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Oatly delivers below expectations in 3Q as gross profits shrink

Published: 10:05 14 Nov 2022 EST

Oatly Group -
Oatly also lamented inflation and macro headwinds in EMEA as other reasons for the results

Oatly Group (NASDAQ:OTLY) AB, the Swedish oat drink company, said its third quarter results were “below our expectation” as it reported a fall in gross profits.

For the three months to September 30, Oatly reported gross profits of US$5 million, down on the US$28.1 million in the second quarter of the year and lower than the US$44.9 million for the same period last year.

On a nine-month basis, the group reported gross profits of US$46 million, compared US$125.4 million 12 months earlier.

“Third quarter financial results were below our expectations, largely driven by COVID-19 restrictions in Asia, production challenges in the Americas, and continued foreign exchange headwinds,” said CEO Toni Petersson.

Inflation hurting underlying earnings

Additionally, Oatly also lamented inflation and macro headwinds in EMEA as other reasons for the results.

Oatly reported adjusted underlying earnings (EBITDA) of USUS$82.7 million, compared to US$27 million the year prior.

On a nine month basis, it had an adjusted EBITDA loss of US$207.5 million compared to US$81.4 million in the prior year period.

Looking forward, CEO Petersson said the NASDAQ listed company has “taken decisive and strategic actions to improve our operational efficiencies in a volatile macroeconomic environment with an even more focused allocation of resources and capital.”

“These initial actions will simplify our organizational structures and the execution of our supply chain network expansion, and we expect more profitable growth going forward with a more asset-light strategy,” Petersson added.

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