OTLY - Oatly: Turnaround Progressing

2024-05-02 02:14:17 ET

Summary

• Oatly's Q1 2024 results demonstrated further improvements in profitability, despite weak growth and cash flows.
• While OTLY's China business looks marginal, its core markets are performing well, and it has a sizable cash balance and declining cash burn.
• Oatly's share price continues to trail the improvements in the company's fundamentals. It appears likely that Oatly will need to transition to profitability before this disconnect disappears, though.

Oatly's ( OTLY ) Q1 2024 results were somewhat mixed, with profits continuing to improve despite weak growth and cash flows. While the company has issues, these are well-defined and appear to be addressable. With solid performance in its core markets, a relatively large cash balance and declining cash burn, Oatly has a viable path forward....

For further details see: