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 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]