The reason I am covering Beyond Meat (NASDAQ:BYND) in this article is that it is one of the most interesting companies in the world. For readers who haven’t heard of Beyond Meat, it’s one of the fastest growing companies in the United States, offering a portfolio of revolutionary plant-based meat.
The company literally manufactures meat right out of its factories, but with plant protein instead of with animal-based meat. According to Beyond Meat, the technology has enabled consumers to experience the same taste, texture and other sensory attributes of animal-based meat products in its plant-based meat products, but minus all the hormones and antibiotics that are typically found in animal-based products.
The success of Beyond Meat’s breakthrough innovation and the variety of products has positioned the company to directly take on the $1.4 trillion global meat industry.
With all said, this article will explore Beyond Meat’s revenue and briefly look into the company different business segments and their respective sales. Also, we will analyze the growth of the company based on its historical revenues on a quarterly and yearly basis.
So, sit tight and read on!
Beyond Meat’s Annual Revenue
The chart above shows Beyond Meat’s annual revenue for the past 3 years between 2017 and 2019.
Beyond Meat operates on two distributing channels, and they are (1) Retail and (2) Restaurant and Foodservice.
The net revenue shown in the current chart are net sales generated from both distributing channels, meaning that all promotions, rebates and discounts have already been excluded in the revenue shown.
As seen from the chart, Beyond Meat’s net annual revenue has been on an exponential growth from 2017 to 2019, recording year over year growth rates of 170% and 239% in 2018 and 2019 respectively. As of 4Q 2019, Beyond Meat’s annual revenue broke the $100 million barrier for the first time and reached a record number of $298 million by the end of 2019.
Between 2017 and 2019, Beyond Meat’s annual revenue growth from just $32.6 million to a whopping $298 million marked a growth rate of roughly 900% over the 3-year period.
According to data from Fitch Solutions‘ macro research, the meat industry is the largest category in food and in 2017 generated an estimated sales of approximately $270 billion in the U.S. and $1.4 trillion globally.
With an annual revenue of only $300 million in 2019, Beyond Meat’s market share was much less than 1% of the U.S. meat industry and represents just the tip of an iceberg.
With this said, there will be plenty of opportunities for Beyond Meat to capture market share in the meat industry not only in the U.S. but also globally in the future considering the growing consumers awareness of the negativity associated with eating animal-based products.
Beyond Meat’s Quarterly Revenue
The chart above shows Beyond Meat’s quarterly revenue for the past 2 years between 2018 and 2019.
As the chart shows, Beyond Meat’s quarterly net revenue has also been on an exponential growth from 2018 to 2019 on a sequential and year on year basis. For instance, sequential growth for all quarters between 2018 and 2019 have shown positive numbers as a result of positive growth across all distributing channels.
As of 4Q 2019, Beyond Meat’s quarterly revenue reached nearly $100 million which was a record high for the company, marking a year over year growth rate of a whopping 212.5% or 7.1% sequentially. Again, the outstanding result in Q4 2019 has also been a result of growth across both distributing channels which posted nearly triple digits growth rates in 2019 as shown in the charts below.
Beyond Meat’s Quarterly Revenue Sequential Growth Rates (QoQ)
The chart above shows Beyond Meat’s quarterly revenue growth rates for the past 2 years between 2018 and 2019.
As mentioned in prior discussion, Beyond Meat’s quarterly revenue growth has shown positive figures throughout 2018 and 2019, with the highest sequential figure reported in 2Q 2019 at 67% and the lowest at 7% in 4Q 2019.
In average, sequential growth rates for all quarterly results shown in the current chart was roughly 35%, indicating that the company has been on fire with its sales revenue growth from quarter to quarter.
However, the company reported only a sequential growth rate of only 7% in 4Q 2019 which was way below its average of 35%. During the same quarter in 4Q 2019, Beyond Meat’s sequential revenue growth was up only $7 million from the prior quarter.
Moving forward, Beyond Meat expects to see seasonality effects, especially within the retail channel, with revenue contribution from this channel tending to be greater in the 2nd and 3rd quarter of the year. The reason is largely due to greater demand for certain products during the summer grilling season.
Beyond Meat’s Quarterly Revenue Year Over Year Growth Rates (YoY)
When we look at the company’s year over year growth rates, the results are even more impressive with all quarterly results reporting more than 200% of growth in 2019.
For example, year over year growth rate in 4Q 2019 alone was 212.5% as a result of $67 million higher quarterly revenue than the same quarter a year ago.
Similarly, Beyond Meat reported a quarterly revenue of $92 million in 3Q 2019 which was about $66 million higher than the same quarter a year earlier, representing a year over year growth rate of 250%.
In average, Beyond Meat posted a year over year growth rate of roughly 240% in 2019, indicating that the company growth was phenomenal.
As mentioned before, there will be much greater seasonality effect moving forward when revenue growth slows down, meaning that certain quarter of the year may report higher revenue growth compared to other quarters.
Beyond Meat’s Annual Revenue by Segment
The chart above shows Beyond Meat’s annual revenue by segment or by distributing channel from 2017 to 2019.
Basically, there are two segments in which the company operates and reports its revenue which are (1) Retail and (2) Restaurant and Foodservice.
According to Beyond Meat, the company’s products were available in approximately 28,000 retail outlets in the United States and Canada compared to roughly 36,000 restaurant and foodservice outlets as of 4Q 2019.
In terms of revenue, the company distributed most of its products to retailers in 2017 as seen from the higher revenue of $25 million compared to only $7 million of revenue from restaurant and foodservice.
However, the restaurant and foodservice segment was fast catching up in 2018 as revenue from this channel has grown by more than 400% in 2018 to reach $37 million compared to $51 million of revenue from the retail segment.
In 2019, Beyond Meat’s revenue has grown the most with the restaurant and foodservice segment’s revenue surpassing that of the retail segment to $153 million compared to $144 million of revenue from the retail segment.
In terms of year over year growth rate, the restaurant and foodservice revenue has the highest growth rate at more than 300% in 2019 as opposed to only 185% of growth rate for the retail sector.
By 2019, Beyond Meat’s net revenue was almost equally divided between the two distributing segments, indicating that the restaurant and foodservice channel has perhaps, been the most profitable.
Beyond Meat’s Annual Revenue by Region
The chart above shows Beyond Meat’s annual revenue by region over the past 3 years from 2017 to 2019.
In the company’s annual and quarterly reports, there are only two regions being disclosed which are North America which consists of U.S. and Canada and International.
As seen from the chart above, the U.S. and Canada region made up the bulk of total revenue at more than 80% of net revenue in 2019. The ratio was much higher in 2017 and 2018 at over 90% of net revenue.
In terms of year over year growth rates, International growth has been the fastest and biggest, growing more than 500% in 2019 and 2000% in 2018.
By the end of 2019, International revenue has grown to $47 million compared to $250 million from North America region.
While International region has grown the most over the 3-year period, the U.S. and Canada still represents the largest market for Beyond Meat’s products.
Judging from the revenue growth results over the past 3 years, Beyond Meat has been phenomenal in growing its sales both in North America and globally.
At a net revenue of just $300 million by the end of 2019, Beyond Meat’s market share represents less than 1% of the $270 billion meat industry in the U.S. With this, there will be plenty of opportunities moving forward for Beyond Meat to capture as a result of the growing consumers awareness of the benefits of eating plant-based products.
For Beyond Meat, the company just needs to do what it’s doing and keep the innovation going.
References and Credits
1. All information such as financial numbers and statistic in this article were obtained from Beyond Meat SEC filings.
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