Beyond Meat has published its financial results for the fourth quarter and full-year 2023, which exceeded analyst expectations despite a $155.1 million net loss in Q4.
The plant-based meat producer reported its fourth quarter net revenue at $73.7 million, a 7.8% decrease year-over-year.
Despite the decline, the company’s stock value surged following the earnings announcement earlier this week, with sales surpassing the average analyst estimation of $66.8 million compiled by Bloomberg.
Gross profit for Q4 was a loss of $83.9 million, compared to a loss of $2.9 million in the year-ago period. This was negatively impacted by certain non-cash charges associated with the company’s global operations review announced in November 2023.
The alt-meat industry giant revealed plans to significantly reduce operating expenses, including a 19% reduction in its global non-production workforce, in November.
Alongside this, its global operations review aimed to narrow its commercial focus and accelerate activities that prioritise gross margin expansion and cash generation.
Measures taken as part of the review included changes to the company’s pricing architecture and optimising manufacturing capacity, as well as the decision to discontinue its Beyond Meat Jerky product line.
The company scaled back its annual revenue outlook ahead of its third quarter earnings call, expecting net revenues to be in the range of $330 million to $340 million, a decrease of approximately 21% to 19% compared to 2022.
Net revenues for 2023 were $343.4 million, a decrease of 18% year-over-year but exceeding the revised full-year outlook projection.
Fourth quarter net loss was $155.1 million, or $2.40 per common share, compared to net loss of $66.9 million, or $1.05 per common share in the year-ago period. Adjusted EBITDA was a loss of $125.1 million, compared to an adjusted EBITDA loss of $56.5 million in the year-ago period.
Net loss for the full-year was $338.1 million, or $5.26 per common share, compared to net loss of $366.1 million in the year-ago period.
Beyond Meat’s president and CEO, Ethan Brown, commented: “In 2023, Beyond Meat undertook extensive initiatives to reset the business toward sustainable operations and, ultimately, profitable growth. Much of this reset is now coming into view.”
He added that the company’s 2024 plan includes taking steps to “steeply” reduce operating expense and cash use, as well as the recent unveiling of its “years-in-the-making” platform renovation, Beyond IV, aiming to deliver “superior health benefits and taste”.
“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 concluded.
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