BEYOND Meat forecast annual revenue below estimates on Wednesday, as the faux meat products maker faces persistent demand weakness amid sticky inflation.
Beyond Meat has been losing steam it garnered a couple of years ago as consumers began shifting to fresh and lower-priced animal meat alternatives over its processed vegan meat.
Its total volume of products sold in the quarter fell 2.1 per cent, compared with an 8 per cent rise a year earlier.
Shares of the company were down about 2 per cent in extended trading.
The company also said it would be suspending operational activities in China and lay off about 20 employees, representing 3 per cent of global workforce.
The vegan burger patty maker also said its board has approved its plan to cut some jobs in North America and the European Union, which would represent about 17 per cent of its global non-production workforce or roughly 6 per cent of overall global workforce.
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The company targets a positive run-rate in its core profit by the end of 2026 and is implementing organisational changes and cost-reduction measures to strengthen its financial profile and support its long-term objectives.
Despite taking consecutive price hikes and lowering discount, the company’s margins came under pressure from higher logistics costs.
Its margin was 13.1 per cent in the quarter ended Dec 31, from 17.7 per cent in the third quarter.
It posted net loss of 65 cents per share, compared with analysts’ estimate of loss of 43 cents as per data compiled by LSEG.
For fiscal 2025, the company expects net revenue in the range of US$320 million to US$335 million, compared with analysts’ estimates of US$337.6 million. REUTERS
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