Oatly Group (OTLY) Q1 2025 earnings summary

Executive summary

• Q1 2025 results showed progress on structural, consistent, profitable growth, with disciplined resource allocation and efficiency gains fueling business momentum.

• Revenue was $197.5M, down 0.8% year-over-year, but up 0.7% in constant currency, driven by strong growth in Greater China and offset by declines in North America.

• Net loss attributable to shareholders improved to $12.4M from $45.8M in Q1 2024, mainly due to higher gross profit and fair value gains on Convertible Notes.

• Adjusted EBITDA loss narrowed to $3.7M from $13.2M year-over-year, reflecting operational improvements.

• Full-year guidance remains unchanged, with expectations for improved growth in the second half as investments take effect.

Financial highlights

• Gross margin expanded 450 basis points year-over-year to 31.6%, with gross profit increasing to $62.3M from $53.9M.

• Adjusted EBITDA loss of $3.7M, a $9.5M improvement from last year.

• Free cash flow usage improved to $20.5M, the best quarterly performance since IPO.

• Operating loss reduced to $18.6M from $28.4M in Q1 2024.

• Cash and cash equivalents stood at $74.4M, with total debt of $432.1M as of March 31, 2025.

Outlook and guidance

• 2025 guidance reaffirmed: constant currency revenue growth of 2–4%, positive adjusted EBITDA of $5–15M, and capital expenditures of $30–35M.

• Management expects 2025 to be the first full year of profitable growth as a public company.

• Second quarter adjusted EBITDA likely to be similar to Q1 due to increased brand activation investments.

• Outlook provided amid significant macroeconomic and geopolitical uncertainty.