Beyond Meat (BYND) misses third-quarter earnings of 2021

Beyond Meat “Beyond Burger” patties made with vegan alternatives to meat products are on a shelf for sale in New York City.

Angela Weiss | AFP | Getty Images

Beyond Meat On Wednesday, it reported mounting losses in the third quarter as US demand for meat substitutes shriveled and higher costs ate its profits.

The company also disappointed investors with its forecast for the fourth quarter, indicating that sales are not expected to return immediately. The company’s shares tumbled 17% in extended trading.

Here’s what the company reported compared to what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Loss per share: 87 cents vs. 39 cents expected
  • Revenue: $106.4 million vs. $109.2 million forecast

That’s beyond the fiscal third-quarter net loss of $54.8 million, or 87 cents a share, greater than a net loss of $19.3 million, or 31 cents a share, a year earlier. Analysts polled by Refinitiv expected a loss of 39 cents per share.

The company said it faced higher transportation and storage costs and increased its inventory write-downs, hurting its earnings.

Net sales It rose 12.7% to $106.4 million, missing expectations of $109.2 million. The company reported strong growth outside the United States, as both its international grocery and restaurant divisions more than doubled in sales during the quarter.

With that said, US revenue was down 13.9% compared to last year, mostly due to weak grocery demand. The company said weak demand and operational challenges, such as severe weather, hurt its domestic sales. New products, such as meatless chicken, made up a bit for the dips.

in October, The company warned investors It will report weaker sales than it previously expected, citing a wide range of factors, including variable delta and distribution problems.

And the company’s forecast doesn’t point to a brighter fourth quarter. Beyond forecasts net sales of between $85 million and $110 million for those three months. Wall Street had expected revenue of $131.6 million for the quarter.

“Despite near-term market and operating conditions, we remain committed to our long-term strategy,” CEO Ethan Brown said in a statement.

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