Oatly Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - Oatly Group AB reported profitable growth in both the fourth quarter and the full year of 2025, marking a significant milestone in its business strategy [2] - The company aims to accelerate its growth strategy and improve profitability further, indicating confidence in its future potential [2] Financial Performance - Fourth quarter revenue reached $233.8 million, a 9.1% increase from the previous year, with a constant currency revenue increase of 4.3% [5][6] - Gross margin for the fourth quarter improved to 34.5%, up 5.8 percentage points compared to the prior year [5][7] - The net loss attributable to shareholders for the fourth quarter was $19.1 million, an improvement of $72.1 million from a loss of $91.2 million in the prior year [5][12] - Adjusted EBITDA for the fourth quarter was $11.0 million, compared to a loss of $6.1 million in the prior year [5][12] Segment Performance - Europe & International revenue increased by $25.3 million, or 23.3%, to $133.7 million in the fourth quarter, driven by volume growth [20][21] - North America revenue decreased by $6.2 million, or 8.8%, to $64.4 million, primarily due to reduced sales to a major foodservice customer [22][23] - Greater China revenue increased by $0.4 million, or 1.1%, to $35.7 million, with a slight decline in foodservice sales offset by retail growth [24][25] Cost Management - Research and development expenses rose to $5.1 million in the fourth quarter, attributed to new product launches and foreign currency exchange impacts [8] - Selling, general, and administrative expenses increased to $83.9 million, driven by foreign currency exchange headwinds and distribution costs [9] Cash Flow and Capital Expenditures - As of December 31, 2025, the company had cash and cash equivalents of $64.3 million and total outstanding debt of $523.0 million [27] - Capital expenditures for the year were $15.3 million, down from $41.2 million in the prior year, reflecting disciplined investment strategies [29] - Free cash flow was an outflow of $39.0 million for the year, an improvement from an outflow of $155.6 million in the previous year [30] Strategic Outlook - The company expects constant currency revenue growth of 3% to 5% for 2026, with Adjusted EBITDA projected between $25 million and $35 million [15][37] - A strategic review of the Greater China business is ongoing, with no definitive timetable for completion [31][32]