MALMÖ, Sweden, Sept. 29, 2025 (GLOBE NEWSWIRE) -- Oatly Group AB (Nasdaq: OTLY), the world’s original and largest oat drink company, will report financial results for the third quarter ended September 30, 2025, on Wednesday, October 29, 2025, before the U.S. market opens. Oatly will host a conference call and webcast at 8:00 a.m. ET on the same day to discuss the results. The conference call and simultaneous live webcast can be accessed on Oatly’s Investors website at https://investors.oatly.com under “Even ...

Core Viewpoint - Oatly Group AB plans to issue SEK 1,700 million senior secured floating rate bonds to improve its capital structure and prepay existing debt [1][2]. Group 1: Bond Issuance Details - The Nordic Bonds will be issued at a price of 100.00% of the nominal amount, with an interest rate of 3-month STIBOR plus 7.00% and a tenor of 4 years [1]. - The expected issue date for the Nordic Bonds is September 30, 2025, subject to certain closing conditions [1]. Group 2: Use of Proceeds - Proceeds from the Nordic Bonds will be used to fully prepay a $130 million term loan B credit facility, repurchase and cancel certain 9.25% Convertible Senior PIK Notes due 2028, and cover related transaction costs [2]. Group 3: Regulatory Information - The Nordic Bonds have not been registered under the United States Securities Act of 1933 and cannot be offered or sold in the U.S. without an exemption [3].

Core Viewpoint - Oatly Group AB is taking significant steps to enhance its capital structure by pursuing the issuance of SEK denominated senior secured floating rate bonds, entering into a new SEK 750 million super senior revolving credit facility, and repurchasing certain convertible senior PIK notes due 2028, all aimed at improving financial terms without raising additional financing [1][2][4]. Group 1: Nordic Bonds - The expected initial issue amount for the Nordic Bonds is SEK 1,700 million under a framework of SEK 2,700 million, with a tenor of 4 years and certain early redemption features [2]. - Proceeds from the Nordic Bonds will be used to fully prepay the existing $130 million term loan B credit facility, repurchase and cancel certain U.S. Notes, and cover related transaction costs [2]. Group 2: Super Senior Revolving Credit Facility - A commitment letter has been entered into for a new SEK 750 million super senior revolving credit facility, which will replace the existing revolving credit facility after the settlement of the Nordic Bonds [4]. - This new facility will have a tenor of two years and six months, with an initial margin of 4.00% per annum and an option for an uncommitted incremental revolving facility of up to SEK 750 million [4][5]. Group 3: Repurchase of Convertible Senior PIK Notes - The company has entered into Convertible Note Repurchase Agreements with certain holders of U.S. Notes, involving cash and American Depositary Shares (ADSs) in exchange for approximately $42.9 million of U.S. Notes [6]. - The repurchase will involve approximately $24.7 million in cash and 898,134 ADSs, with the settlement expected to occur after the Nordic Bonds are settled [6].

Core Insights - Oatly Group AB is a Swedish company that has transformed the milk industry by introducing the first creamy and barista-friendly oat-based milk alternative, which has achieved commercial success [1] Company Overview - Oatly Group AB trades on NASDAQ under the ticker OTLY and specializes in oat drinks [1] - The company has faced a decline in its stock price despite its innovative product offerings [1] Investment Perspective - The investment approach emphasizes long-term value investing, focusing on undervalued quality businesses with strong fundamentals [1] - The analysis is influenced by the principles of Warren Buffett, prioritizing companies with solid business models and sustainable growth [1]

Company Overview - Oatly has achieved a significant improvement in profitability, moving its earnings into the black and potentially pushing free cash flow positive [1] Market Context - The equity market serves as a powerful mechanism for wealth creation or destruction over the long term, with daily price fluctuations contributing to this dynamic [1] Investment Focus - Pacifica Yield aims to pursue long-term wealth creation by focusing on undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - OATLY is undergoing a strategic review of its Greater China operations, considering various options including potential divestiture, after seven years in the market [1][4] - The company reported a 3% revenue growth in Q2, but the Greater China segment experienced a 6.4% decline in revenue year-on-year [2][5] Financial Performance - In Q2 2025, OATLY's Greater China revenue was $27 million, continuing a trend of declining growth since 2020, while the first half of the year showed a 12.5% increase to $56.95 million [2] - The adjusted EBITDA for the Greater China segment showed a loss of $636,000, marking five consecutive years of unprofitability [2] Market Dynamics - Approximately 62% of OATLY's revenue in Greater China is still reliant on the food service channel, which is currently under pressure, although retail channel growth has partially offset this decline [2][3] - The plant-based market in China has shifted from initial hype to a cooling phase, with significant competition from local brands impacting OATLY's market share [3][5] Competitive Landscape - OATLY faces increasing competition from local brands such as Yili, Mengniu, and Vitasoy, and ranks fourth in the Tmall plant-based beverage repurchase list [3] - Market analysts attribute the decline in OATLY's performance to factors such as waning consumer interest, high product prices, and the rise of domestic brands [3] Strategic Options - Three potential paths for OATLY's Greater China operations have been suggested: exiting the market, forming partnerships with local brands, or operating independently [4] - CEO Jean-Christophe Flatin indicated a preference for the independent operation route, emphasizing the need to maximize value after restructuring [4][7] Operational Capabilities - OATLY has established a fully localized team and R&D center in China, significantly shortening the product development cycle to respond to market changes [4][7] - The company has successfully penetrated both B2B and B2C markets, with its products being used to create approximately 1.4 billion cups of oat lattes since entering the market [6][7] Market Share - OATLY holds a 62.9% market share in the Chinese oat milk market, reflecting a growth of over 10 percentage points year-on-year, despite the challenges faced [5][6]

Group 1 - Yanghe Co. elected Gu Yu as the chairman of the board, with the term consistent with the current board's term [1] - FrieslandCampina reported a 6.4% increase in revenue to €6.847 billion, with a net profit of €230 million, driven by a 19.1% rise in milk prices [2] - OATLY's revenue for the first half of the year was $406 million, a 1.1% increase, while the Greater China region saw a 12.5% growth [2] - Yanzhi House expects a net profit of approximately ¥72 million to ¥81 million for the first half of 2025, a year-on-year growth of 20% to 35% [3] - Angel Yeast plans to acquire 55% of Shengtong Sugar Industry for a transaction amount of ¥506 million [4] - Nestlé's sales for the first half of 2025 were CHF 44.2 billion, with a 1.8% decline attributed to currency fluctuations [5][6] Group 2 - Anji Food completed the acquisition of 70% of Dingwei Thai and 100% of Dingyifeng, integrating them into its consolidated financial statements [7] - Coca-Cola reported a net revenue of $12.5 billion for Q2 2025, a 1% year-on-year increase [7] - Yuanji Cloud Dumplings announced the opening of franchises in Singapore, marking its first step in overseas expansion [8] - Starbucks introduced self-study rooms in some Guangdong stores, planning to explore more "interest-oriented" spaces in the future [9] - Cotton Password stated that under normal usage conditions, the residue of thiourea in their sanitary napkins does not pose a health risk [10] - Sam's Club responded to claims of organic soybean quality downgrade, stating the new high-protein soybeans still meet the first-grade standard [11] - Donglai Yu announced that 50% of the production of Jiugui Ziyouai will be allocated to support enterprises, with accelerated development of milk powder and dairy products [12]

Core Viewpoint - OATLY has initiated a strategic review of its operations in the Greater China region, considering the possibility of independent operation to accelerate growth and maximize value [1][12]. Group 1: Company Background and Market Entry - OATLY, founded in 1994, specializes in oat milk production and initially struggled to gain traction until a brand repositioning in 2012 [2][3]. - The company entered the Chinese market in 2018, leveraging support from its shareholder, China Resources, to establish a foothold [2][3]. Group 2: Growth and Performance - OATLY experienced rapid growth in China, achieving a market share of 62.9% in the oat milk sector as of mid-2023, with a year-on-year increase of over 10 percentage points [7]. - Revenue figures for OATLY in Greater China from 2020 to 2024 show a growth trajectory, with 2023's first half revenue reaching $56.95 million, a 12.5% increase year-on-year [9]. Group 3: Strategic Challenges and Market Dynamics - The decision to review operations in Greater China comes amid concerns over market uncertainties and competitive pressures, as seen with other foreign brands like Starbucks and Häagen-Dazs [1][13]. - OATLY's pricing strategy has been affected by local competition, leading to a significant reduction in prices, which may dilute its premium brand positioning [16][17]. Group 4: Future Outlook - Analysts suggest that OATLY's potential separation from the Greater China market reflects a cautious approach to a market that has not met profitability expectations compared to other regions [13][17]. - The company has halted plans for a second factory in China, indicating a shift in focus and possibly a reassessment of growth strategies in the region [17].

Core Viewpoint - OATLY is undergoing a strategic review of its Greater China operations due to declining revenue and continuous net losses since 2020, with a potential divestment being considered to accelerate growth and maximize business value [1][2]. Financial Performance - In Q2 2025, OATLY reported a revenue increase of 3% to approximately $208 million, with a gross margin improvement of 3.3 percentage points to 32.5%. However, the net loss attributable to shareholders was approximately $55.9 million, an increase of $25.5 million compared to the same period last year [1]. - Revenue from the Greater China region decreased by 6.4% to $27 million in Q2 2025, down from $28.8 million in the same quarter of the previous year, primarily due to a decline in sales through the food service channel [1][4]. Strategic Review and Market Position - OATLY has initiated a strategic review of its Greater China business, which may include options such as divestment to enhance growth and value realization [1][2]. - The company continues to operate in the Greater China market during the evaluation period, maintaining its production facilities and commitment to customers, consumers, and employees [2]. Market Challenges - The transition from B2B to B2C has proven challenging for OATLY, as the oat milk segment remains a niche market in China, facing competition from local brands and higher price points compared to dairy products [3][5]. - The market for plant-based beverages in China has shown signs of cooling, with a shift from initial consumer enthusiasm to more rational demand, compounded by rising competition from local brands [5][6]. Revenue Composition - Approximately 62% of OATLY's revenue in Greater China in Q2 2025 came from the food service channel, down from 70% in the previous year, indicating a shift in revenue sources [4].

Core Viewpoint - OATLY is considering a strategic review of its Greater China operations, which may include divesting this segment to accelerate growth and maximize business value [4][5][10] Financial Performance - OATLY's revenue for Q2 2025 increased by 3% to approximately $208 million, with a gross margin improvement of 3.3 percentage points to 32.5% [3] - The net loss attributable to shareholders was approximately $55.9 million, an increase of $25.5 million compared to the same period last year [3] - In Greater China, revenue decreased by 6.4% to $26.976 million, down from $28.8 million in the same quarter last year [3][4] Strategic Review - The strategic review of the Greater China business will consider various options, including potential divestiture, to enhance growth and value [4][5] - OATLY continues to operate in the Greater China market during this review, maintaining its production facilities and commitments to customers, consumers, and employees [4][5] Market Dynamics - OATLY has faced increased competition in the plant-based beverage market in China, with numerous local brands emerging [7][8] - The company initially struggled to penetrate the market but found success by positioning its products in coffee shops, leading to significant brand recognition [6][7] - The plant-based beverage market in China is experiencing a slowdown, with consumers becoming more price-sensitive and local brands capturing market share [9][10] Future Outlook - Analysts suggest that OATLY's ability to innovate and adapt is crucial for its success in the increasingly competitive market [10] - The company must evaluate its performance in 2025 before making final decisions regarding the Greater China operations [10]