Oatly Q2 Earnings: Revenue Beats Expectations, EPS Misses Mark

Oatly reported Q2 EPS of -$1.86, beating the consensus of -$0.62. Revenue of $208.35M (+3.0% Y/Y) exceeded estimates by $6.9M. The company's revenue increased by 3.0% compared to the prior year period, with a constant currency revenue growth of 4.5%.

Oatly Group AB (OTLY) reported its second-quarter earnings, revealing a mixed performance. The company's earnings per share (EPS) of -$1.86 missed the consensus estimate of -$0.62 [1]. However, the company's revenue of $208.35 million grew by 3.0% year-over-year (YoY), exceeding analyst estimates by $6.9 million [2].

Revenue growth was driven by a 12.0% increase in the Europe & International segment, which saw a 9.4% volume growth. Conversely, North America revenue declined by 6.8%, primarily due to reduced sales to its largest foodservice customer. Greater China revenue also fell by 6.4% due to a softer macro environment [2].

The company's adjusted EBITDA loss for the quarter improved to $3.6 million, an improvement of $7.4 million from the prior year. However, the 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 [2].

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 has also 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%. Capital expenditures for 2025 are now expected to be approximately $20 million, down from the prior expectation of $30 to $35 million [2].

References:
[1] https://seekingalpha.com/news/4470471-oatlyeps-of-1_86-revenue-of-208_35m-beats-by-6_9m
[2] https://www.investing.com/news/earnings/oatly-revenue-rises-as-europe-growth-offsets-north-america-weakness-93CH-4147937