has suffered a significant loss in performance, and the first artificial meat stock BeyondMeat "falls" beyond market expectations.
Eastern Time on May 11, US stocks After the market opened, BeyondMeat released its first-quarter financial report, with performance losses exceeding market expectations. According to the financial report, net revenue in the first quarter was US$109.5 million, and increased by 41.2% year-on-year; net loss was US$100.5 million, higher than the net loss of US$27.27 million in the same period last year. Adjusted EBITDA under the non-GAAP standard was a loss of US$78.9 million, accounting for -72.1% of net income, compared with a loss of US$10.84 million in the same period last year, accounting for -10.0% of net income.
Image source: Beyond Meat Financial Report
Beyond Meat Founded in California, USA in 2009, it provides plant-based meat products services, and its products include ready-to-eat meat and frozen meat from brands such as The Beyond Burger and Beyond Sausage. In 2019, BeyondMeat was listed on the US stock market, and its stock price soared several times, reaching a high of over US$221 in January last year. After the first quarter financial report of
was released, Beyond Meat's stock price plummeted 25% after the market closed to $20.58, falling below the issue price of $25 when it was listed in 2019 for the first time. In the past year, the company's stock price has also fallen by 80% from its peak in the summer of 2019 USD 234.90.
gross profit loss expanded, catering channels were frustrated
financial report disclosed , BeyondMeatQ1 gross profit margin declined, mainly due to the launch of new new . adopts a complex and high-cost manufacturing process plant beef jerky product Beyond Meat Jerky. However, starting from the second half of 2022, manufacturing costs associated with Beyond Meat Jerky are expected to slow significantly as process optimization begins.
In addition to the decline in gross profit margin caused by Beyond Meat Jerky, Beyond Meat's operating losses are also expanding, with operating losses in the first quarter of 2022 being US$97.6 million, compared with US$24.6 million in the same period last year.
BeyondMeat means . The expansion of operating losses is mainly due to the increase in investment in marketing activities, , especially the initiatives to support catering service customers, the increase in the number of non-production employees compared with the same period last year, administrative expenses driven by general and continuous consulting agreements, and sales expenses mainly due to the increase in outbound freight costs.
From the perspective of product sales, BeyondMeat sales increased by 12.4% compared with the first quarter of last year, largely offset by a decrease of about 10% in net income per pound. , and this part of net income decreases mainly due to the negative impact of increased trade discounts, lower price tags for EU , changes in sales portfolio and foreign exchange rates.
Image source: Beyond Meat Financial Report
Regional perspective, BeyondMeat's sales in the US local market increased by 4% year-on-year, mainly due to the launch of its plant-based jerky in retail grocery stores.
Specifically in terms of channels, BeyondMeat's net revenue in the U.S. retail channel increased by 6.9% year-on-year, but this part of the growth was partially offset by the decline in net revenue in the U.S. catering services and international retail and catering service channels.
Image source: Beyond Meat Financial Report
Financial Report Disclosure, The decrease in net income from the U.S. catering service channel is mainly due to a customer's suspension of distribution (including in the same period last year), and to a lesser extent higher trade discounts.
Beyond overseas international sales fell 6.9% outside the domestic U.S. market. The main reasons for the decline in net income from international retail channels are the EU price cuts, increased trade discounts, adverse foreign exchange impacts and changes in sales portfolios, partially offset by the increase in sales of the British pound. The decline in net income of international catering service channels is mainly due to changes in sales portfolios, increased trade discounts and the negative impact of exchange rate .
Beyond Meat used to be with Yum! Many restaurants have cooperated with each other, and their restaurant sales once accounted for a quarter of Beyond Meat's business. Against the backdrop of hard hits from catering companies during the epidemic, BeyondMeat has expanded its main battlefield from offline catering to more supermarket retail and large multinational chain companies.
In March this year, Beyond Meat and Pepsi announced the launch of its first cooperative product, Beyond Meat Jerky, while helping Pepsi achieve its sustainable development and health goals.The two have established a joint venture company that produces plant-based snacks and beverages earlier.
In the same month, Beyond Meat was also rumored that McPlant partnership with McDonald's may be permanent, although it was subsequently clarified that it was misread. However, if the cooperation can be implemented, it will become a catalyst for improving retail performance and provide it with a more stable source of income.
But currently, Beyond Meat's sales at grocery stores and other retailers are not optimistic, and its earnings in recent quarters have also disappointed investors.
Plant-based meat demand may slow down
In addition to performance data, like other retailers, Beyond Meat is facing problems such as rising labor costs and supply chain shortages under the influence of the epidemic. As a company that is still losing money, the tightening of funds from the Federal Reserve in , the Federal Reserve will also have certain negative impacts.
Beyond Meat President and CEO Ethan Brown also pointed out in the financial report that the company's operating environment continues to be affected by recent uncertainties related to the macroeconomic issue, including inflation and rising interest rates, COVID-19 and its potential impact on consumer behavior and demand levels, labor supply and supply chain disruptions, partly attributed to recent geopolitical tensions.
At the same time, demand for plant meat may slow down, and the growth prospects of the entire plant meat market are still to be seen.
2019-2020 is the period when the concept of plant meat is favored in the new consumer goods market, and capital has also raised its mind. China's plant meat brands also bloomed during this period, but after the lively momentum, will consumers continue to buy into plant meat brands similar to Beyond Meat?
has entered 2021, and the concept of plant meat has entered a cooling-off period, and the growth prospects of the entire plant meat market are still to be seen. Public data shows that in 2020, it was one of the fastest growing industries in the United States with artificial meat , with annual sales increasing by 45% year-on-year, but in 2021, the total sales fell by 0.5%.
entered 2021, and Beyond Meat's revenue also declined sharply. In the third quarter of 2021, Beyond Meat's operating loss increased to US$54 million, triple the same period in 2020.
CNBC reported that Wall Street analysts are also skeptical of Beyond Meat's growth potential, fearing industry competition, market saturation and overall slowdown in demand for plant-based meat products.
However, Beyond Meat President and CEO Ethan Brown said in its earnings report: "In the first quarter, Beyond Meat has achieved market success in the catering industry, or its first product collaboration with Pepsi , or its continued positive reviews in the United States and the European Union, will continue to lay a solid foundation for long-term growth."
Ethan Brown added that the decision made by Beyond Meat today to support long-term goals poses challenges to recent performance, including due to cost-intensive measures to support important strategic releases, but full of confidence in the future.
looks forward to full-year results for 2022. Beyond Meat management expects net income for the full-year 2022 to be between US$560 million and US$620 million, an increase of 21% to 33% compared with 2021.
(This article was first published in Titanium Media APP, author | Liu Dafang)
