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MALMÖ, Sweden - Oatly Group AB (NASDAQ:OTLY) shares surged 6.04% in pre-market trading on Wednesday, after the oat milk producer reported fourth-quarter results and provided an optimistic outlook for 2025, despite missing analyst estimates.
The Swedish company posted a fourth-quarter loss of $0.15 per share, wider than the $0.07 loss analysts expected. Revenue came in at $214.32 million, falling short of the $218.6 million consensus estimate but representing a 5% increase year-over-year.
Despite the earnings miss, investors focused on Oatly’s forecast of achieving its first full year of profitable growth in 2025. The company expects constant currency revenue growth of 2% to 4% next year, though this outlook is negatively impacted by approximately 300 basis points due to a sourcing change with a major North American customer.
Oatly also projects positive adjusted EBITDA of $5 million to $15 million in 2025, signaling a potential turnaround after years of losses. The company plans to keep capital expenditures between $30 million and $35 million next year.
"Over the past two years, we have executed a significant transformation of our company," said CEO Jean-Christophe Flatin. "We now have a much healthier business with clear strategies, clear accountability, stronger margins, and significantly improved profitability."
For the fourth quarter, Oatly reported an adjusted EBITDA loss of $6.1 million, an improvement from a $19.2 million loss in the same period last year. Gross margin expanded to 28.8%, up 5.4 percentage points YoY.
The company also announced it will discontinue construction of its second production facility in China as part of its ongoing supply chain optimization efforts.
While Oatly faces macroeconomic headwinds, its forecast for profitability in 2025 appears to have boosted investor confidence in its turnaround strategy.
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