Oatly Gains As It Says Revenue To Climb, Capacity Expansion On Track

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Oatly Gains As It Says Revenue To Climb, Capacity Expansion On Track
Credit: © Reuters.

By Dhirendra Tripathi

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.

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