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Packages of Beyond Meat plant-based hamburger patties are on display for sale.
Paul Yeung | Bloomberg via Getty Images
Beyond Meat reported a larger-than-expected loss on Thursday as rising costs and investment in its business weighed on margins.
The company also expressed caution for the second half of the year, citing the delta Covid variant.
The company’s shares fell more than 4% amid the extended trading.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv survey of analysts:
- Loss per share: 31 cents against 24 cents expected
- Income: $ 149.4 M vs $ 140.8 M expected
In the fiscal second quarter, Beyond said its net loss widened to $ 19.7 million, or 31 cents per share, from a loss of $ 10.2 million, or 16 cents per share, a year earlier. Analysts polled by Refinitiv had expected a loss per share of just 24 cents.
The company said losses have accelerated due to investments it is making to support its expansion efforts, such as increased headcount and additional marketing expenses, as well as higher freight costs.
Net sales increased 31.8% to $ 149.4 million, beating expectations of $ 140.8 million.
In the United States, which accounts for two-thirds of Beyond’s revenue, demand for groceries has plummeted, but food service sales have more than tripled from a year ago. Still, grocery stores account for about three-quarters of Beyond’s sales in the United States.
Outside the United States, retail and foodservice sales more than doubled. The company has grown in Europe and China.
Looking ahead to the third quarter, Beyond said it expects revenue of $ 120 million to $ 140 million, below Wall Street estimates of $ 153.3 million.
“I am optimistic about what lies ahead,” CEO Ethan Brown said in a statement. “That said, given the recent increase in Covid-19 cases, which could disrupt demand patterns, we believe caution for the rest of the year remains generally appropriate.”
This is breaking news. Please check for updates.
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