Beyond Meat Inc (NASDAQ:BYND) issued a warning that its yearly sales will fall below prior guidance and said it plans to cut 4% of its global workforce, citing “inflation and rising interest rates”.
The plant-based burger brand now expects turnover to be in the range of US$470mln and US$520mln, representing annual growth of 1%-12%, down from previous predictions of US$560mln-US$620mln, or 21%-33% growth.
The company posted a net loss of US$97.1mln for the second quarter to 2 July 2022, equivalent to a loss per share of US$1.53, widening from a loss of US$19.7mln a year ago, according to its results statement.
The food brand’s quarterly revenue fell 1.6% to US$147mln in the second quarter, after record trading in the equivalent part of 2021.
While US retail sales rose 2.2%, driven by its new product Beyond Meat Jerky, the company attributed the dip in group turnover to price reductions in the EU, foreign exchange rate changes and increased trade discounts.
Beyond Meat’s chief executive Ethan Brown said: “In Q2 2022, we recorded our second largest quarter ever in terms of net revenues even as consumers traded down among proteins in the context of inflationary pressures, and we made solid sequential progress on reducing operating and manufacturing conversion costs.
“Across the balance of the year, we are tightly focused on intensifying opex and manufacturing cost reductions, executing against a series of planned market activities for our global strategic partners, and strengthening our retail business through core support and the introduction of one of our best innovations to date.”