Oatly Group Ab ( (OTLY) ) has released its Q4 earnings. Here is a breakdown of the information Oatly Group Ab presented to its investors.
Oatly Group AB, a Sweden-based company, is the world’s largest producer of oat beverages, offering a range of oat-based products including milk alternatives, ice cream, and yogurt, with a focus on sustainability and innovation in the food and beverage industry.
Oatly reported its financial results for the fourth quarter and full year of 2024, showcasing significant improvements in profitability and supply chain efficiency, with the company expecting 2025 to be its first year of profitable growth as a public entity.
The company achieved a 5.0% increase in quarterly revenue to $214.3 million, driven by strong volume growth across all regions. Gross margin improved substantially to 28.8%, supported by enhanced supply chain effectiveness, particularly in North America. Net loss for the quarter narrowed significantly to $91.2 million from $298.7 million the previous year, with Adjusted EBITDA loss improving to $6.1 million.
Strategically, Oatly announced the closure of its Singapore manufacturing facility and discontinued the construction of a new facility in China, aiming to streamline its operations and focus on existing production capabilities. The company expects to achieve positive adjusted EBITDA in the range of $5 million to $15 million in 2025, along with modest revenue growth and restrained capital expenditures.
Looking ahead, Oatly’s management anticipates continued growth driven by strategic adjustments and efficiency improvements, despite challenges posed by macroeconomic uncertainties. The company is optimistic about sustaining its profitability momentum into 2025, focusing on core markets and optimizing its supply chain.