PALM BEACH, Fla., Sept. 1, 2020 /PRNewswire/ -- Feeding the world in a sustainable way is one of the most pressing challenges in the coming decades. Meat plays a pivotal role in this. Meat is an important source of nutrition for many people around the world. Global demand for meat is growing. Over the past 50 years, meat production has more than quadrupled. The world now produces more than 320 million tons each year. The world now produces more than four times the quantity of meat it did fifty years ago. Global meat production has increased rapidly over the past 50 years and the total production has more than quadrupled since 1961. Regionally, Asia is the largest meat producer, accounting for around 40-45 percent of total meat production. This regional distribution has changed significantly in recent decades. In 1961, Europe and North America were the dominant meat producers, accounting for 42 and 25 percent, respectively. In 1961, Asia produced only 12 percent. By 2013, Europe and North America's share had fallen to 19 and 15 percent, respectively. Active stocks in news today include: The Very Good Food Company Inc. (CSE: VERY) (OTCPK: VRYYF), Hormel Foods Corporation (NYSE: HRL), Beyond Meat, Inc. (NASDAQ: BYND), Tyson Foods, Inc. (NYSE: TSN), Mondelēz International, Inc. (NASDAQ: MDLZ).
According to a report from IBISWorld, the Meat, Beef and Poultry Processing industry, which involves the slaughtering, processing and packaging of livestock and poultry… will continue to grow through 2025. Over the five years to 2020, the industry had contended with volatile meat prices resulting from drought, disease and volatile feed prices. Difficult agricultural conditions have resulted in imbalances of livestock supply, ultimately resulting in a boom and bust cycle in which supply has reached levels far above and far below demand within just five years. Such volatility has hindered the industry as the fluctuating price they receive for their products has made production output difficult to anticipate. Conversely, consumer demand has exhibited strong growth during the current period, as per capita disposable income has increased.
The Very Good Food Company Inc. (CSE: VERY) (OTCPK: VRYYF) BREAKING NEWS - The Very Good Food Company Announces Q2 Financial Results - The Very Good Food Company Inc. ("VGFC" or the "Company") today announced its second quarter ("Q2") financial results for the period ended June 30th, 2020. Second Quarter 2020 Financial Highlights:
- Revenues were $1,100,816 million, an increase of 400% year over year
- Gross profit margin of 42% over 6 month period, an improvement from 34%
- Total assets of $6,757,062, including a cash balance of $3,508,826
- Outstanding debt reduced by $1.1 million
- Net loss was $1,653,655 million, or $0.03 per common share
CEO Mitchell Scott stated: "We were extremely pleased with our financial performance this quarter, with revenue growth and gross margins both producing industry leading results. With a very healthy balance sheet and quickly growing demand for our products, we are in a position of strength as we charge forward with our international expansion. Over the coming quarters, investors can expect to see significant progress on our next phase of growth, as we transition to becoming a much larger company with global ambitions."
Management Discussion & Analysis - During the second quarter, the Company reported record quarterly revenue of $1,100,816 million, up 225% quarter-over-quarter from $338,552 and up nearly 400% year-over-year from $222,054. The increase in revenues for the three months ended June 30, 2020 was mainly due to an increase in eCommerce Store sales associated with an eCommerce Partnership Agreement entered into during March 2020.
When compared to the 6 month period ended June 30, 2019 the Company has improved its gross margin from 34% to 42%. The Company continues to have industry leading margins when compared to competitors such as Beyond Meat, who recently announced a 29.7% gross margin on revenues.
Total assets held by the Company increased to $6,757,062 which includes a cash balance of $3,508,826. The increase in working capital was primarily due to an increase in cash from the completion of an Initial Public Offering. Subsequent to the date of the Q2 statements, the Company completed a prospectus offering of 6,555,000 units at $1.30 per unit for gross proceeds of $8,521,500.
During the quarter, the Company repaid $1.1 million of outstanding debt. Where possible without incurring early repayment penalties, the Company intends to deleverage further, with a focus on debt bearing a higher interest rate.
As an early stage company experiencing significant growth, the Company is currently prioritizing reinvesting cash flow in further expansion, rather than short term profits. The increase in net and comprehensive loss for the quarter was mainly due to the increase in advertising and promotional expenses associated with the eCommerce Partnership Agreement, and an increase in selling costs, which consist of shipping and merchant processing fees. Read this entire press release and more news for VERY at: https://www.financialnewsmedia.com/news-very
In other industry news this week of note includes:
Beyond Meat, Inc. (NASDAQ: BYND) recently announced it is launching a new e-commerce site and a whole new way to shop for Beyond Meat products. Featuring unparalleled access to a vast portfolio of signature plant-based meats, including all-new bulk packs, mixed product bundles, limited-time offers, trial packs and more, the direct-to-consumer site is a new and convenient way to experience Beyond Meat.
Available for order in the contiguous U.S., the online shop brings the plant-based meat consumers know and love directly to their doors, with 2-day1 shipping included on all orders. The addition of a direct-to-consumer site complements the company's expansive retail presence in 26,000 retail outlets across the US, including Target, Walmart, Kroger, Safeway and Whole Foods, as well as at club stores like Costco, Sam's Club and BJ's Wholesale. Consumers have made their preference for Beyond Meat clear – according to the most recent 4-week SPINS data ending July 12, 2020, Beyond Meat was the #1 selling brand in refrigerated plant-based meat.
Hormel Foods Corporation (NYSE: HRL) announced recently that Jim Snee, chairman of the board, president and chief executive officer, Jim Sheehan, executive vice president and chief financial officer, and Glenn Leitch, executive vice president, Supply Chain, will participate in the Barclays Global Consumer Staples Virtual Conference on Tuesday, Sept. 8, 2020. A webcast of the presentation and fireside chat is scheduled to begin at 2:00 p.m. ET.
Tyson Foods, Inc. (NYSE: TSN) has recently partnered with Feed the Children, a leading nonprofit focused on alleviating childhood hunger, to provide 10 million meals to families in 16 states across America. The recent 2.5-million-pound donation to the nonprofit is Tyson Food's single largest product gift in 2020, and one of its largest ever to date to a single organization.
With Feed the Children's network of hundreds of community partners across the U.S., Tyson knew that their product would reach the families who had been most impacted. In fact, Feed the Children reports that much of the product is already on its way to food banks, churches and pantries to bring much-needed relief to struggling families with plans for the remaining product to be delivered by the end of August. Feed the Children and Tyson Foods have partnered for 18 years to provide protein items to families. However, during these extraordinary times where unemployment rates remain above 10 percent, the organizations are working even more closely together to ensure families who may have never had to worry about their livelihoods still have access to nutritious food.
Mondelēz International, Inc. (NASDAQ: MDLZ) recently announced that it has joined the U.S. Plastics Pact, a collaborative, solutions-driven initiative rooted in four ambitious goals intended to drive systemic change by bringing together a diverse group of participants from different sectors to work together on creating scalable solutions that can pave the way for a circular economy for plastics in the United States by 2025.
As part of the U.S. Pact, activators like Mondelēz International recognize that significant, systemwide change is imperative to realize a circular economy for plastics. As such, the U.S. Pact will convene more than 70 brands, retailers, NGOs, and government agencies across the plastics value chain to bring one voice to U.S. packaging through coordinated initiatives and innovative solutions for rethinking products, packaging, and business models.
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