Oatly Reports Third Quarter 2025 Financial Results

Core Insights - Oatly Group AB reported profitable growth in Q3 2025, achieving solid revenue growth and positive adjusted EBITDA, reflecting strategic actions taken over the past three years [2][4][12] - The company reaffirmed its 2025 outlook, expecting constant currency revenue growth to be flat to +1% and adjusted EBITDA between $5 million to $15 million [4][40] Financial Performance - Q3 2025 revenue reached $222.8 million, a 7.1% increase from $208.0 million in Q3 2024, with a constant currency revenue increase of 3.8% [4][5] - Gross margin for Q3 2025 was stable at 29.8%, unchanged from the prior year [4][6] - The net loss attributable to shareholders was $65.3 million, an increase from $34.6 million in the prior year, primarily due to fair value losses on Convertible Notes [4][11] - Adjusted EBITDA improved to $3.1 million from a loss of $5.0 million in the prior year [4][12] Segment Performance Europe & International - Revenue increased by $13.4 million, or 12.2%, to $123.3 million in Q3 2025, with a volume growth of 8.4% [19][20] - Adjusted EBITDA rose by $9.5 million to $21.9 million, driven by higher gross profit and supply chain productivity [20] North America - Revenue decreased by $7.0 million, or 10.1%, to $62.1 million, with a sold volume decline of 12.8% [21][22] - Adjusted EBITDA decreased to a loss of $1.3 million from a profit of $3.3 million in the prior year [22] Greater China - Revenue increased by $8.4 million, or 28.8%, to $37.4 million, driven by sales growth in both foodservice and retail channels [23][24] - Adjusted EBITDA remained stable at $1.6 million compared to the prior year [24] Cost Management - Research and development expenses decreased by $6.3 million to $4.5 million, primarily due to prior year product launch issues [7] - Selling, general and administrative expenses decreased by $4.6 million to $75.1 million, reflecting ongoing cost reduction efforts [8] Capital Structure and Cash Flow - As of September 30, 2025, cash and cash equivalents were $58.9 million, with total outstanding debt of $507.7 million [26] - Net cash used in operating activities improved to $17.4 million for the nine months ended September 30, 2025, compared to $104.2 million in the prior year [27][29] - Capital expenditures were $13.8 million for the nine months ended September 30, 2025, down from $28.9 million in the prior year [29] Strategic Initiatives - The company is conducting a strategic review of its Greater China business, with no definitive timetable for completion [31][32] - Following the issuance of Nordic Bonds, the company refinanced its debt, including the prepayment of Term Loan B and cancellation of certain Convertible Notes [28]