MALMÖ, Sweden, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Oatly Group AB (Nasdaq: OTLY) ("Oatly” or the "Company”), the world's original and largest oat drink company, today announced financial results for the fourth quarter and twelve months ended December 31, 2024.
Jean-Christophe Flatin, Oatly's CEO, commented, "Over the past two years, we have executed a significant transformation of our company. We have overhauled our supply chain, our overhead structure, and our mindset. We now have a much healthier business with clear strategies, clear accountability, stronger margins, and significantly improved profitability. I am proud of our team for embracing the challenge, making the necessary changes, and focusing on execution. All this hard work has enabled us to now expect 2025 to be our first full year of profitable growth as a public company.”
The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and twelve months ended December 31, 2024 and 2023.
| Three months ended December 31, | $ Change | % Change | ||||||||||||||||||||||||||||||
| (Unaudited)
(in thousands of U.S. dollars) | 2024 | 2023 | As reported | Foreign
exchange impact | In constant
currency | As
reported | In constant
currency | Volume | Constant currency price/mix | |||||||||||||||||||||||
| Europe & International | 108,462 | 105,620 | 108,462 | 577 | 107,885 | 2.7 | % | 2.1 | % | 4.1 | % | -2.0 | % | |||||||||||||||||||
| North America | 70,596 | 65,900 | 70,596 | - | 70,596 | 7.1 | % | 7.1 | % | 5.1 | % | 2.0 | % | |||||||||||||||||||
| Greater China | 35,258 | 32,601 | 35,258 | 118 | 35,140 | 8.2 | % | 7.8 | % | 34.7 | % | -26.9 | % | |||||||||||||||||||
| Total revenue | 214,316 | 204,121 | 214,316 | 695 | 213,621 | 5.0 | % | 4.7 | % | 9.9 | % | -5.2 | % | |||||||||||||||||||
| Twelve months ended December 31, | $ Change | % Change | ||||||||||||||||||||||||||||||
| (Unaudited)
(in thousands of U.S. dollars) | 2024 | 2023 | As
reported | Foreign exchange impact | In constant
currency | As reported | In constant currency | Volume | Constant currency price/mix | |||||||||||||||||||||||
| Europe & International | 434,263 | 408,410 | 434,263 | 4,104 | 430,159 | 6.3 | % | 5.3 | % | 4.8 | % | 0.5 | % | |||||||||||||||||||
| North America | 274,455 | 250,264 | 274,455 | - | 274,455 | 9.7 | % | 9.7 | % | 10.0 | % | -0.3 | % | |||||||||||||||||||
| Greater China | 114,948 | 124,674 | 114,948 | (1,865 | ) | 116,813 | -7.8 | % | -6.3 | % | 21.2 | % | -27.5 | % | ||||||||||||||||||
| Total revenue | 823,666 | 783,348 | 823,666 | 2,239 | 821,427 | 5.1 | % | 4.8 | % | 8.8 | % | -4.0 | % | |||||||||||||||||||
- Fourth quarter revenue of $214.3 million, a 5.0% increase compared to the prior year period, with a constant currency revenue increase of 4.7% compared to the prior year period, with a solid volume growth in each operating segment.
- Gross margin in the fourth quarter was 28.8%, which is a 5.4 percentage points increase compared to the prior year period.
- Fourth quarter net loss attributable to shareholders of the parent was $91.2 million compared to net loss attributable to shareholders of the parent of $298.7 million in the prior year period.
- Fourth quarter Adjusted EBITDA loss was $6.1 million, which is an improvement of $13.1 million compared to the prior year period.
- As part of the Company's previously-discussed evaluation of its Asian supply chain, the Company announced the closure of its Singapore manufacturing facility in December and is today announcing the discontinuation of construction of its second manufacturing facility in China (Asia III).
- The Company expects to achieve its first full year of profitable growth in 2025. Specifically, in 2025 the Company expects:
- Constant currency revenue growth in the range of 2% to 4%, which is negatively impacted by approximately 300 basis points from a change in sourcing decision at a large North American customer,
- Positive adjusted EBITDA in the range of $5 million to $15 million, and
- Capital expenditures in the range of $30 million to $35 million.
Revenue increased $10.2 million, or 5.0% to $214.3 million for the fourth quarter ended December 31, 2024, compared to $204.1 million for the prior year period. Excluding a foreign currency exchange tailwind of $0.7 million, revenue for the fourth quarter was $213.6 million, or an increase of 4.7% compared to the prior year period. The growth in constant currency revenue was primarily driven by solid volume growth in each operating segment, partially offset by negative price/mix effect, particularly in Greater China. Sold volume for the fourth quarter of 2024 increased 9.9% to 153.2 million liters compared to 139.4 million liters in the fourth quarter of 2023. Produced finished goods volume for the fourth quarter of 2024 was 145.3 million liters compared to 135.8 million liters for the fourth quarter of 2023.
The Company continued to drive revenue growth in both the retail channel and foodservice channel in the fourth quarter of 2024 compared to the fourth quarter of 2023.
Gross profit was $61.6 million for the fourth quarter of 2024 compared to $47.8 million for the fourth quarter of 2023. Gross profit margin was 28.8% in the fourth quarter of 2024, an increase of 540 basis points compared to the prior year period. The margin improvement compared to the fourth quarter of 2023 was primarily driven by improvements in supply chain efficiency across all segments, most notably in the North America segment.
Research and development expenses in the fourth quarter of 2024 decreased $1.6 million to $3.7 million compared to $5.3 million in the prior year period. The decrease was primarily related to lower employee expenses and a reduction in external consultants, contractors and other professional fees.
Selling, general and administrative expenses in the fourth quarter of 2024 increased $1.3 million to $82.0 million compared to $80.7 million in the prior year period. The increase was primarily related to higher employee expenses due to restructuring activities in the fourth quarter of 2024.
Other operating income and (expenses), net for the fourth quarter of 2024 was an expense of $65.6 million comprised primarily of non-cash impairment charges of $41.7 million related to the discontinued construction of the second production facility in China (Asia III) and the closure of the production facility in Singapore, and other exit costs of $23.0 million related to the closure of the production facility in Singapore. Other operating income and (expenses), net for the prior year period was an expense of $204.3 million primarily driven by non-cash impairment charges and other exit costs related to discontinued construction of the new production facilities in Peterborough, UK and Dallas-Fort Worth, Texas.
Finance income and (expenses), net for the fourth quarter of 2024 was an expense of $1.1 million comprised primarily of net interest expenses of $13.6 million, offset by fair value gains on Convertible Notes of $4.6 million and net foreign exchange gains of $8.2 million. The finance income and (expenses), net for the prior year period was an expense of $50.5 million primarily driven by fair value losses on Convertible Notes.
Net loss attributable to shareholders of the parent was $91.2 million for the fourth quarter of 2024 compared to $298.7 million in the prior year period. The improvement was primarily a result of decreased other operating income and (expenses), net.
Adjusted EBITDA loss for the fourth quarter of 2024 was $6.1 million, compared to a loss of $19.2 million in the prior year period. The improvement in Adjusted EBITDA loss was primarily a result of higher gross profit.
EBITDA, Adjusted EBITDA loss, and Constant Currency Revenue are non-IFRS financial measures defined under "Non-IFRS financial measures”. Please see above revenue at constant currency table and "Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
The following tables set forth revenue, Adjusted EBITDA, EBITDA and loss before tax for the Company's three reportable segments for the periods presented.
Revenue, Adjusted EBITDA and EBITDA
Segment information for the three and twelve months ended December 31, 2023 presented below has been updated to reflect previously disclosed changes to our operating segments, which were effective as of January 1, 2024. Please see our press release, dated April 17, 2024, furnished on Form 6-K with the SEC for further information regarding these changes.
| Three months ended December 31, 2024 (Unaudited) (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 108,462 | 70,596 | 35,258 | - | - | 214,316 | ||||||||||||||||||
| Intersegment revenue | 1,326 | - | - | - | (1,326 | ) | - | |||||||||||||||||
| Total segment revenue | 109,788 | 70,596 | 35,258 | - | (1,326 | ) | 214,316 | |||||||||||||||||
| Adjusted EBITDA | 16,580 | 1,249 | 589 | (24,497 | ) | - | (6,079 | ) | ||||||||||||||||
| Share-based compensation expense | (306 | ) | (230 | ) | (511 | ) | (2,456 | ) | - | (3,503 | ) | |||||||||||||
| Restructuring costs(1) | (1,520 | ) | (356 | ) | - | (1,721 | ) | - | (3,597 | ) | ||||||||||||||
| New product launch issue(2) | - | 567 | - | - | - | 567 | ||||||||||||||||||
| Asset impairment charges and other costs related to discontinued construction of production facilities(3) | 48 | 2,122 | (25,068 | ) | - | - | (22,898 | ) | ||||||||||||||||
| Asset impairment charges and other costs related to closure of production facility(4) | (42,110 | ) | - | - | - | - | (42,110 | ) | ||||||||||||||||
| Non-controlling interests | - | - | (151 | ) | - | - | (151 | ) | ||||||||||||||||
| EBITDA | (27,308 | ) | 3,352 | (25,141 | ) | (28,674 | ) | - | (77,771 | ) | ||||||||||||||
| Finance income and (expenses), net
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