Beyond Meat faces less demand, more discounts for its fake meat
By Claudia Assis
Company posts mixed Q1 results, and stock drops; 'further weakened demand' seen for plant-based meats
Shares of Beyond Meat Inc. slid 13.5% in the extended session Wednesday after the fake-meat maker reported a mixed quarter, called for weaker future sales and said consumers have further cooled on its offerings.
"The company's operating environment continues to be affected by uncertainty relating to macroeconomic issues," including an "ongoing, further weakened demand" for plant-based meats, inflation and high interest rates, Beyond Meat said.
The company also saw a drop in volume of products sold and a drop in net revenue per pound. That drop in net revenue per pound was mostly due to higher trade discounts and, to a lesser extent, pricing changes, it said.
Beyond Meat reduced operating expenses and cash burn year over year, bringing production in-house to reduce costs and improve quality, Chief Executive Ethan Brown said in a statement.
"Together with measures we are exploring to bolster our balance sheet, we continue to work to position 2024 as a pivotal year as we strive to achieve sustainable and profitable operations," he said.
Beyond Meat (BYND) lost $54.4 million, or 84 cents a share, compared with a net loss $59 million, or 92 cents a share, in the year-ago period. Analysts polled by FactSet were looking for a GAAP per-share loss of 67 cents.
Revenue dropped 18% to $75.6 million, coming in slightly above FactSet consensus of $75.2 million.
The company pinned the revenue drop on a 16.1% decrease in volume of products sold and a 2.3% decrease in net revenue per pound.
Beyond Meat reaffirmed its 2024 outlook of net revenue between $315 million and $345 million, and second-quarter revenue between $85 million to $90 million.
The analysts surveyed by FactSet expect 2024 revenue of $329.5 million, and second-quarter revenue of $96.2 million.
It called for gross margin in the mid- to high teens for the full year, and higher in the second half of the year relative to the first half.
Shares of Beyond Meat have dropped 8% so far this year, contrasting with an advance of nearly 9% for the S&P 500 index SPX.
-Claudia Assis
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05-08-24 2034ET
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