OTLY - Oatly Group sinks after revenue guidance arrives well below expectations

Oatly Group AB(NASDAQ:OTLY) says revenue jumped 49% in Q3 due primarily by additional supply from the company’s new production capacity in Vlissingen, Netherlands, which helped it meet the growing global demand for its products. Broad-based growth across geographies and sales channels was seen during the quarter. Gross profit fell to 26.2% of sales from 31.3% in the prior year. The gross profit margin decline was primarily due to higher logistics expenses in EMEA and the Americas as well as higher container rates for shipments from EMEA to Asia, a change in channel and customer mix primarily in Americas, as well as short-term challenges related to scaling up production capacity at the Ogden, Utah facility. Looking ahead, Oatly (OTLY) sees 2021 revenue of over $635M vs. a prior view for more than $690M and $694M consensus. Shares of Oatly are down 13.45% premarket to $10.23 (52-week low) following the guidance disappointment.

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Oatly Group sinks after revenue guidance arrives well below expectations