Overview of Beston Global Food Company's H1 2023 performance

Beston Global Food Company (ASX: $BFC) has reported a consolidated statutory net loss before tax of $18.8 million for the half-year ended 31 December 2023, reflecting a $16.8 million unfavorable variance compared to the same period in 2022. The revenues from continuing operations decreased by 4.2% to $81 million, excluding approximately $6 million of sales to export customers. The net tangible assets for the half-year ended 31 December 2023 stood at $14.0 million, down from $73.5 million in the corresponding period of 2022.

Executive commentary on H1 2023 performance and outlook

The Company's financial performance in the first half of 2023 was challenging, with a significant net loss and a decrease in revenues from continuing operations. The decline in gross margins was primarily attributed to a high milk price relative to global commodity prices and inflationary pressure on the company's cost base. The Directors believe that the Group will continue as a going concern, subject to successful management of short-term cash flow requirements, operational forecast achievement, ongoing support from bankers or financiers, and the successful completion of the divestment of non-core operations. The Group is actively working to reduce inventory levels and manage working capital effectively over the next three months.

Summary of Beston Global Food Company's H1 2023 results and outlook

Beston Global Food Company (ASX: $BFC) faced a challenging first half of 2023, reporting a consolidated net loss before tax of $18.8 million and a 4.2% decrease in revenues from continuing operations. The net tangible assets for the period were $14.0 million. The Company's outlook emphasizes the need for successful management of short-term cash flow requirements, operational forecast achievement, ongoing support from bankers or financiers, and the successful completion of the divestment of non-core operations to ensure continuity as a going concern. The Group is actively working to reduce inventory levels and manage working capital effectively over the next three months. The Company's financial statements have been reviewed by Ernst & Young, who have not become aware of any matter that makes them believe the half-year financial report does not comply with the Corporations Act 2001 or give a true and fair view of the Group's financial position and performance for the half-year ended 31 December 2023.