Beyond Market is a US-based producer of plant-based meat substitutes. It was started in the year 2009 by Ethan Brown, who believed that humans could receive the same amount of nutrition from plant-based products that they got from the consumption of meat. Therefore, at Beyond Meat, elements such as amino acids, lipids, minerals, and vitamins are taken directly from plants and together with water, they are organized according to the basic structure of animal-based meat.
One of Beyond Meat’s most popular products is the Beyond Burger, which is sold at supermarkets such as Whole Foods and restaurant chains like TGIF.
Although Beyond Meat has successfully managed to increase revenue over the past few years, it has yet to generate any profits.
For instance, in the first nine months of 2018, the company earned a revenue of $56.4 million but at the same time, it also reported a net loss of $22.4 million.
Similarly, in the second quarter of 2019, sales were nearly $67.3 million, the highest so far while the loss was $9.4 million or 24 cents per share. For the same period, earnings before interest, tax, depreciation, and amortization (EBITDA) was reported to be at a gain of $6.9 million.
One of the major reasons behind Beyond Meat’s losses were due to the fact that the company expected rise in its operating expenses and capital expenditures owing to the fact that it wanted to expand its customer base, increase marketing channels, hire more people, and improve production capabilities.
In May 2019, Beyond Meat went public, with its initial public offering (IPO) fixed at $25 per share and raised at least $240 million.
Initially, Beyond Meat planned to sell around 9.5 million with a price ranging between $23 and $25 per share. However, it sold 9.63 million shares with the underwriters holding the option to sell another 1.4 million shares in a situation of over-allotment.
After the financial report for the second quarter of 2019 came out, Beyond Meat’s share prices fluctuated slightly and later, plunged after it announced its plan to sell an additional 3.25 million shares. Out of these 3.25 million shares, one-third is expected to come from the venture capital shops Kleiner Perkins Caufield & Byers and Obvious Ventures. From the remainder shares, CEO Ethan Brown plans to sell roughly 39,000 shares, CFO Nelson will sell around 55,000 shares, while the employees who have not been listed in the registration list will be offering more than 41,000 shares. This offering will be led by Goldman Sachs, JP Morgan, and Credit Suisse.
In July 2019, Beyond Meat again increased expectations for the rest of the year by increasing its annual revenue forecast from $210 million to at least $240 million and a positive EBITDA for the entire year.