Beyond Meat has reported its financial results for the third quarter of 2024, demonstrating a promising return to growth.
The company achieved net revenues of $81.0 million, an increase of 7.6% year-on-year. Gross profit reached $14.3 million, compared to a loss of $7.3 million in the year-ago period.
“We are pleased to report that in the third quarter we returned to growth, increasing net revenues on a year-over-year basis”
Loss from operations was $30.9 million, down from $69.6 million in Q3 2023, while net loss decreased from $70.5 million to $26.6 million. Finally, adjusted EBITDA was a loss of $19.8 million, compared to a loss of $57.5 million in the year-ago period.
The increase in revenues was primarily driven by a 15.8% increase in net revenue per pound achieved through lower trade discounts, price increases for certain products, and changes in product sales mix. This was partially offset by a 7.1% decrease in the volume of products sold.
Updated outlook for 2024
Notably, US foodservice revenues increased by 15.5% to $14.5 million, partly due to a 7.9% increase in the volume of products sold. This was mostly driven by sales of plant-based chicken to a QSR customer. US retail revenues also increased, though volume sales were down 6.6%.
In the international retail channel, there was a 6.0% increase in the volume of products sold due to distribution gains and increased demand in some regions. However, the volume of products sold in the international food service channel decreased by 22.1%, mostly due to decreased sales of plant-based burger and chicken products to a large QSR customer in the EU.
Following an assessment of the results, Beyond Meat has updated its outlook for 2024 as a whole. The company expects net revenues in the range of $320 million to $330 million and gross margins in the mid-teens. Operating expenses are expected to be between $180 million and $190 million, while capital expenditures should be between $10 million and $15 million.
Addressing misinformation
Earlier this year, Beyond Meat exceeded revenue guidance for Q2 2024, seeing its best quarterly margin since Q2 2021. However, revenues had still declined compared to the same period in 2023. At the time, President and CEO Ethan Brown said the company was battling a “sustained misinformation campaign” that had damaged consumer perceptions of plant-based meat.
Throughout the year, Beyond Meat has been addressing nutrition misinformation with the launch of new products such as the Beyond Sun Sausage, which is made from vegetables and legumes and is not intended to mimic beef, pork, or chicken. The company is also overhauling the recipes of existing products to improve nutrition and ingredient transparency, with some products gaining certifications from the American Heart Association and American Diabetes Association. In September, Beyond Meat announced plans to launch a mycelium steak alternative to meet demand for clean-label products.
“We are pleased to report that in the third quarter we returned to growth, increasing net revenues on a year-over-year basis, while continuing to expand gross margin and reduce operating expenses on both a sequential and year-over-year basis,” said Brown. “Looking ahead, we expect to increase our cash reserves by year-end and pursue further balance sheet restructuring in 2025.”
