Plant-based Very Good Food Co. Inc. said Wednesday that it is temporarily lowering both production and headcount, halting non-critical capital expenditures, and taking other steps to manage liquidity and drive profitability. Supply chain disruptions have driven inventory to levels that require a pullback in production. The company says it will also focus on cost improvements, which could drive further workforce reductions. “Digital marketing costs to acquire new customers have increased over the past year, largely related to structural changes of the largest digital and social platforms,” said Chief Executive Mitchell Scott in a statement. “This challenge has required us to review our online strategy and marketing expenditures to optimize our return on investment. As such, we expect our growth will slow down in the near-term in this channel.” The company also experienced higher-than-expected cash burn over the past several months, which has put a strain on short-term liquidity. Very Good Food shares fell 3.9% in Wednesday premarket trading, and have plunged nearly 89% over the last year. The S&P 500 index is up 7.6% for the past 12 months.
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