Alternative meat maker behind McDonald’s McPlant burger cuts annual revenue forecast, as net income for three months to the end of June falls almost a third
Cost of living challenges have taken a bite out of Beyond Meat’s financial forecasts, after the leading plant-based meat producer yesterday revealed its net revenues fell by 30.5 per cent year-on-year for the three months to the end of June.
Having missing analysts’ average estimate of $108.4m by just over $6m, the firm said it is now unlikely to achieve cash flow positive operations over the second half of the year.
The company also cut its 2023 revenue forecast to between $360m and $380m compared with its prior expectation of as much as $415m. Shares fell by almost 12 per cent in extended trading in New York on the back of the results.
However, there was some better news for the company as net losses fell to $53.5m from $97.1m a year earlier, for the same three-month period. Losses were curbed after it last year announced plans to cut close to a fifth of its workforce in a bid to save around $39m in costs over the ensuing 12 months.
Announcing its second quarter financial results yesterday, the plant-based meat maker cited “softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession”.
Plant-based meat products tend to cost more than conventional meats, although the industry maintains that it has potential to curb costs over time, while the mainstream livestock industry is continuing to face considerable price volatility as climate impacts escalate. Beyond Meat has also recently offered its core products at test prices below the price of equivalent meat products.
The sector has also faced a number of critical reports in recent months, with media reports questioning the health benefits of some meat alternatives.
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