Oatly Group (OTLY) Q4 2024 earnings summary

Executive summary

• Achieved 8.8% volume growth and 4.8% constant currency revenue growth in 2024, with revenue reaching $824 million, slightly below guidance due to category sluggishness and a sourcing change at the largest U.S. customer.

• Gross margin expanded by 930 basis points year-over-year to 28.7%, reflecting supply chain and pricing actions.

• Adjusted EBITDA loss narrowed to $35.3 million for 2024, a $122.2 million improvement year-over-year.

• Entering 2025 with expectations for the first full year of profitable growth as a public company, targeting 2%-4% constant currency revenue growth and $5-$15 million in adjusted EBITDA.

• Significant business transformation included reduced capex, overhead, and improved supply chain efficiency.

Financial highlights

• Full-year revenue grew 5.1% (4.8% constant currency) to $824 million, driven by 8.8% volume growth.

• Gross margin improved to 28.7% in 2024 from 19% in 2023.

• Adjusted EBITDA loss reduced to $35.3 million in 2024 from $157.6 million in 2023.

• Free cash flow usage improved to $156 million in 2024, a $319 million improvement since 2022.

• Ended the year with $99 million in cash and $186 million in undrawn credit facilities.

Outlook and guidance

• 2025 guidance: 2%-4% constant currency revenue growth, $5-$15 million adjusted EBITDA, and $30-$35 million CapEx.

• Sourcing change at the largest U.S. customer expected to be a 300 basis point headwind; excluding this, guidance would be 5%-7% growth.

• Gross margin improvement expected to continue, targeting long-term 35%-40%.

• Adjusted EBITDA improvement to be driven by supply chain and SG&A efficiencies.

• Outlook given amid significant macroeconomic and geopolitical uncertainty.