Beyond Meat Inc (NASDAQ:BYND) shares jumped over 60% ahead of Wednesday’s opening bell after the plant-based food brand said margins would grow massively this year.
Margins will likely sit in the mid to high teens over the coming year, the company said in results on Tuesday, compared to minus 24.1% over 2023.
Chief executive Ethan Brown said Beyond Meat was planning “a steep reduction” in operating costs and other measures to right-size the business.
This includes “the contraction of our production network to achieve quality and margin gains and the implementation of pricing changes also in support of margin expansion,” he added.
For the fourth quarter, Beyond Meat reported a net loss of US$155.1 million, or US$2.40 a per share basis, compared to US$66.9 million and US$1.05 respectively a year earlier.
Revenue fell from US$79.9 million to US$73.7 million, meanwhile.
Analysts were expecting revenue to sit at US$66.7 million, though also predicted net losses of US$0.89 a share.
“We believe these sweeping changes, together with measures we plan to pursue this year to bolster our balance sheet, will strengthen our near-term operations as we pursue our vision of being the global protein company of the future,” Brown added.
Shares gained 61.2% to reach US$12.12 in pre-market trading.