Beyond Meat reported better-than-expected sales in the second quarter of the year, despite facing weak demand for its plant-based products. The company's revenue for the April-June period was $93.2 million, a decrease of nearly 9% compared to the previous year but surpassing Wall Street's expectations of $87.8 million.
This marks the ninth consecutive quarter of year-over-year revenue declines for Beyond Meat, as it continues to combat consumer perceptions that its products are overly processed, unhealthy, or lacking in taste. Sales volumes dropped by 14% in the second quarter due to reduced demand in both retail and food-service sectors in the U.S. and international markets.
To stimulate demand, Beyond Meat has introduced new, healthier products such as Beyond Burger patties and Beyond Beef grounds with reduced saturated fat content. The company also launched a healthier sausage made with avocado oil and a new product called Beyond Sun Sausage, which focuses on providing a nutritious protein option rather than mimicking meat.
CEO Ethan Brown highlighted the positive reception of the new formulations by consumers and retailers, emphasizing the company's efforts to address health misperceptions surrounding its products. Beyond Meat is also working on enhancing manufacturing efficiency and cost control, achieving its highest gross margin since 2021 in the second quarter.
Despite raising prices in the U.S., Beyond Meat experienced increased orders from grocers, indicating a favorable response to its new offerings. Brown acknowledged the challenge of changing consumer perceptions but expressed confidence in the support from health professionals endorsing the health benefits of the reformulated products.
The company narrowed its net loss to $34.4 million in the second quarter and revised its full-year revenue forecast to be in the range of $320 million to $340 million. Beyond Meat's stock, which has declined by 66% over the past year, saw a 1.5% increase in after-market trading following the earnings report.
