MALMÖ - Oatly Group AB (NASDAQ:OTLY), the world's leading oat drink company, reported a narrower-than-expected loss for the second quarter, alongside a revenue beat that sent shares climbing by 7%.
The company announced a second-quarter loss of -$0.05 per share, surpassing analyst estimates that anticipated a loss of -$0.07 per share. Revenue for the quarter reached $202.2 million, edging past the consensus estimate of $201.29 million.
The improved financial results are attributed to solid volume growth across all operating segments and a strategic focus on cost reduction and efficient execution. Oatly's CEO, Jean-Christophe Flatin, expressed satisfaction with the company's progress and its ability to grow volumes while structurally reducing costs. He also highlighted the company's commitment to bringing Oatly products to more consumers and driving the business toward consistent, profitable growth.
In comparison to the same quarter last year, the company's revenue saw a 3.2% increase, with constant currency revenue growth of 3.9%. The North America segment reported its first full quarter of positive adjusted EBITDA, contributing to the overall positive results.
Looking ahead, Oatly has raised its full-year 2024 outlook for constant currency revenue growth to a range of 6% to 10%, up from the previous expectation of 5% to 10%. The adjusted EBITDA loss is now projected to be between $(35) million and $(50) million, an improvement from the prior range of $(35) million to $(60) million. Additionally, the company has lowered its guidance for capital expenditures to below $70 million, down from the earlier forecast of below $75 million.
The company's focus on resource calibration, high-return demand-generating investments, and its path toward structural profitability are key factors driving the upbeat investor sentiment.
Oatly's management remains focused on completing the calibration of resources and investing in demand-generating initiatives to sustain growth and profitability. The company's balance sheet reflects a cash position of $142.7 million, with total outstanding debt at $438.5 million, consisting of Convertible Notes and liabilities to credit institutions.
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