Mike Blake | Reuters Beyond Meat on Thursday cut its 2022 revenue forecast and said it would cut its workforce by 4%, citing broader economic uncertainty. The El Segundo, Calif.-based company also reported a larger-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 foreign exchange rates, increased discounts and sales in clearance 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 the mass market with plant-based meat-mimicking products. 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 growing recession concerns were 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 severance costs that will impact third-quarter results. Beyond Meat reported a second-quarter net loss of $97.1 million, or $1.53 per share, up from 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. In addition, Meat-Free Beyond Jerky, made through a joint venture with PepsiCo, weighed on margins for the second quarter in a row. U.S. 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, food sales fell 17%, while restaurant sales rose 7%. The two international divisions generally contribute roughly equal revenue for Beyond. Read the full earnings report here.
