Plant-based meat provider, Beyond Meat, reported losses at the end of 2022 with a fourth-quarter net revenue of $79.9 million – a decrease of 20.6% compared to the same time in 2021.
“Our fourth-quarter results clearly demonstrate delivery against our strategy and plan, including solid sequential progress on margin recovery and operating expense reduction, and continued inventory drawdown,” said Beyond Meat President and CEO Ethan Brown.
“As we navigate current conditions, we remain intently focused on positioning Beyond Meat to capture the vast opportunity to be a major protein provider in the $1.4 trillion meat industry and play a leadership role in transitioning global consumers to delicious plant-based meats in support of critically important health, climate, environmental and animal welfare objectives.”
In addition to reduced net revenue, Beyond Meat reported a gross profit loss of $2.9 million and an adjusted EBITDA loss of $56.5 million.
According to the report, the losses are attributed to a variety of global issues including inflation, rising interest rates, concerns of a recession as well as supply chain issues, labor availability and increased competition.
The company also believes that some of these issues, in addition to Covid-19, have altered consumer buying behavior resulting in lower demand for plant-based meat products.
“We are making solid progress in our transition to a sustainable growth model, one that emphasizes the achievement of cash flow positive operations within the second half of 2023,” said Brown. “We continue to execute this pivot upon three primary pillars.”
The three pillars
- Implement lean value streams to drive margin recovery and reduce operation expenses
- Generate cash flow through efficient management and decrease inventory levels
- Focus on near-term retail and foodservice opportunities and maintain strategic long-term partners
In other fake meat news
Plant-based protein company, Impossible Foods, plans to lay off 20% of its workforce in April after laying off 6% in October 2022. The company did not respond to a WATTPoultry.com request for comment.
