Oatly Reports Second Quarter 2023 Financial Results
- Revenue increased by 10.1% to $196.0 million, with a sequential improvement of gross margin to 19.2%.
- The company closed on all previously-announced financing transactions during the quarter, raising $465 million before fees and other related expenses.
- Oatly targets to achieve approximately $85 million of savings in 2024 through reductions in SG&A overhead costs.
- The Asia improvement plan includes increasing focus on the core business, a simplification of the product portfolio, and a reduction in operating costs.
- Net loss attributable to shareholders of the parent was $86.7 million, compared to a net loss of $72.0 million in the prior year period.
- Asia revenue decreased by 14.9% to $37.2 million, impacted by a slower-than-expected post-COVID-19 recovery in China.
MALMÖ, Sweden, July 27, 2023 (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 second quarter and six months ended June 30, 2023.
Jean-Christophe Flatin, Oatly’s CEO, commented, “In the second quarter, we continued to make progress towards our goal of achieving profitable growth in 2024. As expected, we continued our sequential improvement of gross margin and increased our advertising investments to continue to fuel growth. This progress is most evident in our EMEA and Americas segments, both of which continued to improve Adjusted EBITDA while increasing demand-generating investments.”
Flatin continued, “However, as Asia has transitioned to a post-pandemic era, consumers have behaved differently than we had originally expected, and we need to adjust. Similar to the improvement plans that we have been executing in EMEA and Americas, we have initiated a comprehensive improvement plan that will enable our Asia business to adapt to the evolving environment and strengthen the core business before building a significantly bigger business. We have also taken actions to further simplify our corporate functions and Americas segment overhead, which will lead to additional cost savings as well as increased focus and agility. While we are reducing our 2023 sales guidance, we continue to expect to achieve our fourth quarter gross margin target of the high
The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and six months ended June 30, 2023 and 2022.
| Three months ended June 30, | $ Change | % Change | ||||||||||||||||||||||||||||||||||
| 2023 | 2022 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | Volume | Constant currency price/mix | ||||||||||||||||||||||||||||
| EMEA | 96,989 | 82,485 | 96,989 | 30 | 96,959 | 17.6 | % | 17.5 | % | 7.2 | % | 10.3 | % | |||||||||||||||||||||||
| Americas | 61,832 | 51,775 | 61,832 | — | 61,832 | 19.4 | % | 19.4 | % | 1.7 | % | 17.7 | % | |||||||||||||||||||||||
| Asia | 37,166 | 43,698 | 37,166 | (1,840 | ) | 39,006 | -14.9 | % | -10.7 | % | -5.1 | % | -5.6 | % | ||||||||||||||||||||||
| Total revenue | 195,987 | 177,958 | 195,987 | (1,810 | ) | 197,797 | 10.1 | % | 11.1 | % | 3.4 | % | 7.7 | % | ||||||||||||||||||||||
| Six months ended June 30, | $ Change | % Change | ||||||||||||||||||||||||||||||||||
| 2023 | 2022 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | Volume | Constant currency price/mix | ||||||||||||||||||||||||||||
| EMEA | 195,205 | 172,968 | 195,205 | (7,478 | ) | 202,683 | 12.9 | % | 17.2 | % | 6.8 | % | 10.4 | % | ||||||||||||||||||||||
| Americas | 125,873 | 98,792 | 125,873 | — | 125,873 | 27.4 | % | 27.4 | % | 4.1 | % | 23.3 | % | |||||||||||||||||||||||
| Asia | 70,554 | 72,384 | 70,554 | (3,806 | ) | 74,360 | -2.5 | % | 2.7 | % | 6.8 | % | -4.1 | % | ||||||||||||||||||||||
| Total revenue | 391,632 | 344,144 | 391,632 | (11,284 | ) | 402,916 | 13.8 | % | 17.1 | % | 6.0 | % | 11.1 | % | ||||||||||||||||||||||
Second Quarter 2023 Highlights
- Revenue of
$196.0 million , a10.1% increase compared to the prior year period; on a constant currency basis, revenue increased11.1% . - Gross margin in the quarter was
19.2% , an increase of 340 basis points compared to the prior year period and 180 basis points compared to the first quarter of 2023. - Net loss attributable to shareholders of the parent was
$86.7 million compared to net loss of$72.0 million in the prior year period. - EBITDA loss of
$63.0 million ; Adjusted EBITDA loss of$52.5 million , which is a decrease of$0.9 million compared to the prior year period. - Closed on all previously-announced financing transactions during the quarter, raising
$465 million before fees and other related expenses. - After the quarter ended, initiated a comprehensive improvement plan in the Asia segment, which includes increasing focus on the core business, a simplification of the product portfolio, and a reduction in operating costs.
- The Company has taken the necessary steps to further reduce its SG&A costs in both its Americas segment and its Corporate functions in order to further enhance the simplicity and agility of the organization. Collectively between the SG&A savings in the Asia segment, the Americas segment, and Corporate functions, the Company targets to achieve approximately
$85 million of savings in 2024.
Second Quarter 2023 Results
Revenue increased
The Company experienced revenue growth in the retail and foodservice channels in the second quarter of 2023 compared to the second quarter of 2022.
Gross profit was
Research and development expenses in the second quarter of 2023 decreased
Selling, general and administrative expenses in the second quarter of 2023 increased
Other operating income and expenses, net for the second quarter of 2023 decreased to an expense of
In the second quarter of 2023, finance expenses were
Net loss attributable to shareholders of the parent was
EBITDA loss for the second quarter of 2023 was
Adjusted EBITDA loss for the second quarter of 2023 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 Results” 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 | ||||||||||||||||||||||||
| Three months ended June 30, 2023 (in thousands of U.S. dollars) | EMEA | Americas | Asia | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 96,989 | 61,832 | 37,166 | — | — | 195,987 | ||||||||||||||||||
| Intersegment revenue | 359 | — | 1,696 | — | (2,055 | ) | — | |||||||||||||||||
| Total segment revenue | 97,348 | 61,832 | 38,862 | — | (2,055 | ) | 195,987 | |||||||||||||||||
| Adjusted EBITDA | 7,270 | (9,414 | ) | (21,900 | ) | (28,424 | ) | — | (52,468 | ) | ||||||||||||||
| Share-based compensation expense | 261 | (607 | ) | (1,291 | ) | (785 | ) | — | (2,422 | ) | ||||||||||||||
| Restructuring costs(1) | — | (2,407 | ) | (136 | ) | (5,429 | ) | — | (7,972 | ) | ||||||||||||||
| Costs related to the YYF Transaction(2) | — | (154 | ) | — | — | — | (154 | ) | ||||||||||||||||
| EBITDA | 7,531 | (12,582 | ) | (23,327 | ) | (34,638 | ) | — | (63,016 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (11,512 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (12,464 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (86,992 | ) | |||||||||||||||||
| Three months ended June 30, 2022 (in thousands of U.S. dollars) | EMEA | Americas | Asia | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 82,485 | 51,775 | 43,698 | — | — | 177,958 | ||||||||||||||||||
| Intersegment revenue | 9,493 | 241 | 537 | — | (10,271 | ) | — | |||||||||||||||||
| Total segment revenue | 91,978 | 52,016 | 44,235 | — | (10,271 | ) | 177,958 | |||||||||||||||||
| Adjusted EBITDA | 5,313 | (19,584 | ) | (10,765 | ) | (28,331 | ) | — | (53,367 | ) | ||||||||||||||
| Share-based compensation expense | (1,433 | ) | (1,120 | ) | (1,842 | ) | (4,790 | ) | — | (9,185 | ) | |||||||||||||
| EBITDA | 3,880 | (20,704 | ) | (12,607 | ) | (33,121 | ) | — | (62,552 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (593 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (11,877 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (75,022 | ) | |||||||||||||||||
| Six months ended June 30, 2023 (in thousands of U.S. dollars) | EMEA | Americas | Asia | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 195,205 | 125,873 | 70,554 | — | — | 391,632 | ||||||||||||||||||
| Intersegment revenue | 1,210 | — | 3,136 | — | (4,346 | ) | — | |||||||||||||||||
| Total segment revenue | 196,415 | 125,873 | 73,690 | — | (4,346 | ) | 391,632 | |||||||||||||||||
| Adjusted EBITDA | 13,854 | (19,720 | ) | (38,616 | ) | (57,859 | ) | — | (102,341 | ) | ||||||||||||||
| Share-based compensation expense | (761 | ) | (1,651 | ) | (2,702 | ) | (5,355 | ) | — | (10,469 | ) | |||||||||||||
| Restructuring costs(1) | (1,008 | ) | (2,594 | ) | (136 | ) | (5,429 | ) | — | (9,167 | ) | |||||||||||||
| Costs related to the YYF Transaction(2) | — | (375 | ) | — | — | — | (375 | ) | ||||||||||||||||
| EBITDA | 12,085 | (24,340 | ) | (41,454 | ) | (68,643 | ) | — | (122,352 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (13,508 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (24,697 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (160,557 | ) | |||||||||||||||||
| Six months ended June 30, 2022 (in thousands of U.S. dollars) | EMEA | Americas | Asia | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 172,968 | 98,792 | 72,384 | — | — | 344,144 | ||||||||||||||||||
| Intersegment revenue | 24,539 | 813 | 537 | — | (25,889 | ) | — | |||||||||||||||||
| Total segment revenue | 197,507 | 99,605 | 72,921 | — | (25,889 | ) | 344,144 | |||||||||||||||||
| Adjusted EBITDA | (543 | ) | (41,597 | ) | (25,732 | ) | (56,884 | ) | — | (124,756 | ) | |||||||||||||
| Share-based compensation expense | (3,017 | ) | (2,412 | ) | (3,791 | ) | (10,002 | ) | — | (19,222 | ) | |||||||||||||
| EBITDA | (3,560 | ) | (44,009 | ) | (29,523 | ) | (66,886 | ) | — | (143,978 | ) | |||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | 2,984 | ||||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (22,608 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (163,602 | ) | |||||||||||||||||
* Corporate consists of general overhead costs not allocated to the segments.
** Eliminations in 2023 refer to intersegment revenue for sales of products from EMEA to Asia and from Asia to EMEA. Eliminations in 2022 refer to intersegment revenue for sales of products from EMEA to Asia, from Americas to Asia, and from Asia to EMEA.
(1) Relates primarily to severance payments as the Company continues to adjust its organizational structure to the current macro environment.
(2) Relates to the closing of the Ya Ya Foods USA LLC Transaction.
EMEA
EMEA revenue increased
EMEA EBITDA increased
Americas
Americas revenue increased
Americas EBITDA improved
Asia
Asia revenue decreased
Asia EBITDA decreased
Corporate Overhead
Oatly’s Corporate overhead adjusted EBITDA, which consists of general overhead costs not allocated to the segments, in the second quarter of 2023 was
Balance Sheet and Cash Flow
As of June 30, 2023, the Company had cash and cash equivalents of
As previously communicated, on May 9, 2023 the Company entered into an agreement with an affiliate of Hillhouse Investment Management Ltd. ("Hillhouse") to sell an additional
Outlook
The Company has initiated a comprehensive improvement plan in its Asia segment that the Company believes will enable it to adapt to the evolving post-pandemic consumer environment, and prepare it for profitable growth. The improvement plan includes increasing focus on the core business, a simplification of the product portfolio, and a reduction in operating costs.
The Company has also taken the necessary steps to further reduce its SG&A overhead costs in both its Americas segment and its Corporate functions. These reductions are expected to further enhance the simplicity and agility of the organization.
Collectively between the anticipated SG&A savings in the Asia segment, the Americas segment, and Corporate functions, the Company targets to achieve approximately
While the Asia improvement plans are in the early stages, changes in our structure, operations and business plan can be expected. The improvement actions, once fully determined, could result in an impairment charge of the Asia segment assets. The Company is unable to make a reasonable determination of an estimate of the severance and, if any, other costs and charges associated with its organizational improvement plans in Asia at this time and expects to communicate the outcome of such determination no later than the time at which it reports results for the third quarter of 2023.
Based on the Company’s assessment of the current operating environment, the Company is updating its revenue and capital expenditure guidance for the full year ending December 31, 2023 and maintaining its fourth quarter gross margin guidance. The Company now expects:
- Revenue growth on a constant currency basis in the range of
7% to12% compared to full year 2022, - Foreign exchange to reduce net sales by approximately 130 basis point for the year,
- Gross margin to improve sequentially quarter-over-quarter in fiscal 2023, reaching the high
-20% s in the fourth quarter, and - Capital expenditures between
$110 million and$130 million .
Also the Company continues to believe this progress will enable it to deliver positive Adjusted EBITDA for the fiscal year 2024.
This outlook is provided in the context of significant volatility related to the COVID-19 pandemic and the transition to a post-pandemic environment, the war in Ukraine, 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 8:30 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 25 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties suited for sustainability and human health. 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, and spreads. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 20 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 2023 and long-term growth strategy, anticipated supply chain performance, anticipated impact of our improvement plans, plans to achieve profitable growth and anticipated cost savings 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; the impact of the COVID-19 pandemic, including the spread of variants of the virus, on our business and the international economy; reduced or limited availability of oats or other raw materials and ingredients that meet our quality standards; failure to successfully achieve any or all of the benefits of the Ya Ya Foods USA LLC Transaction; 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 oatmilk varieties; failure to effectively expand our processing, manufacturing and production capacity, or failure to find acceptable co-packing partners to help us expand, as we continue to grow and scale our business; our ability to ramp up operations at any of our new facilities; failure to meet our existing or new environmental metrics and other risks related to sustainability and corporate social responsibility; litigation, regulatory actions or other legal proceedings including environmental and securities class action lawsuits; changes to international trade policies, treaties and tariffs; global conflict and the ongoing war in Ukraine; changes in our tax rates or exposure to additional tax liabilities or assessments; failure to expand our manufacturing and production capacity as we grow our business; 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 ramp up operations at any of our new facilities and operate them in accordance with our expectations; 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; failure to protect our intellectual property and other proprietary rights adequately; our ability to successfully remediate previously disclosed material weaknesses (which remained unremediated as of our most recent fiscal year end) or other future control deficiencies, in our internal control over financial reporting; 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, 2022 filed with the U.S. Securities and Exchange Commission (“SEC”) on April 19, 2023, 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 and Constant Currency Revenue as non-IFRS financial measures in assessing our operating performance and in our financial communications:
“EBITDA” is defined as loss for the period attributable to shareholders of the parent 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 attributable to shareholders of the parent adjusted to exclude, when applicable, income tax expense, finance expenses, finance income, depreciation and amortization expense, share-based compensation expense, restructuring costs, asset impairment charge and other costs related to assets held for sale.
“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.
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 attributable to shareholders of the parent, 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 excludes asset impairment charge and other costs related to assets held for sale, although these are non-cash expenses, the assets being impaired may have to be replaced in the future increasing our cash requirements; and
- 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 attributable to shareholders of the parent, the most directly comparable financial measure calculated and presented in accordance with IFRS, for the periods presented.
We use constant currency information 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.
Financial Statements
Interim condensed consolidated statement of operations
| (Unaudited) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (in thousands of U.S. dollars, except share and per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue | 195,987 | 177,958 | 391,632 | 344,144 | ||||||||||||
| Cost of goods sold | (158,331 | ) | (149,814 | ) | (319,888 | ) | (300,152 | ) | ||||||||
| Gross profit | 37,656 | 28,144 | 71,744 | 43,992 | ||||||||||||
| Research and development expenses | (5,321 | ) | (5,718 | ) | (11,035 | ) | (9,982 | ) | ||||||||
| Selling, general and administrative expenses | (106,695 | ) | (97,060 | ) | (205,550 | ) | (201,133 | ) | ||||||||
| Other operating income and (expenses), net | (1,120 | ) | 205 | (2,208 | ) | 537 | ||||||||||
| Operating loss | (75,480 | ) | (74,429 | ) | (147,049 | ) | (166,586 | ) | ||||||||
| Finance income and (expenses), net | (11,512 | ) | (593 | ) | (13,508 | ) | 2,984 | |||||||||
| Loss before tax | (86,992 | ) | (75,022 | ) | (160,557 | ) | (163,602 | ) | ||||||||
| Income tax benefit/(expense) | 273 | 3,032 | (1,739 | ) | 4,153 | |||||||||||
| Loss for the period, attributable to shareholders of the parent | (86,719 | ) | (71,990 | ) | (162,296 | ) | (159,449 | ) | ||||||||
| Loss per share, attributable to shareholders of the parent: | ||||||||||||||||
| Basic and diluted | (0.15 | ) | (0.12 | ) | (0.27 | ) | (0.27 | ) | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 593,189,505 | 591,945,667 | 592,757,116 | 591,861,800 | ||||||||||||
Interim condensed consolidated statement of financial position
| (in thousands of U.S. dollars) | June 30, 2023 | December 31, 2022 | ||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Intangible assets | 122,171 | 127,688 | ||||||
| Property, plant and equipment | 504,743 | 492,952 | ||||||
| Right-of-use assets | 109,379 | 108,598 | ||||||
| Other non-current receivables | 47,240 | 7,848 | ||||||
| Deferred tax assets | 14,717 | 5,860 | ||||||
| Total non-current assets | 798,250 | 742,946 | ||||||
| Current assets | ||||||||
| Inventories | 102,825 | 114,475 | ||||||
| Trade receivables | 102,835 | 100,955 | ||||||
| Current tax assets | 307 | 243 | ||||||
| Other current receivables | 33,925 | 17,818 | ||||||
| Prepaid expenses | 22,244 | 23,413 | ||||||
| Cash and cash equivalents | 340,730 | 82,644 | ||||||
| 602,866 | 339,548 | |||||||
| Assets held for sale | — | 142,703 | ||||||
| Total current assets | 602,866 | 482,251 | ||||||
| TOTAL ASSETS | 1,401,116 | 1,225,197 | ||||||
| EQUITY AND LIABILITIES | ||||||||
| Equity | ||||||||
| Share capital | 105 | 105 | ||||||
| Treasury shares | (0 | ) | (0 | ) | ||||
| Other contributed capital | 1,628,045 | 1,628,045 | ||||||
| Other reserves | (265,002 | ) | (171,483 | ) | ||||
| Accumulated deficit | (817,351 | ) | (665,524 | ) | ||||
| Total equity attributable to shareholders of the parent | 545,797 | 791,143 | ||||||
| Liabilities | ||||||||
| Non-current liabilities | ||||||||
| Lease liabilities | 87,418 | 82,285 | ||||||
| Liabilities to credit institutions | 115,211 | 2,668 | ||||||
| Deferred tax liabilities | 637 | — | ||||||
| Provisions | 6,600 | 7,194 | ||||||
| Total non-current liabilities | 209,866 | 92,147 | ||||||
| Current liabilities | ||||||||
| Lease liabilities | 14,720 | 16,823 | ||||||
| Convertible Notes | 400,244 | — | ||||||
| Liabilities to credit institutions | 10,332 | 49,922 | ||||||
| Trade payables | 81,201 | 82,516 | ||||||
| Current tax liabilities | 4,299 | 5,515 | ||||||
| Other current liabilities | 11,644 | 11,823 | ||||||
| Accrued expenses | 116,475 | 123,037 | ||||||
| Provisions | 6,538 | 3,800 | ||||||
| 645,453 | 293,436 | |||||||
| Liabilities directly associated with the assets held for sale | — | 48,471 | ||||||
| Total current liabilities | 645,453 | 341,907 | ||||||
| Total liabilities | 855,319 | 434,054 | ||||||
| TOTAL EQUITY AND LIABILITIES | 1,401,116 | 1,225,197 | ||||||
Interim condensed consolidated statement of cash flows
| (Unaudited) | For the six months ended June 30, | |||||||
| (in thousands of U.S. dollars) | 2023 | 2022 | ||||||
| Operating activities | ||||||||
| Net loss | (162,296 | ) | (159,449 | ) | ||||
| 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 | 24,697 | 22,607 | ||||||
| —Write-downs of inventories | 7,609 | 8,165 | ||||||
| —Impairment (gain)/loss on trade receivables | (268 | ) | 132 | |||||
| —Share-based payments expense | 10,469 | 19,222 | ||||||
| —Movements in provisions | 2,797 | — | ||||||
| —Finance (income) and expenses, net | 13,508 | (2,984 | ) | |||||
| —Income tax expense/(benefit) | 1,739 | (4,153 | ) | |||||
| —Loss/(gain) on disposal of property, plant and equipment | 237 | (682 | ) | |||||
| —Other | (815 | ) | (227 | ) | ||||
| Interest received | 2,317 | 1,346 | ||||||
| Interest paid | (7,657 | ) | (6,076 | ) | ||||
| Income tax paid | (12,191 | ) | (1,042 | ) | ||||
| Changes in working capital: | ||||||||
| —Decrease/(increase) in inventories | 2,371 | (23,308 | ) | |||||
| —Increase in trade receivables, other current receivables, prepaid expenses | (1,934 | ) | (10,356 | ) | ||||
| —Increase in trade payables, other current liabilities, accrued expenses | 6,327 | 29,529 | ||||||
| Net cash flows used in operating activities | (113,090 | ) | (127,276 | ) | ||||
| Investing activities | ||||||||
| Purchase of intangible assets | (1,569 | ) | (2,558 | ) | ||||
| Purchase of property, plant and equipment | (39,465 | ) | (111,264 | ) | ||||
| Investments in financial assets | (1,651 | ) | — | |||||
| Proceeds from sale of assets held for sale | 43,998 | — | ||||||
| Proceeds from short-term investments | — | 148,269 | ||||||
| Net cash flows from investing activities | 1,313 | 34,447 | ||||||
| Financing activities | ||||||||
| Proceeds from Convertible Notes | 324,950 | — | ||||||
| Proceeds from liabilities to credit institutions | 176,956 | — | ||||||
| Repayment of liabilities to credit institutions | (97,680 | ) | (1,032 | ) | ||||
| Payment of loan transaction cost | (31,815 | ) | — | |||||
| Repayment of lease liabilities | (5,102 | ) | (5,846 | ) | ||||
| Cash flows from/(used in) financing activities | 367,309 | (6,878 | ) | |||||
| Net increase/(decrease) in cash and cash equivalents | 255,532 | (99,707 | ) | |||||
| Cash and cash equivalents at the beginning of the period | 82,644 | 295,572 | ||||||
| Exchange rate differences in cash and cash equivalents | 2,554 | (13,664 | ) | |||||
| Cash and cash equivalents at the end of the period | 340,730 | 182,201 | ||||||
Non-IFRS Financial Measures – Reconciliation
| (Unaudited) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (in thousands of U.S. dollars) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Loss for the period, attributable to shareholders of the parent | (86,719 | ) | (71,990 | ) | (162,296 | ) | (159,449 | ) | ||||||||
| Income tax (benefit)/expense | (273 | ) | (3,032 | ) | 1,739 | (4,153 | ) | |||||||||
| Finance (income) and expenses, net | 11,512 | 593 | 13,508 | (2,984 | ) | |||||||||||
| Depreciation and amortization expense | 12,464 | 11,877 | 24,697 | 22,608 | ||||||||||||
| EBITDA | (63,016 | ) | (62,552 | ) | (122,352 | ) | (143,978 | ) | ||||||||
| Share-based compensation expense | 2,422 | 9,185 | 10,469 | 19,222 | ||||||||||||
| Restructuring costs(1) | 7,972 | — | 9,167 | — | ||||||||||||
| Costs related to the YYF Transaction(2) | 154 | — | 375 | — | ||||||||||||
| Adjusted EBITDA | (52,468 | ) | (53,367 | ) | (102,341 | ) | (124,756 | ) | ||||||||
(1) Relates primarily to severance payments as the Company continues to adjust its organizational structure to the current macro environment.
(2) Relates to the close of the Ya Ya Foods USA LLC Transaction.
FAQ
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