Meat free alternatives: Beyond Meat lowers an...
Meat free alternatives

Beyond Meat lowers annual targets

Imago / agefotostock
Beyond Meat is sending crisis signals. The company reports high net losses.
Beyond Meat is sending crisis signals. The company reports high net losses.

USA, El Segundo. Beyond Meat revised its sales expectations downward. In addition, the company is cutting jobs, also in Europe.

In the second quarter, sales of the American specialist for meat-free alternatives shrank. The net loss quintupled. The first quarter already brought heavy losses. In the full year, revenues could almost stagnate according to estimates of the food producer.

Beyond Meat also announced it would lay off about 40 employees, or about 4% of its global workforce. The company did not disclose how many jobs would be eliminated at which locations. According to "Lebensmittel Zeitung", the job cuts will also affect the production facility in Enschede, the Netherlands.

Chief Financial Officer Phil Hardin said at the presentation of the quarterly figures that the job cuts will result in annual savings of about eight million US dollars (USD). Initially, however, he anticipates one million USD in severance payments for the third quarter. Beyond Meat CEO Ethan Brown announced plans to cut further operating and production costs - to get the group out of the red. In the second quarter, its revenues fell 1.6% from the year-ago quarter to $147 mill. Beyond Meat reported its net loss at $97.1 mill. It was about $19.7 mill. a year earlier. According to its chief financial officer, the company expects net sales to be only between $470 mill. and $520 mill. in 2022. That would be a growth rate of one to 12%. Previously, $560 mill. to $620 mill. in revenue had been targeted.

The Group attributed the drop in sales suffered in the second quarter to a decline in demand for its products in Europe, for example, and referred to Nielsen figures: According to Hardin, there had been a 7% increase for Beyond Meat products in 2021 - but a 14% decline in the first half of 2022. As a result, he said, prices were lowered in Europe, aligning with competitors. In the United States, demand also stagnated. In order to empty full warehouses, there were discount campaigns. Goods worth around USD 10.5 mill. were sold at heavily discounted prices. This resulted in "a loss of about $8.7 mill.," Hardin says. Ethan Brown does not expect similar promotions in the third quarter, but does not rule them out in principle for the future.

Source: Lebensmittel Zeitung 32/2022, afz - allgemeine fleischer zeitung 33/2022 / dfv Mediengruppe


With our free newsletters, we can provide you with the most important industry news and useful practical tips from Germany and around the world.