Financial Data and Key Metrics Changes - The company reported a revenue decline of 0.8% and constant currency revenue growth of 0.7% in the first quarter [28] - Gross margin expanded by 450 basis points year over year to 31.6%, marking the best quarterly results since the company went public [28] - Adjusted EBITDA loss was $3.7 million, an improvement of $9.5 million compared to the same quarter last year [28][32] Business Line Data and Key Metrics Changes - Volume grew by 9.2% in the quarter, with strong performance in Greater China and solid growth in Europe and International [7][29] - North America segment underperformed due to a change in sourcing strategy at the largest customer and SKU rationalization in frozen items [19][32] - The company outperformed both the plant-based milk category and the oat milk category, even with the impact of frozen business decline [20][32] Market Data and Key Metrics Changes - The German business accelerated growth to nearly 8% in the last twelve weeks, while the UK market showed signs of revitalization moving from decline to growth [17][18] - The Greater China segment is still developing, focusing on food service execution and rebuilding retail presence [22][24] Company Strategy and Development Direction - The company aims for disciplined resource allocation to create value and achieve its 2025 priorities, which include igniting positive momentum globally and delivering its first full year of profitable growth as a public company [5][9] - The strategy includes increasing product relevance, attacking barriers to conversion, and expanding availability in the coffee and beverage space [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in North America but expressed confidence that investments and action plans will enable acceleration of total company growth later in the year [8][19] - The company expects to continue improving gross margin and adjusted EBITDA, with a target of achieving a gross margin of 35% to 40% in the long term [36][47] Other Important Information - The company reduced its cost of goods sold per liter by 15% year over year and 6% compared to the previous quarter [25] - Free cash flow was a use of $21 million, marking the best quarterly performance as a public company [34] Q&A Session Summary Question: Insights on initiatives in Europe and their impact on category growth - Management noted that while Oatly is outperforming its own performance, category growth for oat milk remains soft, but they are optimistic about future traction as they deploy their strategy in the U.S. [39][41] Question: Expectations for gross margin improvement - Management expects gross margin to improve compared to the previous year, driven by supply chain efficiencies and product mix management, but did not provide a specific number [45][46] Question: Distribution opportunities in North America - Management highlighted ample distribution opportunities across all channels in North America, emphasizing the potential for growth in their new beverage portfolio [53][56] Question: U.S. consumer behavior and category performance - Management indicated that while retail sales momentum has decelerated, they see slight upside in velocities and unit shares, and they are optimistic about igniting new category momentum [60][62] Question: Feedback from foodservice operators on plant-based offerings - Management observed that small to medium foodservice customers are adapting quickly to trends and adopting Oatly's offerings, indicating a shift towards cold beverages [77][81] Question: Reduction in negative media coverage for plant-based products - Management confirmed that they are building alliances and engaging in public education to combat misinformation about plant-based products, which is showing positive results [84][86]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a revenue decline of 0.8% with constant currency revenue growth of 0.7% [28] - Gross margin expanded by 450 basis points year-over-year to 31.6%, marking the best quarterly results since the company went public [28][29] - Adjusted EBITDA loss was €3.7 million, an improvement of €9.5 million compared to the same quarter last year [28][32] Business Line Data and Key Metrics Changes - Volume grew by 9.2% in the quarter, with strong performance in Greater China and solid growth in Europe and International [6][29] - North America segment underperformed due to a change in sourcing strategy at the largest customer and SKU rationalization in frozen items [20][32] - The company continues to outperform both the plant-based milk category and the oat milk category, despite challenges in North America [21][32] Market Data and Key Metrics Changes - The German market saw accelerated growth to nearly 8% in the last twelve weeks, while the UK market is moving from decline to incipient growth [18][19] - The Greater China segment is performing well, with a focus on food service and rebuilding retail presence [23][24] Company Strategy and Development Direction - The company aims for disciplined resource allocation to create value and achieve its first full year of profitable growth as a public company [4][5] - Key priorities include igniting positive momentum globally, pursuing cost efficiencies, and enhancing brand relevance [9][25] - The company plans to roll out its strategy to more European markets and North America in Q2 2025 [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in North America but believes investments and action plans will drive positive momentum later in the year [7][20] - The company expects constant currency growth in the range of 2% to 4% for the full year, with adjusted EBITDA projected between €5 million to €15 million [35][36] Other Important Information - The company reduced its cost of goods sold per liter by 15% year-over-year and 6% compared to the previous quarter [25] - Free cash flow improved to a use of cash of €21 million, marking the best quarterly performance as a public company [34] Q&A Session Summary Question: What gives confidence that initiatives in the U.S. will lift the soft oat milk category? - Management acknowledges that while Europe is outperforming, turning around category momentum in the U.S. will take time, but they see significant distribution opportunities [41][44] Question: How is the company thinking about gross margin for the full year? - Management expects gross margin to improve compared to the previous year, driven by supply chain efficiencies and product mix management [46][48] Question: What are the biggest distribution opportunities in North America? - Management sees ample opportunities across all channels, including retail and food service, and emphasizes the importance of executing the new playbook [53][56] Question: What is the outlook for the U.S. consumer and category momentum? - Management notes that while the category is experiencing a paradigm shift, they believe in the long-term fundamentals supporting growth in plant-based products [59][64] Question: What feedback is being received from food service operators regarding plant-based offerings? - Management observes that small to medium food service customers are adapting quickly to trends and adopting the company's offerings, indicating a shift in consumer preferences [78][81] Question: Are there opportunities for plant-based beverages to gain endorsements from health organizations? - Management confirms that they are actively building alliances and engaging in public education to support the plant-based narrative [84][86]