Shares of Beyond Meat Inc. (NASDAQ: BYND) recovered on Friday after taking a beating over a mixed earnings report for the second quarter of 2021 a day ago. Although revenue beat forecasts, net loss was wider than expected. The outlook for the third quarter also did not match expectations causing the stock to take a dive. After staying in red for most of the day, the stock finally turned green and was up 2.5% during afternoon hours.
Net revenues for Q2 rose nearly 32% year-over-year to $149 million, beating estimates. The growth was mainly driven by a sales increase of 218% in the foodservice channel as restrictions begin to ease. Sales in the retail channel rose 6% helped by strong international growth. Retail sales in the US dropped 14% YoY as the year-ago quarter had benefited from the pandemic-related stockpiling.
Net loss amounted to $19.7 million, or $0.31 per share, compared to $10.2 million, or $0.16 per share, in the year-ago period. Analysts were looking for a lower number.
On its quarterly conference call, Beyond Meat said that according to NPD data, the sales of its products within foodservice rose 95% YoY during Q2, reflecting solid gains and signs of recovery among restaurants, bars, and regional QSR chains.
Within retail, the company’s household penetration increased 120 basis points YoY to 6.2% according to SPINS IRI consumer panel data for the 52-week period ended June 27, 2021. Total distribution points increased 55% YoY driven by growth in total outlets and the introduction of new products.
Beyond Meat expects net revenues for the third quarter of 2021 to increase 27-48% YoY to a range of $120-140 million. Analysts were looking at revenues of $153.7 million, reflecting a YoY growth of 63%. The company remains uncertain about the impacts from the pandemic on its retail and foodservice channels in the near term.
Beyond Meat expects volume growth in its foodservice channel to moderate during the third quarter as it laps tougher year-ago comps and also due to some loss of distribution. The company anticipates solid growth in its international foodservice business barring any significant resurgence in the pandemic.
Click here to read the full transcript of Beyond Meat’s Q2 2021 earnings conference call
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