Oatly Reports Fourth Quarter and Full Year 2024 Financial Results
Oatly Group AB (OTLY) reported Q4 2024 financial results with revenue of $214.3 million, up 5.0% year-over-year. The company achieved solid volume growth across all segments, with total sold volume increasing 9.9% to 153.2 million liters. Gross margin improved to 28.8%, a 5.4 percentage point increase from the previous year.
The company announced significant strategic changes, including the closure of its Singapore facility and discontinuation of its second manufacturing facility construction in China. Q4 net loss was $91.2 million, improving from $298.7 million in the prior year period. Adjusted EBITDA loss narrowed to $6.1 million from $19.2 million.
For 2025, Oatly expects its first full year of profitable growth as a public company, projecting constant currency revenue growth of 2-4% (impacted by -300 basis points from a North American customer sourcing change), positive adjusted EBITDA of $5-15 million, and capital expenditures of $30-35 million.
Oatly Group AB (OTLY) ha riportato i risultati finanziari del Q4 2024 con entrate di 214,3 milioni di dollari, in aumento del 5,0% rispetto all'anno precedente. L'azienda ha registrato una solida crescita del volume in tutti i segmenti, con un volume totale venduto che è aumentato del 9,9% a 153,2 milioni di litri. Il margine lordo è migliorato al 28,8%, con un incremento di 5,4 punti percentuali rispetto all'anno precedente.
L'azienda ha annunciato cambiamenti strategici significativi, tra cui la chiusura della sua struttura a Singapore e l'interruzione della costruzione della sua seconda struttura produttiva in Cina. La perdita netta del Q4 è stata di 91,2 milioni di dollari, in miglioramento rispetto ai 298,7 milioni dello stesso periodo dell'anno precedente. La perdita dell'EBITDA rettificato si è ridotta a 6,1 milioni di dollari rispetto ai 19,2 milioni.
Per il 2025, Oatly prevede il suo primo anno interamente redditizio come azienda pubblica, con una crescita delle entrate a valuta costante prevista tra il 2% e il 4% (impattata da -300 punti base a causa di un cambiamento nell'approvvigionamento di un cliente nordamericano), un EBITDA rettificato positivo di 5-15 milioni di dollari e spese in conto capitale tra i 30 e i 35 milioni di dollari.
Oatly Group AB (OTLY) reportó los resultados financieros del cuarto trimestre de 2024 con ingresos de 214,3 millones de dólares, un aumento del 5,0% en comparación con el año anterior. La compañía logró un sólido crecimiento de volumen en todos los segmentos, con un volumen total vendido que aumentó un 9,9% hasta 153,2 millones de litros. El margen bruto mejoró al 28,8%, un aumento de 5,4 puntos porcentuales en comparación con el año anterior.
La empresa anunció cambios estratégicos significativos, incluyendo el cierre de su instalación en Singapur y la interrupción de la construcción de su segunda instalación de fabricación en China. La pérdida neta del cuarto trimestre fue de 91,2 millones de dólares, mejorando respecto a los 298,7 millones del mismo periodo del año anterior. La pérdida de EBITDA ajustado se redujo a 6,1 millones de dólares desde 19,2 millones.
Para 2025, Oatly espera su primer año completo de crecimiento rentable como empresa pública, proyectando un crecimiento de ingresos en moneda constante del 2-4% (afectado por -300 puntos básicos debido a un cambio en el abastecimiento de un cliente de América del Norte), un EBITDA ajustado positivo de 5-15 millones de dólares y gastos de capital de 30-35 millones de dólares.
Oatly Group AB (OTLY)는 2024년 4분기 재무 실적을 보고하며 2억 1,430만 달러의 수익을 기록했으며, 이는 전년 대비 5.0% 증가한 수치입니다. 회사는 모든 부문에서 견고한 물량 성장을 달성했으며, 총 판매량은 9.9% 증가하여 1억 5,320만 리터에 달했습니다. 총 마진은 28.8%로 개선되어 전년 대비 5.4포인트 상승했습니다.
회사는 싱가포르 시설의 폐쇄와 중국에서 두 번째 제조 시설 건설 중단을 포함한 중요한 전략적 변화를 발표했습니다. 4분기 순손실은 9,120만 달러로, 전년 동기 2억 9,870만 달러에서 개선되었습니다. 조정된 EBITDA 손실은 1,610만 달러에서 620만 달러로 줄어들었습니다.
2025년을 위해 Oatly는 상장 기업으로서 첫 번째 완전한 수익성 성장 해를 기대하고 있으며, 상수 통화 기준으로 2-4%의 수익 성장(북미 고객 소싱 변경으로 인해 -300 베이시스 포인트의 영향)을 예상하고, 조정된 EBITDA는 500만 - 1,500만 달러, 자본 지출은 3,000만 - 3,500만 달러로 예상하고 있습니다.
Oatly Group AB (OTLY) a publié les résultats financiers du quatrième trimestre 2024 avec des revenus de 214,3 millions de dollars, en hausse de 5,0 % par rapport à l'année précédente. L'entreprise a réalisé une solide croissance des volumes dans tous les segments, avec un volume total vendu augmentant de 9,9 % pour atteindre 153,2 millions de litres. La marge brute s'est améliorée à 28,8 %, soit une augmentation de 5,4 points de pourcentage par rapport à l'année précédente.
L'entreprise a annoncé des changements stratégiques significatifs, y compris la fermeture de son installation à Singapour et l'arrêt de la construction de sa deuxième installation de fabrication en Chine. La perte nette du quatrième trimestre s'est élevée à 91,2 millions de dollars, contre 298,7 millions de dollars pour la même période l'année précédente. La perte d'EBITDA ajusté a été réduite à 6,1 millions de dollars contre 19,2 millions de dollars.
Pour 2025, Oatly prévoit sa première année complète de croissance rentable en tant qu'entreprise publique, avec une prévision de croissance des revenus en monnaie constante de 2 à 4 % (impactée par -300 points de base en raison d'un changement d'approvisionnement d'un client nord-américain), un EBITDA ajusté positif de 5 à 15 millions de dollars et des dépenses d'investissement de 30 à 35 millions de dollars.
Oatly Group AB (OTLY) hat die finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht, mit Einnahmen von 214,3 Millionen Dollar, was einem Anstieg von 5,0% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte eine solide Mengensteigerung in allen Segmenten, wobei das gesamte Verkaufsvolumen um 9,9% auf 153,2 Millionen Liter stieg. Die Bruttomarge verbesserte sich auf 28,8%, ein Anstieg um 5,4 Prozentpunkte im Vergleich zum Vorjahr.
Das Unternehmen kündigte bedeutende strategische Änderungen an, einschließlich der Schließung seiner Einrichtung in Singapur und der Einstellung des Baus seiner zweiten Produktionsstätte in China. Der Nettoverlust im 4. Quartal betrug 91,2 Millionen Dollar, eine Verbesserung gegenüber 298,7 Millionen Dollar im Vorjahreszeitraum. Der Verlust des bereinigten EBITDA verringerte sich auf 6,1 Millionen Dollar von 19,2 Millionen Dollar.
Für 2025 erwartet Oatly das erste volle Jahr profitablen Wachstums als börsennotiertes Unternehmen, mit einer prognostizierten konstanten Währungsumsatzwachstumsrate von 2-4% (beeinflusst durch -300 Basispunkte aufgrund einer Änderung in der Beschaffung eines nordamerikanischen Kunden), einem positiven bereinigten EBITDA von 5-15 Millionen Dollar und Investitionsausgaben von 30-35 Millionen Dollar.
- Revenue increased 5.0% YoY to $214.3 million in Q4 2024
- Gross margin improved by 540 basis points to 28.8%
- Volume growth of 9.9% to 153.2 million liters
- Adjusted EBITDA loss improved by $13.1 million
- Projecting first profitable year in 2025 with positive EBITDA of $5-15 million
- Q4 net loss of $91.2 million
- Negative price/mix effect, particularly in Greater China
- $41.7 million impairment charges for discontinued China facility
- Expected revenue growth impacted by -300 basis points due to North American customer sourcing change
- Operating cash flow remains negative at -$114.4 million for 2024
Insights
Oatly's Q4 2024 results reveal a company in the final stages of a comprehensive transformation, with several key developments worth noting:
Operational Transformation
The 540 basis point improvement in gross margin to
Strategic Realignment
The decision to close the Singapore facility and halt Asia III construction represents a pragmatic approach to capital allocation. Rather than pursuing aggressive expansion, management is prioritizing efficiency and profitability. This strategic pivot could save approximately
Market Performance
Volume growth of
Financial Health
With
Forward Outlook
The projected
MALMÖ, Sweden, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced financial results for the fourth quarter and twelve months ended December 31, 2024.
Jean-Christophe Flatin, Oatly’s CEO, commented, “Over the past two years, we have executed a significant transformation of our company. We have overhauled our supply chain, our overhead structure, and our mindset. We now have a much healthier business with clear strategies, clear accountability, stronger margins, and significantly improved profitability. I am proud of our team for embracing the challenge, making the necessary changes, and focusing on execution. All this hard work has enabled us to now expect 2025 to be our first full year of profitable growth as a public company.”
The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and twelve months ended December 31, 2024 and 2023.
| Three months ended December 31, | $ Change | % Change | ||||||||||||||||||||||||||||||
| (Unaudited) (in thousands of U.S. dollars) | 2024 | 2023 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | Volume | Constant currency price/mix | |||||||||||||||||||||||
| Europe & International | 108,462 | 105,620 | 108,462 | 577 | 107,885 | 2.7 | % | 2.1 | % | 4.1 | % | -2.0 | % | |||||||||||||||||||
| North America | 70,596 | 65,900 | 70,596 | — | 70,596 | 7.1 | % | 7.1 | % | 5.1 | % | 2.0 | % | |||||||||||||||||||
| Greater China | 35,258 | 32,601 | 35,258 | 118 | 35,140 | 8.2 | % | 7.8 | % | 34.7 | % | -26.9 | % | |||||||||||||||||||
| Total revenue | 214,316 | 204,121 | 214,316 | 695 | 213,621 | 5.0 | % | 4.7 | % | 9.9 | % | -5.2 | % | |||||||||||||||||||
| Twelve months ended December 31, | $ Change | % Change | ||||||||||||||||||||||||||||||
| (Unaudited) (in thousands of U.S. dollars) | 2024 | 2023 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | Volume | Constant currency price/mix | |||||||||||||||||||||||
| Europe & International | 434,263 | 408,410 | 434,263 | 4,104 | 430,159 | 6.3 | % | 5.3 | % | 4.8 | % | 0.5 | % | |||||||||||||||||||
| North America | 274,455 | 250,264 | 274,455 | — | 274,455 | 9.7 | % | 9.7 | % | 10.0 | % | -0.3 | % | |||||||||||||||||||
| Greater China | 114,948 | 124,674 | 114,948 | (1,865 | ) | 116,813 | -7.8 | % | -6.3 | % | 21.2 | % | -27.5 | % | ||||||||||||||||||
| Total revenue | 823,666 | 783,348 | 823,666 | 2,239 | 821,427 | 5.1 | % | 4.8 | % | 8.8 | % | -4.0 | % | |||||||||||||||||||
Highlights
- Fourth quarter revenue of
$214.3 million , a5.0% increase compared to the prior year period, with a constant currency revenue increase of4.7% compared to the prior year period, with a solid volume growth in each operating segment. - Gross margin in the fourth quarter was
28.8% , which is a 5.4 percentage points increase compared to the prior year period. - Fourth quarter net loss attributable to shareholders of the parent was
$91.2 million compared to net loss attributable to shareholders of the parent of$298.7 million in the prior year period. - Fourth quarter Adjusted EBITDA loss was
$6.1 million , which is an improvement of$13.1 million compared to the prior year period. - As part of the Company’s previously-discussed evaluation of its Asian supply chain, the Company announced the closure of its Singapore manufacturing facility in December and is today announcing the discontinuation of construction of its second manufacturing facility in China (Asia III).
- The Company expects to achieve its first full year of profitable growth in 2025. Specifically, in 2025 the Company expects:
- Constant currency revenue growth in the range of
2% to4% , which is negatively impacted by approximately 300 basis points from a change in sourcing decision at a large North American customer, - Positive adjusted EBITDA in the range of
$5 million to$15 million , and - Capital expenditures in the range of
$30 million to$35 million .
- Constant currency revenue growth in the range of
Fourth Quarter 2024 Results
Revenue increased
The Company continued to drive revenue growth in both the retail channel and foodservice channel in the fourth quarter of 2024 compared to the fourth quarter of 2023.
Gross profit was
Research and development expenses in the fourth quarter of 2024 decreased
Selling, general and administrative expenses in the fourth quarter of 2024 increased
Other operating income and (expenses), net for the fourth quarter of 2024 was an expense of
Finance income and (expenses), net for the fourth quarter of 2024 was an expense of
Net loss attributable to shareholders of the parent was
Adjusted EBITDA loss for the fourth quarter of 2024 was
EBITDA, Adjusted EBITDA loss, and Constant Currency Revenue are non-IFRS financial measures defined under “Non-IFRS financial measures”. Please see above revenue at constant currency table and “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
The following tables set forth revenue, Adjusted EBITDA, EBITDA and loss before tax for the Company’s three reportable segments for the periods presented.
Revenue, Adjusted EBITDA and EBITDA
Segment information for the three and twelve months ended December 31, 2023 presented below has been updated to reflect previously disclosed changes to our operating segments, which were effective as of January 1, 2024. Please see our press release, dated April 17, 2024, furnished on Form 6-K with the SEC for further information regarding these changes.
| Three months ended December 31, 2024 (Unaudited) (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 108,462 | 70,596 | 35,258 | — | — | 214,316 | ||||||||||||||||||
| Intersegment revenue | 1,326 | — | — | — | (1,326 | ) | — | |||||||||||||||||
| Total segment revenue | 109,788 | 70,596 | 35,258 | — | (1,326 | ) | 214,316 | |||||||||||||||||
| Adjusted EBITDA | 16,580 | 1,249 | 589 | (24,497 | ) | — | (6,079 | ) | ||||||||||||||||
| Share-based compensation expense | (306 | ) | (230 | ) | (511 | ) | (2,456 | ) | — | (3,503 | ) | |||||||||||||
| Restructuring costs(1) | (1,520 | ) | (356 | ) | — | (1,721 | ) | — | (3,597 | ) | ||||||||||||||
| New product launch issue(2) | — | 567 | — | — | — | 567 | ||||||||||||||||||
| Asset impairment charges and other costs related to discontinued construction of production facilities(3) | 48 | 2,122 | (25,068 | ) | — | — | (22,898 | ) | ||||||||||||||||
| Asset impairment charges and other costs related to closure of production facility(4) | (42,110 | ) | — | — | — | — | (42,110 | ) | ||||||||||||||||
| Non-controlling interests | — | — | (151 | ) | — | — | (151 | ) | ||||||||||||||||
| EBITDA | (27,308 | ) | 3,352 | (25,141 | ) | (28,674 | ) | — | (77,771 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (1,149 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (11,932 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (90,852 | ) | |||||||||||||||||
| Three months ended December 31, 2023 (Unaudited) (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 105,620 | 65,900 | 32,601 | — | — | 204,121 | ||||||||||||||||||
| Intersegment revenue | 2,333 | — | — | — | (2,333 | ) | — | |||||||||||||||||
| Total segment revenue | 107,953 | 65,900 | 32,601 | — | (2,333 | ) | 204,121 | |||||||||||||||||
| Adjusted EBITDA | 11,410 | (2,689 | ) | (5,156 | ) | (22,787 | ) | — | (19,222 | ) | ||||||||||||||
| Share-based compensation expense | (679 | ) | (990 | ) | (624 | ) | (2,394 | ) | — | (4,687 | ) | |||||||||||||
| Restructuring costs(1) | (319 | ) | (580 | ) | (273 | ) | (1,244 | ) | — | (2,416 | ) | |||||||||||||
| Asset impairment charges and other costs related to discontinued construction of production facilities(5) | (158,551 | ) | (43,009 | ) | — | — | — | (201,560 | ) | |||||||||||||||
| Non-controlling interests | — | — | (112 | ) | — | — | (112 | ) | ||||||||||||||||
| EBITDA | (148,139 | ) | (47,268 | ) | (6,165 | ) | (26,425 | ) | — | (227,997 | ) | |||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (50,486 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (14,618 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (293,101 | ) | |||||||||||||||||
| Twelve months ended December 31, 2024 (Unaudited) (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 434,263 | 274,455 | 114,948 | — | — | 823,666 | ||||||||||||||||||
| Intersegment revenue | 6,429 | — | — | — | (6,429 | ) | — | |||||||||||||||||
| Total segment revenue | 440,692 | 274,455 | 114,948 | — | (6,429 | ) | 823,666 | |||||||||||||||||
| Adjusted EBITDA | 56,128 | 5,298 | (1,645 | ) | (95,106 | ) | — | (35,325 | ) | |||||||||||||||
| Share-based compensation expense | (1,985 | ) | 656 | (2,101 | ) | (10,168 | ) | — | (13,598 | ) | ||||||||||||||
| Restructuring costs(1) | (2,410 | ) | (1,222 | ) | (1,940 | ) | (2,600 | ) | — | (8,172 | ) | |||||||||||||
| New product launch issue(2) | — | (11,998 | ) | — | — | — | (11,998 | ) | ||||||||||||||||
| Asset impairment charges and other costs related to discontinued construction of production facilities(3) | (2,875 | ) | 3,283 | (25,068 | ) | — | — | (24,660 | ) | |||||||||||||||
| Asset impairment charges and other costs related to closure of production facility(4) | (42,110 | ) | — | — | — | — | (42,110 | ) | ||||||||||||||||
| Non-controlling interests | — | — | (323 | ) | — | — | (323 | ) | ||||||||||||||||
| EBITDA | 6,748 | (3,983 | ) | (31,077 | ) | (107,874 | ) | — | (136,186 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (12,421 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (49,966 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (198,573 | ) | |||||||||||||||||
| Twelve months ended December 31, 2023 (Unaudited) (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 408,410 | 250,264 | 124,674 | — | — | 783,348 | ||||||||||||||||||
| Intersegment revenue | 25,601 | — | 181 | — | (25,782 | ) | — | |||||||||||||||||
| Total segment revenue | 434,011 | 250,264 | 124,855 | — | (25,782 | ) | 783,348 | |||||||||||||||||
| Adjusted EBITDA | 28,377 | (31,910 | ) | (57,543 | ) | (96,485 | ) | — | (157,561 | ) | ||||||||||||||
| Share-based compensation expense | (2,378 | ) | (3,820 | ) | (4,608 | ) | (10,640 | ) | — | (21,446 | ) | |||||||||||||
| Restructuring costs(1) | (1,382 | ) | (3,062 | ) | (2,675 | ) | (7,641 | ) | — | (14,760 | ) | |||||||||||||
| Asset impairment charges and other costs related to discontinued construction of production facilities(5) | (158,551 | ) | (43,009 | ) | — | — | — | (201,560 | ) | |||||||||||||||
| Costs related to the YYF Transaction(6) | — | (375 | ) | — | — | — | (375 | ) | ||||||||||||||||
| Legal settlement(7) | — | — | — | (9,250 | ) | — | (9,250 | ) | ||||||||||||||||
| Non-controlling interests | — | — | (186 | ) | — | — | (186 | ) | ||||||||||||||||
| EBITDA | (133,934 | ) | (82,176 | ) | (65,012 | ) | (124,016 | ) | — | (405,138 | ) | |||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | 48,847 | ||||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (51,874 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (408,165 | ) | |||||||||||||||||
* Corporate consists of general costs not allocated to the segments.
** Eliminations in 2024 and 2023 primarily refer to intersegment revenue for sales of products from Europe & International to Greater China.
- Relates primarily to severance costs as the Group adjusts its organizational structure.
- Expenses related to a new product launch issue.
- In Europe & International the cost primarily relates to non-cash impairments related to discontinued construction of the Group’s production facility in Peterborough, UK. In North America the amount primarily relates to reversal of previously recognized non-cash impairments and other exit costs related to discontinued construction of the Group’s production facility in Dallas-Fort Worth, Texas. In Greater China the Company decided to discontinue the construction of the Group’s second production facility in China (Asia III). Following this decision the Company, during the fourth quarter, recorded
$25.1 million primarily relating to non-cash impairments. - Relates to non-cash impairments of
$19.1 million and$23.0 million in restructuring and other exit costs related to the closure of the Group’s production facility in Singapore. - Following certain events during the fourth quarter 2023, the Company decided to discontinue the construction of its new production facilities in Peterborough, UK and Dallas-Fort Worth, Texas. The Company recorded
$172.6 million in non-cash impairments and$29.0 million in restructuring and other exit costs relating to these production facilities. - Relates to the Ya YA Foods USA LLC transaction (the “YYF Transaction”). See the Company’s Form 6-K filed on January 3, 2023 and March 2, 2023 for further details.
- Relates to US securities class action litigation settlement expenses.
Europe & International
Europe & International revenue increased
Europe & International Adjusted EBITDA increased
North America
North America revenue increased
North America Adjusted EBITDA improved
Greater China
Greater China revenue increased
Greater China Adjusted EBITDA improved
Corporate
Oatly’s corporate expense, which consists of general costs not allocated to the segments, in the fourth quarter of 2024 was
Balance Sheet and Cash Flows
As of December 31, 2024, the Company had cash and cash equivalents of
Capital expenditures were
Free cash flow was an outflow of
Free Cash Flow is a non-IFRS liquidity measure defined under “Non-IFRS financial measures.” Please see “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
Update on Asian Supply Chain
As previously announced on December 18, 2024, the Company decided to close its manufacturing facility in Singapore. As part of the closure, in the fourth quarter, the Company incurred a non-cash impairment of
Separately, after a thorough evaluation of its supply chain, the Company is today announcing the decision to discontinue the construction of the second production facility in China, which the Company historically referred to as “Asia III”. The Company has determined that the production capabilities in the existing Ma’anshan production site, including the possibility of future expansion at that site, will be sufficient to support current customers and business growth. As a result of this decision, the Company in the fourth quarter recorded
Outlook
Based on the Company’s assessment of the current operating environment and the actions it is taking, the Company expects to achieve its first full year of profitable growth in 2025. Specifically, in 2025 the Company expects:
- Constant currency revenue growth in the range of
2% to4% , which is negatively impacted by approximately 300 basis points from a change in sourcing decision at a large North American customer, - Positive adjusted EBITDA in the range of
$5 million to$15 million , and - Capital expenditures in the range of
$30 million to$35 million .
This outlook is provided in the context of significant macroeconomic uncertainty and other geopolitical uncertainties.
The Company cannot provide a reconciliation of constant currency revenue growth or Adjusted EBITDA guidance to the nearest comparable corresponding IFRS metric without unreasonable efforts due to difficulty in predicting certain items excluded from these non-IFRS measures. The items necessary to reconcile are not within Oatly’s control, may vary greatly between periods and could significantly impact future financial results.
Conference Call, Webcast and Supplemental Presentation Details
Oatly will host a conference call and webcast at 8:00 a.m. ET today to discuss these results. The conference call, simultaneous, live webcast and supplemental presentation can be accessed on Oatly’s Investors website at https://investors.oatly.com under “Events.” The webcast will be archived for 30 days.
About Oatly
We are the world’s original and largest oat drink company. For over 30 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, spreads and on-the-go drinks. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 40 countries globally.
For more information, please visit www.oatly.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding our financial outlook for 2025, profitability improvement, profitable growth in 2025, long-term growth strategy, expected capital expenditures, anticipated returns on our investments, anticipated supply chain performance, anticipated impact of our improvement plans, anticipated impact of our decision to discontinue construction of certain production facilities, plans to achieve profitable growth and anticipated cost savings and efficiencies as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “is/are likely to” and similar statements of a future or forward-looking nature. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: our history of losses and inability to achieve or sustain profitability; including due to elevated inflation and increased costs for transportation, energy and materials; reduced or limited availability of oats or other raw materials and ingredients that meet our quality standards; our ability to generate additional revenue, failure to obtain additional financing to achieve our goals or failure to obtain necessary capital when needed on acceptable terms, or at all; failure of the financial institutions in which we hold our deposits; damage or disruption to our production facilities; harm to our brand and reputation as a result of real or perceived quality or food safety issues with our products; food safety and food-borne illness incidents or other safety concerns which may lead to lawsuits, product recalls or regulatory enforcement actions; our ability to successfully compete in our highly competitive markets; reduction in the sales of our oat drink varieties; failure to effectively navigate our shift to an asset-light business model; successful exit and closure of the Singapore facility and discontinuation of construction of the Asia III site; failure to successfully achieve any or all of the benefits of the YYF Transaction; failure to meet our existing or new environmental metrics, uncertainty about future mandatory climate change and sustainability related disclosures and requirements, and other risks related to sustainability and corporate social responsibility; litigation, regulatory actions or other legal proceedings including environmental and securities class action lawsuits and settlements; changes to international trade policies and treaties, including but not limited to the imposition of tariffs that could increase prices we pay for inputs, increase the prices paid by our customers for our products, and reduce our profit margins ; sourcing decisions by large customers, global conflict, including the ongoing conflicts in Ukraine and Gaza; changes in our tax rates or exposure to additional tax liabilities or assessments; supply chain delays, including delays in the receipt of product at factories and ports, and an increase in transportation costs; the impact of rising commodity prices, transportation and labor costs on our cost of goods sold; failure by our logistics providers to deliver our products on time, or at all; our ability to successfully execute our cost reduction activities in accordance with our expectations and the impact of such actions on our company; failure to develop and maintain our brand; our ability to introduce new products or successfully improve existing products; failure to retain our senior management or to attract, train and retain employees; cybersecurity incidents or other technology disruptions; risks associated with our operations in the People’s Republic of China; the success of our strategic reset in Asia; failure to protect our intellectual property and other proprietary rights adequately; our ability to successfully remediate previously disclosed material weaknesses or other future control deficiencies, in our internal control over financial reporting; impairments of the value of our assets; potential delisting from Nasdaq; our status as a foreign private issuer; risks related to the significant influence of our largest shareholder, Nativus Company Limited, entities affiliated with China Resources Verlinvest Health Investment Ltd. has over us, including significant influence over decisions that require the approval of shareholders; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 22, 2024 and our other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Oatly disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Non-IFRS Financial Measures
We use EBITDA, Adjusted EBITDA, Constant Currency Revenue as non-IFRS financial measures in assessing our operating performance and Free Cash Flow as a liquidity measure, and each in our financial communications:
“EBITDA” is defined as loss for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income and depreciation and amortization expense.
“Adjusted EBITDA” is defined as loss for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income, depreciation and amortization expense, share-based compensation expense, restructuring costs, expenses related to a new product launch issue, costs related to legal settlement, impacts related to discontinued construction of production facilities, impacts related to closure of production facility, costs related to the YYF Transaction, and non-controlling interests.
Adjusted EBITDA should not be considered as an alternative to loss for the period or any other measure of financial performance calculated and presented in accordance with IFRS. There are a number of limitations related to the use of Adjusted EBITDA rather than loss for the period, which is the most directly comparable IFRS measure. Some of these limitations are:
- Adjusted EBITDA excludes depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated may have to be replaced in the future increasing our cash requirements;
- Adjusted EBITDA does not reflect interest expense, or the cash required to service our debt, which reduces cash available to us;
- Adjusted EBITDA does not reflect income tax payments that reduce cash available to us;
- Adjusted EBITDA does not reflect recurring share-based compensation expense and, therefore, does not include all of our compensation costs;
- Adjusted EBITDA does not reflect restructuring costs that reduce cash available to us in future periods;
- Adjusted EBITDA does not reflect expenses related to a new product launch issue that reduce cash available to us;
- Adjusted EBITDA does not reflect costs related to legal settlement that reduce cash available to us in future periods;
- Adjusted EBITDA excludes impacts related to discontinued construction of production facilities, although some of these may reduce cash available to us in future periods;
- Adjusted EBITDA excludes impacts related to closure of production facility, although some of these may reduce cash available to us in future periods;
- Adjusted EBITDA does not reflect costs related to the YYF Transaction that reduced cash available to us;
- Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Adjusted EBITDA should not be considered in isolation or as a substitute for financial information provided in accordance with IFRS. Below we have provided a reconciliation of EBITDA and Adjusted EBITDA to loss for the period, the most directly comparable financial measure calculated and presented in accordance with IFRS, for the periods presented.
“Constant Currency Revenue” is calculated by translating the current year reported revenue amounts into comparable amounts using the prior year reporting period’s average foreign exchange rates which have been provided by a third party. Constant Currency Revenue is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial performance.
Constant currency revenue is used to provide a framework in assessing how our business and geographic segments performed excluding the effects of foreign currency exchange rate fluctuations and believe this information is useful to investors to facilitate comparisons and better identify trends in our business. Above we have provided a reconciliation of revenue as reported to revenue on a constant currency basis for the periods presented.
“Free Cash Flow” is defined as net cash flows used in operating activities less capital expenditures. We believe Free Cash Flow is a useful supplemental financial measure for us and investors in assessing our ability to pursue business opportunities and investments. Free Cash Flow is not a measure of our liquidity under IFRS and should not be considered as an alternative to net cash flows used in operating activities.
Free Cash Flow is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial liquidity. Because Free Cash Flow is not a measurement determined in accordance with IFRS, and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies. Free Cash Flow should not be considered in isolation, or as a substitute for an analysis of our results as reported on our condensed consolidated financial statements appearing elsewhere in this document. Below we have provided a reconciliation of Free Cash Flow to net cash flows used in operating activities for the periods presented.
Financial Statements
Condensed consolidated statement of operations
| (Unaudited) | Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
| (in thousands of U.S. dollars, except share and per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | 214,316 | 204,121 | 823,666 | 783,348 | ||||||||||||
| Cost of goods sold | (152,699 | ) | (156,343 | ) | (587,174 | ) | (631,265 | ) | ||||||||
| Gross profit | 61,617 | 47,778 | 236,492 | 152,083 | ||||||||||||
| Research and development expenses | (3,728 | ) | (5,328 | ) | (30,135 | ) | (21,047 | ) | ||||||||
| Selling, general and administrative expenses | (81,973 | ) | (80,721 | ) | (324,719 | ) | (373,396 | ) | ||||||||
| Other operating income and (expenses), net | (65,619 | ) | (204,344 | ) | (67,790 | ) | (214,652 | ) | ||||||||
| Operating loss | (89,703 | ) | (242,615 | ) | (186,152 | ) | (457,012 | ) | ||||||||
| Finance income and (expenses), net | (1,149 | ) | (50,486 | ) | (12,421 | ) | 48,847 | |||||||||
| Loss before tax | (90,852 | ) | (293,101 | ) | (198,573 | ) | (408,165 | ) | ||||||||
| Income tax expense | (505 | ) | (5,674 | ) | (3,699 | ) | (8,895 | ) | ||||||||
| Loss for the period | (91,357 | ) | (298,775 | ) | (202,272 | ) | (417,060 | ) | ||||||||
| Attributable to: | ||||||||||||||||
| Shareholders of the parent | (91,206 | ) | (298,663 | ) | (201,949 | ) | (416,874 | ) | ||||||||
| Non-controlling interests | (151 | ) | (112 | ) | (323 | ) | (186 | ) | ||||||||
| Loss per share, attributable to shareholders of the parent: | ||||||||||||||||
| Basic and diluted | (0.15 | ) | (0.50 | ) | (0.34 | ) | (0.70 | ) | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 598,226,750 | 594,606,465 | 596,886,163 | 593,600,863 | ||||||||||||
Condensed consolidated statement of financial position
| (Unaudited) | December 31, 2024 | December 31, 2023 | ||||||
| (in thousands of U.S. dollars) | ||||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Intangible assets | 116,208 | 130,326 | ||||||
| Property, plant and equipment | 294,199 | 360,286 | ||||||
| Right-of-use assets | 45,555 | 88,393 | ||||||
| Other non-current receivables | 44,331 | 44,378 | ||||||
| Deferred tax assets | 4,561 | 10,203 | ||||||
| Total non-current assets | 504,854 | 633,586 | ||||||
| Current assets | ||||||||
| Inventories | 65,602 | 67,882 | ||||||
| Trade receivables | 103,366 | 112,951 | ||||||
| Current tax assets | 6,095 | 2,505 | ||||||
| Other current receivables | 15,738 | 33,820 | ||||||
| Prepaid expenses | 9,402 | 16,928 | ||||||
| Cash and cash equivalents | 98,923 | 249,299 | ||||||
| Total current assets | 299,126 | 483,385 | ||||||
| TOTAL ASSETS | 803,980 | 1,116,971 | ||||||
| EQUITY AND LIABILITIES | ||||||||
| Equity | ||||||||
| Share capital | 106 | 105 | ||||||
| Treasury shares | (0 | ) | (0 | ) | ||||
| Other contributed capital | 1,628,045 | 1,628,045 | ||||||
| Other reserves | (274,160 | ) | (233,204 | ) | ||||
| Accumulated deficit | (1,249,303 | ) | (1,060,952 | ) | ||||
| Equity attributable to shareholders of the parent | 104,688 | 333,994 | ||||||
| Non-controlling interests | 1,435 | 1,787 | ||||||
| Total equity | 106,123 | 335,781 | ||||||
| Liabilities | ||||||||
| Non-current liabilities | ||||||||
| Lease liabilities | 31,724 | 72,570 | ||||||
| Liabilities to credit institutions | 116,216 | 114,249 | ||||||
| Provisions | 14,857 | 10,716 | ||||||
| Total non-current liabilities | 162,797 | 197,535 | ||||||
| Current liabilities | ||||||||
| Lease liabilities | 13,359 | 16,432 | ||||||
| Convertible Notes | 324,395 | 323,528 | ||||||
| Liabilities to credit institutions | 5,757 | 6,056 | ||||||
| Trade payables | 60,152 | 64,368 | ||||||
| Current tax liabilities | 1,476 | 2,732 | ||||||
| Other current liabilities | 7,998 | 13,873 | ||||||
| Accrued expenses | 103,719 | 121,338 | ||||||
| Provisions | 18,204 | 35,328 | ||||||
| Total current liabilities | 535,060 | 583,655 | ||||||
| Total liabilities | 697,857 | 781,190 | ||||||
| TOTAL EQUITY AND LIABILITIES | 803,980 | 1,116,971 | ||||||
Condensed consolidated statement of cash flows
| (Unaudited) | For the year ended December 31 | |||||||
| (in thousands of U.S. dollars) | 2024 | 2023 | ||||||
| Operating activities | ||||||||
| Net loss | (202,272 | ) | (417,060 | ) | ||||
| Adjustments to reconcile net loss to net cash flows | ||||||||
| —Depreciation of property, plant and equipment and right-of-use assets and amortization of intangible assets | 49,966 | 51,702 | ||||||
| —Impairment of property, plant and equipment and right-of-use assets and intangible assets | — | 1,828 | ||||||
| —Impairment (gain)/loss on trade receivables | (234 | ) | 611 | |||||
| —Write-down of inventories | 3,095 | 16,981 | ||||||
| —Share-based compensation | 13,598 | 21,446 | ||||||
| —Movements in provisions | (14,414 | ) | 36,341 | |||||
| —Finance (income) and expenses, net | 12,421 | (48,847 | ) | |||||
| —Income tax expense | 3,699 | 8,895 | ||||||
| —(Gain)/Loss on disposal of property, plant and equipment and intangible assets | (307 | ) | 675 | |||||
| —Impairment related to discontinued construction of production facilities | 24,117 | 172,588 | ||||||
| —Impairment related to closure of production facility | 19,113 | — | ||||||
| —Other | 1,441 | — | ||||||
| Interest received | 8,285 | 9,630 | ||||||
| Interest paid | (24,518 | ) | (20,504 | ) | ||||
| Income tax paid | (3,386 | ) | (18,098 | ) | ||||
| Changes in working capital: | ||||||||
| —(Increase)/decrease in inventories | (3,456 | ) | 30,543 | |||||
| —Decrease/(increase) in trade receivables, other current receivables, prepaid expenses | 14,786 | (2,502 | ) | |||||
| —Decrease in trade payables, other current liabilities, accrued expenses | (16,362 | ) | (9,855 | ) | ||||
| Net cash flows used in operating activities | (114,428 | ) | (165,626 | ) | ||||
| Investing activities | ||||||||
| Purchase of intangible assets | (2,055 | ) | (2,950 | ) | ||||
| Purchase of property, plant and equipment | (39,140 | ) | (66,095 | ) | ||||
| Investments in financial assets | — | (1,651 | ) | |||||
| Proceeds from sale of property, plant and equipment | 31,201 | — | ||||||
| Proceeds from sale of assets held for sale | — | 43,998 | ||||||
| Other | 743 | — | ||||||
| Net cash flows used in investing activities | (9,251 | ) | (26,698 | ) | ||||
| Financing activities | ||||||||
| Proceeds from Convertible Notes | — | 324,950 | ||||||
| Proceeds from liabilities to credit institutions | — | 176,854 | ||||||
| Repayment of liabilities to credit institutions | (2,678 | ) | (102,848 | ) | ||||
| Repayment of lease liabilities | (19,645 | ) | (11,411 | ) | ||||
| Payment of loan transaction costs | (4,965 | ) | (32,550 | ) | ||||
| Cash flows (used in)/from financing activities | (27,288 | ) | 354,995 | |||||
| Net (decrease)/increase in cash and cash equivalents | (150,967 | ) | 162,671 | |||||
| Cash and cash equivalents at January 1 | 249,299 | 82,644 | ||||||
| Exchange rate differences in cash and cash equivalents | 591 | 3,984 | ||||||
| Cash and cash equivalents at December 31 | 98,923 | 249,299 | ||||||
Reconciliation of IFRS to Non-IFRS Financial measures
Reconciliation of EBITDA and Adjusted EBITDA to loss for the period
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| (Unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands of U.S. dollars) | ||||||||||||||||
| Loss for the period | (91,357 | ) | (298,775 | ) | (202,272 | ) | (417,060 | ) | ||||||||
| Income tax expense | 505 | 5,674 | 3,699 | 8,895 | ||||||||||||
| Finance (income) and expenses, net | 1,149 | 50,486 | 12,421 | (48,847 | ) | |||||||||||
| Depreciation and amortization expense | 11,932 | 14,618 | 49,966 | 51,874 | ||||||||||||
| EBITDA | (77,771 | ) | (227,997 | ) | (136,186 | ) | (405,138 | ) | ||||||||
| Share-based compensation expense | 3,503 | 4,687 | 13,598 | 21,446 | ||||||||||||
| Restructuring costs(1) | 3,597 | 2,416 | 8,172 | 14,760 | ||||||||||||
| New product launch issue(2) | (567 | ) | — | 11,998 | — | |||||||||||
| Asset impairment charges and other costs related to discontinued construction of production facilities(3) | 22,898 | 201,560 | 24,660 | 201,560 | ||||||||||||
| Asset impairment charges and other costs related to closure of production facility(4) | 42,110 | — | 42,110 | — | ||||||||||||
| Costs related to the YYF Transaction(5) | — | — | — | 375 | ||||||||||||
| Legal settlement(6) | — | — | — | 9,250 | ||||||||||||
| Non-controlling interests | 151 | 112 | 323 | 186 | ||||||||||||
| Adjusted EBITDA | (6,079 | ) | (19,222 | ) | (35,325 | ) | (157,561 | ) | ||||||||
- Relates primarily to severance costs as the Group adjusts its organizational structure.
- Expenses related to a new product launch issue.
- The cost for the three and twelve months ended December 31, 2024 primarily relates to non-cash impairments related to discontinued construction of the Group’s second production facility in China (Asia III), partially offset by reversal of previously recognized costs related to discontinued construction of the Group’s production facility in Peterborough, UK and Dallas-Fort Worth, Texas. The cost for the three and twelve months ended December 31, 2023 relates to discontinued construction of its new production facilities in Peterborough, UK and Dallas-Fort Worth, Texas.
- Relates to non-cash impairments of
$19.1 million and$23.0 million in restructuring and other exit costs related to the closure of the Group’s production facility in Singapore. - Relates to the YYF Transaction.
- Relates to US securities class action litigation settlement expenses.
Reconciliation of Free Cash Flow to Net Cash Flows used in Operating Activities
| (Unaudited) | Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
| (in thousands of U.S. dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash flows used in operating activities | (10,236 | ) | (14,147 | ) | (114,428 | ) | (165,626 | ) | ||||||||
| Capital expenditures | (12,273 | ) | (17,062 | ) | (41,195 | ) | (69,045 | ) | ||||||||
| Free Cash Flow | (22,509 | ) | (31,209 | ) | (155,623 | ) | (234,671 | ) | ||||||||
FAQ
What was Oatly's (OTLY) revenue growth in Q4 2024?
What are Oatly's (OTLY) financial projections for 2025?
Why is Oatly (OTLY) closing its Singapore facility and China expansion?
What was Oatly's (OTLY) gross margin in Q4 2024?
