Oatly Group (OTLY) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw accelerated top-line growth, margin expansion, and improved adjusted EBITDA, with all regions contributing to volume gains and North America achieving its first full quarter of positive adjusted EBITDA.

• Updated full-year guidance reflects increased confidence, raising constant currency revenue growth outlook and narrowing adjusted EBITDA loss range, with a strategic focus on brand reach, resource calibration, and executional excellence.

• Greater China showed improved profitability and cost efficiencies, with volume growth driven by new customer tests despite a revenue decline due to a strategic reset.

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

• Continued investments in demand generation, cost discipline, and execution of 2024 strategic priorities.

Financial highlights

• Q2 2024 revenue grew 3.2% year-over-year to $202.2M, with constant currency revenue up 3.9%.

• Gross margin expanded by 10 percentage points to 29.2% compared to Q2 2023.

• Adjusted EBITDA loss improved to $11.0M, a $41.5M improvement year-over-year.

• Sold volume reached 137M liters (+9.6% YoY), with produced volume at 142M liters (+9.2% YoY).

• Cash and cash equivalents at quarter-end were $142.7M, with total liquidity of $335M including undrawn credit.

Outlook and guidance

• Raised constant currency revenue growth guidance to 6%-10% for FY 2024.

• 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.