Beyond Meat has posted a bigger-than-expected loss for the third quarter, as the company’s margins are hit by the impact of inflation and industry-wide supply chain challenges.

The plant-based meat giant’s net loss widened to $101.7 million, or $1.60 per share. Analysts had on average expected a loss of $1.14 per share, according to Refinitiv IBES data, cited by Reuters.

Beyond Meat also missed expectations for revenue, which came in at $82.5 million, behind analysts’ estimates of $98.1 million.

The 22.5% decrease was driven by “weaker-than-expected” demand and an around 11.2% decrease in net revenue per pound. Heavy discounting, particularly in the EU, has squeezed Beyond Meat’s margins.

In October, the company cut its revenue forecast for a second time, citing “ongoing softness” in the plant-based meat category as one factor negatively impacting its performance.

According to Beyond Meat, consumers are trading down to cheaper proteins, including animal meat, amid inflationary pressures, and the company has also announced a raft of job cuts in recent months.

Meanwhile, the plant-based meat maker faces rising logistics and raw material costs and increasing competition in the category.

Commenting on the company’s latest results, president and CEO Ethan Brown said: “As we shared last month, Beyond Meat is executing a full force pivot to a sustainable growth model, emphasising the achievement of cash flow positive operations within the second half of 2023”.

“This transition is designed to fortify our business in the near-term as record inflation continues to pose a challenge for our brand and category, positioning Beyond Meat to endure and advance toward our long-term objective of being a major protein provider within the $1.4 trillion meat industry.”

He continued: “Though this quarter’s results are disappointing, with a sharp decline in revenues and associated knock-on effects across the income statement, including gross margin, driven by a challenging macro environment, we are implementing aggressive measures with urgency to positively impact our near-term operations”.

“Our path forward comprises three key actions: significant reduction of our operating expenses; intensified focus on cash flow accretive inventory management activities; and sales and marketing programmes that are tightly focused on opportunities and segments that strike the right balance between near-term growth and our most valuable long-term opportunities.”

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