Benson Hill, Inc. (NYSE:BHIL), a leading ag-tech firm specializing in unlocking the natural genetic diversity of plants, has reported its operational and financial performance for the year ending December 31, 2023.
Deanie Elsner, CEO of Benson Hill, commented, “2023 was a transformative year for Benson Hill. We not only met our financial commitments but also fortified our balance sheet. By refocusing our business model and expanding our portfolio to target new opportunities in animal feed, we are strengthening our competitive edge.”
Elsner continued, “The transformation of Benson Hill is well underway, expedited by divesting our soy processing assets, retiring corporate debt, and implementing cost-saving measures. We are swiftly transitioning to an asset-light business model aimed at serving broadacre animal feed markets. As we implement our short-term plans, our commitment remains steadfast in fostering growth and delivering shareholder value.”
Key Financial Highlights for Full Year 2023 Compared to 2022:
- Reported revenues reached $473.3 million, marking a 24% increase.
- Proprietary revenues surged to $110.0 million, up 52%, driven by improved operational performance at soybean processing facilities and direct sales of proprietary soybeans to third parties.
- Gross profit soared to $23.6 million, a 570% increase, with profitability rising due to operational efficiencies and favorable contributions from partnerships and patent sales.
- Operating expenses totaled $128.1 million, reflecting a $0.4 million decrease, after adjusting for non-recurring costs.
- Selling, general, and administrative expenses decreased by $12.0 million, or 15%.
- R&D expenses decreased by $7.2 million, or 15%.
- Adjusted EBITDA improved significantly, showing a loss of $47.7 million, down 42% from the prior year.
- Cash and marketable securities from continuing operations stood at $48.7 million as of December 31, 2023.
Fourth Quarter 2023 Results Compared to 2022:
- Revenues for the fourth quarter were $116.6 million, up 18%, driven by increased sales of soy and yellow pea products and contributions from partnerships and patent sales.
- Gross profit was $7.0 million, with gross margins at approximately 11% after excluding mark-to-market timing differences.
- Adjusted EBITDA for the quarter was a loss of $6.7 million, compared to a loss of $21.8 million in the fourth quarter of 2022.
With recent divestitures of facilities in Seymour, Indiana, and Creston, Iowa, Benson Hill has progressed significantly toward its asset-light business model. Management anticipates reduced revenue and associated costs from these operations. The company is now focused on leveraging its strengths in genetics, technology, and R&D to generate revenue across the value chain through licensing agreements and partnerships.
Dean Freeman, CFO of Benson Hill, remarked, “Benson Hill closed 2023 on a positive note, meeting our financial commitments for the year. Looking ahead to 2024, we anticipate a transition period. However, the steps we’ve taken to cut costs and reduce debt position us well to execute our strategic plans successfully.”
