(New York) The American company Beyond Meat, which notably manufactures substitutes for steaks and sausages of plant origin, suffered a decline in its turnover in the fourth quarter due to disaffection for its more expensive products than the meat.
Between October and December 2023, it earned a turnover of $73.7 million, a drop of 7.8% year-on-year. Its net loss widened to 155.1 million, compared to 66.9 million in the fourth quarter of 2022.
Reported per share and excluding exceptional items – a benchmark for the markets – the loss amounts to $2.40. It was $1.05 a year earlier.
Despite this, Beyond Meat shares soared by almost 75% in electronic trading after the New York Stock Exchange closed.
These results “illustrate the encouraging actions taken by the company to reposition its activities to better adapt to the current situation in the plant-based meat category,” commented John Oh, analyst at Third Bridge.
Industry experts he spoke with believe that Beyond Meat “needs to go into survival mode,” he stressed. “Cost reduction initiatives and production optimization efforts are fundamental,” he added.
The company reported an exceptional charge of $78 million in the fourth quarter, the vast majority related to the implementation of its business plan.
Its turnover suffered from a drop in net income per book (-14.6%), which was partially offset by an increase in sales volume (8%), driven by international.
For the whole of 2023, turnover reached $205.89 million, compared to $304.03 million a year earlier. And the net loss stands at 338.1 million, compared to 366.1 million in 2022.
For the current financial year, Beyond Meat emphasized macroeconomic uncertainties. The group forecasts a turnover between 315 and 345 million, including 70 to 75 million in the first quarter. Its gross margin should be between 15 and 20%.