Oat drinks giant Oatly has reported a 9.6% year-on-year increase in revenue to $208.0 million (€192.5 million) in the third quarter of its financial year with growth across both the retail channel and food service channels.
The company witnessed robust overall volume growth of 13% in this period, to 141.3 million litres, from 125.0 million litres in the third quarter of 2023.
Oatly CEO Jean-Christophe Flatin commented, “I am pleased to report another quarter of solid progress in strengthening our business.
“Our team’s continued focus on solid execution has enabled us to drive profitable growth in each of our three operating segments.”
Gross profit for the quarter amounted to $62 million (€57.4 million) from $32.6 million (€30.2 million) in the year-ago period, while gross profit margin was 29.8%.
Oatly also reduced its adjusted EBITDA loss to $5.0 million (€4.65 million) during the quarter from a loss of $36.0 million (€33.48 million) in the same period last year.
The company attributed this improvement to higher gross profit and lower selling, general and administrative expenses.
Divisional Performance
The Europe & International division saw revenue growth of 6.1%, to $109.9 million (€102.21 million), driven by volume growth from increased barista and ambient oat milk sales in established markets, as well as continued expansion in the new European markets.
Approximately 82% of the revenue in the division was from the retail channel for the third quarter of 2024 and 2023, the company added.
The unit's adjusted EBITDA increased to $12.4 million (€11.53 million) due to higher gross profit, partially offset by higher selling, general and administrative expenses.
In North America, revenue increased 18.1% year-on-year to $69.1 million (€64.26 million) from $58.5 million (€54.41 million) in the prior year period.
Adjusted EBITDA amounted to $3.3 million (€3.07 million) compared to a loss of $8.0 million (€7.44 million) in the prior year period.
The Greater China business saw revenue growth of 13.7%, to $29.1 million (€27.06 million), driven by sales to a new food service customer.
Approximately 72% of Greater China's revenue was from the food service channel for the third quarter of 2024 compared to 68% in the prior year period, the company noted.
Adjusted EBITDA improved to a positive $1.6 million (€1.49 million) compared to a loss of $16.5 million (€15.35 million) in the third quarter of 2023.
Outlook
Oatly has revised its full-year outlook, with constant currency revenue growth near, or slightly below, the low end of the previously provided range of 6% to 10%.
Full-year adjusted EBITDA is forecast to remain near the more favourable end of its previously provided range of a negative $35 million (€32.55 million) to a negative $50 million (€46.5 million).
Flatin commented, “As we move forward, we will maintain our north star of driving the total business toward structural, consistent profitable growth, and we intend to continue to invest behind our unique brand voice to recruit more consumers to our brand and further stimulate demand.”
