in 2019 June 5 An Encinitas, Calif., market sells vegetarian hot dogs from Beyond Meat Inc., maker of vegan burgers.
Mike Blake | Reuters
For meat on Thursday cut its 2022 revenue forecast and announced it would cut its workforce by 4 percent, citing greater economic uncertainty.
The El Segundo, Calif.-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, according to a survey of analysts by Refinitiv:
- Loss per share: $1.53, up from $1.18
- Revenue: 147 million $149.2 million compared to an expected $149.2 million. USD
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 expected,” CEO Ethan Brown said in a statement, referring to the company’s push into mass consumption of plant-based products that mimic meat.
in 2022 Beyond expects revenue of $470 million to $520 million. USD, compared to previous forecasts – 560-620 million. The company said inflation, rising interest rates and growing concerns about a recession were among the factors behind the revised outlook.
Beyond also said it would cut about 4% of its global workforce, which is expected to save about $8 million annually. However, the company will also spend approximately 1 million USD for severance costs that will impact its third quarter results.
Beyond Meat reported a second-quarter net loss of $97.1 million. $1.53 per share, up from $19.7 million. A net loss of $31, or 31 cents per share, a year earlier. The company said it spent more on ingredients and manufacturing this quarter. Plus, its meat-free Beyond Jerky, made in partnership with PepsiCoprofit margin weighed on the second quarter in a row.
US grocery sales rose 2.2% in the quarter, offsetting a 2.4% 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 typically contribute roughly equal revenue to Beyond.