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Bogged down by inflationary pressures, customers are altering their daily requirements and opting for lower-priced animal protein over healthier alternatives such as plant-based products.
This, coupled with increasing competition from rivals Tyson Foods (NYSE:TSN) and privately owned Impossible Foods Inc has eroded Beyond Meat’s market share in the plant-based meat category.
Beyond Meat has also been “testing” price cuts to attract customers by offering the company’s core products at a price point that is at or below their animal protein equivalent.
The company forecast 2023 revenue between $360 million and $380 million, compared with its prior projection of $375 million to $415 million.
Its net revenue fell nearly 31% to $102.1 million in the quarter ended July 1. Analysts on average expected $108.4 million, according to Refinitiv data.
Beyond Meat said due to greater-than-expected consumer and category headwinds, it was unlikely to meet its target of achieving cash flow positive operations within the second half of 2023.
However, easing supply chain expenses and its efforts to control costs through job cuts narrowed its quarterly loss.
The plant-based meat producer had said in October that its planned job cuts would lead to savings of about $39 million over 12 months.
The company’s net loss narrowed to $53.5 million, or 83 cents per share, from $97.1 million, or $1.53 per share, a year earlier.
