Beyond Meat Records Losses, Lower Revenues Beyond Estimates In Q4 2021

Beyond Meat, Inc. (Nasdaq: BYND) released on Thursday its Q4 and full-year 2021 financial results, which saw the company post US$100.7 million in quarterly revenue. This is a decrease from Q4 2020’s revenue of US$101.9 million and also misses the consensus estimate of US$101.4 million.

Breaking down the topline quarterly figure, US operations contributed US70.6 million, down from last year’s US$77.4 million. International revenue added US$30.1 million, up from last year’s US$24.5 million.

CEO Ethan Brown attributes the decline to “temporary disruption in U.S. retail growth” as well as the investments the company made throughout the year.

“Despite the variability and challenges of the year, we did not deviate from building the foundation for our long-term growth,” said Brown. “The investments we made… weighed heavily on operating expenses and gross margin during a fourth quarter and year that were already impacted by lower than expected volumes.”

Full-year revenue, however, went up to US$464.7 million from 2020’s US$406.8 million. The annual revenue comprised US$319.8 million from US operations, which is a decline from last year’s US$324.9 million, and US$144.9 million from international operations, an increase from last year’s US$81.9 million.

Gross margin for the quarter went down to 14.1% from 24.9% a year ago. The decline was primarily due to “product mix and increased trade discounts.”

Operating expenses for the quarter also increased to US$91.9 million compared to last year’s US$49.9 million, leading to a quarterly operating loss of US$77.7 million compared to last year’s loss of US$24.5 million.

Source: Hypercharts

This further led the firm to record a net loss of US$80.4 million, a significant decrease from the net loss of US$25.1 million in the year-ago period. This translates to US$1.27 loss per share, also missing the estimate of US$0.71 loss per share.

Further, adjusted EBITDA for the quarter also declined to a loss of US$62.9 million from a loss of US$9.5 million last year.

For 2021, the firm recorded a net loss of US$182.1 million, also down from last year’s US$52.8 million net loss. Corollary, the company had an operating cash outflow of US$301.4 million for the year–mostly driven by the annual loss and increased inventory that incurred US$122.7 million cash burn.

The company also ended the year with US$733.3 million in cash and cash equivalents and US$241.9 million in inventory, up from last year’s US$159.1 million and US$121.7 million, respectively. This brings the balance of the current assets at US$1.05 billion while current liabilities ended at US$94.2 million.

For 2022, the firm tapered down its outlook, estimating US$560 – US$620 million in annual revenue. This also missed the estimate of US$637.3 million according to Refinitiv.

Beyond Meat last traded at US$49.00 on the Nasdaq, but fell down as much as 12% pre-market after the firm released its earnings.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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