Beyond Meat foresees continued sales struggles as weak demand persists in the USAlternatively: Beyond Meat anticipates ongoing sales challenges amid persisting weak demand in the US

Beyond Meat reported declining revenue for another quarter, indicating lower sales in 2024 due to “weak” demand in the US.

Net revenue decreased by 7.8% to $73.7m in the fourth quarter ending 31 December, with a yearly drop of 18% to $343.4m. Beyond Meat expects sales to range from $315m to $345m in the upcoming financial year.Adjusted EBITDA and bottom-line losses increased in the last three months but improved over fiscal 2023, although gross profit remained negative. A significant portion of losses stemmed from non-cash charges related to a “global operations review” announced in November.

Despite the challenges, Beyond Meat foresees a positive gross margin in 2024 through price hikes to boost revenue. Founder and CEO Ethan Brown mentioned efforts to reduce expenses, streamline production, and enhance profitability.

Regarding the future, Brown outlined plans to lower expenses, implement pricing strategies, and optimize production efficiency for margin growth. A new product, the Beyond IV burger, was recently introduced, aimed at offering improved health benefits and taste.

Brown confirmed the company’s commitment to making strategic changes and enhancing financial stability. He emphasized the need to reduce costs, enhance operations, and pursue a profitable growth trajectory.

Despite uncertainties, Beyond Meat aims for sustained growth. The company acknowledged challenges such as weakened demand, inflation, and economic uncertainties but remains optimistic about future prospects.

Furthermore, Beyond Meat faced challenges in the US market, leading to declining sales in 2023. However, international sales showed promising growth, signaling potential opportunities in global markets.