Beyond Meat has reported its financial results for the second quarter of 2023, revealing plans to scale back its full-year revenue outlook amid a drop in sales.

The meat alternatives company reported net revenues of $102.1 million compared to $147 million in the year-ago period, a 30.5% decrease year-over-year.

Beyond Meat said the decrease in net revenues was driven by a 23.9% decrease in volume of products sold, reflecting “weak category demand,” particularly in the company’s US retail and foodservice channels. An 8.6% decrease in net revenue per pound was attributed to changes in product sales mix and increased trade discounts.

Gross profit was $2.3 million in Q2 2023, compared to a loss of $6.2 million in Q2 2022.

Gross profit and gross margin were positively impacted by lower materials costs, lower inventory reserves and lower logistics costs per pound, partially offset by higher manufacturing costs including depreciation and lower net revenue per pound.

Net loss was $53.5 million, or 83 cents per common share, compared to net loss of $97.1 million, or $1.53 per common share, in the year-ago period.

Adjusted EBITDA was a loss of $40.8 million, or -40% of net revenues, compared to an adjusted EBITDA loss of $68.8 million, or -46.8% of net revenues in the same period last year.

The news comes amid increasing reports of plunging sales in the plant-based meat sector, with many citing the economic pressures of the cost of living crisis as the culprit behind the slump, suggesting consumers are opting for cheaper sources of protein.

Due to the macroeconomic uncertainty impacting Beyond Meat’s operating environment, the company provided an updated, scaled-back outlook for the full-year 2023.

Net revenues are now expected to be in the range of approx. $360 million to $380 million, lowered from a previously projected $375 million to $415 million.

The company’s shares took a plunge of more than 10% following the release of the results.

Beyond Meat’s president and CEO, Ethan Brown, said that the second quarter had brought “mixed results amid otherwise strong progress” toward the company’s goal of sustainable long-term growth.

Brown commented: “While we are reducing our full-year 2023 net revenues outlook, we nevertheless expect a modest return to year-over-year top-line growth in the third and fourth quarters of 2023, and, relative to the first half of 2023, a meaningful reduction in cash consumption and an increase in gross margin”.

“As we look to the future, we remain steadfast in our belief that plant-based meat, and Beyond Meat specifically, will play an important part in the global response to a climate crisis that appears to be rapidly intensifying, while also delivering health benefits to the individual consumer.”

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