Plant-based meat manufacturing company Beyond Meat Inc (NASDAQ:BYND) has been one of the most interesting companies in recent times, and on Wednesday, BYND rallied after it beat earnings expectations. While the better than expected earnings were welcomed by the market, it should also be noted that Beyond Meat Inc (NASDAQ:BYND) revealed that sales dropped towards March-end due to widespread closure of restaurants.
The company expects further uncertainty with regards to its sales for the rest of the year and hence withdrew its annual earnings forecast. After the announcement, the stock rose by as much as 11% in the pre-market session.
The revenues jumped by as much as 141% year on year to hit $97.1 million and managed to beat analysts’ estimates of $88.3 million. On the other hand, Beyond Meat generated EBITDA earnings of $12.7 million in the first quarter, and that is a far cry from the adjusted EBITDA loss of $2.1 million it posted in the prior-year period.
While uncertainty has prompted the company to pull its annual projections, Beyond Meat expects consumers to drive up sales since most of them will continue to eat at home.
Beyond Meat announced that the sales from its food service channel in the United States rose by as much as 156% to hit $22.6 million. On the other hand, the international food service business managed to generate $18.6 million in sales, and that reflects a year on year rise of as much as 57%. On the other hand, Beyond Meat has also prepared itself for any contingencies due to disruptions caused by the coronavirus pandemic.
The company announced that it had a total of $246.4 million worth of cash in hand as of March 28. The company noted that it had debts to the tune of $30.6 million on its books as of March 28. It is also important to point out that Beyond Meat announced that it had got access to a new $150 million revolving credit facility from April 22. It seems the company has taken concrete steps to handle any disruption.