Shares of Beyond Meat Head Lower After Wider Than Expected Loss in Q4

Shares of plant-based meat company Beyond Meat tumbled on Thursday after the company reported a wider-than-expected loss and shrinking revenue in its fourth quarter financial report.

CEO Ethan Brown said in a statement that the company expects to “substantially moderate” the growth of its operating expenses in 2022.

The company’s revenue outlook for 2022 additionally fell short of Wall Street’s expectations.

Shares fell 11% in extended trading as its 2022 revenue outlook was disappointing.

For the three months ended Dec. 31, the company reported a loss per share of $1.27. This was compared to a loss of 71 cents epected according to a survey of analysts by Refinitiv. Revenue at
$100.7 million was also lower than the $101.4 million that had been expected.

Beyond reported fourth-quarter net loss of $80.37 million, or $1.27 cents per share, which is wider than its loss of $25.08 million, or 40 cents per share, a year earlier.

During the quarter, net sales dropped 1.2% to $100.7 million, falling short of expectations of $101.4 million.

According to executives, higher costs came from the company’s choice to lean on more expensive co-manufacturing facilities rather than its own manufacturing plants for production. In addition to costing more, the shift also meant paying higher transportation and logistics fees.

“This allocation was the right decision, given the long-term importance of the supported projects,” CEO Ethan Brown said.

Brown said that the company expects to “substantially moderate” the growth of its operating expenses in 2022, which could help it return to profitability.

“The investments we made in our team, infrastructure, and capabilities across the U.S., EU, and China, as well as extensive product scaling activities for key strategic partners, weighed heavily on operating expenses and gross margin during a fourth quarter and year that were already impacted by lower than expected volumes,” Brown added.

Brown also mentioned the coming launch of a product through the company’s joint venture with PepsiCo, which will reportedly be meat-free jerky.

For 2022, Beyond is forecasting revenue of $560 million to $620 million, up 21% to 33% compared with the prior year. That outlook falls slightly below Wall Street’s net sales forecast of $637.3 million.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.