(Boursier.com) — Business is not going well for Beyond Meat. The California-based producer of plant-based meat substitutes, whose stock has halved since Jan. 1, was losing further post-trading ground in New York after issuing a warning over its annual revenue. The California-based company, faced with volatile demand for its relatively high-priced products, is seeing more and more shoppers abandon its plant-based burgers for cheaper animal-protein products.
Beyond Meat now anticipates sales in the range of $470-520 million this year versus previous guidance of $560-620 million. Second-quarter revenue fell 1.6% to $147 million, versus a consensus of $149.2 million. The good news comes from international where revenues grew by 7%, mainly thanks to higher volumes. Foreign consumers were found to be more willing to replace meat with alternatives than Americans.
“Current inflationary pressure is a significant concern for the plant-based meat industry,” Third Bridge analyst Shoggi M. Ezeizat told ‘Bloomberg’. “Flexitarians could easily revert to lower-cost animal protein as they seek to reduce discretionary spending.” At the analyst conference following the presentation of the accounts, Beyond’s managing director, Ethan Brown, acknowledged that consumers’ buying habits have shifted away from plant-based meats.
In this sluggish environment and while the group is embarking on a costly race to increase its production and bring new products to market, management has announced the loss of 4% of its workforce. Job reductions that should generate annual savings of approximately $8 million. In the second quarter, the firm suffered a net loss of $1.53 per share ($1.18 consensus) while cash and cash equivalents reached $455 million at the end of the quarter, against $548 million at the end of the previous three months.
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