Beyond Meat “Beyond Burger” patties made from plant-based substitutes for meat products sit on a shelf for sale in New York City.
Angela Weiss | AFP | Getty Images
Beyond Meat on Wednesday reported a wider-than-expected loss for its first quarter as it offered steeper discounts and cheaper prices to international consumers.
Shares of the company fell as much as 25% in extended trading, extending the stock’s losses from earlier in the day. The stock closed Wednesday down 13.8% ahead of its earnings report.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Loss per share: $1.58 adjusted vs. $1.01 expected
- Revenue: $109.5 million vs. $112.3 million expected
Beyond reported first-quarter net loss of $100.5 million, or $1.58 per share, wider than its net loss of $27.3 million, or 43 cents per share, a year earlier.
In a statement, CEO Ethan Brown said that the company saw a “sizable though temporary” hit to its gross margin to support strategic launches. The company’s gross margin was 0.2% of revenue during the quarter, tumbling sharply from its gross margin of 30.2% a year ago.
Excluding items, the company lost $1.58 per share, wider than the $1.01 per share expected by analysts surveyed by Refinitiv.
Net sales rose 1.2% to $109.5 million, falling short of expectations of $112.3 million.
Total volume, which strips out the impact of pricing or currency fluctuations, increased 12.4% in the quarter. However, net revenue per pound shrank by 10%. The company said it increased discounts and reduced prices in the European Union.
In the United States, Beyond’s revenue rose 4%, helped by the grocery launch of its plant-based jerky through its joint venture with PepsiCo. However, U.S. food service revenue, which includes sales to restaurants and college campuses, fell 7.5% during the quarter. And although its grocery segment reported sales growth of 6.9%, the company said products besides the jerky saw their sales shrink.
Outside of its home market, Beyond’s revenue shrank 6.2%, although the company said it sold more pounds of its meat substitutes in both grocery stores and food service outlets.
The company reiterated its full-year revenue forecast of $560 million to $620 million.