Beyond Meat beat estimates for second-quarter revenue and raised the lower end of its sales forecast for the year, as it benefited from a string of price increases on its plant-based meat burger patties and sausages.
The company's move to raise prices and cut costs last year also helped boost quarterly margins, which surged to 14.7% from 2.2% a year earlier.
Pricing Actions
"We expect U.S. pricing actions to provide a tailwind toward net revenues per pound in both channels through the balance of the year," CEO Ethan Brown said on a post-earnings call.
Easing expenses related to manufacturing and logistics helped the company offset the impact of higher raw material costs.
Beyond Meat saw a moderate drop in its domestic retail and foodservice businesses as a sequential rise in marketing and promotional activities helped attract customers who had switched to lower-priced animal proteins.
The company saw a 6.1% increase in quarterly net revenue per pound helped by lower trade discounts as well as prices of some products in U.S. retail and foodservice channels.
Domestic Retail
In its domestic retail channel, the company reported an increase of 20.5% in net revenue per pound, compared with a 6.3% decline a year earlier.
"Its Q2 earnings show a glimpse of what is likely to be Beyond Meat's near to medium future: a gradual decline in sales losses with a path towards profitability," eMarketer analyst Blake Droesch said.
The company's quarterly volumes were down 14% after falling 23.9% a year earlier.
Net revenue declined 8.8% to $93.2 million (€85.74 million) from a year earlier. Analysts had expected revenue of $87.8 million (€80.78 million), according to LSEG data.
For fiscal 2024, it expects net revenue in the range of $320 million (€294.4 million) to $340 million (€312.8 million), compared with its prior forecast of $315 million (€289.8 million) to $345 million (€317.4 million).
Shares of the company were up about 2% in trading after the bell.
