Oatly Group (OTLY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 3.2% year-over-year to $202.2M, with constant currency revenue up 3.9% and volume growth in all segments.

• Gross margin improved by 10 percentage points to 29.2% compared to Q2 2023, driven by supply chain and product mix improvements.

• Adjusted EBITDA loss narrowed to $11.0M, a $41.5M improvement year-over-year, with North America achieving its first full quarter of positive adjusted EBITDA.

• Updated 2024 guidance reflects increased confidence, targeting higher constant currency revenue growth and improved adjusted EBITDA outlook, with capex guidance lowered.

• Net loss attributable to shareholders narrowed to $30.4M from $86.7M in Q2 2023, reflecting higher gross profit and lower SG&A expenses.

Financial highlights

• Q2 revenue: $202.2M (+3.2% YoY); constant currency revenue: $203.7M (+3.9% YoY).

• Gross margin: 29.2% (Q2 2024) vs 19.2% (Q2 2023), up 1,000 basis points.

• Adjusted EBITDA loss: $11.0M (Q2 2024) vs $52.5M (Q2 2023), with all segments showing improvement.

• Sold volume: 137M liters (+9.6% YoY); produced volume: 142M liters (+9.2% YoY).

• Cash and cash equivalents: $142.7M as of June 30, 2024; total liquidity $335M including undrawn credit.

Outlook and guidance

• Raised 2024 constant currency revenue growth guidance to 6%-10% (prior: 5%-10%).

• Adjusted EBITDA loss expected between $35M and $50M for 2024.

• CapEx guidance lowered to below $70M for 2024.

• Guidance issued amid significant macroeconomic and geopolitical uncertainty.

• H2 priorities include resource calibration, growth investment, and cost discipline.