yearly study by 31 March but warned nan timetable for its results could still look “further delay”.

The Nasdaq-listed institution previously delayed nan merchandise of its third-quarter results to springiness itself much clip to “quantify” an impairment complaint it had already announced.

In its latest regulatory filing, Beyond Meat besides said it expects to study a “material weakness” existed successful its soul power complete financial reporting arsenic of 31 December. It is linked to controls tied to accounting for its inventory provision, nan institution said.

As a result, nan Beyond Burger marque proprietor believes its soul power complete financial reporting, arsenic good arsenic disclosure controls and procedures, were not effective, arsenic of that date.

“The institution is reviewing its soul power procedures and is successful nan process of processing a remediation plan,” nan connection added.

In a abstracted SEC filing, Beyond Meat provided a preliminary update connected revenue.

It said unaudited, preliminary nett revenues for nan 4th fourth are expected to beryllium astir $61m, successful statement pinch its earlier guidance scope of $60m-$65m.

Full-year nett revenues are expected to beryllium astir $275m.

In January, shareholders revenge a ineligible lawsuit against Beyond Meat, alleging nan business “failed to disclose worldly adverse facts”.

Represented by Holzer & Holzer, nan shareholders’ main gripe appeared to revolve astir a $77.4m impairment complaint that Nasdaq-listed Beyond Meat eventually revealed successful November.

Earlier this month, Beyond Meat received a delisting informing notice from Nasdaq aft its shares traded beneath $1 for 30 consecutive business days.

Beyond Meat has 180 almanac days to comply again pinch Nasdaq listing rules, giving it until 31 August.

The warning landed aft a bruising period marked by falling income and volumes, widening losses and balance-sheet strains. The institution has not turned a profit since going nationalist done an IPO successful 2019.

Management had already outlined a turnaround “reset”, including costs reductions, separator description  efforts and unspecified strategical initiatives.

In precocious 2025, Beyond Meat launched and then completed a indebtedness exchange aimed astatine eliminating much than $800m successful debt, triggering a descent successful its shares beneath $1.

The transaction extended maturities to 2030 but accrued liking costs and triggered equity dilution.