OTLY - Why Oatly Stock Plunged by More Than 20% on Thursday
2023-07-27 13:43:52 ET
Shares of Oatly Group (NASDAQ: OTLY) were down by 21.9% as of 1:30 p.m. ET Thursday. The leading oat drink company reported 10% year-over-year revenue growth in the second quarter, and a sequential improvement in profitability.
However, weakness in Asia is forcing the company to make some changes, and that is creating uncertainty for investors. Management's lower sales forecast sent the stock tumbling after the earnings release.
Sales by volume rose 7.2% in the company's Europe/Middle East/Africa region and grew by 1.7% in the Americas, but fell by 5.1% in Asia. Management attributed the decline in Asia to shifts in consumer behavior following the pandemic. As a result, the company has plans underway to better adapt the Asian business to the needs of customers. The Asia region accounts for the smallest share of Oatly's total revenue -- 19% -- but management is confident it can grow its business there significantly.
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Why Oatly Stock Plunged by More Than 20% on Thursday