OTLY - Oatly stock accelerates on top-line beat CEO shift

2023-05-09 09:32:31 ET

Oatly AB ( NASDAQ: OTLY ) stock gained on Tuesday after topping Q1 estimates and announcing a new CEO.

For the first quarter, a GAAP loss per share of $0.13 met expectations while a 17.7% jump in revenue to $195.65M came in $7.4M stronger than the Street consensus. A 14.8% rise in prices aided the revenue growth for the Swedish dairy alternative company.

“We delivered a solid start to the year, with an acceleration of growth, sequential gross margin expansion, and an improvement in profitability. Importantly, the supply chain has continued to perform well. This strong supply chain performance has enabled us to make progress against our 2023 priorities and start playing offense again,” CEO Toni Petersson commented. “Looking ahead, we remain focused on our 2023 priorities of accelerating top line growth, continuous improvement in the supply chain, and driving towards positive adjusted EBITDA in 2024.”

He added that the company will continue to invest in “exciting demand-generating initiatives” to maintain sales momentum. Management expects revenue growth of between 23% and 28% on a constant currency basis as compared to full year 2022. Gross margin improvement is expected throughout 2023 as well.

Additionally, Petersson announced that he will shift to a role as co-chairman as he is succeeded by Global President Jean-Christophe Flatin as CEO. Flatin will take up the role effective June 1.

“Jean-Christophe is a proven leader and the ideal person to help usher Oatly in our next phase,” Petersson said. “He has already strengthened our company for the better by putting our supply chain back on firmer footing, renewing our focus on innovation, and enabling our organization to go on offense to drive profitable growth.”

Shares of Oatly Group ( OTLY ) gained 2.4% after the bell on Tuesday.

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