Vegan sausages from Beyond Meat Inc, a maker of vegan burgers, are up for sale at a market in Encinitas, California, June 5, 2019.
Mike Blake | Reuters
Beyond Meat On Thursday it lowered its revenue forecast for 2022 and announced it would cut its workforce by 4%, citing broader economic uncertainty.
El Segundo, based in California, also reported a larger-than-expected loss and weak sales. Its shares are down 2% in extended trading.
Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:
- Loss per share: $1.53 vs. $1.18 expected
- Revenue: $147 million vs. $149.2 million forecast
Net sales fell 1.6% to $147 million. The company attributed the decline to changes in foreign exchange rates, increased discounts and sales to liquidation channels.
“We recognize that progress is taking longer than we anticipated,” CEO Ethan Brown said in a statement, referring to the company’s push toward mass-market consumption using plant-based products that mimic meat.
For 2022, Beyond now expects revenue of $470 million to $520 million, down from its previous forecast of $560 million to $620 million. The company said inflation, rising interest rates and mounting fears about a recession were among the factors that drove the revised forecast.
Beyond also said it will lay off about 4% of its global workforce, which is expected to save about $8 million year-over-year. However, the company will also spend nearly $1 million in severance costs that will affect third-quarter results.
Beyond Meat reported a second-quarter net loss of $97.1 million, or $1.53 a share, greater than a net loss of $19.7 million, or 31 cents a share, in the prior year. The company said it spent more on components and manufacturing this quarter. Furthermore, the meatless restaurant Beyond Jerky, which was made through a joint venture with PepsiCoaffected profit margins for the second consecutive quarter.
U.S. grocery sales rose 2.2% in the first quarter, offsetting a 2.4% decline in the restaurant business. Before the pandemic, restaurants accounted for more than half of their sales, but the company has struggled to recover.
Outside the US, grocery sales fell 17%, while restaurant sales increased 7%. The two international divisions generally contribute roughly equal revenue to Beyond.
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