In the first quarter of 2019, Beyond Meat (BYND) reported revenue of $40.2 million, a rise of 214.7% from $12.8 million in the first quarter of 2018. The increase in the Beyond Burger’s sales, growth in the number of retail and food service points of distribution, and increased demand from existing customers drove the company’s revenue during the quarter.
BYND’s revenue from both the Retail and Restaurant and Food Service segments rose during the quarter. The revenue from the Restaurant and Food Service segment increased 491.4% to $20.63 million, forming 51.3% of the company’s total revenue. The revenue from the Retail segment increased 110.8% to $19.58 million.
Moving to the product side of things, the company’s revenue from the frozen platform fell 5% due to its management’s decision to discontinue its frozen chicken strip product line. However, the revenue from its fresh category rose 304.4% to $38.8 million, representing more than 90% of the company’s total revenue.
Analysts’ revenue expectations
BYND’s management has provided revenue guidance of $210 million for 2019. Analysts expect the company to post revenue of $221.2 million during the same period, which represents a rise of 151.6% from $87.9 million in 2018.
BYND’s management is focusing on improving its existing products, introducing new products, increasing brand awareness, growing its distribution channels, and investing in expanding its capacity to drive its sales.
According to Nielsen’s data, Beyond Meat’s penetration level is just 2% in US households, which provides a huge scope for the company to expand. BYND’s international sales represented only 1% and 7% of its total sales in 2017 and 2018, respectively. The company is focusing on both Europe and Asia to expand its share in international markets.
In Europe, the market for plant-based proteins has been well developed. On May 28, the company’s management announced a new manufacturing partnership with Zandbergen World’s Finest Meat. According to the partnership, Zandbergen will be producing the brand’s innovative plant-based meat at its manufacturing facility in Zoeterwoude, which is expected to become operational in the first quarter of 2020. The company has also established a limited partnership for distribution in some parts of South Africa, Chile, Australia, and Korea.