[ad_1]
Shares of Beyond Meat fell more than 6% in after-hours trading on Thursday after results showed the impact of tougher competition and disappointing progress in getting their meat substitute vegetable base passed on to restaurant menus.
During the first quarter, the company fell deeper into red than analysts expected, with a tight net loss of 42 cents per share that was more than double the consensus forecast. The figures compared to a net profit of 5 cents per share at the same time last year.
Revenue rose 11% to $ 108.2 million, but estimates of $ 113.7 million were also lost.
Beyond Meat said it continued to “experience a significant reduction in demand in its food service channel,” as consumers stayed away from restaurants and restaurant owners streamlined menu offerings or shut down or cut operations.
At the beginning of the pandemic, the company reported that skip revenue of retail customers who had been in a hurry to stock up, which helped offset the sharp decline in restaurant sales. However, on Thursday he said the increase in retail demand had “moderated”.
The company’s shares have been under pressure since early this month following the Tyson meat processor released its own range of herbal meat offerings.
Beyond Meat’s rival, Impossible Foods, it has also intensified the price war, announcing earlier this year its second price reduction in less than 12 months, as well as discounts for retail customers.
Impossible Foods increased sales volume and gained market share “largely at the expense of Beyond Meat,” said Alexstein Howard, a Bernstein analyst.
Beyond Meat said first quarter gross profit was $ 32.7 million, a gross margin of 30.2%, compared to $ 37.7 million and 38.8%. from the same time last year. He blamed higher transportation and storage costs, among others, and increased trade discounts and changes in the product sales mix.
It got a lower net price per pound compared to last year due to the increase in promotions and the shift to larger package items with a lower net price per volume.
Since the start of the pandemic, the company had stopped focusing on earnings and revenue, but gave a forecast of second-quarter net income of between $ 135 million and $ 150 million, an increase of 19 to 32% from 2020.
[ad_2]
Source link
