Plant-based food producer Beyond Meat has revealed its Q2 trading results, reporting a 30.5% net revenue decrease year-on-year.
The producer, which is based in Los Angeles, first arrived in the UK in 2018 before announcing a retail expansion in 2022 that saw its products on shelves across 450 new stores.
Its net revenue totalled $102.1 million, a decrease of 30.5% from Q2 2022, while its Q2 net loss was $53.5 million compared to a net loss of $97.1 million in the same period in 2022.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was a loss of $40.8 million, or -40% of net revenues, compared to an Adjusted EBITDA loss of $68.8 million (-46.8%) in Q2 2022.
The producer reported a 23.9% decrease in volume of products sold, stating that the decrease in volume reflected weak category demand particularly in the company’s US retail and US foodservice channels, and the decrease in net revenue was primarily driven by changes in product sales mix and increased trade discounts, partially offset by pricing changes.
Beyond Meat president and CEO Ethan Brown commented: “The second quarter brought mixed results amidst otherwise strong progress toward our goal of sustainable long-term growth. Ongoing category headwinds compressed net revenues, which in turn impacted product sales mix and gross margin, overshadowing significant strides in operational efficiency, including meaningful year-over-year reductions in operating expenses, COGS per pound, and overall cash consumption.
“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 of the global response to a climate crisis that appears to be rapidly intensifying, while also delivering health benefits to the individual consumer.”
