The first alternative meat company to go public beat expectations for fourth-quarter revenue after reporting resilient demand in key markets outside the United States.
Beyond Meat reported that net revenue fell 7.8 per cent to $73.7 million, although this exceeded analysts’ average estimate of $66.7 million.
The company’s shares, which fell nearly 28 per cent last year, jumped nearly 80 per cent to $13.55 in after-hours trading on Wall Street. Ethan Brown, chief executive, said that the business would “steeply reduce” operating expenses and cash use this year.
To counter weak demand in the United States Beyond Meat, which supplies its plant-based meat patties to fast food chains such as McDonald’s and Yum! Brands, has resorted to higher discounts. Alternative meat is pricier than traditional meat — a factor that has discouraged budget-conscious consumers in the US.
The company has been able to sustain demand for plant-based meat in its international markets, particularly Europe.
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Cost-cutting measures, including job cuts taken last year, have also helped reduce the burden on margins from sluggish demand in the US.
Volumes rose 8 per cent in the quarter to the end of December, compared with a 3.5 per cent increase in the third quarter.
The company’s full-year net revenue forecast in the range of $315 million to $345 million was largely below market expectations of $343.8 million.
