Due to declining demand for its goods, troubled plant-based meat manufacturer Beyond Meat (BYND) reported a 30% sales decline in the second quarter, the company said on Monday.
President and CEO of Beyond Meat Ethan Brown announced in a statement that the firm is lowering its revenue projection for 2023 to between $360 million and $380 million, a drop of between 9% and 14% from 2022. He continued, though, by expressing his continued faith in the company’s ability to “play a significant role in the global response to a climate crisis that appears to be rapidly intensifying, while also delivering health benefits.”
Low demand for plant-based beef was attributed by the corporation to “high inflation, rising interest rates, and persistent worries about the possibility of a recession.”
Customers are selecting cheaper essentials and grocery stores
In 2022, a number of issues and controversies dogged the corporation, which was formerly a favorite of Wall Street. Customers are selecting cheaper essentials, grocery stores, and eating in rather than going out to restaurants as a result of inflation, and there is also rising rivalry in this market.
Additionally, three of its top executives quit in 2022, including one who was accused of biting a guy in the nose. The revenue for this quarter was $102.1 million as opposed to $147 million at this same time last year.
US revenue fell by roughly 40%, while global revenue fell by 8.7%. Additionally, Beyond Meat reported a 24% drop in the amount of its product sales. In after-hours trading, shares of the California-based corporation decreased by over 10%. In the previous year, its shares had decreased by more than 60%.
Domestic food service volume plummeted by 44%
Beyond Meat announced disappointing sales, revised its full-year revenue target, and postponed its plan to turn a profit in the second half of the year. Even as the business lowers its pricing, demand for Beyond’s meat substitutes is dropping in the United States more quickly. Beyond’s stock had increased 24% as of Monday’s closing price, giving it a market worth of $981 million.
Even when the business lowers its pricing by 8.6%, primarily through discounts, the market for Beyond’s meat substitutes in the United States seems to be dropping at a quicker rate. During that time, its domestic food service volume plummeted 44%, while its U.S. retail volume plunged 34%.
Beyond’s net sales for the second quarter decreased by 30.5% to $102.1 million, falling short of Refinitiv’s $108.4 million forecast. The company’s loss of 83 cents per share surpassed Wall Street’s prediction of 86 cents per share. In addition, according to Refinitiv, Beyond reduced its full-year sales guidance to a range of $360 million to $380 million, down from the $388 million Wall Street anticipated.