Financial Data and Key Metrics Changes - Oatly achieved its first full year of profitable growth, with revenue growth of 4.7% and positive Adjusted EBITDA of $6.8 million for the full year [24][25] - In Q4, revenue grew by 9.1%, with a constant currency growth of 4.3%, and gross margin improved to 34.5%, an increase of 580 basis points year-over-year [24][25] - Adjusted EBITDA for Q4 was positive $11 million, which is $17.1 million higher than the same quarter last year [24][25] Business Line Data and Key Metrics Changes - Volume growth in Europe and international segments was 13.9%, contributing to a $9.9 million increase in segment-adjusted EBITDA [26] - North America experienced an 8.8% revenue decline primarily due to a change in sourcing strategy at a large customer, but excluding this customer, the segment grew 10% in the quarter [26] - Greater China saw a slight decline in constant currency revenue, but the food service channel grew by 5% [26] Market Data and Key Metrics Changes - In established markets, Europe and international segments grew by 7%, while expansion markets saw fantastic growth of 54% [17] - North America also achieved solid growth of 7% in both retail and food service when excluding the largest food service customer [17] - Household penetration is increasing, particularly among younger consumers, indicating a positive trend for the brand [19] Company Strategy and Development Direction - Oatly is focused on executing a refreshed growth playbook that emphasizes increased relevance, attacking barriers to conversion, and increasing availability to consumers [13][20] - The company plans to continue investing in new product innovations, including flavored Barista products and matcha offerings, to attract a broader consumer base [21][23] - A strategic review of the Greater China segment is planned for 2026, with options including a potential carve-out to maximize growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stronger profitable growth in 2026, expecting constant currency revenue growth of 3%-5% and Adjusted EBITDA of $25 million-$35 million [12][28] - The company is committed to improving free cash flow, which is expected to be negative in 2026 but will show improvement from 2025 levels [27][28] - Management highlighted the importance of maintaining a culture of efficiency and continuous improvement to support growth [11] Other Important Information - Oatly has reduced its cost of goods sold per liter by 23% and total SG&A by nearly $100 million, reflecting significant restructuring efforts [9][10] - The company is focused on brand-building investments, particularly in the first half of 2026, to support its growth strategy [28] Q&A Session Summary Question: Expectations for North America food service in 2026 - Management noted that they have diversified their customer base and expect continued growth outside of the large customer that has been a drag on performance [33][35] Question: Enhancing protein content in response to competitors - Management emphasized their focus on fiber rather than protein, aligning with consumer trends towards fiber-rich diets [40][41] Question: Drivers of oat milk category declines in U.S. retail - Management acknowledged category softness but highlighted their strong performance and penetration growth, indicating a positive outlook for the brand [46][49] Question: Free Cash Flow expectations and improvements - Management explained that Free Cash Flow has not improved sequentially due to various factors, but they expect significant improvements in 2026 driven by higher Adjusted EBITDA and better working capital management [67][70]

Financial Data and Key Metrics Changes - Oatly achieved its first full year of profitable growth, with revenue growth of 4.7% and adjusted EBITDA of $6.8 million for the full year [24][25] - In Q4, revenue grew by 9.1%, with a gross margin of 34.5%, an increase of 580 basis points compared to the previous year [24][25] - Adjusted EBITDA for Q4 was $11 million, which is $17.1 million higher than the same quarter last year [24][25] Business Line Data and Key Metrics Changes - Volume growth in Europe and International was 13.9%, contributing to a $9.9 million increase in segment-adjusted EBITDA [26] - North America experienced an 8.8% revenue decline primarily due to a change in sourcing strategy at a large customer, but excluding this customer, the segment grew 10% [26] - Greater China saw a slight decline in constant currency revenue, but adjusted EBITDA improved to $1.1 million [26] Market Data and Key Metrics Changes - In Europe and International, constant currency revenue growth accelerated to 14% in Q4 [18] - North America revenue growth accelerated to 10% in Q4 when excluding the largest food service customer [18] - Oatly became the number one plant-based drink brand in Germany, marking significant market share growth [19] Company Strategy and Development Direction - Oatly is focused on executing a refreshed growth playbook aimed at increasing relevance, attacking barriers to conversion, and enhancing availability to consumers [13][20] - The company plans to continue investing in brand-building and product innovation, particularly in the Barista lineup and new flavors [20][21] - A strategic review of the Greater China segment is planned for 2026, with options including a potential carve-out to maximize value [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stronger profitable growth in 2026, expecting constant currency revenue growth of 3%-5% and adjusted EBITDA of $25 million-$35 million [12][29] - The management highlighted the importance of improving free cash flow and maintaining a disciplined approach to investments [8][27] - There is a focus on addressing the fiber deficit in diets, leveraging Oatly's fiber credentials to attract health-conscious consumers [22][42] Other Important Information - The company has reduced its cost of goods sold per liter by 23% and total SG&A by nearly $100 million [9][10] - Oatly's business plan remains fully funded, with expectations for continued improvement in free cash flow despite not achieving positive free cash flow in 2026 [27][28] Q&A Session Summary Question: Expectations for North America food service in 2026 - Management noted that the food service segment outside the large customer now represents 30% of total segment revenue and is expected to continue growing strongly [35][36] Question: Enhancing protein content in response to competitors - Management emphasized their focus on fiber rather than protein, citing a fiber deficit in the Western diet and a growing trend towards fiber-rich products [41][42] Question: Drivers of oat milk category declines in U.S. retail - Management acknowledged category softness in traditional retail but highlighted strong performance in food service and club channels, with a focus on brand investment to drive demand [46][48] Question: Free cash flow improvement expectations - Management explained that free cash flow improvements are expected in 2026 due to higher adjusted EBITDA and better working capital management [52][70] Question: Increasing household penetration among younger consumers - Management attributed the increase in household penetration to the new growth playbook and a focus on making signature drinks available at home [60][61]

Financial Data and Key Metrics Changes - The company achieved its first full year of profitable growth, with revenue growth of 4.7% and 2.2% on a constant currency basis for the full year [23] - Adjusted EBITDA was positive at $6.8 million for the full year, marking a significant improvement [23] - In Q4, revenue grew by 9.1% and 4.3% on a constant currency basis, with a gross margin of 34.5%, an increase of 580 basis points compared to last year's Q4 [23][24] Business Line Data and Key Metrics Changes - Volume growth in Europe and international segments was 13.9%, contributing to a $9.9 million increase in segment-adjusted EBITDA [25] - North America experienced an 8.8% revenue decline primarily due to a change in sourcing strategy at a large customer, but excluding this customer, the segment grew 10% in the quarter [25] - Greater China saw a slight decline in constant currency revenue, but the food service channel grew by 5% [25] Market Data and Key Metrics Changes - The Europe and international segment saw solid growth of 7% in established markets and 54% in expansion markets [16] - North America also achieved 7% growth in both retail and food service when excluding the largest food service customer [16] - Household penetration is increasing, particularly among younger consumers, indicating a positive trend for the brand [18] Company Strategy and Development Direction - The company is focused on executing a refreshed growth playbook that emphasizes increased relevance, attacking barriers to conversion, and increasing availability to consumers [12][19] - Plans for 2026 include completing a strategic review of the Greater China segment and potentially accelerating growth through various options [11] - The company aims to maintain a culture of efficiency while driving growth and impact in a disciplined manner [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stronger profitable growth in 2026, expecting constant currency revenue growth of 3%-5% and adjusted EBITDA of $25 million-$35 million [11][27] - The management highlighted the importance of driving efficiencies and improving free cash flow, which is expected to improve from 2025 levels [26] - The company is optimistic about the potential for growth in the oat milk category, despite current market pressures [45] Other Important Information - The company has reduced its cost of goods sold per liter by 23% and total SG&A by nearly $100 million, reflecting significant restructuring efforts [8][9] - The company plans to increase CAPEX to support growth, particularly in the Europe and International segment [29] Q&A Session Summary Question: Expectations for North America food service in 2026 - Management noted that they have diversified their customer base and expect continued growth outside the large customer that has been a drag on performance [32][34] Question: Enhancing protein content in response to competitor products - Management emphasized their focus on fiber rather than protein, aligning with consumer trends towards fiber-rich diets [39][41] Question: Drivers of oat milk category declines in U.S. retail - Management acknowledged category softness but highlighted their outperformance and increasing household penetration as positive indicators [45][49] Question: Free Cash Flow expectations and improvements - Management explained that improvements in free cash flow are expected in 2026, driven by higher adjusted EBITDA and better working capital management [52][70] Question: Increasing household penetration and its drivers - Management attributed the increase in household penetration to the new growth playbook and a focus on making products relevant to younger consumers [58][60]

Financial Data and Key Metrics Changes - The company achieved a revenue growth of 7.1% in the quarter and 3.8% on a constant currency basis, marking its best performance as a public company [25] - Adjusted EBITDA was positive at $3.1 million, an increase of $8.2 million compared to the same quarter last year [25][26] - Gross margin remained flat at 29.8% compared to the previous year, with improvements in absorption and supply chain efficiencies contributing to a 60 basis point increase [25][26] Business Line Data and Key Metrics Changes - The Europe and International segment saw a revenue growth of 12% driven by strong volume growth of 8% [9][10] - North America experienced a revenue decline of 10.1%, primarily due to a change in sourcing strategy at a large customer [27] - Greater China reported a constant currency revenue growth of 28.7%, exceeding expectations [27] Market Data and Key Metrics Changes - The food service business in Greater China grew revenue by 18% in the quarter, maintaining strong relationships with major coffee chains [24] - In Europe, retail sales growth accelerated, with oat milk consumption surpassing that of the overall plant-based milk category for the first time in several quarters [39][40] - The company gained market share in the plant-based milk market, with a 70 basis point increase in the UK and a 40 basis point increase in Sweden [14] Company Strategy and Development Direction - The company is reaffirming its 2025 guidance, expecting constant currency revenue growth of approximately flat to 1% and adjusted EBITDA in the range of $5 million to $15 million [7][30] - The refreshed growth playbook is being executed across markets, focusing on driving relevance, attacking barriers to conversion, and increasing availability [11][12] - The company is committed to enhancing its product offerings and expanding into new markets, particularly targeting Gen Z consumers with innovative flavors [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing execution of the growth strategy, noting that profitability is a marker of progress rather than an endpoint [4][6] - The company acknowledged challenges in North America but emphasized that underlying growth is being observed, particularly in food service [19][23] - Management remains focused on continuous improvement in cost structure and operational efficiency, with a commitment to driving profitability [61] Other Important Information - The company has made significant strides in improving its capital structure, including reducing its revolving credit facility and issuing Nordic bonds [29] - Free cash flow showed a net cash outflow of $5 million, which is $22 million better than the previous year, driven by improvements in working capital [28][75] Q&A Session Summary Question: Thoughts on 2026 sales growth considering current headwinds - Management indicated that while it is early to discuss 2026, they see solid continuity in Europe and expect gradual progress in North America as one-time headwinds are lapped [33][36] Question: Acceleration of oat milk consumption in Europe - Management attributed the acceleration to the experience and taste strategy, which is driving consumer relevance and category demand [39][40] Question: Effective ways to drive customer trial - The company utilizes barista market developers to enhance menu relevance and generate trial through unique product offerings [46][47] Question: Guidance on EBITDA range and key swing items - Management highlighted that timing shifts and gross margin impacts will influence the lower end of the EBITDA guidance range [49][51] Question: Learnings from Europe applicable to North America - Management expressed confidence in applying successful strategies from Europe to North America, emphasizing similar consumer trends and the importance of taste [57][58] Question: North America profitability and margin evolution - Management noted that while there have been challenges, they expect underlying growth to lead to improved margins in the future [64][66] Question: Competitive environment in Europe regarding other plant-based varieties - Management sees significant growth potential in the oat milk category and believes that Oatly's premium positioning will continue to drive demand [68][70]

Financial Data and Key Metrics Changes - The company achieved a revenue growth of 7.1% and 3.8% on a constant currency basis in Q3 2025, marking its best performance as a public company [25] - Adjusted EBITDA was positive at $3.1 million, an increase of $8.2 million compared to Q3 2024 [25][26] - Gross margin remained flat at 29.8% compared to the previous year, with improvements in absorption and supply chain efficiencies contributing to a 60 basis point increase [25][26] Business Line Data and Key Metrics Changes - The Europe and International segment saw a revenue growth of 12% driven by an 8% volume increase, with an EBITDA margin of 18%, up 700 basis points year-over-year [9][10] - North America experienced a revenue decline of 10.1%, primarily due to a change in sourcing strategy at a large customer, impacting adjusted EBITDA negatively by $4.5 million [27] - Greater China reported a constant currency revenue growth of 28.7%, exceeding expectations, with strong performance in both food service and retail channels [27][24] Market Data and Key Metrics Changes - The food service channel in Europe and International grew by 28% year-on-year, while retail growth accelerated from 4% to 11% in Q3 [11][12] - In Germany, food service growth exceeded 45% for five consecutive quarters, contributing to a 70 basis point increase in retail market share for plant-based milk [13][14] - The North American food service business, excluding the largest customer, grew by 11% in the quarter, indicating positive momentum [20] Company Strategy and Development Direction - The company is reaffirming its 2025 guidance, expecting constant currency revenue growth of approximately flat to 1% and adjusted EBITDA in the range of $5 million to $15 million [7][30] - A refreshed growth playbook is being executed, focusing on driving relevance, overcoming barriers to conversion, and increasing availability, particularly targeting Gen Z consumers [11][16] - The company is exploring strategic options for its Greater China segment, including a potential carve-out to accelerate growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing execution of the growth strategy, noting that profitability is a marker of progress rather than an endpoint [4][6] - The company anticipates continued challenges in North America but believes that the underlying consumer trends are similar to those in Europe, suggesting potential for future growth [57][60] - Management emphasized a commitment to continuous improvement in cost efficiency across supply chain and SG&A, aiming for sustainable profitability [61] Other Important Information - The company reported a free cash flow net cash outflow of $5 million, which is $22 million better than the previous year, driven by improvements in working capital [28] - Recent transactions aimed at improving capital structure included reducing the revolving credit facility and issuing Nordic bonds, expected to save approximately $5 million in annualized interest expense [29] Q&A Session Summary Question: Thoughts on 2026 sales growth considering current headwinds - Management indicated that while it is early to discuss 2026, they see solid continuity in Europe and expect gradual progress in North America as one-time headwinds are lapped [33][36] Question: Acceleration of oat milk category growth in Europe - Management attributed the acceleration to the experience and taste strategy, which is driving consumer relevance and category demand [39][40] Question: Effective ways to drive customer trial - Management highlighted the role of barista market developers in creating relevant experiences and driving trial through innovative product offerings [45][46] Question: Plans for household penetration in the U.S. - Management expressed confidence in driving strong growth in the U.S. by leveraging similar consumer trends observed in Europe, focusing on taste and flavor [56][58] Question: North America profitability and margin evolution - Management noted that while there have been challenges, they expect underlying growth to lead to improved margins as they continue to drive consumer demand [64][66] Question: Competitive environment in Europe regarding other plant-based varieties - Management emphasized that the oat milk category is still in its infancy with significant growth potential, and they are focused on creating new consumer demand rather than competing on price [68][70]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 3% in the quarter, but a decline of 0.2% on a constant currency basis [36] - Adjusted EBITDA was a loss of $3,600,000, which is consistent with the previous quarter's level and guidance [36] - Gross margin expanded by 330 basis points year over year to 32.5%, marking the best quarterly results as a public company [36][41] Business Line Data and Key Metrics Changes - The Europe and International segment grew volume by 9.4%, achieving the highest volume quarter ever [41] - North America experienced a 6.8% decline in revenue, primarily due to changes in sourcing strategy and the largest customer [41] - Greater China saw a 6.6% decline in constant currency revenue, reflecting a challenging macro environment [41] Market Data and Key Metrics Changes - The company achieved a 12% revenue growth in the foodservice side of the Greater China segment in the first half [34] - In Europe, the company reported a strong growth acceleration in the foodservice channel, with sustained growth rates for several quarters [20] - The retail channel in Greater China reached an all-time high in volume during the quarter [34] Company Strategy and Development Direction - The company is focused on three priority areas: reducing costs, igniting top line momentum, and driving profitability [7] - A strategic review of the Greater China business has been initiated to accelerate growth and maximize value [6][13] - The company plans to continue executing its growth playbook, which has shown success in Europe and is being adapted for North America [30][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged slower than expected progress in North America and a soft macro environment in Greater China, leading to a refined full-year outlook [6][12] - The company remains confident in its growth playbook and believes it will drive results despite current challenges [6][12] - Management emphasized the importance of taste as a barrier to consumption and is focused on enhancing product relevance to consumers [56][64] Other Important Information - The company has identified additional SG&A savings, primarily from corporate expenses, to drive efficiencies without sacrificing growth [66][68] - The cash outflow of $5,000,000 in Q2 was the best quarterly performance as a public company, indicating progress in cash management [43] - CapEx is expected to be approximately $20,000,000 for the full year, reflecting a disciplined investment approach [47] Q&A Session Summary Question: Why is now the right time for the strategic review of China? - Management believes the business is now leaner and stronger after recent resets, making it a good time to evaluate growth acceleration and maximize value [51][52] Question: What is the optimal outcome of the strategic review? - The company is considering a range of options, including a potential carve-out, but will not speculate on the ultimate outcome at this time [52] Question: What are the challenges in North America and how can they be turned around? - Management acknowledged the market's softness but noted that the underperformance is plateauing, and they see opportunities for growth through distribution and operational excellence [56] Question: How are the incremental SG&A savings derived? - Most savings will come from corporate expenses, focusing on efficiencies without harming the business, including centralizing contracts and improving negotiation processes [66][68]