Beyond Meat Inc (NASDAQ:BYND) has reported a 21% decline in fourth-quarter net revenues to $79.9 million, due to softer demand for its products in a high-inflation environment and as it made “strategic but limited price reductions.”
The plant-based meat company reported a gross loss of $2.9 million for the three months to December 31, 2022, resulting in a gross margin of -3.7% of net revenue. Its net loss narrowed to $66.9 million, or $1.05 per share, from $80.4 million, or $1.27 per share, in 4Q 2021.
However, the results beat Street estimates and the company said it also aims to become cash-flow positive in the second half of 2023 as it makes progress in its transition to a sustainable growth model, sending its share higher in pre-market trading.
“Our fourth quarter results clearly demonstrate delivery against our strategy and plan, including solid sequential progress on margin recovery and operating expense reduction, and continued inventory drawdown,” Beyond Meat president and CEO Ethan Brown said in a statement.
“We are proud of our team's continued pace of innovation including Beyond Steak, which continues to win awards for its taste and outstanding health profile, as well as the just-launched McPlant Nuggets in Germany, the second plant-based protein co-developed with Beyond Meat as part of the McPlant platform.”
For the full year, net revenues decreased by 9.8% to $419 million and it reported a gross loss of $23.7 million, resulting in a gross margin of -5.7% of net revenues. Its net loss amounted to $366 million, or $5.75 per share.
The company said its operating environment continues to be affected by near-term uncertainty related to macroeconomic issues, including inflation and rising interest rates and demand in the plant-based meat category, among several negative factors.
It has guided investors to expect 2023 net revenues in the range of approximately $375 million to $415 million, representing a decrease of about 10% to 1% compared to 2022. Its gross margin is expected to be in the low double-digit range, increasing sequentially throughout the year, it added.
“As we navigate current conditions, we remain intently focused on positioning Beyond Meat to capture the vast opportunity to be a major protein provider in the $1.4 trillion meat industry and play a leadership role in transitioning global consumers to delicious plant-based meats in support of critically important health, climate, environmental, and animal welfare objectives,” Brown added.
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