Beyond the meat misses the quarterly income rates as a plant -based demand weakens

By Neil Jo Katan

(Reuters) -Beyond Meat missed Wall Street’s estimates of second-quarter revenue on Wednesday, injured by the weak demand for its plant meat products in the United States against the background of the ongoing macroeconomic uncertainty.

The shares of the company, which also announced a 6% reduction in its global workforce, fell about 4% after the bell.

The demand for US users for vegetable meat continued to reduce this quarter of skepticism on taste, processing and price.

Macroeconomic uncertainty was pushing consumer expenses in the United States, making many choosing more cheap animal protein.

“The growing consumer concerns about processed foods greatly reduce the attractiveness of the Beyond Meat product line, which drives retailers and the fast service restaurants are sharply withdrawing on orders,” said Rachel Walph, an Emarketer analyst.

Retail sales to refrigerated plant -based alternative products in the United States have so far fallen 17.2% so far, and frozen plant -based meat alternatives have fallen by 8.1%, according to spins.

El Segundo-based company said it would fire 44 North America employees to reduce costs, which would receive a one-off fee of $ 0.8-1.3 million.

Revenue for the quarter, ended on June 28, fell by nearly 20% to $ 75 million, compared to the average estimate of $ 82 million analysts, according to data composed by LSEG.

It also reports a loss of an action of 43 cents, compared to 37 cents loss estimates.

The company withdrew its annual sales target by citing macroeconomic instability, early in May.

(A report by Neal JJ Katan in Bengaluru; Editing by Tasim Zahid)