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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Beyond Meat Reports on Q1 FY 2022

05/12/2022

In a press release dated May 11th 2022, Beyond Meat Inc. (BYND) announced results for the 1st quarter of FY 22 ending April 2nd.

 

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)


All downhill from the IPO

1st Quarter Ending.

April 2nd 2022

April 3rd 2021

Difference (%)

Sales:

$109,455

$108,164

+1.2

Gross profit:

$190

$32,706

negative

Operating income:

$(97,628)

$(24,625)

-296.1

Pre-tax Income

Net Income

$(99,777)

$(100,458)

($26,844)

($27,266)

-271.7

-268.4

Diluted earnings per share:

$(1.58)

$(0.43)

-267.4

Gross Margin (%)

0.2

30.2

negative

Operating Margin (%)

(89.2)

(22.7)

-292.0

Profit Margin (%)

(91.8)

(25.3)

-262.8

Long-term Debt:

$1,152,538

$1,152,715

<0.1

12 Months Trailing:

Return on Assets (%)

(10.8)

Return on Equity (%)

(72.9)

Operating Margin (%)

(34.2)

Profit Margin (%)

(39.2)

Total Assets

$1,294,510

$1,333,399

+870.4

Intraday Market Capitalization

$1,666,000

 

52-Week Range in Share Price: $20.50 to $160.28 50-day Moving average $42.65

Market Close Wed. May 11th $25.97. Open Thur. 12th post release $22.17.

BYND opened at $66 at the IPO on April 5th 2019 climbing to a peak of $234 within three months on July 20th 2019

Forward P/E 666

 

Chick-NewsA total of 63.7 percent of BYND equity is held by institutions, 8.7 percent by insiders (18% in mid- 2019) with 36.4 percent of the float short.

 

In Q1 FY 22, 77 percent of revenue was derived from retail sales, 22.9 percent from food service. The U.S. represented 76.5 percent of sales up 4 percent from Q1 FY 21. International contributed 23.5 percent to revenue, down 6.9 percent from Q1 FY 21.

 

In commenting on results, Ethan Brown, president and CEO stated "In the first quarter, we made good progress against our goal of building tomorrow’s global protein company. Whether furthering strategic partnerships in the restaurant industry, the market success of our first product collaboration with PepsiCo, or the continued acclaim awarded to our products here in the U.S. and EU, we continue to lay a robust foundation for our long-term growth.”

 

Brown added, “Though we recognize that the decisions we are making today in support of our long-run ambition have contributed to challenging near-term results, including a sizable though temporary reduction in gross margin as we took cost-intensive measures to support important strategic launches, we are confident in the future we are building while advancing our mission to bring plant-based meats and their attendant health, climate, natural resource, and animal welfare benefits to consumers around the world.”

 

These comments are pure hype. Brown should be addressing realities of his enterprise:-

 

  • R&D expenditure during Q1 corresponded to 17.9 percent of revenue, up from 14.7 percent during the 1st quarter of FY 21. By comparison Pfizer a leading biopharmaceutical multinational assigned the equivalent of 8 percent of revenue on R&D.
  • SG&A attained 68.6 percent of revenue in the most recent quarter up from 36 percent in Q1 FY 21.
  • Inventory at $283,754 as reflected under assets, represents a stock of raw material or finished product equivalent to 2.6 times Q1 sales implying a stock rotation of over 7 months.
  • Failure to achieve economies of scale with a sharp decline in gross margin from 30.2 percent in Q1 FY 21 to essentially zero during the most recent quarter.

 
Copyright © 2024 Simon M. Shane