Leading US plant-based meat brand Beyond Meat reported this week that second quarter net revenues rose 69% to a record $113.3 million.
The Los Angeles-based company’s strong sales were helped by a rapid switch in emphasis to retail sales when the Covid pandemic closed off valuable food service markets.
The Los Angeles-based company’s Q2 2020 financial highlights include:
- Net revenues were $113.3 million, an increase of 69% year over year.
- Gross profit was $33.7 million, or gross margin of 29.7% of net revenues; Adjusted gross profit was $39.6 million, or Adjusted gross margin of 34.9% of net revenues, reflecting exclusion of expenses attributable to COVID-19.
- Net loss was $10.2 million, or $0.16 per common share; Adjusted net loss was $1.2 million, or $0.02 per diluted common share, reflecting exclusion of expenses attributable to COVID-19 and early debt extinguishment.
Beyond Meat president and CEO Ethan Brown commented: “I am proud of our record net revenues and growth during a very challenging period. As the toll of the COVID-19 pandemic took hold across the foodservice industry, we repurposed assets and repacked and rerouted products to meet increased consumer activity in the retail aisles.
“Throughout the quarter, our brand experienced an enviable combination of consumer trends – increasing household penetration; increasing buying levels per household; and strong repeat purchase rates of nearly 50%2, well above the success threshold for consumer packaged goods. Further, we forged ahead with our long-term growth strategy. We invested in expanded operations and sales in the EU and Asia, in innovation, and in targeted pricing measures during this period of high beef prices.”
A standout success in its pricing strategy was the retail introduction of the Cookout Classic value pack, which reduced the price of Beyond Burger product from nearly twice that of conventional beef patties to an approximate 20% premium, on a per pound basis.
Brown told CNBC that the company’s sales previously had been split half and half between retail and food service, but now stand at “88% retail and 12% food service”.