Oatly Gains As It Says Revenue To Climb, Capacity Expansion On Track
Investing.com – Oatly ADR (NASDAQ: OTLY ) rose 1.7% Monday as the company forecast a jump in revenue while it undertakes capacity expansion.
The Swedish maker of dairy alternatives said it expects annual revenue to rise to at least $690 million, above estimates of $681.4 million, according to Reuters.
The company commissioned new capacities and expanded at the existing facilities to tap the booming demand for vegan milk alternatives.
The company said it will boost capacity at its Utah manufacturing facility by 50%, according to Reuters. Its Singapore plant started production early last month and the company said its Maanshan plant in China is on track for launch in the second half.
Oatly said it is benefiting from its exclusive U.S. oat milk supply agreement with Starbucks (NASDAQ: SBUX ). The coffee brewer accounted for 27% of its sales in the second quarter.
The upbeat note from the company helped it erase the disappointment over its second-quarter numbers that came below estimates.
Oatly's expansion and higher shipping costs widened its losses to $59.1 million from $4.8 million a year earlier. The company lost 11 cents per share, compared with estimates of a loss of 9 cents, according to an Investing.com poll.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or