Beyond Meat Beyond Burger patties, made from plant-based meat substitutes, sit on a store shelf in New York City.
Angela Weiss | AFP | Getty Images
Beyond Meat on Wednesday reported a bigger-than-expected loss for its first quarter as its margins squeezed and lower prices weighed on international sales.
Shares of the company fell as much as 25% in extended trading, extending the stock’s losses from earlier in the day. Beyond shares closed 13.8% lower on Wednesday ahead of the company’s earnings report.
Here’s what the company reported, compared to Wall Street expectations, based on a poll of analysts by Refinitiv:
- Loss per share: Adjusted $1.58 vs. $1.01 expected
- Revenue: $109.5 million versus $112.3 million expected
Beyond the reported first-quarter net loss of $100.5 million, or $1.58 per share, larger than the net loss of $27.3 million, or 43 cents per share, a year ago.
In a statement, CEO Ethan Brown said the company has seen a “significant, albeit temporary,” decline in its gross margin to support strategic launches. The company’s gross margin was 0.2% of sales for the quarter, down sharply from gross margin of 30.2% a year ago.
Excluding special items, the company lost $1.58 a share, more than the $1.01 a share expected by analysts polled by Refinitiv.
net sales rose 1.2% to $109.5 million, below expectations of $112.3 million.
Total volume, which excludes the impact of price or currency fluctuations, rose 12.4% for the quarter. However, net sales per pound shrank by 10%. The company said it increased discounts for international customers and lowered prices in the European Union.
In the United States, Beyond’s sales rose 4%, helped by the food launch of its plant-based jerky through its joint venture with PepsiCo. However, revenue from its U.S. hospitality business, which includes sales to restaurants and college campuses, fell 7.5% in the quarter. And although the food segment posted sales growth of 6.9%, the company said sales of products other than beef jerky shrank.
Outside of its home market, Beyond’s sales shrank 6.2%, even as the company said it sold more pounds of its meat substitutes at both international grocery stores and foodservice outlets. Beyond also said exchange rates were impacting its international sales.
The company reiterated its full-year revenue guidance of $560 million to $620 million.
Read the full earnings report here.