Beyond Meat Inc. (NASDAQ: BYND) topped revenue expectations for the fourth quarter of 2019
but earnings missed the mark, sending the stock tumbling over 6% in aftermarket
hours on Thursday.
Net revenues jumped
212% year-over-year to $98.5 million, smashing forecasts of $79.5 million. Revenue
growth was driven by higher sales volume in the Fresh platform products across
Retail, and Restaurant and Foodservice channels.
Net loss was $0.5 million, or $0.01 per share, compared to a net loss of $7.5 million, or $1.10 per share in the year-ago period. Analysts had projected earnings of $0.01 per share.
During the quarter, sales volumes in the Fresh platform were
fueled by an increase in international sales, an expansion in the number of
points of distribution, and the contribution from new products launched in the
year.
Gross profit rose to $33.5 million, or 34% of net revenues,
helped by an increase in the volume of products sold, production efficiency
improvements and favorable mix.
For full-year 2020, net revenues are expected to come in the range of $490 million to $510 million, up 64% to 71% from 2019.
Beyond Meat faces challenges due to tough competition in the
plant-based food products category from rivals such as Impossible Foods and
retailers like Kroger (NYSE: KR) and Tyson
Foods (NYSE: TSN)
who are exploring meat alternatives, as well as from a shortfall in production
that affects its ability to meet the rapidly-increasing demand for its
products.
The company’s efforts in innovation as well as its strategic
partnerships with various retailers and restaurant chains will help drive
growth going forward. On Wednesday, Beyond Meat announced that Starbucks (NYSE: SBUX) will
launch breakfast sandwiches with Beyond Meat sausage patties at all its locations
in Canada.
Earlier this month, Beyond Meat entered into a partnership with French retailer Casino Group to sell its products in 500 supermarkets across the country.
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