Core Viewpoint - Oatly Group AB reported a slight decline in revenue for the quarter ended March 2025, with a notable improvement in earnings per share (EPS) compared to the previous year [1]. Financial Performance - Revenue for the quarter was $197.53 million, down 0.8% year-over-year, and below the Zacks Consensus Estimate of $199.82 million, resulting in a surprise of -1.14% [1]. - EPS was reported at -$0.51, an improvement from -$1.60 in the same quarter last year, indicating a positive EPS surprise of +46.88% against the consensus estimate of -$0.96 [1]. Regional Revenue Breakdown - Revenue from Europe & International was $107.67 million, below the estimated $113.47 million [4]. - Revenue from Greater China reached $29.98 million, exceeding the estimated $23.57 million [4]. - Revenue from North America was $59.89 million, also below the estimated $68.86 million [4]. Stock Performance - Oatly Group's shares have returned +6% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.2% change [3]. - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3].

Financial Data and Key Metrics Changes - The company reported a revenue decline of 0.8% and constant currency revenue growth of 0.7% in the first quarter [28] - Gross margin expanded by 450 basis points year over year to 31.6%, marking the best quarterly results since the company went public [28] - Adjusted EBITDA loss was $3.7 million, an improvement of $9.5 million compared to the same quarter last year [28][32] Business Line Data and Key Metrics Changes - Volume grew by 9.2% in the quarter, with strong performance in Greater China and solid growth in Europe and International [7][29] - North America segment underperformed due to a change in sourcing strategy at the largest customer and SKU rationalization in frozen items [19][32] - The company outperformed both the plant-based milk category and the oat milk category, even with the impact of frozen business decline [20][32] Market Data and Key Metrics Changes - The German business accelerated growth to nearly 8% in the last twelve weeks, while the UK market showed signs of revitalization moving from decline to growth [17][18] - The Greater China segment is still developing, focusing on food service execution and rebuilding retail presence [22][24] Company Strategy and Development Direction - The company aims for disciplined resource allocation to create value and achieve its 2025 priorities, which include igniting positive momentum globally and delivering its first full year of profitable growth as a public company [5][9] - The strategy includes increasing product relevance, attacking barriers to conversion, and expanding availability in the coffee and beverage space [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in North America but expressed confidence that investments and action plans will enable acceleration of total company growth later in the year [8][19] - The company expects to continue improving gross margin and adjusted EBITDA, with a target of achieving a gross margin of 35% to 40% in the long term [36][47] Other Important Information - The company reduced its cost of goods sold per liter by 15% year over year and 6% compared to the previous quarter [25] - Free cash flow was a use of $21 million, marking the best quarterly performance as a public company [34] Q&A Session Summary Question: Insights on initiatives in Europe and their impact on category growth - Management noted that while Oatly is outperforming its own performance, category growth for oat milk remains soft, but they are optimistic about future traction as they deploy their strategy in the U.S. [39][41] Question: Expectations for gross margin improvement - Management expects gross margin to improve compared to the previous year, driven by supply chain efficiencies and product mix management, but did not provide a specific number [45][46] Question: Distribution opportunities in North America - Management highlighted ample distribution opportunities across all channels in North America, emphasizing the potential for growth in their new beverage portfolio [53][56] Question: U.S. consumer behavior and category performance - Management indicated that while retail sales momentum has decelerated, they see slight upside in velocities and unit shares, and they are optimistic about igniting new category momentum [60][62] Question: Feedback from foodservice operators on plant-based offerings - Management observed that small to medium foodservice customers are adapting quickly to trends and adopting Oatly's offerings, indicating a shift towards cold beverages [77][81] Question: Reduction in negative media coverage for plant-based products - Management confirmed that they are building alliances and engaging in public education to combat misinformation about plant-based products, which is showing positive results [84][86]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a revenue decline of 0.8% with constant currency revenue growth of 0.7% [28] - Gross margin expanded by 450 basis points year-over-year to 31.6%, marking the best quarterly results since the company went public [28][29] - Adjusted EBITDA loss was €3.7 million, an improvement of €9.5 million compared to the same quarter last year [28][32] Business Line Data and Key Metrics Changes - Volume grew by 9.2% in the quarter, with strong performance in Greater China and solid growth in Europe and International [6][29] - North America segment underperformed due to a change in sourcing strategy at the largest customer and SKU rationalization in frozen items [20][32] - The company continues to outperform both the plant-based milk category and the oat milk category, despite challenges in North America [21][32] Market Data and Key Metrics Changes - The German market saw accelerated growth to nearly 8% in the last twelve weeks, while the UK market is moving from decline to incipient growth [18][19] - The Greater China segment is performing well, with a focus on food service and rebuilding retail presence [23][24] Company Strategy and Development Direction - The company aims for disciplined resource allocation to create value and achieve its first full year of profitable growth as a public company [4][5] - Key priorities include igniting positive momentum globally, pursuing cost efficiencies, and enhancing brand relevance [9][25] - The company plans to roll out its strategy to more European markets and North America in Q2 2025 [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in North America but believes investments and action plans will drive positive momentum later in the year [7][20] - The company expects constant currency growth in the range of 2% to 4% for the full year, with adjusted EBITDA projected between €5 million to €15 million [35][36] Other Important Information - The company reduced its cost of goods sold per liter by 15% year-over-year and 6% compared to the previous quarter [25] - Free cash flow improved to a use of cash of €21 million, marking the best quarterly performance as a public company [34] Q&A Session Summary Question: What gives confidence that initiatives in the U.S. will lift the soft oat milk category? - Management acknowledges that while Europe is outperforming, turning around category momentum in the U.S. will take time, but they see significant distribution opportunities [41][44] Question: How is the company thinking about gross margin for the full year? - Management expects gross margin to improve compared to the previous year, driven by supply chain efficiencies and product mix management [46][48] Question: What are the biggest distribution opportunities in North America? - Management sees ample opportunities across all channels, including retail and food service, and emphasizes the importance of executing the new playbook [53][56] Question: What is the outlook for the U.S. consumer and category momentum? - Management notes that while the category is experiencing a paradigm shift, they believe in the long-term fundamentals supporting growth in plant-based products [59][64] Question: What feedback is being received from food service operators regarding plant-based offerings? - Management observes that small to medium food service customers are adapting quickly to trends and adopting the company's offerings, indicating a shift in consumer preferences [78][81] Question: Are there opportunities for plant-based beverages to gain endorsements from health organizations? - Management confirms that they are actively building alliances and engaging in public education to support the plant-based narrative [84][86]

Financial Performance - Oatly's Q1 2025 revenue decreased by 08% year-over-year, but constant currency revenue grew by 07%[74] - Gross margin was 316% in Q1 2025, an increase of 450 basis points compared to the prior year[74] - Adjusted EBITDA was negative $37 million in Q1 2025, an improvement of $95 million compared to the prior year[74] - Free cash flow improved from negative $4527 million to negative $2051 million[85, 110] Segment Performance - Europe & International revenue remained relatively flat with 00% constant currency growth[82] - North America revenue decreased by 106% in constant currency[82] - Greater China revenue increased significantly by 392% in constant currency[82] - Adjusted EBITDA for Europe & International was $155 million, North America was $11 million, and Greater China was $16 million[82] Cost Efficiency and Outlook - COGS per liter decreased by 15% year-over-year[64] - The company is on track to deliver its first full year of profitable growth as a public company[19] - Full year 2025 guidance remains unchanged, with constant currency revenue growth of 2½% to 4½% and adjusted EBITDA of $5 to $15 million[19]

Core Viewpoint - Oatly Group AB reported a slight revenue decrease in Q1 2025 but showed signs of operational improvements and cost efficiencies, maintaining its outlook for profitable growth in 2025 [2][5][28]. Financial Performance - Revenue for Q1 2025 was $197.5 million, a decrease of $1.6 million or 0.8% compared to $199.2 million in Q1 2024. Excluding foreign currency impacts, revenue increased by 0.7% to $200.6 million [5][6]. - Gross profit increased to $62.3 million in Q1 2025 from $53.9 million in Q1 2024, with a gross profit margin of 31.6%, up 449 basis points year-over-year [6][11]. - The net loss attributable to shareholders improved to $12.4 million in Q1 2025 from a loss of $45.8 million in the prior year [11][25]. Segment Performance - **Europe & International**: Revenue decreased by $2.7 million or 2.5% to $107.7 million, with a sold volume increase of 4.0% [17][18]. - **North America**: Revenue decreased by $7.1 million or 10.6% to $59.9 million, with a sold volume decrease of 10.9% [19][20]. - **Greater China**: Revenue increased by $8.2 million or 37.6% to $30.0 million, driven by new foodservice customers [21][22]. Cost Management - Research and development expenses decreased to $4.4 million from $4.6 million year-over-year [7]. - Selling, general and administrative expenses decreased to $77.5 million from $78.7 million, primarily due to lower employee expenses [8]. Cash Flow and Capital Expenditures - Cash and cash equivalents as of March 31, 2025, were $74.4 million, with total outstanding debt of $432.1 million [25]. - Capital expenditures for Q1 2025 were $7.0 million, compared to $6.2 million in the prior year [26]. Outlook - The company expects constant currency revenue growth in the range of 2% to 4% and positive adjusted EBITDA between $5 million and $15 million for 2025 [28][34].

J.P. Morgan analyst Ken Goldman reiterated a Neutral rating on the shares of Oatly Group AB OTLY with no price target.The analyst has updated the estimates following fourth-quarter FY24 earnings and the issuance of 2025 guidance.The company reported its fourth-quarter results, showcasing a solid 5.0% growth in revenue, reaching $214.3 million compared to the same period last year. Constant currency revenue increased by 4.7%, driven by consistent volume growth across all operational segments.The company said ...

According to data compiled by S&P Global Market Intelligence, Oatly (OTLY 4.08%) shares lost more than 11% of their value across this week. That wasn't entirely unexpected, as two analysts cut their price targets on the stock, and quite drastically. Recommendations unchangedThe more aggressive reduction was made by Piper Sandler's Michael Lavery, who on Wednesday chopped his Oatly fair value assessment to $16 per share from $40. Despite the severity of the move, Lavery remained bullish on the company, as he ...

Core Viewpoint - Oatly's stock experienced significant gains following a sharp sell-off, driven by positive media coverage and adjustments in financial agreements, despite the company reporting lower-than-expected sales and earnings [2][3][5]. Group 1: Stock Performance - Oatly's share price increased by 27.3% during trading, having peaked at 33.3% earlier in the day [1]. - The stock had previously closed down approximately 34% after the release of its fourth-quarter results, which fell short of Wall Street expectations [3]. Group 2: Financial Developments - Oatly's market capitalization is around $293 million, placing it in penny stock territory, which can lead to significant price movements on minimal news [4]. - The company amended its revolving credit facility and term loan B credit agreement, adjusting liquidity requirements and other terms, coinciding with the discontinuation of some manufacturing operations [5]. Group 3: Future Outlook - Oatly anticipates sales growth of 2% to 4% for the current year, with expectations for profitable growth starting in 2025 [7]. - The company ended the last quarter with $446.4 million in debt and $98.9 million in cash and equivalents, necessitating substantial margin improvements to manage its debt unless sales growth accelerates [7].

Oatly (OTLY -14.49%) stock is sinking Wednesday following the release of its fourth-quarter results. The beverage specialist's share price was down 14.3% as of 12:30 p.m. ET and had been off by as much as 15.5% earlier in the session.Oatly published its Q4 results before the market opened, posting a loss of $0.15 per share on revenue of $214.3 million in the quarter. Those figures came up short of Wall Street analysts' consensus estimates for a loss of $0.06 per share on revenue of $218.1 million.Oatly's to ...

Financial Performance & Outlook - Oatly expects to drive its first full year of profitable growth in 2025[15] - The company anticipates constant currency revenue growth of 2% to 4% in 2025[16] - Adjusted EBITDA is projected to be between $5 million and $15 million in 2025[16] - Capital expenditures (CAPEX) are expected to be $30 million to $35 million in 2025[16] - In Q4 2024, Oatly achieved year-over-year revenue growth of 50% (or 4.7% in constant currency) and a gross margin of 28.8%[60] - Adjusted EBITDA for Q4 2024 was -$6.1 million, an improvement of $13.1 million compared to the previous year[60] - For the full year 2024, revenue grew by 5.1% (or 4.8% in constant currency) and the gross margin was 28.7%[60] - Adjusted EBITDA for the full year 2024 was -$35.3 million, an improvement of $122.2 million compared to the previous year[60] Strategic Initiatives & Efficiencies - Oatly has executed a significant transformation, rightsizing its supply chain capacity to approximately 900 million liters and expecting $30-35 million in CAPEX in 2025[17] - The company has reduced total Oatly COGS (Cost of Goods Sold) per liter by 19% from 2022 to 2024[52] - Oatly has reduced SG&A (Selling, General & Administrative) + R&D (Research & Development) expenses by $80 million while increasing branding & advertising by approximately $8 million and growing revenue by over $100 million over the past two years[58] Segment Performance - Each segment (Europe & International, North America, and Greater China) has improved Adjusted EBITDA by over $70 million in two years[21]