USA – Beyond Meat reported its first profitable quarter in nearly three years, marking a shift after a prolonged period of financial setbacks.
The company generated US$81 million in net revenue for the third quarter of 2024, reflecting a 7.6% year-over-year increase.
However, despite this positive revenue growth, the company faced a decline in sales volume, which dropped by 7.1%.
This stands in contrast to the 3.5% increase seen in the same quarter of 2023.
The decline in consumer spending and the declining appeal of costly plant-based products have put pressure on Beyond Meat’s business in recent years.
In an effort to address rising ingredient costs, the company raised prices on various products, such as meatballs and steaks.
After experiencing eight consecutive quarters of declining revenue, these price hikes seem to have helped stabilize the business, although it has yet to fully recover its earlier growth trajectory.
Peter Saleh, managing director at BTIG, commented on the company’s current state, stating that while there are signs of stabilization, it is clear that Beyond Meat is no longer positioned as ambitiously as it once was, with the market failing to grow as expected.
The company also reported a reduction in operating expenses, which dropped by $2.4 million compared to the previous quarter.
Brown, a company spokesperson, explained that the increase in revenue was largely due to a combination of price hikes on select U.S. products and reduced trade discounts in both U.S. and international retail markets.
Over the past two years, Beyond Meat has focused on improving its operational efficiency by adopting lean management strategies, which have included layoffs and reformulating products to meet consumer preferences.
The company launched a new steak alternative in September, designed to replicate the flavour and texture of a traditional fillet.
This product targets consumers interested in healthier options.
Additionally, Beyond Meat revised its strategy earlier this year, adjusting prices, discontinuing its jerky line, and releasing updated product recipes.
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