Beyond Meat turns to IV platform, SKU rationalization, pricing to improve margins in FY 2024

In the fourth quarter, ending Dec. 31, 2023, Beyond Meat’s net revenues came in at $73.7 million, decreasing 7.8% year-over-year. Gross profits also registered a loss of $83.9 million, declining 113.8% in gross margin, compared to a loss of $2.9 million and gross margin decline of 3.7% for the same period a year ago. Net loss was $155.1 million, or $2.40 per common share, compared to $66.9 million for the same period a year ago. 

For the full year, Beyond Meat’s net revenue was $343.4 million, a decrease of 18% year-over-year, and gross profit was a loss of $82.7 million, compared to a loss of $23.7 million for the previous year. The company also saw slightly less net losses for the year, coming at $338.1 million, compared to $366.1 million for the previous year. 

Beyond Meat also issued full-year guidance for 2024 and expects net revenues to come in between $315-345 million, and gross margin is expected to grow by mid-to-high teens. The company also expects the first quarter of 2024 net revenues to be between $70-75 million. 

On the quarterly earnings investors’ call, CEO and President Ethan Brown outlined a multi-pronged approach to achieve those 2024 numbers, including changes to its product assortment and additional operational cost reductions beyond recent layoffs.  

“Our 2024 plan includes taking steps to steeply reduce operating expense and cash use; pricing actions and the right-sizing of our production footprint, both in support of margin expansion; a years-in-the-making core platform renovation in Beyond IV that delivers superior health benefits and taste; and, following the announcement and initiation of our Global Operations Review, taking certain non-cash charges pertaining to inventory and assets that are no longer consistent with our path to profitability. We believe these sweeping changes, together with measures we plan to pursue this year to bolster our balance sheet, will strengthen our near-term operations as we pursue our vision of being the global protein company of the future,” Brown shared in a press release​.