Beyond Meat (BYND) Q3 2021 earnings miss

Past Meat “Past Burger” patties constituted of plant-based substitutes for meat merchandise sit on a shelf on the market in New York Metropolis.

Angela Weiss | AFP | Getty Photographs

Beyond Meat on Wednesday reported a widening loss in its third quarter as U.S. demand for its meat substitutes shrank and better prices ate into its earnings.

The corporate additionally disenchanted traders with its fourth-quarter outlook, indicating that gross sales aren’t anticipated to snap again instantly. Shares of the corporate tumbled 18% in prolonged buying and selling.

Here is what the corporate reported in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Loss per share: 87 cents vs. 39 cents anticipated
  • Income: $106.4 million vs. $109.2 million anticipated

Past reported fiscal third-quarter web lack of $54.8 million, or 87 cents per share, wider than a web lack of $19.3 million, or 31 cents per share, a yr earlier. Analysts surveyed by Refinitiv anticipated a lack of 39 cents per share.

The corporate stated it confronted larger transportation and warehousing prices and elevated its stock write-offs, which harm its earnings. About $9 million was written off on account of water harm at one in all its vegetation, which largely affected packaging.

Internet gross sales rose 12.7% to $106.4 million, lacking expectations of $109.2 million. In contrast with the second quarter, its income fell, bucking typical seasonal tendencies for the corporate’s merchandise. Clients often purchase extra Past Burgers throughout the summer season to grill.

The corporate reported robust development outdoors the US, with worldwide grocery and restaurant divisions every seeing gross sales greater than double throughout the quarter.

Nonetheless, U.S. income fell 13.9% in contrast with a yr in the past, largely on account of weaker grocery demand. CEO Ethan Brown advised analysts that grocery gross sales did not assist make up for shrinking meals service orders, in contrast to in 2020.

The corporate additionally stated softer demand and operational challenges, like extreme climate, harm its home gross sales. Brown stated new opponents available in the market are placing stress on its market share, however knowledge would not reveal that the decrease demand is because of different corporations stealing its prospects. New merchandise, like its meatless rooster, barely offset U.S. gross sales declines.

In October, the company warned investors that it will be reporting weaker gross sales than it had beforehand predicted, citing a variety of things, together with the delta variant and distribution issues.

And the corporate’s forecast would not point out a sunnier fourth quarter. Past is predicting web gross sales of $85 million to $110 million for these three months. Wall Avenue was anticipating income of $131.6 million throughout the quarter.

Past stated it is anticipating among the operational challenges from the third quarter to tug down its fourth-quarter outcomes as properly. It additionally cited eating places’ labor challenges and hesitant ordering habits on account of uncertainty tied to the pandemic as different components embedded within the outlook. The corporate famous that the interval accommodates 5 fewer delivery days than a yr prior.

“Close to-term market and working situations however, we stay dedicated to our long-term technique,” Brown stated in an announcement.

He advised analysts he’s feeling optimistic about 2022. He hinted at new product launches coming subsequent yr, saying that a few of these gadgets might attain worth parity with meat.

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