Beyond Meat, Food Service Division Sales Expected to Improve in Second Half of Year

[Asia Economy Reporter Minji Lee] Beyond Meat is expected to reduce its deficit due to a recovery in sales in the foodservice sector and high growth in the retail sector.

According to Beyond Meat and IBK Investment & Securities on the 6th, the estimated sales for this year are expected to reach $590 million. Operating losses are expected to decrease to $18,000. This outlook is based on the expectation of improved performance due to the recovery of foodservice (B2B) sales.

Last year's annual performance recorded sales of $406.8 million, a 36% increase compared to the previous year. Operating losses continued at $49.4 million. In 2019, operating losses were also recorded at $400,000. Net losses also continued at $52.8 million. The significant decline in B2B sales, such as restaurants and hotels, by 30.7% compared to the previous year was largely due to the impact of COVID-19. However, retail (B2C) sales, including large supermarkets, grew by 107.6%.

By region, overseas sales decreased by 16%, but U.S. sales increased by 62%, driving top-line growth. The deficit widened due to increased operating expenses such as IT infrastructure construction and marketing to expand overseas market entry in Europe, China, and other regions.

This year, a recovery in the B2B sector is expected. In February, the company signed supply contracts with Yum! Brands (the parent company of KFC, Pizza Hut, Taco Bell) and McDonald's. The previous month, it formed a partnership with PepsiCo for the development and production of plant-based protein snacks and beverages. By expanding partnerships with food manufacturers and restaurant franchise companies, diversifying the plant-based protein food category, and expanding distribution channels, market competitiveness is expected to further increase.

Kim Taehyun, a researcher at IBK Investment & Securities, explained, "Considering the smooth global supply of vaccines, the sales performance of the foodservice (B2B) sector, which was sluggish last year, is expected to improve as the second half of the year progresses."

High growth in the retail sector is also anticipated. As of last year, the global retail distribution channels numbered approximately 62,000, a 68% increase compared to the previous year. With the expansion of consumer touchpoints, household penetration improved to 5.3%, and the repurchase rate increased by 12.3 percentage points to 55.3% compared to the previous year.

This content was produced with the assistance of AI translation services.