Oatly Group (OTLY) Q3 2024 earnings summary

Executive summary

• Achieved profitable growth across all three operating segments in Q3 2024, marking the first quarter with all segments profitable on an adjusted EBITDA basis.

• Q3 revenue reached $208 million, up 10.9% year-over-year, with all segments showing volume growth.

• Gross margin improved to 29.8%, up 1,240 basis points year-over-year and 60 basis points sequentially, driven by supply chain and product mix improvements.

• Adjusted EBITDA loss narrowed to $5 million, a $31 million improvement year-over-year, with all segments reporting positive Adjusted EBITDA for the first time since IPO.

• Strategic focus on disciplined resource allocation, regional accountability, and cost efficiencies continues to drive results.

Financial highlights

• Q3 2024 revenue was $208 million, up from $188 million in Q3 2023; constant currency revenue growth was 9.6%.

• Gross margin reached 29.8%, a 1,240 basis point increase year-over-year.

• Adjusted EBITDA loss was $5 million, compared to $36 million in Q3 2023.

• Free cash flow for Q3 was $(27) million, the best quarterly performance since IPO.

• Ended the quarter with $322 million in liquidity, including $119 million in cash and $203 million in undrawn credit facilities.

Outlook and guidance

• Full-year 2024 constant currency revenue growth expected near or slightly below the low end of the 6%-10% range.

• Adjusted EBITDA loss projected near the favorable end of the $(35) million to $(50) million range.

• Capital expenditures expected below $55 million for 2024, improved from prior guidance.

• Management remains committed to achieving profitable growth and will provide a full 2025 outlook in the next call.

• Outlook reflects significant macroeconomic and geopolitical uncertainty.