Oatly Group (OTLY) Q3 2024 earnings summary

Executive summary

• Achieved profitable growth across all three operating segments for the first time, with Q3 2024 revenue up 10.9% to $208 million and all segments reporting positive adjusted EBITDA.

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

• Adjusted EBITDA loss narrowed to $5 million, a $31 million improvement year-over-year.

• Strategic focus on disciplined resource allocation, regional accountability, and continued investment in branding and advertising.

• Net loss attributable to shareholders was $34.6 million, compared to a net profit of $44.1 million in Q3 2023, mainly due to lower finance income.

Financial highlights

• Q3 2024 revenue reached $208 million, up from $188 million in Q3 2023, with constant currency revenue up 9.6%.

• Gross margin reached 29.8%, a 1,240 basis point increase year-over-year and 60 basis points sequentially.

• 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.

• Liquidity position at quarter-end was $322 million, including $119 million in cash and $203 million in undrawn credit.

Outlook and guidance

• 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.

• No 2025 guidance provided, but focus remains on profitable growth and disciplined cost management.

• Outlook reflects significant macroeconomic and geopolitical uncertainty.