Beyond Meat shares fall on dimmer than expected forecasts

[NEW YORK] Beyond Meat forecast annual revenue below estimates on Thursday (Feb 24), hitting its share price, as it faced stiffer competition amid flat demand for plant-based protein.

The California-based company said it expects revenue of US$560 million to US$620 million for 2022, compared with estimates of US$637.3 million, according to Refinitiv IBES data.

Sales to US grocers, convenience stores and other retailers declined 19.5 per cent in the fourth quarter ended Dec 31.

Rivals including Tyson Foods and Kellogg recently entered the fray with big discounts to get more people to trial their products.

US retail sales in the plant-based meat category fell 0.4 per cent last year versus 45 per cent growth in 2020, Beyond Meat chief executive officer Ethan Brown said during an earnings call.

"We experienced intense increased competition during the period when the size of the prize did not expand," he said.

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Those remarks echoed comments made by rival Maple Leaf Foods, parent of Lightlife Foods, earlier on Thursday.

Maple Leaf chief operating officer Curtis Frank said during an earnings call that many consumers tried plant-based proteins early on but did not repeat purchases.

Beyond Meat posted a larger than expected loss of US$1.27 per share in the fourth quarter, versus estimates for a loss of 71 cents, as it spent heavily on marketing and incurred high manufacturing costs due to supply chain disruptions.

Net revenue was US$100.7 million in the quarter, compared with US$101.9 million a year earlier. Analysts polled by Refinitiv had expected US$101.4 million.

Brown said growth should resume this year, in part as Beyond Meat executes on partnerships with McDonald's and KFC, and launches a new product line with PepsiCo in coming weeks - which Brown said he was snacking on during the call. REUTERS