Oatly Lowers Full-Year Outlook, Posts Wider Loss
Oatly Group
OTLY -15.43%
AB cut its sales outlook for the year, warning that macroeconomic uncertainty is making it harder to switch consumers from regular milk to its plant-based options.
The Swedish maker of oat-based milk said on Tuesday that challenges, including the war in Ukraine, continuing Covid-19 outbreaks and supply-chain problems, are crimping the pace of its expansion and recovery in certain markets.
The company now expects full-year revenue of between $800 million and $830 million, down from its previous forecast of between $880 million and $920 million. A stronger dollar is responsible for $35 million of the lowered view.
The updated guidance came as Oatly reported a wider loss for its second quarter, due to higher input costs and other pressures. Sales increased in the most recent quarter but came in below Wall Street expectations.
Oatly Chief Executive
Toni Petersson
said that demand remains strong, as evidenced by 22% sales growth. But broader economic challenges are slowing uptake for its products.
“The pace at which we have been able to convert new consumers from dairy to plant-based milk is taking longer than we had hoped for,” he said of the environment in its Europe, Middle East and Africa region.
Oatly board members have been concerned with the company’s stock performance and manufacturing troubles, The Wall Street Journal reported in May. The company added new executives recently as part of succession planning for the top job.
The company, which turned its oat milk into a global phenomenon and went public last year, has started to lose its grasp on the nondairy milk market as of late.
For the quarter ended June 30, Oatly posted a loss attributable to shareholders of $72 million, or 12 cents a share, down from a loss of $59.06 million, or 11 cents a share, in the previous year.
Revenue rose to $178 million from $146.2 million in the prior year. Analysts were expecting revenue of $183.9 million, according to FactSet.
Shares of the company were down 13% late morning Tuesday and are down about 57% so far this year.
Write to Connor Hart at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Oatly Group
OTLY -15.43%
AB cut its sales outlook for the year, warning that macroeconomic uncertainty is making it harder to switch consumers from regular milk to its plant-based options.
The Swedish maker of oat-based milk said on Tuesday that challenges, including the war in Ukraine, continuing Covid-19 outbreaks and supply-chain problems, are crimping the pace of its expansion and recovery in certain markets.
The company now expects full-year revenue of between $800 million and $830 million, down from its previous forecast of between $880 million and $920 million. A stronger dollar is responsible for $35 million of the lowered view.
The updated guidance came as Oatly reported a wider loss for its second quarter, due to higher input costs and other pressures. Sales increased in the most recent quarter but came in below Wall Street expectations.
Oatly Chief Executive
Toni Petersson
said that demand remains strong, as evidenced by 22% sales growth. But broader economic challenges are slowing uptake for its products.
“The pace at which we have been able to convert new consumers from dairy to plant-based milk is taking longer than we had hoped for,” he said of the environment in its Europe, Middle East and Africa region.
Oatly board members have been concerned with the company’s stock performance and manufacturing troubles, The Wall Street Journal reported in May. The company added new executives recently as part of succession planning for the top job.
The company, which turned its oat milk into a global phenomenon and went public last year, has started to lose its grasp on the nondairy milk market as of late.
For the quarter ended June 30, Oatly posted a loss attributable to shareholders of $72 million, or 12 cents a share, down from a loss of $59.06 million, or 11 cents a share, in the previous year.
Revenue rose to $178 million from $146.2 million in the prior year. Analysts were expecting revenue of $183.9 million, according to FactSet.
Shares of the company were down 13% late morning Tuesday and are down about 57% so far this year.
Write to Connor Hart at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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