Oatly Group Shares Slide On Q2 Revenue Miss, FY22 Outlook Cut

  • Oatly AB Group OTLY reported second-quarter FY22 sales growth of 21.8% year-over-year to $177.96 million, missing the consensus of $183.64 million.
  • Revenue in the Americas jumped 25.2% year-on-year to $51.8 million, EMEA increased 5% to $82.5 million, and Asia increased 66. 3% to $43.7 million.
  • Gross margin contracted 1,060 basis points to 15.8% and gross margin decreased 27.2% year-on-year to $28.1 million.
  • Operating loss for the quarter was ($74.4) million compared to ($48.1) million last year.
  • The company held $182.2 million in cash and cash equivalents as of June 30, 2022.
  • EBITDA loss increased to ($62.6) million from ($43.5) million last year.
  • The EPS loss of ($0.12) topped analyst consensus of ($0.13).
  • “We are updating our outlook for the year based on the current challenging operating environment with the war in Ukraine, COVID-19 and inflationary and supply chain pressures,” CEO Toni Petersson said. .
  • Outlook: Oatly forecasts FY22 sales of $800-830 million and $835-865 million in constant currency, compared to earlier guidance of $880-920 million.
  • It provides for capital expenditure of $220 million to $240 million.
  • Price action: OTLY shares are trading down 5.36% to $3.71 pre-market when last checked on Tuesday.

Sallie R. Loera