Beyond Meat on Wednesday reported a larger-than-expected loss for the first quarter as the release of its new plant-based jerky weighed on margins.
The company’s shares fell up to 25% in extended trading, extending the share losses from earlier in the day. Beyond shares closed 13.8% lower on Wednesday in anticipation of the company’s earnings report.
See what the company said compared to what Wall Street expected, based on a survey by Refinitiv analysts:
- Loss per share: $ 1.58 adjusted against $ 1.01 expected
- Revenue: $ 109.5 million versus $ 112.3 million expected
In addition to the reported first-quarter net loss of $ 100.5 million, or $ 1.58 per share, greater than the net loss of $ 27.3 million, or 43 cents per share, a year earlier.
In a statement, CEO Ethan Brown said the company had hit a “significant but temporary” blow to its gross margin to support strategic launches, namely that of the plant-based jerky through its joint venture with PepsiCo. The company’s gross profit margin was 0.2% of revenue during the quarter, declining sharply from the gross margin of 30.2% a year earlier.
Beyond Meat “Beyond Burger” burgers made from vegetable meat substitutes are on a shelf for sale in New York.
Angela Weiss | AFP | Getty Images
“While we are excited about the early sales performance and strong customer response, the Beyond Meat Jerky production, which was still in its infancy, was a major headwind for gross profitability this quarter,” said Beyond CFO Phil Hardin, to analysts at the conference call.
Hardin said the large-scale jerky launch was “unprecedented” for Beyond. The product is available in 56,000 locations. As a result, the company’s production was “expensive and inefficient,” according to Hardin.
But the company tried to calm investors. Executives said the first quarter is expected to be the lowest point in 2022 and spasmodic production will be much more efficient by the second half of this year.
Excluding data, the company lost $ 1.58 per share, higher than the $ 1.01 per share expected by analysts surveyed by Refinitiv.
Net sales rose 1.2% to $ 109.5 million, falling short of $ 112.3 million.
The total volume, which removes the impact of price fluctuations or currencies, increased by 12.4% in the quarter. However, net income per pound shrank by 10%. The company said it has increased discounts for international customers and reduced prices in the European Union. Brown also said consumers are turning from refrigerated meat substitutes to alternative frozen foods.
In the United States, Beyond revenue grew by 4%, aided by the plant-based confectionery market. However, revenue from U.S. food services, which includes sales at restaurants and campuses, fell 7.5% during the quarter. And although its grocery sector reported a 6.9% increase in sales, the company said products other than broken saw their sales shrink.
Outside of its domestic market, Beyond revenue fell 6.2%, although the company said it sold more pounds of its meat substitutes to both international grocery and grocery stores. It also said that exchange rates had hit its international sales.
The company reiterated its forecast for revenue of $ 560 million to $ 620 million for the full year.
Read the full earnings report here.
Beyond Meat (BYND) earnings estimates for the first quarter of 2022
Source link Beyond Meat (BYND) earnings estimates for the first quarter of 2022