Beyond the meat Wednesday posted a larger-than-expected loss for its first quarter as its margins withered and lower prices weakened international sales.
Shares of the company fell by up to 25% in extended trading, extending the stock’s losses from the start of the day. Shares of Beyond closed Wednesday down 13.8% ahead of the company’s earnings report.
Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts from Refinitiv:
- Loss per share: $ 1.58 adjusted versus $ 1.01 expected
- Revenue: $ 109.5 million versus $ 112.3 million expected
Beyond reported a first-quarter net loss of $ 100.5 million, or $ 1.58 per share, higher than the net loss of $ 27.3 million, or 43 cents per share, a year earlier.
In a statement, CEO Ethan Brown said the company has seen a “considerable albeit temporary” blow to its wide margin to support strategic launches. The company’s gross margin was 0.2% of revenue during the quarter, down sharply from the gross margin of 30.2% a year ago.
Excluding the articles, the company lost $ 1.58 per share, more than the $ 1.01 per share expected by analysts interviewed by Refinitiv.
Net sales rose 1.2% to $ 109.5 million, not living up to expectations of $ 112.3 million.
Total volume, which excludes the impact of prices or currency fluctuations, increased by 12.4% in the quarter. However, the net revenue per pound decreases by 10%. The company said it has increased discounts for international customers and reduced prices in the European Union.
In the United States, Beyond’s revenue increased 4%, aided by the grocery launch of its vegetable dryer through its joint venture with PepsiCo. However, US food service revenue, which includes sales to restaurants and college campuses, fell by 7.5% during the quarter. And although its grocery segment saw sales growth of 6.9%, the company said products beyond jerky saw sales decline.
Outside of its home market, Beyond’s revenue shrank by 6.2%, although the company said it sold more pounds of its meat substitutes in both international grocery stores and restaurant outlets. Beyond also said that exchange rates have affected its international sales.
The company reiterated its full-year revenue forecast of $ 560 million to $ 620 million.