Oatly Shares Sour After Q4 Earnings Report, Despite Revenue Growth

Written By Michael Gary Scott




Oatly’s Stock Dips Despite Increased Revenue


Shares Plummet After Disappointing Q4 Earnings

Oatly Group AB (OTLY) shares are plummeting after a disappointing fourth-quarter earnings report. The Malmö, Sweden-based company reported a fourth-quarter loss per share of $(0.50), significantly wider than the analyst consensus of $(0.15). Despite this, the company managed to surpass quarterly revenue expectations, reporting $204.12 million compared to the estimated $191.34 million.

The company demonstrated a revenue growth of 4.6% compared to the prior year period, with a 2.5% increase in constant currency revenue. The growth was fueled by a rise in both the retail and food service channels, indicating a broad yearning for Oatly products. However, this was partially offset by a decline in other channels in the fourth quarter.

Oatly experienced a 2% uptick in sold volume for the fourth quarter, reaching 140 million liters, while its gross margin surged to 23.4%, marking a substantial 7.5 percentage points increase compared to the previous year. The company also managed to improve its adjusted EBITDA loss to $19.2 million, a remarkable $41.2 million improvement compared to the prior year’s period.

As of December 31, 2023, Oatly held $249.3 million in cash and cash equivalents but also carried a total outstanding debt of $443.8 million. Looking towards the future, Oatly is upbeat about its revenue growth prospects for the full year 2024, with a forecast in the range of 5% to 10% on a constant currency basis. However, the company foresees an adjusted EBITDA loss ranging between $35 million to $60 million, with capital expenditures expected to be below $75 million.

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In response to the earnings report, OTLY shares are trading 15.1% lower at $1.14, demonstrating the market’s dissatisfaction with the results.