Beyond Meat, the US company that makes plant-based alternatives to meat, surprised financial markets this week after it reported an operating loss of $18.5m (€16m) for the third quarter of its 2020 financial year. The company had made a small operating profit of $3.6m (€3m) in the same period last year.

When finance charges and other costs are included, Beyond Meat reported a pre-tax loss of $19.2m (€16.3m) for the third quarter, a significant decline on the pre-tax profit of $4m (€3.5m) it made a year previous.

Beyond Meat blamed the third quarter losses on higher employee numbers, higher marketing costs and investment in international expansion.

Slowdown

However, of greater concern for Beyond Meat investors will be signs that sales growth is slowing for the plant-based food company. In the third quarter, Beyond Meat reported sales growth of less than 3% as turnover grew to $94.4m (€80m) for the three month period to the end of September.

The slowdown in third quarter revenues was driven by a 45% decline in sales to international customers outside the US to $16m (€14m). This decline was just about offset by a 25% increase in sales in its home market to $78m (€66m). In the US, retail sales of Beyond Meat products increased over 40% in the third quarter to $62m (€53m), which more than offset an 11% decline in sales to foodservice customers such as restaurants and fast food outlets.