Beyond Meat (BYND) results Q2 2021
Packs of plant-based burger patties from Beyond Meat are available for sale.
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Beyond Meat reported an unexpectedly large loss on Thursday as higher costs and investments in its business weighed on margins.
For the second half of the year, the company was cautious, citing the Delta Covid variant.
The company’s shares fell roughly 4% in expanded trading.
Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:
- Loss per share: 31 cents vs. 24 cents expected
- revenue: Expected $ 149.4 million versus $ 140.8 million
In the second quarter of fiscal year Beyond announced that its net loss had increased from $ 10.2 million, or 16 cents per share, to $ 19.7 million, or 31 cents per share, a year ago. Analysts surveyed by Refinitiv expected a loss per share of just 24 cents.
The company said the losses accelerated due to investments it is making to support its expansion efforts, such as increasing its workforce and spending more on marketing and higher freight costs.
Net sales increased 31.8% to $ 149.4 million, beating expectations of $ 140.8 million.
In the United States, which accounts for two-thirds of Beyond’s sales, demand for groceries declined as the company faced hard comparisons with last year when consumers stored groceries amid lockdowns. However, sales in the food service more than tripled compared to the previous year, as guests returned to the restaurants. Grocery stores still make up about three-quarters of Beyond’s US sales.
Outside the US, both retail and hospitality more than doubled. The company has viewed Europe and China as key elements in its plan to become a global supplier of meat alternatives and has invested in expanding production capacities in these regions.
Looking ahead to the third quarter, Beyond expects revenue of $ 120 million to $ 140 million, which is below Wall Street’s estimates of $ 153.3 million. The company expects food service sales growth to slow as restaurants and cafeterias filled their fridges and freezers in the second quarter.
The delta variant has developed into the dominant form of Covid in the USA, which has led to an increase in new cases in recent weeks, especially in areas with low vaccination rates. While many restaurant companies say they haven’t seen a significant impact on their sales so far, some places are starting to impose restrictions. New York City, for example, requires proof of vaccination for some indoor activities, such as eating indoors, which could affect restaurant sales.
“I am optimistic about what lies ahead,” CEO Ethan Brown said in a statement. “However, given the recent spike in Covid-19 cases, which could disrupt demand patterns, we generally remain cautious for the remainder of the year.”
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