Oatly Group AB (NASDAQ:OTLY) Q4 2024 Earnings Conference Call February 12, 2025 8:00 AM ET Company Participants Brian Kearney - Vice President, Investor Relations Jean-Christophe Flatin - Chief Executive Officer Daniel Ordoñez - Global President and COO Marie-José David - Chief Financial Officer Conference Call Participants Kaumil Gajrawala - Jefferies Max Davenport - BNP Paribas Elsa Evans - JPMorgan Michael Lavery - Piper Sandler John Baumgartner - Mizuho Operator Good morning. And welcome to the Oatly Fo ...

Financial Data and Key Metrics Changes - The company reported a 5.1% revenue growth for the full year, with constant currency revenue growth of 4.8%, slightly below guidance due to sluggish category growth [34] - Adjusted EBITDA for the fourth quarter was a loss of CHF 6.1 million, and for the full year, it was a loss of CHF 35.3 million, which was at the favorable end of the guidance range [34][35] - Gross margin expanded by 9.3 percentage points year-over-year, reaching 28.7% for the full year [34][70] Business Line Data and Key Metrics Changes - Each of the three operating segments reported profitable growth for the second consecutive quarter, with solid volume growth in both the fourth quarter and full year [37] - The Barista portfolio remains the largest business and growth driver, with North America reporting 10% growth and Europe and International reporting 13% growth in 2024 [15][18] Market Data and Key Metrics Changes - North America experienced double-digit revenue growth in retail and 8% growth in foodservice, with foodservice sales growing by 22% when excluding the largest customer [16][19] - Greater China posted strong double-digit growth in the second half of the year after a strategic reset, driven by an expanded presence in the foodservice channel [16][87] Company Strategy and Development Direction - The company aims to ignite category momentum by increasing relevance and attacking barriers to conversion from dairy, while also driving efficiencies [13][14] - A focus on supply chain simplification has been emphasized, with the closure of the Singapore facility and discontinuation of a second Chinese facility, maintaining five global manufacturing plants [9][30] Management's Comments on Operating Environment and Future Outlook - Management expects to enter a profitable growth era in 2025, with constant currency revenue growth projected between 2% to 4% [7][41] - The company anticipates a 300 basis point headwind to growth from sourcing changes at its largest U.S. customer, but underlying growth remains healthy [7][41] Other Important Information - The company achieved a 99% customer fill rate in 2024, indicating improved operational efficiency [9] - Free cash flow improved significantly, with a $156 million use of cash for the year, marking the best performance since the IPO [39] Q&A Session Summary Question: What are the drivers within gross margin improvement? - Management highlighted optimizing production footprint, maximizing global sourcing resources, and managing product mix as key drivers for gross margin improvement [50][51] Question: What is the outlook for promotional activity in the U.S.? - Management acknowledged recent volatility in promotional activity but emphasized solid consistent velocities in core portfolio products and expected steady growth trajectory [52][55] Question: What is the risk associated with the largest customer in the U.S.? - Management noted that the largest customer represents only 20% of U.S. sales and 7% of total company sales, indicating a reduced exposure and ongoing efforts to drive growth outside this customer [58][83] Question: How has the outlook for the Chinese market changed? - Management confirmed that the business in Greater China is showing positive trends, with profitable growth reported since Q3 2024, and plans to enter the club channel in 2025 [86][87] Question: How confident is the company in achieving the low end of EBITDA guidance for 2025? - Management expressed confidence in the plans being fully resourced and emphasized a disciplined approach to cost and capital allocation to achieve the guidance [92][96]

Exhibit 99.1 Oatly Reports Fourth Quarter and Full Year 2024 Financial Results MALMÖ, Sweden, February 12, 2025 – 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 st ...

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 w ...

MALMÖ, Sweden, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Oatly Group AB (NASDAQ:OTLY) ("Oatly" or the "Company"), the world's original and largest oat drink company, today announced that it plans to change the ratio of its American Depositary Receipts ("ADRs") to ordinary shares from one ADR representing one ordinary share to one ADR representing twenty ordinary shares. This ratio change will have the same effect as a one-for-twenty reverse ADR split for Oatly's ADR holders. There will be no change to Oatly's under ...

Core Insights - Oatly Group AB has partnered with Nespresso to launch a limited-edition coffee blend specifically designed for oat drink enthusiasts, named Oatly Barista Edition Coffee [1][2][3] - The coffee blend is crafted to complement the flavor profile of Oatly's oat drink, featuring rich and biscuity notes, and is available for a limited time in over 15 countries [3][4] Company Overview - Oatly is recognized as the world's original and largest oat drink brand, focusing exclusively on oat-based products for over 30 years [6] - The company offers a diverse range of oat-based products, including milk alternatives, ice cream, yogurt, and cooking creams, and operates in more than 20 countries globally [6] Industry Trends - There is a growing consumer shift towards plant-based milk alternatives due to taste, ethical, environmental, and dietary reasons, with one in two consumers in the US and Europe now using plant-based milks [4] - The Asia-Pacific and Latin American regions show even higher adoption rates, with two-thirds of consumers opting for plant-based options [4] Product Details - The Oatly Barista Edition coffee is designed to harmonize with the subtle sweetness of oats, providing a smooth texture and low bitterness, making it suitable for coffee lovers who prefer plant-based drinks [2][5] - The collaboration aims to enhance the coffee experience for consumers who enjoy oat drinks, leveraging the neutral taste of Oatly to bring out the best flavors in coffee [5]

MALMÖ, Sweden, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Oatly Group AB (NASDAQ:OTLY), the world's original and largest oat drink company, will report financial results for the fourth quarter ended December 31, 2024, on Wednesday, February 12, 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 "Event ...

For alt-milk products specialist Oatly Group (OTLY -2.77%), the weekend likely can't come fast enough. The company's stock was having a rough time on the market; according to data compiled by S&P Global Market Intelligence, it had fallen 13% in price week to date as of early Friday morning. It seems investors are concerned about the strategic direction the company is taking.Goodbye SingaporeOn Wednesday, Oatly announced the closure of a company-owned production facility in Singapore. This is the latest impl ...

MALMÖ, Sweden, Dec. 18, 2024 (GLOBE NEWSWIRE) -- Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced the closure of its Singapore facility in the Europe & International segment. This action aligns with the Company’s asset-light supply chain strategy and is expected to improve the Company’s future cost structure and reduce future capital expenditure needs. Jean-Christophe Flatin, Oatly’s CEO, commented: “Over the past two years, our su ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of November 2024 Commission File Number: 001-40401 Oatly Group AB (Translation of registrant's name into English) Ångfärjekajen 8 211 19 Malmö Sweden (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Fo ...