Beyond Meat Loss Exceeds Predictions of Higher Costs and Slow Restaurant Sales
May 6 (Reuters) – Beyond Meat Inc (BYND.O) reported a larger-than-expected quarterly loss on Thursday as the plant-based meat maker incurred higher transportation costs, spent a lot of money on test new product launches and sold less to the pandemic. hit the restaurants.
Shares of the California-based company fell nearly 7% amid the extended trading.
The company, which sells fake meat in more than 100,000 outlets worldwide, took advantage last year when consumers stocked bulk packages of its “burgers” in their freezers when ordering. at home across the United States.
However, restaurant sales took a hit as many closed. Chief Executive Ethan Brown said on a call with analysts that he was seeing a “slow thaw” of this trend.
Despite this, Beyond Meat expects the recovery of its foodservice business to lag the foodservice industry as a whole as it sells to many places where capacity is recovering more slowly, including venues. sportsmen.
As restaurant sales declined, the company accumulated more pea protein, resulting in increased warehousing costs, he said.
Competition is increasing among manufacturers of plant proteins. In 2020, plant-based retail sales in the United States reached $ 7 billion, up 27% year on year, according to the Good Food Institute and the Plant-Based Foods Association (PBFA).
Impossible Foods Inc, Beyond Meat’s biggest rival, is gearing up for a public listing that could value the company at around $ 10 billion or more, Reuters reported in April. Read more
Brown said Beyond Meat’s “main competitor” was cutting two-thirds of its sales and said it “was not going to react and get into some kind of surrender war with them.”
Beyond Meat expects second-quarter revenue of between $ 135 million and $ 150 million, an increase of 19% to 32%. Analysts were forecasting revenue of $ 142.8 million, according to IBES data from Refinitiv.
In the first quarter ended April 3, net sales increased about 11% to $ 108.2 million, the missing estimate of $ 113.7 million.
Excluding one-off items, it lost 42 cents per share, more than analysts’ expectations of 19 cents.
Its net income fell to a net loss of $ 26.8 million from a profit of $ 1.8 million a year ago.
Report by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila
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