Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the
world’s original and largest oat drink company, today announced
financial results for the first quarter ended March 31, 2024.
Jean-Christophe Flatin, Oatly’s CEO,
commented, “I am pleased to report a solid start to the
year. In the first quarter, our brand remained strong, our
volumes moved in the right direction, our costs structurally came
down while also benefiting from timing, and our business became
stronger. We are clearly making progress on the three
strategic pillars we are focusing on in 2024: bring the Oatly magic
to more people, continue our work on the calibration of resources,
and focus on execution. Overall, we are off to an encouraging start
to the year.”
Flatin added, “While we are pleased with this
progress to date, we recognize we are only one quarter into our
year, and we know we need to continue driving results and gaining
traction on our strategic actions as we drive toward structural,
consistent profitable growth. Accordingly, our full year guidance
remains unchanged.”
The table below reconciles revenue as reported
to revenue on a constant currency basis by segment for the three
months ended March 31, 2024.
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Three months ended March 31, |
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$ Change |
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% Change |
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2024 |
|
2023 |
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As reported |
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Foreignexchange impact |
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In constantcurrency |
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As reported |
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In constantcurrency |
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Volume |
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Constant currency price/mix |
|
Europe & International |
110,407 |
|
100,496 |
|
110,407 |
|
2,186 |
|
|
108,221 |
|
9.9 |
% |
|
7.7 |
% |
|
4.1 |
% |
|
3.6 |
% |
North America |
66,967 |
|
64,041 |
|
66,967 |
|
— |
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|
66,967 |
|
4.6 |
% |
|
4.6 |
% |
|
11.4 |
% |
|
-6.8 |
% |
Greater China |
21,781 |
|
31,108 |
|
21,781 |
|
(1,002 |
) |
|
22,783 |
|
-30.0 |
% |
|
-26.8 |
% |
|
-15.8 |
% |
|
-11.0 |
% |
Total revenue |
199,155 |
|
195,645 |
|
199,155 |
|
1,184 |
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|
197,971 |
|
1.8 |
% |
|
1.2 |
% |
|
3.1 |
% |
|
-1.9 |
% |
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Highlights
- First quarter revenue of $199.2
million, a 1.8% increase compared to the prior year period, and
constant currency revenue increased 1.2% compared to the prior year
period, driven by solid growth in both the Europe &
International and North America segments.
- Gross margin in the first quarter
was 27.1%, which is a 9.7 percentage points increase compared to
the prior year period.
- First quarter net loss attributable
to shareholders of the parent was $45.8 million, which is an
improvement of $29.8 million compared to net loss of $75.6 million
in the prior year period.
- First quarter Adjusted EBITDA loss
was $13.2 million, which is an improvement of $36.7 million
compared to the prior year period.
- The Company is reiterating its full
year 2024 outlook, which includes constant currency revenue growth
in the range of 5% to 10%, adjusted EBITDA loss in the range of
$(35) million to $(60) million, and capital expenditures below $75
million.
First Quarter 2024 Results
Revenue increased $3.5 million, or 1.8% to
$199.2 million for the first quarter ended March 31, 2024,
compared to $195.6 million for the prior year period. Excluding a
foreign currency exchange tailwind of $1.2 million, revenue for the
first quarter was $198.0 million, or an increase of 1.2% compared
to the prior year period. The growth in constant currency revenue
was primarily driven by the Europe & International and North
America segments, partially offset by expected declines in the
Greater China segment due to the strategic reset implemented in the
third quarter 2023. Sold volume for the first quarter of 2024
increased 3.1% to 132 million liters compared to 128 million liters
in the first quarter of 2023. Produced finished goods volume for
the first quarter of 2024 was 141 million liters compared to 122
million liters for the first quarter of 2023.
The Company experienced revenue growth primarily
in the retail channel in the first quarter of 2024 compared to the
first quarter of 2023.
Gross profit was $53.9 million for the first
quarter of 2024 compared to $34.1 million for the first quarter of
2023. Gross profit margin was 27.1% in the first quarter of 2024,
an increase of 970 basis points compared to the prior year period.
The improvement compared to the first quarter 2023 was primarily
driven by improvements in supply chain efficiency across all
segments, with the North America segment driving the largest
impact.
Research and development expenses in the first
quarter of 2024 decreased $1.1 million to $4.6 million compared to
$5.7 million in the prior year period.
Selling, general and administrative expenses in
the first quarter of 2024 decreased $20.1 million to $78.7 million
compared to $98.9 million in the prior year period. The decrease
was primarily due to a $12.7 million reduction in
employee-related expenses, and a $5.3 million reduction in external
consultant, legal contractor and other professional fees and $1.2
million reduction in corporate insurance expenses.
Other operating income and (expenses), net for
the first quarter of 2024 improved to an income of $1.1 million
compared to an expense of $1.1 million in the prior year period,
comprised primarily of $0.9 million in reversal of previously
recognized non-cash impairment charges related to the Company’s
discontinued construction of its production facility in Dallas-Fort
Worth, Texas, and a net foreign exchange gain.
Finance income and (expenses), net for the first
quarter of 2024 was an expense of $17.4 million comprised primarily
of net interest expenses of $12.3 million and other financial
expenses of $5.1 million. The prior year period’s expense was $2.0
million. The increase was mainly driven by $12.2 million in
increased interest expenses on Convertible Notes and liabilities to
credit institutions.
Net loss attributable to shareholders of the
parent was $45.8 million for the first quarter of 2024 compared to
$75.6 million in the prior year period. The improvement in net loss
was primarily a result of higher gross profit across all regions
and lower selling, general and administrative expenses mainly in
North America, Greater China and Corporate, offset by higher
finance expenses.
Adjusted EBITDA loss for the first quarter of
2024 was $13.2 million, compared to a loss of $49.9 million in the
prior year period. The improvement in Adjusted EBITDA loss was
primarily a result of higher gross profit and lower selling,
general and administrative expenses.
EBITDA, Adjusted EBITDA loss, and Constant
Currency Revenue are non-IFRS financial measures defined under
“Non-IFRS financial measures”. Please see above revenue at constant
currency table and “Reconciliation of IFRS to Non-IFRS Financial
measures” at the end of this press release.
The following tables set forth revenue, Adjusted
EBITDA, EBITDA and loss before tax for the Company’s three
reportable segments for the periods presented.
Revenue, Adjusted EBITDA and
EBITDA
Effective as of January 1, 2024, the Company made
changes to how it makes strategic decisions and allocates resources
among its operating segments. As part of this change, the Greater
China business is managed separately from the rest of the Asia
business, forming its own operating segment. The rest of the Asia
business, including the Singapore manufacturing facility, is
managed together with the EMEA business, which is now identified as
Europe & International. Following these changes, the new
operating segments are:
(i) |
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Europe & International, which is inclusive of Europe, Middle
East and Africa, Asia Pacific and Latin America; |
(ii) |
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North America, which is inclusive of the United States and Canada;
and |
(iii) |
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Greater China, which is inclusive of Mainland China, Hong Kong and
Taiwan. |
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In addition to the above-described changes, a majority of the
research and development expenses, previously part of corporate
overhead, are now allocated to the operating segments to align with
how resources are being allocated and monitored as of January 1,
2024.
Segment information for the three months ended
March 31, 2023 presented below has been updated to reflect the
above-described changes.
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Revenue, Adjusted EBITDA and EBITDA |
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Three months ended March 31, 2024 (in
thousands of U.S. dollars) |
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Europe & International |
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North America |
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Greater China |
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Corporate* |
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Eliminations** |
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Total |
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Revenue |
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Revenue from external customers |
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110,407 |
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66,967 |
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21,781 |
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— |
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— |
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|
199,155 |
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Intersegment revenue |
|
1,964 |
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— |
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— |
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— |
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(1,964 |
) |
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— |
|
Total segment revenue |
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112,371 |
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66,967 |
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21,781 |
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— |
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(1,964 |
) |
|
199,155 |
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Adjusted EBITDA |
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14,496 |
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(388 |
) |
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(3,428 |
) |
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(23,884 |
) |
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— |
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(13,204 |
) |
Share-based compensation expense |
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(378 |
) |
|
1,259 |
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(700 |
) |
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(2,796 |
) |
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— |
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(2,615 |
) |
Restructuring costs(1) |
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— |
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— |
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(470 |
) |
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49 |
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— |
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(421 |
) |
Discontinued construction of production facilities(2) |
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— |
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884 |
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— |
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— |
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— |
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|
884 |
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Non-controlling interests |
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— |
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— |
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(44 |
) |
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— |
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— |
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(44 |
) |
EBITDA |
|
14,118 |
|
|
1,755 |
|
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(4,642 |
) |
|
(26,631 |
) |
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— |
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(15,400 |
) |
Finance income and expenses, net |
|
— |
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— |
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— |
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— |
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— |
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(17,377 |
) |
Depreciation and amortization |
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— |
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— |
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— |
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— |
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— |
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(13,013 |
) |
Loss before tax |
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— |
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— |
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— |
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— |
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— |
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(45,790 |
) |
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Three months ended March 31, 2023 (in
thousands of U.S. dollars) |
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Europe & International |
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North America |
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Greater China |
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Corporate* |
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Eliminations** |
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Total |
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Revenue |
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Revenue from external customers |
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100,496 |
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64,041 |
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31,108 |
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— |
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— |
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|
195,645 |
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Intersegment revenue |
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10,484 |
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— |
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— |
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— |
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(10,484 |
) |
|
— |
|
Total segment revenue |
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110,980 |
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|
64,041 |
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|
31,108 |
|
|
— |
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(10,484 |
) |
|
195,645 |
|
Adjusted EBITDA |
|
7,197 |
|
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(10,306 |
) |
|
(17,329 |
) |
|
(29,435 |
) |
|
— |
|
|
(49,873 |
) |
Share-based compensation expense |
|
(1,045 |
) |
|
(1,044 |
) |
|
(1,388 |
) |
|
(4,570 |
) |
|
— |
|
|
(8,047 |
) |
Restructuring costs(1) |
|
(1,008 |
) |
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(187 |
) |
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— |
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— |
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— |
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(1,195 |
) |
Costs related to the YYF transaction(3) |
|
— |
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(221 |
) |
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— |
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— |
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— |
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|
(221 |
) |
EBITDA |
|
5,144 |
|
|
(11,758 |
) |
|
(18,717 |
) |
|
(34,005 |
) |
|
— |
|
|
(59,336 |
) |
Finance income and expenses, net |
|
— |
|
|
— |
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|
— |
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|
— |
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|
— |
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|
(1,996 |
) |
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(12,233 |
) |
Loss before tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(73,565 |
) |
* Corporate consists of general overhead costs not allocated to the
segments. |
** Eliminations in 2024 and 2023 refer to intersegment revenue for
sales of products from Europe & International to Greater
China. |
(1) |
Relates to severance payments as the Company continues to adjust
its organizational structure to the macro environment. |
(2) |
Relates to reversal of previously recognized non-cash impairments
related to discontinued construction of the Company’s production
facility in Dallas-Fort Worth, Texas. |
(3) |
Relates to the Ya YA Foods USA LLC transaction (the “YYF
Transaction”). See the Company’s Forms 6-K filed on January 3, 2023
and March 2, 2023 for further details. |
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|
Europe & International
Europe & International revenue increased
$9.9 million, or 9.9%, to $110.4 million for the first quarter of
2024, compared to $100.5 million in the prior year period.
Excluding a foreign currency exchange tailwind of $2.2 million,
Europe & International revenue for the first quarter was $108.2
million, or an increase of 7.7%. The increase in revenue was
primarily driven by volume, and also benefited from price increases
introduced during the first part of 2023. Approximately 82% of
Europe & International revenue was from the retail channel for
the first quarter of 2024 compared to 83% in the prior year
quarter. The sold finished goods volume for the three months ended
March 31, 2024 and 2023 amounted to 77 and 74 million liters,
respectively.
Europe & International Adjusted EBITDA
increased $7.3 million to $14.5 million for the first quarter of
2024 compared to $7.2 million in the prior year period. The
improvement in Adjusted EBITDA was driven by higher gross profit,
partially offset by investments in selling, general and
administrative expenses.
North America
North America revenue increased $2.9 million, or
4.6%, to $67.0 million for the first quarter of 2024, compared to
$64.0 million in the prior year period. The sold finished goods
volume for the three months ended March 31, 2024 and 2023
amounted to 39 million and 35 million liters, respectively. The
11.4% volume increase was due to higher volumes primarily in the
retail and foodservice channels as the Company continued to expand
distribution and launch new products. Approximately 54% of North
America revenue was from the retail channel in the first quarter of
2024 compared to 52% in the prior year period.
North America Adjusted EBITDA improved $9.9
million to a loss of $0.4 million compared to a loss of $10.3
million in the prior year period. The improvement in Adjusted
EBITDA was primarily due to higher gross profit and lower selling,
general and administrative expenses resulting from the cost saving
initiatives implemented during the first and second quarter
2023.
Greater China
Greater China revenue decreased $9.3 million, or
30.0%, to $21.8 million for the first quarter of 2024, compared to
$31.1 million in the prior year period. Excluding a foreign
currency exchange headwind of $1.0 million, Greater China revenue
for the first quarter was $22.8 million, or a decrease of 26.8%.
The Greater China segment decline was primarily driven by the prior
decision to refocus into the foodservice channel, resulting in
discontinuation of certain lower-margin products and customers
across the retail and e-commerce channels. Approximately 70% of
Greater China revenue was from the foodservice channel for the
first quarter of 2024 compared to 65% in the prior year period. The
sold finished goods volume for the three months ended
March 31, 2024 and 2023 amounted to 16 million and 19 million
liters, respectively.
Greater China Adjusted EBITDA improved $13.9
million to a loss of $3.4 million compared to a loss of $17.3
million in the prior year period. The improvement in Adjusted
EBITDA was primarily due to significantly higher gross profit and
reduction in selling, general and administrative expenses, as the
segment executed on its previously-communicated strategic
reset.
Corporate Overhead
Oatly’s corporate expense, which consists of
general overhead costs not allocated to the segments, in the first
quarter of 2024 was $26.6 million, a decrease of $7.4 million
compared to the prior year period. Adjusted EBITDA in the first
quarter of 2024 was a loss of $23.9 million compared to a loss of
$29.4 million in the prior year period.
Balance Sheet and Cash Flow
As of March 31, 2024, the Company had cash
and cash equivalents of $209.0 million and total outstanding debt
of $453.8 million consisting of Convertible Notes and liabilities
to credit institutions. Net cash used in operating activities was
$39.1 million for the three months ended March 31, 2024,
compared to $71.2 million during the prior year period, which was
primarily driven by improved operating result. In the quarter, the
cash used in operating activities was impacted by the timing of
payments as well as the planned phasing in inventory around
upgrades to the Company’s manufacturing facilities.
Capital expenditures were $6.2 million for the
three months ended March 31, 2024, compared to $28.1 million
in the prior year period and, in addition, proceeds from the sale
of property, plant and equipment was $14.0 million for the three
months ended March 31, 2024.
Free cash flow was an outflow of $45.3 million
for the three months ended March 31, 2024 compared to an
outflow of $99.3 million during the prior year period. The
improvement in free cash flow was driven both by decreased net cash
flows used in operating activities and lower capital
expenditures.
Free Cash Flow is a non-IFRS liquidity measure
defined under “Non-IFRS financial measures.” Please see
“Reconciliation of IFRS to Non-IFRS Financial measures” at the end
of this press release.
Outlook Based on the Company’s
assessment of the current operating environment and the actions it
is taking, the Company is reiterating its outlook for 2024. The
Company expects:
- Revenue growth for full year 2024 on a constant currency basis
in the range of 5% to 10%,
- Adjusted EBITDA loss in the range of $(35) to $(60) million,
and
- Capital expenditures for full year 2024 below $75 million.
This outlook is provided in the context of
significant macroeconomic uncertainty and other geopolitical
uncertainties.
The Company cannot provide a reconciliation of
constant currency revenue growth or Adjusted EBITDA guidance to the
nearest comparable corresponding IFRS metric without unreasonable
efforts due to difficulty in predicting certain items excluded from
these non-IFRS measures. The items necessary to reconcile are not
within Oatly’s control, may vary greatly between periods and could
significantly impact future financial results.
Conference Call, Webcast and
Supplemental Presentation Details
Oatly will host a conference call and webcast at
8:30 a.m. ET today to discuss these results. The conference call,
simultaneous, live webcast and supplemental presentation can be
accessed on Oatly’s Investors website at
https://investors.oatly.com under “Events.” The webcast will be
archived for 30 days.
About Oatly
We are the world’s original and largest oat
drink company. For over 25 years, we have exclusively focused on
developing expertise around oats: a global power crop with inherent
properties suited for sustainability and human health. Our
commitment to oats has resulted in core technical advancements that
enabled us to unlock the breadth of the dairy portfolio, including
alternatives to milks, ice cream, yogurt, cooking creams, and
spreads. Headquartered in Malmö, Sweden, the Oatly brand is
available in more than 20 countries globally.
For more information, please visit
www.oatly.com
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Any express or implied statements contained in
this press release that are not statements of historical fact may
be deemed to be forward-looking statements, including, without
limitation, statements regarding our financial outlook for 2024,
profitability improvement, long-term growth strategy, expected
capital expenditures, anticipated supply chain performance,
anticipated impact of our improvement plans, anticipated impact of
our decision to discontinue construction of certain production
facilities, including additional expected impairment charges and
associated additional cash expenditures, plans to achieve
profitable growth and anticipated cost savings as well as
statements that include the words “expect,” “intend,” “plan,”
“believe,” “project,” “forecast,” “estimate,” “may,” “should,”
“anticipate,” “will,” “aim,” “potential,” “continue,” “is/are
likely to” and similar statements of a future or forward-looking
nature. Forward-looking statements are neither promises nor
guarantees, but involve known and unknown risks and uncertainties
that could cause actual results to differ materially from those
projected, including, without limitation: our history of losses and
inability to achieve or sustain profitability; including due to
elevated inflation and increased costs for transportation, energy
and materials; reduced or limited availability of oats or other raw
materials and ingredients that meet our quality standards; failure
to obtain additional financing to achieve our goals or failure to
obtain necessary capital when needed on acceptable terms, or at
all; failure of the financial institutions in which we hold our
deposits; damage or disruption to our production facilities; harm
to our brand and reputation as a result of real or perceived
quality or food safety issues with our products; food safety and
food-borne illness incidents or other safety concerns which may
lead to lawsuits, product recalls or regulatory enforcement
actions; our ability to successfully compete in our highly
competitive markets; reduction in the sales of our oatmilk
varieties; failure to effectively navigate our shift to an
asset-light business model; failure to successfully achieve any or
all of the benefits of the YYF Transaction; failure to meet our
existing or new environmental metrics and other risks related to
sustainability and corporate social responsibility; litigation,
regulatory actions or other legal proceedings including
environmental and securities class action lawsuits and settlements;
changes to international trade policies, treaties and tariffs;
global conflict, including the ongoing wars in Ukraine and Israel;
changes in our tax rates or exposure to additional tax liabilities
or assessments; supply chain delays, including delays in the
receipt of product at factories and ports, and an increase in
transportation costs; the impact of rising commodity prices,
transportation and labor costs on our cost of goods sold; failure
by our logistics providers to deliver our products on time, or at
all; our ability to successfully execute our cost reduction
activities in accordance with our expectations and the impact of
such actions on our company; failure to develop and maintain our
brand; our ability to introduce new products or successfully
improve existing products; failure to retain our senior management
or to attract, train and retain employees; cybersecurity incidents
or other technology disruptions; risks associated with our
operations in the People’s Republic of China; the success of our
strategic reset in Asia; failure to protect our intellectual
property and other proprietary rights adequately; our ability to
successfully remediate previously disclosed material weaknesses or
other future control deficiencies, in our internal control over
financial reporting; impairments of the value of our assets;
potential delisting from Nasdaq; our status as a foreign private
issuer; risks related to the significant influence of our largest
shareholder, Nativus Company Limited, entities affiliated with
China Resources Verlinvest Health Investment Ltd. has over us,
including significant influence over decisions that require the
approval of shareholders; and the other important factors discussed
under the caption “Risk Factors” in our Annual Report on Form 20-F
for the year ended December 31, 2023 filed with the U.S. Securities
and Exchange Commission (“SEC”) on March 22, 2024 and our other
filings with the SEC as such factors may be updated from time to
time. Any forward-looking statements contained in this press
release speak only as of the date hereof and accordingly undue
reliance should not be placed on such statements. Oatly disclaims
any obligation or undertaking to update or revise any
forward-looking statements contained in this press release, whether
as a result of new information, future events or otherwise, other
than to the extent required by applicable law.
Non-IFRS Financial Measures We
use EBITDA, Adjusted EBITDA, Constant Currency Revenue as non-IFRS
financial measures in assessing our operating performance and Free
Cash Flow as a liquidity measure, and each in our financial
communications:
“EBITDA” is defined as loss for the period
adjusted to exclude, when applicable, income tax expense, finance
expenses, finance income and depreciation and amortization
expense.
“Adjusted EBITDA” is defined as loss for the
period adjusted to exclude, when applicable, income tax expense,
finance expenses, finance income, depreciation and amortization
expense, share-based compensation expense, restructuring costs,
impacts related to discontinued construction of production
facilities and non-controlling interests.
Adjusted EBITDA should not be considered as an
alternative to loss for the period or any other measure of
financial performance calculated and presented in accordance with
IFRS. There are a number of limitations related to the use of
Adjusted EBITDA rather than loss for the period, which is the most
directly comparable IFRS measure. Some of these limitations
are:
- Adjusted EBITDA excludes depreciation and amortization expense
and, although these are non-cash expenses, the assets being
depreciated may have to be replaced in the future increasing our
cash requirements;
- Adjusted EBITDA does not reflect interest expense, or the cash
required to service our debt, which reduces cash available to
us;
- Adjusted EBITDA does not reflect income tax payments that
reduce cash available to us;
- Adjusted EBITDA does not reflect recurring share-based
compensation expense and, therefore, does not include all of our
compensation costs;
- Adjusted EBITDA does not reflect restructuring costs that
reduce cash available to us in future periods;
- Adjusted EBITDA excludes impacts related to discontinued
construction of production facilities, although some of these may
reduce cash available to us in future period;
- Other companies, including companies in our industry, may
calculate Adjusted EBITDA differently, which reduces its usefulness
as a comparative measure.
Adjusted EBITDA should not be considered in
isolation or as a substitute for financial information provided in
accordance with IFRS. Below we have provided a reconciliation of
EBITDA and Adjusted EBITDA to loss for the period, the most
directly comparable financial measure calculated and presented in
accordance with IFRS, for the periods presented.
“Constant Currency Revenue” is calculated by
translating the current year reported revenue amounts into
comparable amounts using the prior year reporting period’s average
foreign exchange rates which have been provided by a third party.
Constant Currency Revenue is a non-IFRS measure and is not a
substitute for IFRS measures in assessing our overall financial
performance.
Constant currency revenue is used to provide a
framework in assessing how our business and geographic segments
performed excluding the effects of foreign currency exchange rate
fluctuations and believe this information is useful to investors to
facilitate comparisons and better identify trends in our business.
Above we have provided a reconciliation of revenue as reported to
revenue on a constant currency basis for the periods presented.
“Free Cash Flow” is defined as net cash flows from
operating activities less capital expenditures. We believe Free
Cash Flow is a useful supplemental financial measure for us and
investors in assessing our ability to pursue business opportunities
and investments. Free Cash Flow is not a measure of our liquidity
under IFRS and should not be considered as an alternative to net
cash flows from operating activities.
Free Cash Flow is a non-IFRS measure and is not a
substitute for IFRS measures in assessing our overall financial
liquidity. Because Free Cash Flow is not a measurement determined
in accordance with IFRS, and is susceptible to varying
calculations, it may not be comparable to other similarly titled
measures presented by other companies. Free Cash Flow should not be
considered in isolation, or as a substitute for an analysis of our
results as reported on our interim condensed consolidated financial
statements appearing elsewhere in this document. Below we have
provided a reconciliation of Free Cash Flow to net cash flows from
operating activities for the periods presented.
|
Financial StatementsInterim condensed
consolidated statement of operations |
(Unaudited) |
Three months ended March 31, |
|
(in thousands of U.S. dollars, except share and per share
data) |
2024 |
|
|
2023 |
|
Revenue |
199,155 |
|
|
195,645 |
|
Cost of goods sold |
(145,257 |
) |
|
(161,557 |
) |
Gross profit |
53,898 |
|
|
34,088 |
|
Research and development expenses |
(4,642 |
) |
|
(5,714 |
) |
Selling, general and administrative expenses |
(78,742 |
) |
|
(98,855 |
) |
Other operating income and (expenses), net |
1,073 |
|
|
(1,088 |
) |
Operating loss |
(28,413 |
) |
|
(71,569 |
) |
Finance income and (expenses), net |
(17,377 |
) |
|
(1,996 |
) |
Loss before tax |
(45,790 |
) |
|
(73,565 |
) |
Income tax expense |
(54 |
) |
|
(2,012 |
) |
Loss for the period |
(45,844 |
) |
|
(75,577 |
) |
Attributable to: |
|
|
|
|
|
Shareholders of the parent |
(45,799 |
) |
|
(75,577 |
) |
Non-controlling interests |
(45 |
) |
|
— |
|
Loss per share, attributable to shareholders of the
parent: |
|
|
|
|
|
Basic and diluted |
(0.08 |
) |
|
(0.13 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
Basic and diluted |
595,060,257 |
|
|
592,319,923 |
|
|
|
|
|
|
|
Interim condensed consolidated statement of financial
position |
(Unaudited) |
March 31, 2024 |
|
|
December 31, 2023 |
|
(in thousands of U.S. dollars) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Intangible assets |
121,921 |
|
|
130,326 |
|
Property, plant and equipment |
345,661 |
|
|
360,286 |
|
Right-of-use assets |
84,064 |
|
|
88,393 |
|
Other non-current receivables |
44,934 |
|
|
44,378 |
|
Deferred tax assets |
9,743 |
|
|
10,203 |
|
Total non-current assets |
606,323 |
|
|
633,586 |
|
Current assets |
|
|
|
|
|
Inventories |
76,845 |
|
|
67,882 |
|
Trade receivables |
107,833 |
|
|
112,951 |
|
Current tax assets |
3,079 |
|
|
2,505 |
|
Other current receivables |
19,130 |
|
|
33,820 |
|
Prepaid expenses |
15,600 |
|
|
16,928 |
|
Cash and cash equivalents |
209,025 |
|
|
249,299 |
|
Total current assets |
431,512 |
|
|
483,385 |
|
TOTAL ASSETS |
1,037,835 |
|
|
1,116,971 |
|
EQUITY AND LIABILITIES |
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
105 |
|
|
105 |
|
Treasury shares |
(0 |
) |
|
(0 |
) |
Other contributed capital |
1,628,045 |
|
|
1,628,045 |
|
Other reserves |
(252,427 |
) |
|
(233,204 |
) |
Accumulated deficit |
(1,104,136 |
) |
|
(1,060,952 |
) |
Equity attributable to shareholders of the
parent |
271,587 |
|
|
333,994 |
|
Non-controlling interests |
1,733 |
|
|
1,787 |
|
Total equity |
273,320 |
|
|
335,781 |
|
Liabilities |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Lease liabilities |
68,966 |
|
|
72,570 |
|
Liabilities to credit institutions |
115,317 |
|
|
114,249 |
|
Provisions |
1,558 |
|
|
10,716 |
|
Total non-current liabilities |
185,841 |
|
|
197,535 |
|
Current liabilities |
|
|
|
|
|
Lease liabilities |
16,051 |
|
|
16,432 |
|
Convertible Notes |
332,520 |
|
|
323,528 |
|
Liabilities to credit institutions |
6,000 |
|
|
6,056 |
|
Trade payables |
46,259 |
|
|
64,368 |
|
Current tax liabilities |
2,675 |
|
|
2,732 |
|
Other current liabilities |
14,770 |
|
|
13,873 |
|
Accrued expenses |
119,218 |
|
|
121,338 |
|
Provisions |
41,181 |
|
|
35,328 |
|
Total current liabilities |
578,674 |
|
|
583,655 |
|
Total liabilities |
764,515 |
|
|
781,190 |
|
TOTAL EQUITY AND LIABILITIES |
1,037,835 |
|
|
1,116,971 |
|
|
|
|
|
|
|
Interim condensed consolidated statement of cash
flows |
(Unaudited) |
Three months ended March 31, |
|
(in thousands of U.S. dollars) |
2024 |
|
|
2023 |
|
Operating activities |
|
|
|
|
|
Net loss |
(45,844 |
) |
|
(75,577 |
) |
Adjustments to reconcile net loss to net cash flows |
|
|
|
|
|
—Depreciation of property, plant and equipment and right-of-use
assets and amortization of intangible assets |
13,013 |
|
|
12,233 |
|
—Write-downs of inventories |
752 |
|
|
3,468 |
|
—Impairment loss/(gain) on trade receivables |
105 |
|
|
(342 |
) |
—Share-based payments expense |
2,615 |
|
|
8,047 |
|
—Movements in provisions |
(3,036 |
) |
|
(1,596 |
) |
—Finance (income) and expenses, net |
17,377 |
|
|
1,996 |
|
—Income tax expense |
54 |
|
|
2,012 |
|
—Impairment reversal related to discontinued construction of
production facilities |
(884 |
) |
|
— |
|
—Other |
50 |
|
|
(478 |
) |
Interest received |
3,456 |
|
|
346 |
|
Interest paid |
(6,493 |
) |
|
(3,752 |
) |
Income tax paid |
(1,021 |
) |
|
(1,031 |
) |
Changes in working capital: |
|
|
|
|
|
—(Increase)/decrease in inventories |
(11,422 |
) |
|
3,524 |
|
—Decrease/(increase) in trade receivables, other current
receivables, prepaid expenses |
6,812 |
|
|
(7,120 |
) |
—Decrease in trade payables, other current liabilities, accrued
expenses |
(14,612 |
) |
|
(12,942 |
) |
Net cash flows used in operating activities |
(39,078 |
) |
|
(71,212 |
) |
Investing activities |
|
|
|
|
|
Purchase of intangible assets |
(482 |
) |
|
(983 |
) |
Purchase of property, plant and equipment |
(5,712 |
) |
|
(27,139 |
) |
Proceeds from sale of property, plant and equipment |
14,007 |
|
|
— |
|
Proceeds from sale of assets held for sale |
— |
|
|
43,998 |
|
Net cash flows from investing activities |
7,813 |
|
|
15,876 |
|
Financing activities |
|
|
|
|
|
Proceeds from liabilities to credit institutions |
— |
|
|
52,736 |
|
Repayment of liabilities to credit institutions |
(707 |
) |
|
(339 |
) |
Payment of loan transaction costs |
(4,965 |
) |
|
— |
|
Repayment of lease liabilities |
(3,054 |
) |
|
(3,592 |
) |
Cash flows (used in)/from financing
activities |
(8,726 |
) |
|
48,805 |
|
Net decrease in cash and cash equivalents |
(39,991 |
) |
|
(6,531 |
) |
Cash and cash equivalents at the beginning of the period |
249,299 |
|
|
82,644 |
|
Exchange rate differences in cash and cash equivalents |
(283 |
) |
|
2,717 |
|
Cash and cash equivalents at the end of the
period |
209,025 |
|
|
78,830 |
|
|
|
|
|
|
|
Reconciliation of IFRS to Non-IFRS Financial
measuresReconciliation of EBITDA and Adjusted
EBITDA to loss for the period |
|
(Unaudited) |
Three months ended March 31, |
|
(in thousands of U.S. dollars) |
2024 |
|
|
2023 |
|
Loss for the period |
(45,844 |
) |
|
(75,577 |
) |
Income tax expense |
54 |
|
|
2,012 |
|
Finance (income) and expenses, net |
17,377 |
|
|
1,996 |
|
Depreciation and amortization expense |
13,013 |
|
|
12,233 |
|
EBITDA |
(15,400 |
) |
|
(59,336 |
) |
Share-based compensation expense |
2,615 |
|
|
8,047 |
|
Restructuring costs(1) |
421 |
|
|
1,195 |
|
Discontinued construction of production facilities(2) |
(884 |
) |
|
— |
|
Costs related to the YYF Transaction(3) |
— |
|
|
221 |
|
Non-controlling interests |
44 |
|
|
— |
|
Adjusted EBITDA |
(13,204 |
) |
|
(49,873 |
) |
|
|
|
(1) |
Relates to severance payments as the Company continues to adjust
its organizational structure to the macro environment. |
(2) |
Relates to reversal of previously recognized non-cash impairments
related to discontinued construction of the Company’s production
facility in Dallas-Fort Worth, Texas. |
(3) |
Relates to the YYF Transaction. See the Company’s Forms 6-K filed
on January 3, 2023 and March 2, 2023 for further details. |
|
|
|
Reconciliation of Free Cash Flow to Net Cash Flows used in
Operating Activities |
|
(Unaudited) |
Three months ended March 31, |
|
(in thousands of U.S. dollars) |
2024 |
|
|
2023 |
|
Net cash flows used in operating activities |
(39,078 |
) |
|
(71,212 |
) |
Capital expenditures |
(6,194 |
) |
|
(28,122 |
) |
Free Cash Flow |
(45,272 |
) |
|
(99,334 |
) |
|
|
|
|
|
|
Contacts
Oatly Group AB
+1 866-704-0391
investors@oatly.com
press.us@oatly.com
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