Beyond Meat Inc BYND reported first-quarter revenue growth of 1.2% year-over-year to $109.5 million, missing the consensus of $112.40 million.

The total volume of products sold increased 12.4% Y/Y, primarily offset by a decrease in net revenue per pound of ~10%.

The company stated that the decrease in net revenue per pound was attributable to increased trade discounts, list price reductions in the EU, changes in sales mix, and unfavorable foreign exchange rate impacts.

EPS was $(1.58), below the consensus of $(1.01). The gross margin plunged to 0.2% from 30.2% in 1Q21.

Loss from operations widened to $97.63 million in the quarter, compared to a loss of $24.64 million a year ago. Adjusted EBITDA loss was $78.9 million for the quarter, compared loss of $10.8 million in 1Q21.

Beyond Meat’s net cash used in operating activities was $(165.2) million, compared to $30.7 million for the year-ago period. It held cash and equivalents balance of $547.9 million as of April 2, 2022.

President and CEO Ethan Brown commented, “Though we recognize that the decisions we are making today in support of our long-run ambition have contributed to challenging near-term results, including a sizable though temporary reduction in gross margin as we took cost-intensive measures to support important strategic launches, we are confident in the future we are building while advancing our mission to bring plant-based meats and their attendant health, climate, natural resource, and animal welfare benefits to consumers around the world.”

The company stated that its operating environment continues to be affected by near-term uncertainty related to macroeconomic issues.

FY22 Outlook: BYND expects Net revenues of $560 million to $620 million (vs. a consensus of $588.87 million), an increase of 21% to 33% compared to 2021.

Price Action: BYND shares are trading lower by 22.66% at $20.32 during the post-market session on Wednesday.