Beyond Meat(US:BYND)2021-05-07 05:10Financial Data and Key Metrics Changes - The company reported net revenues of $108 million for Q1 2021, an 11% year-over-year increase, meeting internal plans [12][32] - Gross profit was $32.7 million, representing 30.2% of net revenues, down from 38.8% in Q1 2020, primarily due to higher transportation and warehousing costs [35][36] - Net loss for Q1 2021 was $27.3 million, or $0.43 per share, compared to net income of $1.8 million, or $0.03 per share, in Q1 2020 [38] Business Line Data and Key Metrics Changes - Retail net revenues increased by 45% year-over-year, driven by a 52% increase in volume sold [33][12] - Foodservice net revenues decreased by 34% year-over-year, reflecting ongoing COVID-19 impacts [18][34] - U.S. retail net revenues were $63.8 million, up 28% year-over-year, with strong performance from Beyond Beef and new products [14][12] Market Data and Key Metrics Changes - U.S. household penetration for Beyond Meat increased to 5.4%, a 100 basis point increase year-over-year [13] - International retail net revenues surged by 189% year-over-year, with Q1 revenues of $17.2 million nearly half of the entire 2020 revenues for that segment [16] - In foodservice, U.S. sales were down 22% year-over-year, consistent with the overall category's decline [18] Company Strategy and Development Direction - The company is focused on investments in infrastructure, personnel, and innovation capabilities to capture future growth [10] - A new 3.0 version of the Beyond Burger was launched, aimed at improving taste and nutrition while reducing saturated fat [20][21] - The company aims to achieve price parity with animal protein by the end of 2024 through various cost-reduction initiatives [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing stability in recent trends and a cautious resumption of near-term guidance [11][12] - The company acknowledged the ongoing uncertainty due to COVID-19 but expects gradual recovery in foodservice demand [41] - For Q2 2021, the company expects net revenues between $135 million and $150 million, representing a year-over-year increase of 19% to 32% [42] Other Important Information - The company completed a $1 billion convertible senior notes offering, raising approximately $1.04 billion in net proceeds [28][39] - Significant investments are being made in production facilities in China and the Netherlands to enhance capacity and reduce costs [26][27] Q&A Session Summary Question: Will the 3.0 product be fully stocked for major grilling holidays? - Management confirmed that the launch was timed for the summer grilling season, with enhanced marketing activities planned [44][45] Question: How should gross margins be viewed moving forward? - Management indicated that while Q1 margins were impacted by various costs, they expect improvements as volume increases and infrastructure expands [47][49] Question: What is the status of distribution losses in Europe? - Management explained that distribution losses were due to switching distributors and that they expect a quick recovery in placements [51][52] Question: How will the recent capital raise be utilized? - The capital will be used for expanding production capacity, cost reduction initiatives, and enhancing marketing efforts [59][60]