Beyond Meat reports narrow-than-expected quarterly loss despite sinking sales

Beyond Meat on Thursday reported a narrower-than-expected loss for its fourth quarter, despite its sales sinking more than 20%.

Shares of the company climbed 13% in after-hours trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

For the fourth quarter, Beyond reported a net loss of $66.9 million, or $1.05 per share, narrower than a net loss of $80.4 million, or $1.27 per share, a year earlier.

Net sales dropped 20.6% to $79.9 million. Beyond said the total pounds of meat substitutes sold fell 16.9% in the quarter.

And the company is forecasting its sales will shrink further in 2023. Beyond said it's projecting its annual revenue will range from $375 million to $415 million, representing a drop of 1% to 10% in sales. Wall Street was expecting that 2023 revenue would range from $322 million to $496 million.

Rather than growing sales, Beyond's primary business goal is to become cash-flow positive in the second half of 2023. Its gross margins are expected to be in the low double-digits and increasing throughout the year.

The company said demand for meat alternatives has continued to soften. In response, it's offered its products at discounts to entice inflation-weary customers. Beyond's net revenue per pound fell 4.4% in the quarter.