August 20, 2020
Alternative egg producer JUST expects operating profit, may issue IPO
JUST, a plant-based egg company said it projects an operating profit before the end of 2021 as more consumers increase grocery purchases due to COVID-19, with the possibility of an initial public offering (IPO) after, Reuters reported.
Josh Tetrick, chief executive of JUST said consumers have increased purchases at retail when the COVID-19 pandemic hit. He said the company aims to reach operating profitability before end 2021.
JUST, officially called Eat Just Inc, produces alternative eggs made from mung beans. These ae sold in bottles and look like beaten eggs.
The company also produces a mayonnaise alternative, with its products sold in Walmart, Kroger and Whole Foods in the United States.
Tetrick said an IPO will be considered with his team, the board and major shareholders once the company achieves operating profitability.
SPINS, a market research company said plant-based food sales increased 11% in 2019 to US$5 billion, with the alternative egg market tripling.
Paul Nolte, from Kingsview Wealth Management said its hard to project growth for alternative plant-based food companies as the sector is competitive and comaonies won't grow 40% to 50% annually for the next 10 years. The management company's clients have a stake in Beyond Meat.
Notle said these companies that have turned an operating profit are very attractive to investors.
Tetrick said the company will develop methods to extract more mung bean protein and purchase more supplies from East Africa and Asia to lower operating costs. The company projects increased sales from agreements with retailers, consumer companies and chicken egg suppliers globally.
Alternative meat producer Beyond Meat's IPO was US$25 each in May 2019. The company is now worth US$124 per share.