Oatly Group Q4 Earnings Call Highlights

Core Insights - Oatly has successfully transitioned from being "structurally unprofitable with slowing growth" to "structurally profitable with accelerating growth," driven by efficiency efforts and a refreshed growth strategy [2] Financial Performance - Oatly reported its first full year of profitable growth with an adjusted EBITDA of $6.8 million and a fourth-quarter adjusted EBITDA of $11 million, supported by margin expansion and a 23% reduction in cost of goods sold per liter [5][12] - Revenue for the full year increased by 4.7% (2.2% on a constant-currency basis), while fourth-quarter revenue grew by 9.1% (4.3% constant currency) [13][12] - Gross margin improved to over 32%, reflecting a 2,100 basis points increase compared to 2022 [5][1] Strategic Initiatives - The company is focusing on a three-pillar strategy that targets younger consumers and narrows its product offerings to beverages, emphasizing taste as a primary driver of adoption [6][4] - Oatly plans to expand its product lineup with flavored Barista options, including caramel and vanilla, and introduce a Barista Cold Foam product [9][10] Market Position and Growth - Oatly has seen rising household penetration for the first time in years and expanded its retail share in Europe, becoming the number one plant-based drink brand in Germany [7] - The company anticipates constant-currency revenue growth of 3% to 5% for 2026, with adjusted EBITDA expected to reach $25 million to $35 million [16] Future Outlook - Oatly expects to improve free cash flow, although it will remain negative in 2026, driven by higher adjusted EBITDA and working capital improvements [19] - A strategic review of the Greater China segment is planned for 2026, which may include a potential carve-out to maximize business value [21]