Oatly Reports Second Quarter 2025 Financial Results

Core Insights - Oatly Group AB reported a second quarter revenue of $208.4 million, reflecting a 3.0% increase year-over-year, but a constant currency revenue decrease of 0.2% [4][5] - The company is focusing on cost efficiencies and has initiated a strategic review of its Greater China business to enhance growth and value [2][31] - Adjusted EBITDA loss improved to $3.6 million from a loss of $11.0 million in the prior year, driven by higher gross profit and reduced research and development expenses [12][14] Financial Performance - Second quarter gross margin increased to 32.5%, up 3.3 percentage points from the previous year, attributed to supply chain efficiencies [4][6] - The net loss attributable to shareholders was $55.9 million, an increase of $25.5 million compared to the prior year [4][11] - Total revenue for the first half of 2025 was $405.9 million, a slight increase from $401.4 million in the same period last year [5][49] Segment Performance - Europe & International segment revenue rose by 12.0% to $118.2 million, with a sold volume increase of 9.4% [21][22] - North America segment revenue decreased by 6.8% to $63.2 million, primarily due to a decline in sales to a major foodservice customer [23][24] - Greater China segment revenue fell by 6.4% to $27.0 million, driven by reduced sales in the foodservice channel [25][26] Cost Management - Research and development expenses decreased to $4.6 million from $10.9 million in the prior year, mainly due to prior year product launch issues [7] - Selling, general and administrative expenses slightly decreased to $84.1 million, reflecting ongoing efforts to reduce overhead costs [8] - Corporate expenses were $27.4 million, a minor decrease from the previous year [27] Cash Flow and Capital Expenditures - As of June 30, 2025, cash and cash equivalents stood at $67.9 million, with total outstanding debt of $449.6 million [28] - Capital expenditures for the first half of 2025 were $10.7 million, down from $20.4 million in the prior year [29] - Free cash flow outflow improved to $25.7 million from $106.4 million in the previous year [29] Strategic Outlook - The company has refined its 2025 outlook, expecting constant currency revenue growth to be flat to +1%, down from a previous expectation of +2% to +4% [34] - Adjusted EBITDA is still anticipated to be in the range of positive $5 million to $15 million [34] - Capital expenditures are now expected to be approximately $20 million, reduced from earlier estimates of $30 to $35 million [34]