Benson Hill, Inc. (Nasdaq: BHIL), a leader in seed innovation, announced its operating and financial results for the third quarter ended September 30, 2024. The company’s commitment to cost management, strategic partnerships, and its transition to an asset-light business model continue to enhance its earnings quality and support long-term growth.
“Our third-quarter performance underscores the financial discipline and focus driving Benson Hill as we evolve from a closed-loop manufacturing model to an asset-light licensing approach,” said Deanie Elsner, CEO of Benson Hill. “The potential of our proprietary seed portfolio is evident, and our collaborations with farmers, seed dealers, poultry producers, soy processors, and academic partners highlight the significant industry demand for high-quality soy traits. As we continue our transformation, strategic partnerships are key to capturing market-driven demand for our seed innovations, which deliver value across the supply chain and offer a clear sustainability advantage.”
Key Developments in the Third Quarter
In the third quarter, Benson Hill began shipping the remaining 2023 Ultra-High Protein, Low-Oligosaccharide (UHP-LO) soybeans to the poultry market. Additionally, two new feeding studies were launched with major broiler producers, representing over 40% of the U.S. broiler market (6 million of the 14 million acres of soy dedicated to broiler production). Further turkey feeding studies, representing 4 million acres of soy, are planned for the first quarter of 2025. This growing adoption of UHP-LO by poultry producers, along with current aquaculture customers, demonstrates the value of Benson Hill’s proprietary soybeans in the expanding animal feed market.
For the 2025 planting season, the company is expanding its proprietary soybean seed portfolio, offering more than 30 varieties across six product platforms. These soybeans have shown proven performance across multiple regions and are now available for the upcoming planting season.
Benson Hill is also advancing its commitment to lower-carbon agriculture. The company’s proprietary soybeans offer downstream partners an effective solution to achieve Scope 3 emissions reductions. Benson Hill’s ability to drive significant ripple effects throughout the value chain—spanning from farming to food production—continues to support its sustainability objectives.
Financial Results
Third Quarter 2024 vs. Third Quarter 2023
Excluding the former Fresh Segment and processing facilities in Seymour, Indiana, and Creston, Iowa, now classified as discontinued operations, the following financial highlights are presented:
- Revenues increased by $10.6 million, or 45.3%, compared to Q3 2023, driven by higher grain sales of proprietary soybeans, increased revenue from partnerships and licensing agreements, and higher yellow pea revenue.
- R&D expenses decreased by $3.5 million, or 33.4%, to $7.0 million, due to reduced personnel-related and technology costs linked to the Liquidity Improvement Plan.
- Selling, General, and Administrative (SG&A) expenses decreased by $1.4 million, or 10.4%, to $12.3 million, driven by lower personnel-related and other costs tied to the Liquidity Improvement Plan.
- Net loss from continuing operations was $21.9 million.
- Adjusted EBITDA was a loss of $12.6 million, improving from a loss of $14.4 million in Q3 2023.
- Cash and marketable securities totaled $14.4 million as of September 30, 2024.
Nine-Month Results (2024 vs. 2023)
For the nine months ended September 30, 2024:
- Revenues totaled $89.0 million, a decrease of $6.6 million, or 6.9%, primarily due to the absence of low-margin trading volumes from business development efforts in 2023, partly offset by higher revenue from partnerships and licensing agreements.
- R&D expenses were $21.4 million, down $12.1 million, or 36.1%, reflecting lower personnel-related and technology costs in line with the Liquidity Improvement Plan.
- SG&A expenses increased by $3.8 million, or 11.4%, to $37.3 million, but this increase was partially due to a non-recurring reversal of $7.8 million in stock-based compensation expense in 2023.
- Net loss from continuing operations was $66.2 million.
- Adjusted EBITDA was a loss of $32.1 million, a $12.0 million improvement from the previous year.
- Free cash flow loss stood at $48.9 million, approximately 57.7% of the free cash flow loss in 2023.
Benson Hill continues to make significant progress in its transformation and remains focused on delivering value through strategic partnerships and innovative seed solutions for the agriculture industry.
