Beyond Meat, Inc. (BYND) stock prices were down by 2.08% as of the market closing on May 6th, 2021, bringing the price per share down to USD$119.04 at the end of the trading day. Subsequent pre-market fluctuations put the stock down a further 6.59%, bringing it to USD$111.20.
Net Revenue Sees Improvement
Net revenues for the first quarter of 2021 were up by 11.4% to hit USD$108.2 million as compared to the USD$97.1 million reported in the same quarter of the previous year. This growth is primarily attributable to increased retail channel sales, which was partially offset by the continued hardships imposed by the global pandemic on foodservice demand levels, resulting in a decline in BYND foodservice channel sales.
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Potential for Further Growth
The growth experienced in Q1 2021 from its comparative year-ago period was also partially offset by BYND’s strategic allocation of resources towards promotional activity. Further contributing to the reigning in of the growth in net revenues, BYND reported a larger proportion of the total net revenues consisting of larger-pack items that carry a lower net price per unit volume, as compared to the prior-year period.
Gross Profit Performance Suffered
Gross profit for the first quarter of 2021 was reported at USD$32.7, representing a gross margin of 30.2% of net revenues. This is comparable to the USD$37.7 million reported in the first quarter of 2020, with a gross margin of 38.8%.
Factors Contributing to Gross Profit Decrease
Increased transportation and warehousing costs contributed to the year-over-year decrease in performance of gross profits and margins. Also contributing to the decrease was the lower net price realization as a result of higher trade discounts and variations in product sales mix, as well as higher depreciation and amortization expenses, and increases in fixed over-head costs for BYND.
Solid Liquidity Position
As of April 3rd 2021, BYND reported having cash and cash equivalents amounting to USD$1.1 billion, with a concurrent outstanding debt of USD$1.1 billion. Q1 2021 saw the company announce the completion of an offering for convertible senior notes with an aggregate principal amount of USD$1.15 billion. The company also included the provision of an option allowing the purchase of an additional USD4150 million in the event of over-allotments, which was exercised by buyers.
Future Outlook for BYND
As the world hurtles towards universal immunizations, the world has seen a relaxing of government-mandated restrictions and regulations, from which BYND is likely to very substantially benefit. As dining-in options once again become the norm with the removal of limited capacities, BYND anticipates sustained growth that will match pre-pandemic trajectories and usher in significant and sustainable increases in shareholder value.