Oatly AB: Reports Third Quarter 2021 Financial Results

Malmö / SE. (oat) Sweden’s Oatly Group AB, the world’s original and largest oat drink company, announced financial results for the third quarter and nine months ended September 30, 2021. Toni Petersson, Oatly’s CEO, commented, «Global consumer demand for our products continues to be strong and grow as we expand production and increasingly scale our operations. The robust third quarter revenue increase reflects broad-based growth across geographies and sales channels. We’re pleased with our ability to continue to be a leader in driving growth and sales velocity for the plant-based milk category within our key markets. This positive momentum was partially offset by temporary headwinds as we scale our global production capacity, particularly in Ogden, Utah, and as we manage through Covid-19 Delta-variant related restrictions and temporary foodservice closures in Asia. Despite this near-term variability, we remain very confident in our ability to meet the rapidly growing global demand for our products.»

Third Quarter 2021 Highlights

  • Revenue of USD 171.1 million, a 49.2 percent increase compared to USD 114.7 million in the prior year period; as expected there was a benefit to revenue from foreign exchange, the benefit was approximately USD 4.4 million
  • Gross profit of USD 44.9 million, or a 26.2 percent gross profit margin, compared to USD 36.0 million, or a 31.3 percent gross profit margin, in the prior year period

Nine Month 2021 Highlights

  • Revenue of USD 457.3 million, a 55.4 percent increase compared to USD 294.2 million in the prior year period; as expected there was a benefit to revenue from foreign exchange, the benefit was approximately USD 23.4 million
  • Gross profit of USD 125.4 million, or a 27.4 percent gross profit margin, compared to USD 94.0 million, or a 32.0 percent gross profit margin, in the prior year period

Expectation for fiscal year 2021

  • Revenue to exceed USD 635 million, an increase of greater than 51 percent compared to fiscal year 2020 with strong growth across regions. This revenue outlook assumes nominal contribution from the Company’s Maanshan, China facility that is on-track to open this month as previously communicated. Assuming no significant changes from foreign exchange rates today, the Company expects the fourth quarter exchange rates to be a single-digit tailwind on a percentage basis compared to the prior year period. The Company is currently investigating a quality issue it identified at one of its production facilities that will probably result in the destruction of inventory and corresponding lost sales in the EMEA region; however, the Company does not expect this will limit its ability to achieve these targeted results for 2021.
  • Capital expenditures between USD 280 million and USD 320 million
  • Production capacity to be approximately 600 million litres of finished goods at the end of the year

For additional information please read the company’s PDF file below (95 KB):

20211116-OATLY-Q3-2021
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