Sweden’s Oatly has posted year-on-year revenue growth of 21.8% in the second quarter of its financial year to $178.0 million (€174 million), including foreign currency exchange headwind of $11.7 million (€11.4 million).
The vegan milk producer attributed this growth to additional supply from the company’s facilities to meet global demand for its products.
In the second quarter, sold volume increased by 27.4% to 121 million litres, up from 95 million litres in the same period last year.
Produced finished goods volume for the second quarter amounted to 124 million litres, up 17.0% from 106 million litres last year.
Oatly CEO, Toni Petersson, commented, “Profitability metrics improved compared to the first quarter of 2022 and we expect this trend to continue in the second half of the year.
“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.”
The company reported an EBITDA loss of $62.6 million during the quarter, increasing from a loss of $43.5 million in the second quarter of 2021.
The loss was due to lower gross profit, higher employee-related expenses including share-based compensation costs, higher branding and customer distribution expenses, public company costs and other operating expenses, the company noted.
Gross profit declined to $28.1 million from $38.6 million in the second quarter of 2021.
Oatly saw a 20.2% increase in revenue in the first half to $344.1 million from $286.2 million in the same period last year.
EBITDA loss amounted to $144.0 million. Gross profit amounted to $44.0 million, while gross profit margin stood at 12.8%, much below 28.1% in the same period last year.
Revenue in the EMEA region amounted to $173.0 million, registering growth of 8.0% from $160.2 million last year, including foreign currency exchange headwind of $16.2 million.
In the Americas, the company saw year-on-year revenue growth of 31.9% to $98.8 million, while in Asia revenue amounted to $72.4 million, registering year-on-year growth of 41.5%.
The company has updated its outlook for the year and expects revenue in the range of $800 million to $830 million, an increase of 24% to 29% compared to the full year 2021 with growth across regions.
Capital expenditure is forecast to range between $220 million and $240 million as the company is phasing its production footprint expansion due to the current operating environment.
Oatly expects a run-rate production capacity of approximately 900 million litres of finished goods by the end of the year.
Petersson added, “We are updating our outlook for the year based on the challenging operating environment today with the war in Ukraine, COVID-19, and inflationary and supply chain pressures. […]
“We are more prudent with both our revenue outlook and our capital allocation for the remainder of the year to adapt to this new environment while being highly focused on achieving profitable growth. The fundamentals of the business remain unchanged, and we believe we have significant opportunities for growth to the extent that certain of these headwinds subside.”