Beyond Meat Reported Disappointing First-Quarter Earnings
May 12, 2022 By MarketDepth
Beyond Meat (NASDAQ: BYND) reported disappointing first-quarter earnings on Wednesday as its margins were greatly affected by the launch of its new plant-based Jerky. The company has experienced a decline in restaurant demand and ultimately slashed prices.
Large Earnings Loss
The plant-based meat substitutes producer reported an earnings loss of USD1.58 per share, compared to the expected loss of USD1.01 a share. Revenue amounted to USD109.5 Million, less than analysts anticipated USD112.3 Million.
“In the first quarter, we made good progress against our goal of building tomorrow’s global protein company. Whether furthering strategic partnerships in the restaurant industry, the market success of our first product collaboration with PepsiCo, or the continued acclaim awarded to our products here in the U.S. and EU, we continue to lay a robust foundation for our long-term growth.”Beyond Meat President and CEO Ethan Brown
Brown continued, “Though we recognize that the decisions we are making today in support of our long-run ambition have contributed to challenging near-term results, including a sizable though temporary reduction in gross margin as we took cost-intensive measures to support important strategic launches, we are confident in the future we are building while advancing our mission to bring plant-based meats and their attendant health, climate, natural resource, and animal welfare benefits to consumers around the world.”
First-Quarter is Low Point for Margins
Company executives reminded investors that the first-quarter is meant to be the low point of the year’s margin. Furthermore, it emphasized that the jerky production should be more effective within the second half of the year. The company’s full-year forecast remains the same at USD560 Million to USD620 Million.