Shares of plant-based food products provider Tattooed Chef (NASDAQ:TTCF) are declining in the pre-market session today after the company announced a business update including a cost reduction drive.
In the current challenging macro environment, TTCF is taking steps to achieve annual cost savings of ~$30 million by the end of 2023 and achieve positive EBITDA and cash flow by the mid of 2024.
The strategic move includes lowered marketing expenses, increased productivity, reduced promotional programs, and savings generated from in-house cold storage facilities.
Additionally, TTCF is also banking on the recent price increases undertaken and the introduction of new products in 2023.
TTCF also announced preliminary numbers for the third quarter. Revenue declined by 6.7% year-over-year to $54.1 million. At the same time, the net loss of the company widened to $38.3 million from $8.3 million a year ago.
The company has now filed for an extension to the deadline for its form 10-Q and plans to file the report by November 14.
For the full-year 2022, it now expects revenue to range between $235 million and $245 million versus the earlier estimate of revenue between $280 million and $285 million.
TTCF shares have now tanked 71.5% year-to-date and short interest in the stock remains high at ~32.4% at present.
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