Beyond Meat Inc (NASDAQ:BYND) shares are set to rise on Thursday after sales fell less than feared and losses shrank.
Net revenues of $93.2 million were generated by the plant-based meat maker in the second quarter, down 8.8% on year.
This was much better than the $87.8 million Wall Street analysts expected, per LSEG data.
As a result, the El Seundo, California-based company tightened up its full-year net revenue outlook to a range of $320 million to $340 million, compared with previous guidance of $315 million to $345 million.
Beyond Meat said a 14% decrease in product volumes was partially offset by a 6.1% increase in net revenue per pound, with the increase in revenue per pound primarily driven by lower trade discounts, price increases in retail and foodservice channels and some changes in product sales mix.
Quarterly margins surged from 2.2% a year earlier to 14.7%, its best margin in three years.
It was a "strong quarter of progress against our 2024 plan, a pivotal year on our path to sustainable operations and profitability", said CEO Ethan Brown.
He highlighted the launch of the fourth iteration of its faux-beef "platform" called Beyond IV, which includes a reduction in sodium and a shift to avocado oil to reduce the saturated fat in the products by 60% "while still delivering a juicy, mouthwatering eating experience".
Brown told analysts and media on an earnings call that the board expects US "pricing actions to provide a tailwind toward net revenues per pound in both channels through the balance of the year".