Beyond Meat Struggles, Restates 3Q 2021 Net Revenues Outlook
Posted on 10/23/2021
Fake meat company Beyond Meat, Inc. had to restate its third quarter 2021 net revenues outlook. Beyond Meaty is proceeding through its quarterly close, and based on preliminary results, the company now expects third quarter net revenues of approximately US$ 106 million as compared to prior guidance of US$ 120 million to US$ 140 million. Although Beyond Meat’s previous third quarter guidance anticipated a sequential decline in net revenues, the deceleration was larger than anticipated. Multiple factors contributed to the shortfall during the quarter. Beyond Meat invested millions of dollars in research and development to bring plant-based “meat” to the public.
According to the press release, “While the Company continues to study the drivers behind this quarter’s performance, the Company believes demand was impacted by broader ongoing macro and micro-economic factors, including among others, the effects of the COVID-19 Delta variant. The Company also experienced a decrease in retail orders that persisted longer than expected from a Canadian distributor coinciding with the reopening of restaurants, expected incremental orders that did not materialize from a change in a distributor servicing one of the Company’s large customers, observed delays in distribution expansion and shelf resets believed to be driven by customer labor shortages, and incurred shortfalls at certain U.S. foodservice customers believed to be driven by the effects of the COVID-19 Delta variant.
The Company further experienced challenges in operations that led to unfulfilled orders, with severe weather as a key driver resulting in the loss of potable water for two weeks in one Pennsylvania facility and water damage to inventory in another.
These impacts were partially offset by accelerated orders from an international customer during the third quarter.”
In September 2021, Sanjay Shah stepped down as Chief Operating Officer of Beyond Meat. Beyond Meat’s primary production facilities are located in Columbia, Missouri, and Devault, Pennsylvania, and research and development and administrative offices are located in El Segundo, California.
