Beyond Meat (BYND.US) stock dropped over 10.0% during today's session after the maker of plant-based meat substitutes posted weak quarterly results and issued disappointing financial outlook as it expects a temporary disruption of US retail growth.
- Company recorded quarterly loss per share at $1.27 vs. 71 cents expected,
- Revenue of $100.7 million came in below analysts estimates of $101.4 million,
- U.S. grocery sales plunged 19.5% to $50.00 million due to lower demand, increased discounts, loss of market share and five fewer shipping days compared with the year-ago period.
US retail sales was the only category which recorded a decline in revenues. However this category is the largest of the four, therefore has the biggest impact on the company's overall performance. Source: Beyond Meat via Motley Fool
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Create account Try a demo Download mobile app Download mobile app- Costs increased as the company decided to use more expensive co-manufacturing facilities rather than its own manufacturing plants for production. This move also increased transportation and logistics fees. “This allocation was the right decision, given the long-term importance of the supported projects,” believes CEO Ethan Brown,
- "During the case of 2021, we experienced intense increased competition during the period when the size of the prize did not expand," he added.
- Gross margin of 14.1% was well below the 24.4% estimate. Brown said investment in employees, infrastructure and operations in the U.S., Europe and China “weighed heavily on operating expenses and gross margin” in the quarter.
- For full-year 2022, the company expects revenue in the range of $560 million to $620 million, an increase of 21% to 33% year over year, while analysts expected revenue growth of 37%.
- Last year, the company made significant headway in foodservice, with the launch of KFC Beyond Fried Chicken and an expanded pilot for McDonald’s McPlant burger, made with the Beyond Burger plant-based patty.
- However, due to increasing competition from other companies, investors should pay attention to announcements regarding market share. If retail sales continue to decline, it could mean serious problems for the company.
Beyond Meat (BYND.US) stock fell sharply to the new all-time low at $41.22 although buyers managed to erase most of today's losses. Source: xStation5
