Vegan protein maker Beyond Meat Q3 revenue falls on drop in sales volume

Overview

• Plant-based protein maker's Q3 revenue fell 8.1% yr/yr

• Gross margin rose to 19.3%, highest in five years, driven by lower costs

• Net loss narrowed from prior year, helped by improved gross profit and other income

Outlook

• Beyond Meat expects Q4 net revenue between $54 mln and $59 mln

• Company says operating environment remains uncertain and volatile, may impact future results

• Company is limiting guidance to Q4 revenue outlook due to ongoing uncertainty

Result Drivers

• LOWER SALES VOLUME - Co said Q3 revenue decline was mainly due to a drop in volume of products sold

• LOWER COSTS - Co attributed improved gross margin to reduced manufacturing, inventory and logistics expenses

• EUROPEAN RETAIL GROWTH - Co said international retail sales rose, driven by increased burger and ground beef sales in Europe

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", no "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Beyond Meat, Inc. is $10.00, about 39.9% above its November 4 closing price of $7.15

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)