Beyond Meat sees stronger international demand lifting quarterly revenue outlook
The company is also expanding its Beyond Immerse drinks through a new distribution deal in New York.
USA – Beyond Meat expects its third-quarter revenue to come in above Wall Street’s forecast, with continued demand for its products outside the United States helping to offset a decline in domestic sales.
The plant-based meat maker said it expects revenue for the three months ending September to range between US$60 million and US$65 million, putting the midpoint slightly above analysts’ average estimate of US$62.2 million, according to LSEG data.
The forecast follows a stronger-than-expected second quarter, when Beyond Meat reported revenue of US$68.8 million, compared with analysts’ estimate of US$62.4 million.
The company also reduced its adjusted quarterly loss to US$0.09 per share from US$0.39 per share a year earlier, as it continues to introduce products aimed at reaching consumers beyond its traditional plant-based meat range.
International retail sales rose 16.5% in the quarter ended June 30, providing a counterweight to a 14.4% drop in US sales as consumers faced weaker spending and showed greater interest in other health-focused food options.
Against that backdrop, Beyond Meat has been adding new products, including Beyond Immerse, a functional sparkling drink containing plant-based protein, fibre, antioxidants and electrolytes.
In early July, the company agreed a distribution partnership with Big Geyser to bring Beyond Immerse to retailers and foodservice businesses across the New York metropolitan area, expanding the product beyond Beyond Meat’s direct-to-consumer sales channel.
Through the agreement, the beverage range will gain access to more than 26,000 locations across grocery stores, pharmacies, convenience stores, mass merchants, warehouse clubs and foodservice operators in New York City and surrounding counties covered by Big Geyser’s distribution network.
Big Geyser, a major US non-alcoholic beverage distributor, already distributes brands including Celsius, Poppi, C4, Bloom, Essentia Water and Just Ice Tea across the region.
The distributor’s President and Chief Operating Officer Jerry Reda said the company selected Beyond Immerse because the drink combines plant-based protein, fibre, antioxidants and electrolytes while using non-GMO ingredients and containing neither dairy nor whey protein.
Beyond Meat Chief Executive Officer and founder Ethan Brown said the deal is part of the company’s plan to move into additional product categories and use established distribution networks to increase access to its beverage products.
Despite the improved outlook, investors reacted cautiously, with Beyond Meat shares falling 3% in extended trading after the company released its results.
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