Beyond Meat, Inc. reported its financial results for the third quarter and the first nine months of fiscal 2024, highlighting a mixed performance in revenue and profitability compared to the previous year. For the three months ended September 28, 2024, net revenues reached $81.0 million, a 7.6% increase from $75.3 million in the same period of 2023. However, for the nine months ended September 28, 2024, net revenues decreased to $249.8 million, down 7.4% from $269.7 million in the prior-year period.

The company experienced a significant reduction in the cost of goods sold (COGS), which fell to $66.7 million for the third quarter, down 19.2% from $82.6 million a year earlier. This reduction contributed to a gross profit of $14.3 million for the third quarter, a substantial improvement from a loss of $7.3 million in the same quarter of 2023. For the nine-month period, gross profit was $31.7 million, compared to just $1.2 million in the prior year.

Despite these improvements, Beyond Meat reported a net loss of $26.6 million for the third quarter, significantly reduced from a loss of $70.5 million in the same quarter of 2023. The nine-month net loss also decreased to $115.4 million from $183.0 million year-over-year. The net loss per share for the third quarter was $0.41, down from $1.09 in the prior year.

Strategically, Beyond Meat has undertaken a Global Operations Review, which has led to a workforce reduction of approximately 19% of its non-production staff and the discontinuation of the Beyond Meat Jerky product line. The company is also focusing on improving gross margins and cash generation, with plans to raise additional capital through equity and/or debt securities by the end of 2024.

The company’s operational challenges include weak demand for refrigerated plant-based meat, high inflation affecting consumer purchasing behavior, and increased competition. Additionally, Beyond Meat is reviewing its operations in China, which may lead to significant write-downs or impairment charges.

As of September 28, 2024, Beyond Meat had approximately $134.9 million in cash and cash equivalents, including $12.6 million in restricted cash. The company continues to face significant indebtedness, with $1.3 billion in consolidated liabilities, and anticipates needing to raise additional capital to meet its obligations.