Listed plant milk group Oatly moved close to breaking even in its third quarter as it continues its turnaround efforts to get into the black.
Revenue increased 10.9% to $208m for the third quarter ended September 30, or an increase of 9.6% year-on-year excluding currencies.
This growth primarily driven by “solid” volume growth in each operating segment, with sold volume increasing 13% to 141.3m litres compared to 125m million litres in the third quarter of 2023.
It said growth was seen both in the retail and foodservice channels.
The revenue boost helped cut adjusted EBITDA losses for the quarter to just $5m compared to a loss of $36m.
Oatly said this improvement loss was primarily a result of higher gross profit and lower selling, general and administrative expenses.
Gross profit margin was 29.8%, an increase of 1,240 basis points compared to the prior year period due to supply chain efficiencies across all segments, especially in the North America and Greater, as well as improvements in product mix in China.
The result was that, for the first time since the Company’s IPO, each operating segment reported positive adjusted EBITDA for the full quarter.
Jean-Christophe Flatin, Oatly’s CEO, commented, “I am pleased to report another quarter of solid progress in strengthening our business. Our team’s continued focus on solid execution has enabled us to drive profitable growth in each of our three operating segments.
“As we move forward, we will maintain our north star of driving the total business toward structural, consistent profitable growth, and we intend to continue to invest behind our unique brand voice to recruit more consumers to our brand and further stimulate demand.”
Ahead of the final quarter Oatly tweaked its full year forecast, with adjusted EBITDA near the favourable end of its previously-provided range of a loss of $35-$50m, while revenues will be “growth near, or slightly below, the low end” of its previous 6% to 10% range.
Oatly stock had risen strongly in the run-up to today’s release, but has fallen 13.6% to $0.80 today on the results.
No comments yet