Artificial meat producer Beyond Meat reports rising losses in Q3 2021, and also gave a weak forecast for the fourth quarter. On the postmarket, the company's shares fell by 19%, to 77 $.
Beyond Meat almost triples its quarterly net loss year-over-year, from 19 up to $ 55 million. Loss per share was higher than analysts' expectations: 87 vs 39 cents.
According to the company, the cost of transporting and storing goods has increased dramatically. As a result, gross margin fell from 27 to 22%. The result was also influenced by unforeseen operational problems.. for example, one of the factories lost drinking water for two weeks. And other products were flooded with water during unfavorable weather.
Revenue increased by 13%, up to 106 million dollars. Overseas sales increased by 142%, up to 39 million: one of the clients, whose name the company does not name, increased order.
But sales in the USA, in the main market for Beyond Meat, fell on 14%, up to 67 million. As the company said, the demand for products has decreased - and in retail, and in public catering. Restaurants, despite the restoration of client flow, do not want to order more yet.
Beyond Meat expects, that uncertainty and disruptions in the supply chain, caused by the pandemic, will continue to affect financial results. According to company forecasts, in the fourth quarter, revenue will be $ 85-110 million. Analyst Expectations - 132 million.
Since the beginning of the year, given the recent drop, Beyond Meat shares have dropped by 39%.
Revenue in the USA, million dollars
|Public catering||15,1 (−7%)|
Revenue in other countries, million dollars
|Public catering||17,5 (117%)|