Yahoo Finance Beyond Meat (NASDAQ:BYND) Surprises With Strong Q2, Guides For Strong Full-Year Sales
Plant-based protein company Beyond Meat (NASDAQGS:BYND) reported Q2 CY2024 results beating Wall Street analysts' expectations , with revenue down 8.8% year on year to $93.19 million. The company's full-year revenue guidance of $330 million at the midpoint also came in 2.4% above analysts' estimates. It made a non-GAAP loss of $0.53 per share, improving from its loss of $0.83 per share in the same quarter last year.
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Beyond Meat (BYND) Q2 CY2024 Highlights:
Revenue: $93.19 million vs analyst estimates of $88.4 million (5.4% beat)
EPS (non-GAAP): -$0.53 vs analyst estimates of -$0.52
The company reconfirmed its revenue guidance for the full year of $330 million at the midpoint
Gross Margin (GAAP): 14.7%, up from 2.2% in the same quarter last year
EBITDA Margin: -24.7%, up from -40% in the same quarter last year
Free Cash Flow was -$17.33 million compared to -$33 million in the previous quarter
Sales Volumes fell 15% year on year (-23.9% in the same quarter last year)
Market Capitalization: $343.9 million
Beyond Meat President and CEO Ethan Brown commented, “We are pleased to report a strong quarter of progress against our 2024 plan, a pivotal year on our path to sustainable operations and profitability. Key proof points include exceeding our Q2 revenue guidance; continued reduction in operating expenses and cash consumption; and our best quarterly gross margin since Q3 2021.
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQGS:BYND) is a food company crafting innovative, sustainable, and delicious alternatives to traditional meat products.
Perishable Food
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
Sales Growth
Beyond Meat is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefitting from better brand awareness and economies of scale.
As you can see below, the company's revenue has declined over the last three years, dropping 11.2% annually. This is among the worst in the consumer staples industry, where demand is typically stable.
This quarter, Beyond Meat's revenue fell 8.8% year on year to $93.19 million but beat Wall Street's estimates by 5.4%. Looking ahead, Wall Street expects sales to grow 8.9% over the next 12 months, an acceleration from this quarter.
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Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
Beyond Meat's average quarterly sales volumes have shrunk by 8.5% over the last two years. This decrease isn't ideal because the quantity demanded for consumer staples products is typically stable.
In Beyond Meat's Q2 2024, sales volumes dropped 15% year on year. This result was a further deceleration from the 23.9% year-on-year decline it posted 12 months ago, showing the business is struggling to push its products.
Key Takeaways from Beyond Meat's Q2 Results
We were impressed by how significantly Beyond Meat blew past analysts' gross margin expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates. On the other hand, its EPS missed analysts' expectations. Zooming out, we think this was a good quarter with some key areas of upside. The stock traded up 4.8% to $5.50 immediately after reporting.
Beyond Meat may have had a good quarter, but does that mean you should invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
