Vegetarian sausages from Beyond Meat Inc, the maker of vegan burgers, are displayed for sale at a market in Encinitas, California, June 5, 2019.
Mike Blake | Reuters
On Thursday, Beyond Meat lowered its 2022 revenue forecast and said it would cut its workforce by 4%, citing broader economic uncertainty.
The El Segundo, California-based company also reported a bigger-than-expected loss and weak sales. Its shares fell 2% in extended trading.
Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:
- Loss per share: $1.53 vs. $1.18 expected
- Revenue: $147 million vs. $149.2 million expected
Net sales fell 1.6% to $147 million. The company attributed the decline to changes in exchange rates, increased discounts and sales through liquidation channels.
“We recognize that progress is taking longer than we expected,” CEO Ethan Brown said in a statement, referring to the company’s pursuit of mass market consumption with plant-based products that mimic meat.
For 2022, Beyond now expects revenue of $470 million to $520 million, down from a previous forecast of $560 million to $620 million. The company said inflation, rising interest rates and growing fears of a recession were among the factors that led to the revised outlook.
Beyond also said it will cut about 4 percent of its global workforce, which is expected to save about $8 million annually. However, the company will also spend approximately $1 million in spin-off costs, which will impact its third-quarter results.
Beyond Meat reported a second-quarter net loss of $97.1 million, or $1.53 per share, wider than a net loss of $19.7 million, or 31 cents per share, a year earlier. The company said it spent more on ingredients and manufacturing this quarter. What’s more, its meatless Beyond Jerky, produced through a joint venture with PepsiCo, weighed on profit margins for the second quarter in a row.
U.S. grocery sales rose 2.2 percent in the quarter, offsetting a 2.4 percent decline in the restaurant business. Before the pandemic, restaurants accounted for more than half of its sales, but the business has struggled to recover.
Outside the US, grocery sales fell 17%, while restaurant sales rose 7%. The two international divisions generally contribute roughly equal revenue to Beyond.
Read the full earnings report here.
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