Beyond Meat on the stock market

Beyond Meat was down 11.91 per cent to $13.02 at the time, before slowing to 7.38 per cent at $13.69 per share, Nasdaq trading data showed.

Investors began selling off after the company reported a cut in its 2022 revenue forecast and staff reductions.

Beyond Meat now expects third-quarter 2022 net revenue of about $82 million, down about 23% from a year earlier.

Net revenue for the full year 2022 is tentatively estimated to fall by around 9-14% to $400-450m.

Also, the company expects the lower forecast to have a negative impact on gross profit. The artificial meat producer had previously expected revenues to reach $470-520m.

It also expects Beyond Meat to report a profit forecast that includes a combination of a deteriorating industry environment, increased competition, some distributor decisions including on advertising, and inflation, which is causing customers to switch to cheaper forms of protein such as animal meat.

It is worth noting that Beyond Meat has also announced staff cuts. The company will leave 200 people, or about 19% of its total workforce. The cuts will cost Beyond Meat about $4 million, most of which will be reflected in its fourth-quarter report. The process in most countries is expected to be completed by the end of this year.

The plant-based products category has generally cooled. It is known that sales of chilled meat alternatives fell by almost 11% in the 12 months ended 2 October. Earlier this month, JBS SA, the world's largest meat supplier, said it would stop operating its Planterra plant in the US. Closer Impossible Foods Inc. laid off about 6% of its 800 employees, although it said its sales were growing.

The company estimates that the staffing changes over the next 12 months will reduce operating costs by about $39m.

The third-quarter financial report and conference call on the subject are scheduled after the US market close on 9 November.

It is also worth noting that the company has announced that CFO Philip Hardin is stepping down to take another opportunity. The post will be taken over by vice president of financial planning and analysis and investor relations Lubi Kutua.

Deanna Jurgens global director of development, is also leaving.