USA, El Segundo, Calif. Beyond Meat Inc. announced its second quarterly earnings report along with a proposed secondary public offering.
The company said existing shareholders will be selling three mill. common stock shares, plus it will sell 250,000 more shares to invest in building out production capabilities and pay for marketing. The company’s first IPO was released earlier this year.
For the second quarter ended 29 June 2019, the company reported a 287% net revenue increase at $67.3 mill., compared to $49.9 mill. in the second quarter of 2018. Gross profit also ticked up to $22.7 mill. compared to $2.6 mill. in the previous year.
“We are very pleased with our second quarter results which reflect continued strength across our business as evidenced by new foodservice partnerships, expanded distribution in domestic retail channels, and accelerating expansion in our international markets. We believe our positive momentum continues to demonstrate mainstream consumers’ growing desire for plant-based meat products both domestically and abroad,” said Ethan Brown, president and CEO. “Looking ahead, we will continue to prioritize efforts to increase our brand awareness, expand our distribution channels, launch new innovative products, and invest in our infrastructure and internal capabilities in order to deliver against the robust demand we are seeing across our business.”
The company attributed increases in gross profit and gross margin primarily to more products being sold. These positive numbers resulted in production efficiency improvements and operating leverage, the company added.
Income from operations for the second quarter was up $2.2 mill. compared to a loss of $7.3 mill. during the 2018 second quarter. However, the company reported a net loss of $9.4 mill. compared to a net loss of $7.4 mill. in the year-ago period. Net loss was also reported in the first quarter of 2019. The company reported pro forma basic and diluted net loss per common share, which is a non-GAAP financial measure, was $0.24 per common share in the second quarter of 2019 compared to $1.22 per common share a year ago.
Adjusted EBITDA for the quarter was up of $6.9 mill. compared to a loss of $5.6 mill. in the second quarter of 2018.
For the full year, the company expects net revenues to exceed $240 mill., a 170% increase from 2018 and adjusted EBITDA should be positive compared to a previous projection of break-even.