Benson Hill modifies 2023 guidance, narrows consolidated gross profit range

Benson Hill said: “Management reaffirmed its guidance for proprietary revenues from $100M to $110M, a 40% to 50% increase over the prior year. Non-proprietary revenues are expected to decline moderately on a year-over-year basis in favor of proprietary products, which continues to set the expectation for consolidated revenues to be in the range of $390M to $430M. Consolidated gross profit is now expected to be $20M to $25M compared to the prior guidance of $20M to $30M. This represents a more than doubling of gross profit compared to the prior year, driven by anticipated increases in proprietary sales, a greater contribution from partnership and licensing agreements, and favorable soy commodity markets for non-proprietary product sales. This outlook includes assumptions for a continuation of inflationary pressures and challenges in supply chain logistics. The company is taking additional actions to reduce operating expenses by $10M annually in 2024.” Deanie Elsner, Interim CEO of Benson Hill, added, “We are taking steps from a position of strength to ensure that we create the most value for shareholders and best orient our business to capture the opportunities ahead. Specifically, we are reducing additional costs across the organization, and the Board has retained Lazard Freres & Co. LLC to help the company explore strategic alternatives. The company is also exploring joint venture opportunities, partnerships with strategic and financial investors, asset sales, and licensing opportunities. We are meeting the latest challenges head on and continue to be adaptable in our approach to increasing shareholder value.”