Beyond Meat (BYND) Q2 2022 earnings miss estimates

Beyond Meat (BYND) Q2 2022 earnings

Vegetarian sausages from Beyond Meat Inc, the maker of vegan burgers, are displayed for sale at a market in Encinitas, California on June 5, 2019.

Mike Blake | Reuters

Beyond meat On Thursday, it lowered its revenue forecast for the year and announced it would cut its workforce by 4%, citing wider economic uncertainty and consumers preferring cheaper protein.

The El Segundo, Calif.-based company also reported a bigger-than-expected loss and weak sales for the second quarter. Its shares fell 1% in extended trading.

Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:

  • Loss per share: $1.53 vs. $1.18 expected
  • Revenue: $147 million vs $149.2 million forecast

Net sales fell 1.6% to $147 million. The company attributed the decline to changes in exchange rates, increased discounts and sales to clearance channels.

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

Beyond’s meat alternatives are generally more expensive than traditional meat, but the company is looking to achieve price parity in the near future. With consumers under pressure from inflation, Brown said Beyond customers are turning to cheaper house-brand meat alternatives or reverting to traditional meat.

For 2022, Beyond now forecasts revenue of $470-520 million, down from its previous forecast of $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 executives specifically pointed to weak sales of Beyond Jerky, its grocery business in the United States and Europe and the Middle East.

As part of a push to spend less of its money, Beyond said it would lay off about 4% of its global workforce, which should save about $8 million on an annual basis. However, the company will also spend approximately $1 million on separation costs, which will impact its third quarter results.

For the second quarter, Beyond Meat posted a net loss of $97.1 million, or $1.53 per share, higher than net loss of $19.7 million, or 31 cents per share, a year earlier. early. The company said it spent more on ingredients and manufacturing this quarter. Plus, its meatless Beyond Jerky, made through a joint venture with PepsiCoweighed on profit margins for the second consecutive quarter.

U.S. grocery sales rose 2.2% in the quarter, offsetting a 2.4% decline in its restaurant business. Before the pandemic, restaurants accounted for more than half of its sales, but the business is struggling to rebound.

Outside the United States, grocery store sales fell 17%, while restaurant sales rose 7%. The two international divisions generally contribute approximately equally to Beyond.

Read the full earnings report here.

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