Beyond Meat reported an EPS loss of USD 1.6 in Q3 2022 vs. USD 0.9 in Q3 2021, missing analyst expectations of USD 1.14. The company’s revenue dropped 22.5% YoY to USD 82.5 million compared to USD 106.4 million from last year, missing consensus estimates of USD 98.1 million.

Reiterating its lower projection from October , Beyond Meat’s revenue guidance for FY 2022 stood in the range of USD 400 million and USD 425 million. The company estimates a one-time cash charge of ~USD 4 million related to job slashes, a majority of which will be incurred in Q4. The company expects to benefit ~USD 27 million in cash operating expense savings related to job cuts over the next 12 months and is targeting to be cash flow positive in H2 2023. CEO Ethan Brown also stated that  Beyond Meat will not launch another product like Beyond Jerky, which was expensive and inefficient to produce, and will only launch cash-flow positive products going forward.

The revenue decline during the period was driven by a 12.8% decrease in volumes coupled with an 11.2% drop in net revenue per pound, reflecting the weaker than expected demand. US Foodservice was the only segment to report a growth in revenue (up 5.6% YoY), while International Retail was the worst affected with revenue decreasing 52.3% YoY. The company attributed this to list price reductions in the EU, trade discounts, unfavorable exchange rate conditions, and changes in the sales mix.

Gross profit was a loss of USD 14.8 million (vs. a gross profit of USD 23 million in Q3 2021) and was impacted by higher costs per pound and lower net revenue per pound. Gross profit was also impacted by underutilization charges and one-time termination expenses related to several co-manufacturing agreements, including  USD 5.9 million connected to Beyond Meat Jerky. Lower gross profit adversely affected the company’s loss from operations of USD 89.7 million (a deterioration from the previous year’s loss of USD 54.0 million) despite a reduction in operating expenses attributable to reduced selling expenses, lower general and administrative expenses, and lower non-production headcount expenses.