Beyond Meat “Beyond Burger” patties made from vegetable substitutes for meat products are on a shelf for sale in New York City.
Angela Weiss | AFP | Getty Images
Beyond Meat reported a bigger-than-expected loss for its first quarter on Wednesday as its margins narrowed and lower prices weakened international sales.
Shares of the company fell as much as 25% in extended trading, extending the stock’s losses earlier in the day. Shares of Beyond closed Wednesday down 13.8% ahead of the company’s earnings report.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Loss per share: $1.58 adjusted vs. $1.01 expected
- Revenue: $109.5 million vs. $112.3 million forecast
Beyond reported a net loss of $100.5 million, or $1.58 per share, higher than its net loss of $27.3 million, or 43 cents per share, a year earlier.
In a statement, CEO Ethan Brown said the company suffered a “significant but temporary” decline in gross margin to support strategic launches. The company’s gross margin was 0.2% of revenue in the quarter, down sharply from its gross margin of 30.2% a year ago.
Excluding items, the company lost $1.58 per share, more than the $1.01 per 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, increased 12.4% in the quarter. However, net income per book decreased by 10%. The company said it has increased discounts for international customers and reduced prices in the European Union.
In the United States, Beyond sales increased 4%, helped by the grocery store launch of its plant-based jerky through its joint venture with PepsiCo. However, U.S. restaurant revenue, which includes sales to restaurants and college campuses, fell 7.5% in the quarter. And although its grocery segment saw sales growth of 6.9%, the company said non-jerk products saw sales decline.
Outside of its home market, Beyond’s revenue fell 6.2%, although the company said it sold more pounds of its meat substitutes in international grocery stores and food outlets. Beyond also said exchange rates were hitting its international sales.
The company reiterated its full-year revenue forecast of $560 million to $620 million.
Read the full earnings report here.