Beyond Meat (NASDAQ:BYND) shares plummeted more than 9% after-hours following the company’s reported Q2 results, with revenue of $102.1 million (down 30.5% year-over-year) coming in worse than the consensus estimate of $108.74M. Q2 EPS was ($0.83), compared to the consensus estimate of ($0.84).
The drop in revenues resulted from a 23.9% reduction in the volume of products sold and an 8.6% decrease in net revenue per pound. The decrease in product volume was mainly due to weak category demand, particularly in the company's U.S. retail and U.S. food service channels, and the cycling of a particularly strong Q2/22.
“While we are reducing our full-year 2023 net revenues outlook, we nevertheless expect a modest return to year-over-year top-line growth in the third and fourth quarters of 2023, and, relative to the first half of 2023, a meaningful reduction in cash consumption and an increase in gross margin,” said CEO Ethan Brown.
The company expects 2023 revenue to be in the range of $360M-$380M, compared to the consensus of $388M.
Regarding its goal of achieving cash flow-positive operations by the second half of 2023, the company now sees it as unlikely due to greater-than-expected consumer and category headwinds and their anticipated impact on net revenues.