Beyond Meat Reports Weak Sales and Mounting Losses
Beyond Meat Inc. reported tumbling sales and growing losses in its most recent quarter, as executives said inflation added to challenges facing the plant-based food company.
The California-based company reported a $102 million net loss for the three months ended Oct. 1, while revenue fell to $83 million, down 23% from the year-ago period.
The revenue drop comes as the company has cut prices to boost sales during a period of steep food-price inflation, and amid what Beyond said was weaker than expected demand.
Beyond’s Chief Executive Ethan Brown said: “The current economic climate has not been kind to plant-based meat.”
Beyond said its U.S. grocery sales declined 12% while sales to restaurants and other institutions increased 6% versus the year ago period. It said its sales at international retailers fell 52%.
The company’s shares fell 1.4% in after-hours trading, after closing 9.2% lower Wednesday.
In October, the plant-based meat alternatives company cut its full-year revenue outlook and said it would reduce its global workforce by about 200 employees, or nearly 20%, as it focuses on lowering expenses.
Beyond said it planned to pursue “a more sustainable growth model,” citing increased competition and ongoing weakness in the broader plant-based meat category––especially refrigerated products––as factors hampering its business. The company said it is targeting “cash flow positive operations” in the second half of 2023.
On Wednesday, Beyond continued to project that its full-year revenue will decline by about 9% to 14% to between $400 million and $425 million.
Beyond has been grappling with declining sales and steepening losses. The company’s stock is down about 88% over the past 12 months. In recent years, the Covid-19 pandemic hurt restaurant traffic, prompting Beyond to scale up its supermarket presence. Beyond launched a jerky product with PepsiCo Inc. in March and last month introduced a sliced-steak product in stores.
After several years of rapid growth, however, U.S. grocery sales of fresh alternative-meat products have fallen off. In February, Beyond said its U.S. supermarket sales had fallen due to weaker demand, increased discounts and lost market share. In May, the company said cost-intensive measures tied to product launches pressured its bottom line. In August, Beyond said it would cut 4% of its global workforce and trimmed its full-year sales forecast.
Other food companies are ratcheting back investments in meat substitutes. Brazilian meatpacking giant JBS SA is closing Planterra Foods, the U.S. plant-based protein startup it launched three years ago, according to a notice from the company in September.
Maple Leaf Foods Inc.,
a Canadian meat company that in 2017 acquired plant-based food maker Lightlife Foods, has cut the size of its plant protein business by 25%, the company said in August.
Demand challenges have come alongside a shake-up in Beyond’s executive ranks. The company parted ways in October with its chief operating officer,
Doug Ramsey,
who had been suspended after being arrested for allegedly biting a man’s nose and threatening to kill him. Mr. Ramsey didn’t respond to previous requests for comment.
Bernie Adcock, previously Beyond’s chief supply chain officer, told the company in September that he would leave his position at the end of the month, according to a filing.
Both Mr. Adcock and Mr. Ramsey joined Beyond Meat in December after decadeslong careers at meat giant
Tyson Foods Inc.
At the time, Beyond said the executives would help the company achieve cost savings as Beyond sought to make some of its products match the price of traditional meat.
Beyond made further changes to its leadership last month, including naming a new chief financial officer following the departure of
Philip Hardin,
who had held the role since July 2021.
Beyond said its global chief growth officer was leaving the company as part of the layoffs and that the position had been eliminated.
Write to Jesse Newman at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Beyond Meat Inc. reported tumbling sales and growing losses in its most recent quarter, as executives said inflation added to challenges facing the plant-based food company.
The California-based company reported a $102 million net loss for the three months ended Oct. 1, while revenue fell to $83 million, down 23% from the year-ago period.
The revenue drop comes as the company has cut prices to boost sales during a period of steep food-price inflation, and amid what Beyond said was weaker than expected demand.
Beyond’s Chief Executive Ethan Brown said: “The current economic climate has not been kind to plant-based meat.”
Beyond said its U.S. grocery sales declined 12% while sales to restaurants and other institutions increased 6% versus the year ago period. It said its sales at international retailers fell 52%.
The company’s shares fell 1.4% in after-hours trading, after closing 9.2% lower Wednesday.
In October, the plant-based meat alternatives company cut its full-year revenue outlook and said it would reduce its global workforce by about 200 employees, or nearly 20%, as it focuses on lowering expenses.
Beyond said it planned to pursue “a more sustainable growth model,” citing increased competition and ongoing weakness in the broader plant-based meat category––especially refrigerated products––as factors hampering its business. The company said it is targeting “cash flow positive operations” in the second half of 2023.
On Wednesday, Beyond continued to project that its full-year revenue will decline by about 9% to 14% to between $400 million and $425 million.
Beyond has been grappling with declining sales and steepening losses. The company’s stock is down about 88% over the past 12 months. In recent years, the Covid-19 pandemic hurt restaurant traffic, prompting Beyond to scale up its supermarket presence. Beyond launched a jerky product with PepsiCo Inc. in March and last month introduced a sliced-steak product in stores.
After several years of rapid growth, however, U.S. grocery sales of fresh alternative-meat products have fallen off. In February, Beyond said its U.S. supermarket sales had fallen due to weaker demand, increased discounts and lost market share. In May, the company said cost-intensive measures tied to product launches pressured its bottom line. In August, Beyond said it would cut 4% of its global workforce and trimmed its full-year sales forecast.
Other food companies are ratcheting back investments in meat substitutes. Brazilian meatpacking giant JBS SA is closing Planterra Foods, the U.S. plant-based protein startup it launched three years ago, according to a notice from the company in September.
Maple Leaf Foods Inc.,
a Canadian meat company that in 2017 acquired plant-based food maker Lightlife Foods, has cut the size of its plant protein business by 25%, the company said in August.
Demand challenges have come alongside a shake-up in Beyond’s executive ranks. The company parted ways in October with its chief operating officer,
Doug Ramsey,
who had been suspended after being arrested for allegedly biting a man’s nose and threatening to kill him. Mr. Ramsey didn’t respond to previous requests for comment.
Bernie Adcock, previously Beyond’s chief supply chain officer, told the company in September that he would leave his position at the end of the month, according to a filing.
Both Mr. Adcock and Mr. Ramsey joined Beyond Meat in December after decadeslong careers at meat giant
Tyson Foods Inc.
At the time, Beyond said the executives would help the company achieve cost savings as Beyond sought to make some of its products match the price of traditional meat.
Beyond made further changes to its leadership last month, including naming a new chief financial officer following the departure of
Philip Hardin,
who had held the role since July 2021.
Beyond said its global chief growth officer was leaving the company as part of the layoffs and that the position had been eliminated.
Write to Jesse Newman at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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