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Beyond Meat has grown quarterly revenue for the first time in two years although analysts warn its diminishing cash pile could soon run out.

The US-producer of plant-based meat substitutes has struggled recently as cost-conscious shoppers began ditching expensive fake-meat products. Its share price is down 96% since the start of 2021.

Investors are now hoping the business has turned a corner after sales grew 7.6% to $81m in the three months to September, and gross profit turned from a $7.3m loss to a $14.3m profit.

However, the company cut its annual revenue forecast to between $320m and $330m, compared to a prior estimate of $320m to $340m.

Beyond Meat’s struggles mean it is burning through cash with reserves down $22m last quarter. “At this cadence, barring any material change in company profitability, this would imply the company has 4-6 quarters left before its current cash pile runs out,” said Bernstein analysts.

Although the company is hoping to raise up to $250m by the end of the year, said Bernstein, “with a market cap of ~$400m there is only so much it can raise to shore up its balance sheet”.

Revenue growth in the third quarter came as hefty price hikes outweighed the ongoing fall in volumes.

Net revenue per pound was up 15.8% due to lower trade discounts, price increases of certain products, and changes in product sales mix, the business said.

Volumes were down 7.1% with particular hits to US retail and international food service. By contrast, volumes in international retail grew 6%.

Beyond Meat’s customers in fast-food outlets like McDonald’s are also grappling with weaker demand, although the company highlighted a growth in European distribution with McDonald’s in France adding its plant-based chicken nugget as a permanent item to the menu.

“We are pleased to report that in the third quarter we returned to growth, increasing net revenues on a year-over-year basis, while continuing to expand gross margin and reduce operating expenses on both a sequential and year-over-year basis,” said President and CEO Ethan Brown.

“Looking ahead, we expect to increase our cash reserves by year-end and pursue further balance sheet restructuring in 2025.”