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MALMÖ, Sweden - Oatly Group AB (NASDAQ:OTLY) reported second quarter revenue of $208.4 million, up 3.0% compared to the same period last year, as strong performance in Europe offset weakness in North America and China.
The company’s shares rose 1.12% in pre-market trading following the announcement.
The oat milk producer posted an adjusted EBITDA loss of $3.6 million for the quarter, an improvement of $7.4 million from the prior year period. However, net loss widened to $55.9 million compared to $30.4 million in the same quarter last year, primarily due to fair value losses on convertible notes.
Oatly’s gross margin improved to 32.5% in the second quarter, an increase of 3.3 percentage points from the prior year, driven by supply chain efficiencies particularly in its Europe & International segment.
"In the first half of the year, we made good progress on our 2025 priorities," said Jean-Christophe Flatin, Oatly’s CEO. "We continue to drive cost efficiencies in our supply chain and overhead structure, and our disciplined execution of our growth playbook has seen success in our Europe & International segment, where we are seeing top line momentum."
The company’s Europe & International segment saw revenue increase 12.0% YoY to $118.2 million, with volume growth of 9.4%. However, North America revenue declined 6.8% to $63.2 million, primarily due to reduced sales to its largest foodservice customer. Greater China revenue fell 6.4% to $27.0 million amid a softer macro environment.
Oatly has initiated a strategic review of its Greater China business, considering options including a potential carve-out to accelerate growth and maximize value.
The company lowered its 2025 revenue outlook, now expecting constant currency revenue growth to be approximately flat to +1%, down from its previous forecast of +2% to +4%. However, Oatly maintained its adjusted EBITDA guidance of positive $5 million to $15 million, reflecting continued cost efficiency measures.
Capital expenditures for 2025 are now expected to be approximately $20 million, down from the prior expectation of $30 to $35 million.
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