Beyond Meat cuts its revenue outlook for the year, says it’s trimming workforce

Business

In this article

Vegetarian sausages from Beyond Meat Inc, the vegan burger maker, are shown for sale at a market in Encinitas, California, June 5, 2019.
Mike Blake | Reuters

Beyond Meat on Thursday lowered its revenue forecast for 2022 and announced it will trim its workforce by 4%, citing broader economic uncertainty.

The company also reported a wider-than-expected loss and weak sales. Its shares fell down 2% in extended trading.

Here’s what the company reported compared with 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

Beyond 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.

Net sales dropped 1.6% to $147 million. The company attributed the decline in revenue to changes in foreign exchange rates, increased discounts and sales to liquidation channels.

“We recognize progress is taking longer than we expected,” CEO Ethan Brown said in a statement, referring to the company’s push into mass market consumption with plant-based products that mimic meat.

For 2022, Beyond now expects revenue of $470 million to $520 million, down from its prior forecast of $560 million to $620 million. The company said inflation, rising interest rates and growing concerns about a recession were among the factors that drove the revised outlook.

Beyond also said it will lay off about 4% of its global workforce, which is expected to save about $8 million on an annual basis. However, the company will also spend roughly $1 million in separation costs that will impact its third-quarter results.

Read the full earnings report here.

Products You May Like

Articles You May Like

Target’s earnings take a huge hit as retailer sells off unwanted inventory
German energy giant RWE to burn extra coal as Russian gas supplies dwindle
A high-profile meeting in China may have tipped off which provinces will have highest growth
Investors flock to green energy funds as Congress passes climate bill. What to know as assets reach ‘new territory’
5.2% of job ads offer a signing bonus — but 8 fields have the most. Here’s how workers can negotiate one

Leave a Reply

Your email address will not be published.