Benson Hill’s Second Investor Day Showcases Technology Leadership and Strategic Positioning for Durable Growth in Multiple Value-Added Markets
Benson Hill (NYSE: BHIL) hosted its 2023 Investor Day, unveiling its strategic initiatives to meet demand for plant-based products. The company highlights its CropOS® technology platform, aiming for 40-50% proprietary revenue growth in 2023 and a doubling of gross profit. A significant partnership with ADM will launch a portfolio of soy products in Q2 2023. Benson Hill signed a non-binding term sheet for a $100 million debt facility, aiming for positive cash flow by 2025. Key pipeline advancements include new Ultra High Protein varieties and enhanced soybean breeding through collaboration with Corteva Agriscience.
- Expected 40-50% year-over-year proprietary revenue growth in 2023.
- Partnership with ADM to launch soy ingredient products in Q2 2023.
- New Ultra High Protein soybean varieties slated for release in 2024.
- Signed a non-binding term sheet for a $100 million debt facility to improve liquidity.
- Plans for positive cash flow in 2025 with consolidated revenues over $400 million.
- High supply chain costs leading to a targeted growth strategy.
- Management cannot guarantee the success of the new lending facility.
- Ongoing discussions with banks for the lending facility lacking binding commitments.
- Risks associated with achieving 2025 financial targets remain.
- Company unpacks deep R&D product pipeline with its CropOS® technology platform to meet growing demand for plant-based protein and oil products.
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ADM plans to launch a portfolio ofADM soy ingredient products co-branded with and powered byBenson Hill technology in the second quarter of 2023.
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Company expects to open new market opportunities for its Ultra High Protein varieties through a commercial license agreement with
Corteva Agriscience and M.S. Technologies L.L.C. for Enlist E3® soybean technology.
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Company signs with
First National Bank of Omaha a nonbinding term sheet for a conventional debt facility for up to , pursuant to its plans for refinancing debt, implementing a new Liquidity Improvement Plan, and raising funds intended to achieve positive cash flow in 2025.$100 million
Benson Hill’s Second Investor Day Showcases Technology Leadership and Strategic Positioning for Durable Growth in Multiple Value-Added Markets. Company unpacks deep R&D product pipeline with its CropOS® technology platform to meet growing demand for plant-based protein and oil products.(Graphic: Business Wire)
“Since our last Investor Day, we have demonstrated that our strategy to scale innovative seed-to-plate soy ingredients for human food, aquaculture, and oil markets is working. We established a successful closed- loop business model and formed strategic partnerships that amplify the reach of our proprietary ingredients,” said
Investors will hear from management on several business updates:
Building a foundation with farmer partners: Investors will engage with farmers who are helping to build an exclusive network of seed-to-fork acres. “Working with the
Scaling the commercial portfolio through licensing and partnerships: Investors will receive an update on the Company’s strategic partnership with
Leveraging dual premium soybean breeding to optimize the soy meal/oil complex: Investors will learn how
Advancing pipeline varieties to market with predictive breeding and gene editing: The Company will provide an update on pipeline advancements featuring increased protein content, higher yield potential, and greater geographic diversity to augment the current non-GMO soy portfolio. Three new varieties will be released for 2024 commercial planting, and multiple additional new Ultra-High Protein (UHP) varieties are in final testing for a limited release in the 2024 season. The management team will also give an overview of how the Company has advanced to its third year of field testing its first wave of gene edited soy varieties developed using Benson Hill’s proprietary CRISPR gene editing technology. Finally, investors will hear how field and lab test results validated protein and functional specifications within the Company’s yellow pea pipeline, with the first proprietary commercial plantings slated for 2025 to serve the pet food market.
Developing UHP varieties with Enlist E3® soybean technology for market expansion in 2025:
Executing a plan to achieve its near-term and 2025 financial targets: Management will reinforce a strong outlook for 2023, affirming its recent guidance for 40 percent to 50 percent year-over-year proprietary revenue growth and a more than doubling of consolidated gross profit. Persistent high supply chain costs required a shift to a targeted growth strategy to continue the profitable expansion of the Company’s proprietary product portfolio. The revised approach is expected to result in an approximately 50 percent year-over-year increase in 2023 planted soybean acres.
The Company expects the execution of its strategic objectives and other actions noted below to result in positive Adjusted EBITDA and free cash flow in 2025. Underpinning the expected achievement of this milestone are consolidated revenues greater than
Management is taking prudent actions to enhance its capital structure with the intention of fully funding the business to achieve its 2025 financial targets.
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line of credit;$50 million -
equipment loan; and$20 million -
term loan.$30 million
Management cannot make any guarantees regarding the new lending facility, however, the fully executed non-binding term sheet and ongoing discussions with FNBO provide management confidence that the successful completion will lower Benson Hill’s cost of capital and provide greater flexibility and liquidity.
The focus on cost discipline and efficient use of cash remains central to the Company’s achievement of its plans for growth. To help ensure that the Company has sufficient liquidity to meet its objectives, management is implementing a Liquidity Improvement Plan. As announced in an 8-K filing yesterday, the Company expects it will include:
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Operating Expense Reduction: Implement run-rate cost reductions of at least
per year by 2024.$20 million -
Optimize Manufacturing Base: Enhance operational gains achieved through record production in the Company’s closed-loop soy processing facilities by exploring strategic options for its
Seymour, Indiana , facility and further increasing capacity utilization at theCreston, Iowa , facility in coordination with utilizing assets available through current and future strategic partnerships. -
Minimize Working Capital : Increase free cash flow by optimizing acreage targets and other areas of working capital while ensuring achievement of proprietary revenue growth targets.
These collective actions are intended to improve liquidity by an estimated
A live video webcast of today’s executive management presentations is available at Benson Hill’s Investor Relations site under “Events & Presentations.” The webcast will begin at
About
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may be identified by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” or similar words. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements include, among other things, statements regarding the Company’s Liquidity Improvement Plan and other actions to improve its capital structure and liquidity position; management’s strategy and plans for growth, including those intended to lower the cost of capital, increase return on capital and reduce costs; the Company’s current guidance regarding certain expected 2023 financial and operating results, including proprietary revenues and consolidated revenues and gross profit; plans to retire the Company’s existing debt early and replace it with a conventional lending facility of up to
View source version on businesswire.com: https://www.businesswire.com/news/home/20230329005409/en/
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FAQ
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