Beyond Meat beats by $0.01, beats on revs; guides FY19 revs above consensus
- Reports Q1 (Mar) loss of $0.14 per share, excluding non-recurring items, $0.01 better than the S&P Capital IQ Consensus of ($0.15); revenues rose 214.1% year/year to $40.2 mln vs the $38.93 mln S&P Capital IQ Consensus and $38-40 mln preannouncement, driven primarily by an increase in sales of The Beyond Burger, expansion in the number of retail and foodservice points of distribution, including new strategic customers, and greater demand from our existing customers. The Company discontinued its frozen chicken strips product line during the first quarter of 2019, causing a decline in frozen product revenues consistent with its shift to concentrate more on its fresh products platform.
- Gross profit was $10.8 million, or 26.8% as a percentage of net revenues, in the first quarter of 2019, compared to $2.1 million, or 16.1% as a percentage of net revenues, in the prior-year period. The increase in gross profit and gross margin was primarily due to an increase in the amount of product sold with resulting operating leverage, and improved production efficiencies. A greater proportion of revenues from the Company's fresh platform products also contributed to the improvement in gross margin.
- Co issues upside guidance for FY19, sees FY19 revs of exceed $210 mln vs. $204.92 mln S&P Capital IQ Consensus; breakeven EBITDA vs. ($12) mln ests.
- "We are pleased with our expansion in gross margin and the progress we are achieving in Adjusted EBITDA, which gives us confidence in our ability to continue to improve profitability and cash flow generation as we rapidly scale our business."