Vegetarian sausages from Beyond Meat Inc, maker of vegan burgers, are displayed for sale at a market in Encinitas, California, June 5, 2019.
Mike Blake | Reuters
Besides meat on Thursday lowered its revenue forecast for 2022 and announced it would cut its workforce by 4%, citing economic uncertainty.
The El Segundo, California-based company also reported a wider-than-expected loss and weak revenue. Its shares fell 2% in extended trading.
Here’s what the company reported versus what Wall Street was expecting, 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 drop to changes in exchange rates, increased discounts and sales to liquidation channels.
CEO Ethan Brown said in a statement, referring to the company’s push to mass-market with plant-based products that mimic meat.
For 2022, Beyond now projects revenue between $470 million and $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 are among the factors driving the revised outlook.
Beyond also said it will lay off about 4% of its global workforce, which is expected to save about $8 million annually. However, the company will also spend about $1 million in disaggregation costs that will affect the company’s Q3 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 ago. there. The company said it spent more on materials and production this quarter. Furthermore, Beyond Jerky doesn’t have its meat, made through a joint venture with PepsiComargin considerations for the second consecutive quarter.
U.S. grocery sales rose 2.2% in the quarter, offsetting a 2.4% decline in restaurant business. Before the pandemic, restaurants accounted for more than half of sales, but business has struggled to recover.
Outside the US, grocery sales fell 17%, while restaurant sales rose 7%. The two international divisions collectively contribute roughly equal revenue to Beyond.
