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, 2023.
CEO Jean-Christophe Flatin: «I am pleased with the progress that we made in the third quarter. Our profitability exceeded our internal expectations and improved sequentially in each segment. We are clearly starting to see the positive impacts of the bold actions that we have been taking over the past year, and we remain on track to achieve profitable growth in 2024.»
Flatin continued: «As we move forward, we are doubling down on our asset-light production strategy. After a detailed review of our supply chain networks in EMEA and Americas, we have found ways to service the growing demand by expanding capacity at our existing facilities in a more gradual manner. As such, we have decided to discontinue construction on the third production facility in each of the two segments. We believe that this change in our approach will increase our focus by reducing the complexity of the supply chain, which increases our confidence in our longer-term margin targets. We also now expect to have lower capital expenditure requirements, and we expect to spend below USD 75 million in capital expenditures in each of 2023 and 2024.»
Flatin concluded: «We are also adjusting our 2023 outlook to reflect an acceleration of our strategic actions, including shifting the customer mix in Americas foodservice and incremental costs related to Asia’s strategy reset. We now expect full year 2023 constant currency revenue growth to be near the low end of our 7-12 percent range and fourth quarter gross margin to be in the mid-20 percents.» For additional information please read the Company’s PDF file below (115 KB):20231111-OATLY-Q3-2023