Benson Hill, Inc. reported significant progress and transformation for the fiscal year ending December 31, 2023. The company, known for unlocking the natural genetic diversity of plants, announced its operational and financial achievements, highlighting a shift in business strategy and financial stability.
Deanie Elsner, Chief Executive Officer of Benson Hill, noted the company's successful fulfillment of financial commitments and strategic steps to strengthen the balance sheet. Benson Hill has pivoted its business model, focusing on animal feed markets to leverage its competitive edge.
In 2023, Benson Hill achieved a revenue increase of 24 percent, totaling $473.3 million, with proprietary revenues growing by 52 percent. This growth was primarily driven by enhanced operational performance at its soybean processing facilities and sales to third parties. The company's gross profit saw a remarkable rise of 570 percent to $23.6 million, benefitting from operational efficiencies and contributions from partnership and patent sales.
The company's operational expenses slightly decreased, reflecting cost reductions from its expanded Liquidity Improvement Plan. This plan resulted in a decrease in selling, general, and administrative expenses by 15 percent, and R&D expenses by 15 percent as well.
The net loss from continuing operations increased by 12 percent to $111.2 million, but the Adjusted EBITDA loss improved significantly, reducing by 42 percent to $47.7 million. This improvement was attributed to higher gross profit and lower operating expenses.
Benson Hill's transformation involved the divestitures of its soy processing assets in Seymour, Indiana, and Creston, Iowa, and retirement of corporate debt, transitioning towards an asset-light business model. The company ended the year with $48.7 million in cash and marketable securities.
Looking ahead, Benson Hill's focus will be on leveraging its expertise in genetics, technology, and R&D. The company aims to secure more profitable and capital-efficient licensing agreements and partnerships.
Dean Freeman, Chief Financial Officer, emphasized that Benson Hill is on track with its financial projections and is poised for a transition in 2024. The steps taken to reduce costs and pay down debt are expected to enable the company to effectively execute its strategic plans in the coming year.
