Beyond Meat has posted a narrower-than-expected loss for the fourth quarter, with the company’s stock surging in Thursday’s after-hours trading on the back of the earnings beat.

The California-based faux meat maker’s Q4 net loss was $66.9 million, or $1.05 per share. Analysts had projected a loss of $1.18 per share, according to FactSet.

Fourth-quarter net revenue declined 20.6% to $79.9 million, driven by a 16.9% decrease in total pounds sold.

The company slashed its forecast twice last year and announced job cuts, as it looked to reduce expenses amid what it described as “ongoing softness” in the category.

Announcing its Q4 results, Beyond said that weak demand for plant-based meat products continued to affect all of its markets and channels. However, the company’s quarterly revenue still beat analysts’ expectations of $75.8 million, according to FactSet.

The imitation meat behemoth also announced better-than-expected forecasts for 2023, and its shares jumped around 13% in after-hours trading.

President and CEO Ethan Brown said the Q4 results demonstrated “solid sequential progress on margin recovery and operating expense reduction, and continued inventory drawdown”.

He added that Beyond was making progress on its transition to a “sustainable growth model,” following the announcement in October that the company was targeting cash flow-positive operations within the second half of 2023.

“We continue to execute this pivot upon three primary pillars,” Brown elaborated. “One, driving margin recovery and operating expense reduction through the implementation of lean value streams across our beef, pork and poultry platforms.”

He continued: “Two, bringing inventory levels down while generating cash flow through more aggressive, efficient management. And three, placing greater emphasis on near-term retail and foodservice growth drivers, while also supporting strategic key long-term partners and opportunities.”

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