Beyond Meat has forecast stronger-than-expected quarterly sales as growing retail demand in the UK and Europe helps counter continued weakness in its home market.
The plant-based food producer now expects third-quarter revenue of between £44.5 million and £48.3 million. The midpoint is ahead of analysts’ average forecast of £46.2 million. Second-quarter sales reached £51.1 million, beating expectations of £46.3 million, although revenue remained 8.2 per cent lower year on year as the volume of products sold fell 9.5 per cent.
Second-quarter results beat expectations but volumes fall
International retail revenue jumped 16.5 per cent to £13.7 million, driven by stronger sales of Beyond Meat’s burger and chicken products across the UK and European markets. Sales were also supported by higher prices and favourable currency movements, although increased promotional discounts partially offset the gains. The performance contrasted with the US, where total sales dropped 14.4 per cent amid weaker consumer spending and subdued demand for plant-based meat. US retail revenue fell 9.9 per cent to £22 million, while foodservice sales plunged 27.6 per cent to £5.9 million as the company lost distribution and demand from restaurants remained under pressure.
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Beyond Meat president and chief executive Ethan Brown said its second-quarter performance represented “directional progress”, with revenue, margins and operating expenses improving against the previous quarter.
New products aim to reach more customers
The business is working to stabilise its core meat-alternative range while expanding into faster-growing plant-protein categories. It recently launched Beyond Immerse, a range of sparkling protein drinks, and introduced its Beyond Steak Filet into US grocery stores as it looks to attract customers beyond the traditional vegan and meat-free market.
However, the company remained loss-making at an operating level. Its operating loss narrowed to £22.9 million, from £27.8 million a year earlier, while gross margin slipped from 10.6 per cent to 8.5 per cent. Beyond Meat said it continued to face significant uncertainty from weak category demand, inflation, competition and changing consumer preferences.
