OTLY - Oatly crumbles after earnings miss disappointing guidance

2023-07-27 14:07:29 ET

Oatly Group AB ( NASDAQ: OTLY ) slid in afternoon trading on Thursday after the company missed estimates with its Q2 earnings report .

The company reported a revenue gain of 10.1% to $196.0M vs. $210M consensus. Excluding a foreign currency exchange headwind of $1.8M, revenue was up 11.1% on a constant currency basis. The increase was primarily driven by price increases implemented in EMEA primarily during the first quarter and the Americas in the third quarter of last year, in addition to continued volume growth for the company’s products in each of the EMEA and Americas segments. Sold volume for the quarter was 125M liters compared to 121M liters for the same quarter last year. Produced finished goods volume amounted to 130M liters compared to 124M liters last year.

Gross margin improved sequentially to 19.2% compared to 17.4% in the first quarter. The quarter-over-quarter increase was primarily driven by cost improvements in the Americas supply chain, which were partially offset by increased inventory write-offs and co-manufacturer penalties in the Asia segment linked to the slower than expected post COVID-19 recovery. Oatly's EPS loss for the quarter was $0.15 vs. -$0.13 consensus and -$0.12 a year ago. The adjusted EBITDA loss of $52.5M during Q2 also missed the consensus expectation.

During the earnings call, Oatly ( OTLY ) management said the company lowered revenue guidance for 2023 to a range of +7% to +12%, but said it is still on track to have positive adjusted EBITDA in 2024.

Shares of Oatly Group ( OTLY ) were down 20.85% at 2:05 p.m. The stock is down more than 60% from its 52-week high and more than 90% from the all-time high.

More on Oatly:

• Oatly earnings call transcript
• Growth metrics for Oatly
• Relative strenght index and moving averages for Oatly
• Seeking Alpha's Quant Rating for Oatly

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