Beyond Meat the Los Angeles-based producer of plant-based meat substitutes has reported net sales of $92 million, which is a 250% increase over the previous year. This figure came in over the expectations of $82.2 million.
The third-quarter showed earnings per share of 6 cents which was twice as much as expectations. The company posted a third-quarter net income of $4.1 million which is healthier than the $9.3 million equivalent loss a year earlier.
Beyond Meat’s CEO, Ethan Brown indicated that sales of Beyond Burgers were on the rise and the company was expanding into retail. The signs are that new customers are coming on board as the vegan trend continues unabated and that there is a greater demand from existing customers.
Brown is focused on three “key growth pillars”: innovation, expansion, and sales velocity.
The CEO said that Beyond Meat’s “rapid and relentless” innovation program is “creating new iterations of beef, pork, and poultry”.
The newest version of Beyond Burger is enjoying an “overwhelmingly positive response,” he said.
The expansion into both retail and food-service locations is also increasing revenue. Brown said that
Aggressive plans to make Beyond Meat available worldwide
The company now has 53,000 points of sale worldwide and referred particularly to Dunkin’s collaboration with its Beyond Breakfast sausage patty. The company also ventures with Subway and KFC amongst others.
The company has expanded to Canada and Europe and Beyond Meat products are now available in 51 countries. It recently announced the opening of a factory in the Netherlands to help drive sales into the European market.
He quoted the research by the NPD Group that suggests some 95% of people who purchase plant-based products are also purchasing meat.
The company is utilising an ever-increasing number of plant protein sources to help meet the increasing demand. Beyond’s sausage products currently include mung bean and brown rice as well as pea protein.
Beyond Meat’s plans an aggressive path to increase its offerings globally.
Some financial commentators are expressing doubts about its trial with McDonald’s in Canada.
The company is facing increased competition not only from the privately-owned Impossible Foods but also from traditional food companies such as Tyson Foods, Kellogg and Nestle. But in a Wall Street conference call with investors, Brown was unfazed by the ever-increasing competition. It would be “naive” to only expect one or two competitors in the alternative meat market. “They’re going to have to wrestle this from our hands,” he said.
Beyond Meat’s stock price is over three times its IPO price in May 2019. It’s future looks very assured.