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Millennial favourite Oatly stirs up revenue boost

·2-min read
Oatly makes a range of products including ice cream   (Oatly)
Oatly makes a range of products including ice cream (Oatly)

Choice of the millennial tea and coffee drinker Oatly has stirred up a boost in revenues in the second quarter of the year as consumers seek vegan alternatives to milk and dairy.

However, the group that manufactures a range of products including oat-based ice cream and yoghurts said it would now expect a full-year revenue of $800 million to $830 million, missing the analyst benchmark of $886 million, but had delivered the growth despite several headwinds “including COVID-19 lockdowns in China”.

The business said it had continued to experience broad-based revenue growth across retail and foodservice channels in the second quarter of the year and that it had “experienced strong growth in e-commerce sales in China”.

During the quarter to June 30 revenues leaped 21.8% to $146.2 million (£119.6 million) from the first quarter of the year.

The results were driven by a 25.2% revenue gain in the US business to $41.3 million and 66.3% leap for the Asian business to $26.3 million.

Gross profit was up from Q1 but dropped to 15.8% of sales from 26.4% a year ago, disappointing city analysts.

Oatly said that the revenue boost had been “primarily driven by additional supply from the Company’s facilities to meet the global demand for its products’.

Toni Petersson, Oatly CEO, said: “We delivered strong second quarter financial results with sales growth of 22%, or 30% in constant currency, despite several headwinds including COVID-19 lockdowns in China.

“As we expand and scale our more localised production footprint while remaining disciplined in our capital allocation, we are confident in our ability to achieve much better production economics and operating efficiencies, reduce our environmental impact, and achieve profitability.

“Global consumer demand remains as strong as ever and we have a proven multi-channel strategy that we believe positions us well for long-term growth and profitability.”

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