MALMÖ, Sweden, Feb. 15, 2024 (GLOBE NEWSWIRE) — Oatly Group AB (NASDAQ:OTLY) (“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced financial results for the fourth quarter and twelve months ended December 31, 2023.
Jean-Christophe Flatin, Oatly’s CEO, commented, “I am proud of the progress that we made throughout 2023. It was a pivotal year where we executed a significant re-calibration of the entire organization to stabilize our business and ensure we are properly positioned for long-term success. We did this while driving solid top-line growth and significant improvements in our gross profit, selling, general, and administrative expenses, and operating cash flow.”
Flatin added, “As we enter 2024, our financial guidance calls for solid top-line growth while delivering significant profit improvement as we focus on our top priority of driving toward profitable growth. We plan to continue driving toward profitable growth by bringing the Oatly magic to more people and delivering on the expected benefits of our resource re-calibration while maintaining our focus on execution.”
The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and twelve months ended December 31, 2023 and 2022.
Three Months Ended
December 31,
$ Change
% Change
(Unaudited)
(in thousands of U.S. dollars)
2023
2022
As
reported
Foreign exchange
impact
In
constant
currency
As reported
In constant
currency
Volume
Constant
currency
price/mix
EMEA
105,201
89,974
105,201
4,571
100,630
16.9
%
11.8
%
0.5
%
11.3
%
Americas
65,900
64,386
65,900
—
65,900
2.4
%
2.4
%
9.2
%
-6.8
%
Asia
33,020
40,708
33,020
(371
)
33,391
-18.9
%
-18.0
%
-3.3
%
-14.7
%
Total revenue
204,121
195,068
204,121
4,200
199,921
4.6
%
2.5
%
2.0
%
0.5
%
Twelve Months Ended
December 31,
$ Change
% Change
(Unaudited)
(in thousands of U.S. dollars)
2023
2022
As
reported
Foreign exchange
impact
In
constant
currency
As reported
In constant
currency
Volume
Constant
currency
price/mix
EMEA
402,168
345,509
402,168
3,350
398,818
16.4
%
15.4
%
4.9
%
10.5
%
Americas
250,264
223,880
250,264
—
250,264
11.8
%
11.8
%
2.9
%
8.9
%
Asia
130,916
152,849
130,916
(4,960
)
135,876
-14.3
%
-11.1
%
-1.9
%
-9.2
%
Total revenue
783,348
722,238
783,348
(1,610
)
784,958
8.5
%
8.7
%
3.1
%
5.6
%
Highlights
Fourth quarter revenue of $204.1 million, a 4.6% increase compared to the prior year period, and constant currency revenue increased 2.5%.
Gross margin in the fourth quarter was 23.4%, which is a 7.5 percentage points increase compared to the prior year period and an increase of 6.0 percentage points compared to the third quarter.
Fourth quarter net loss attributable to shareholders of the parent was $298.7 million compared to net loss of $125.2 million in the prior year period and net profit attributable to shareholders of the parent of $44.1 million in the third quarter.
Fourth quarter EBITDA loss was $228.0 million; fourth quarter Adjusted EBITDA loss was $19.2 million, which is an improvement of $41.2 million compared to the prior year period and an improvement of $16.8 million compared to the third quarter.
The Company is providing its full year 2024 outlook, which includes constant currency revenue growth in the range of 5% to 10%, adjusted EBITDA loss in the range of $(35) million to $(60) million, and capital expenditures below $75 million.
Fourth Quarter 2023 Results
Revenue increased $9.1 million, or 4.6% to $204.1 million for the fourth quarter ended December 31, 2023, compared to $195.1 million for the prior year period. Excluding a foreign currency exchange tailwind of $4.2 million, revenue for the fourth quarter was $199.9 million, or an increase of 2.5%. The growth in constant currency revenue was primarily driven by the EMEA and Americas segments, partially offset by expected declines in the Asia segment. Sold volume for the fourth quarter of 2023 increased 2.0% to 140 million liters compared to 137 million liters in the fourth quarter of 2022. Produced finished goods volume for the fourth quarter of 2023 was 136 million liters compared to 149 million liters for the fourth quarter of 2022.
The Company experienced revenue growth in both the retail channel and foodservice channel, partially offset by a decline in other channels in the fourth quarter of 2023 compared to the fourth quarter of 2022.
Gross profit was $47.8 million for the fourth quarter of 2023 compared to $31.1 million for the fourth quarter of 2022 and $32.6 million for the third quarter of 2023. Gross profit margin was 23.4% in the fourth quarter of 2023, an increase of 750 basis points compared to the prior year period, and an increase of 600 basis points compared to the third quarter of 2023. The improvement compared to the third quarter was primarily driven by improvements in supply chain efficiency across each segment, partially offset by unfavorable mix in the Americas segment.
Research and development expenses in the fourth quarter of 2023 decreased $1.7 million to $5.3 million compared to $7.0 million in the prior year period.
Selling, general and administrative expenses in the fourth quarter of 2023 decreased $27.2 million to $80.7 million compared to $107.9 million in the prior year period. The decrease was primarily due to $9.8 million in employee related expenses, $9.0 million reduction in external consultants, legal contractor and other professional fees, $3.7 million in branding, advertising and marketing expenses, and a $1.6 million reduction in customer distribution costs.
Other operating income and expenses, net for the fourth quarter of 2023 increased to an expense of $204.3 million compared to an expense of $41.1 million in the prior year period, comprised primarily of non-cash asset impairment charges of $172.6 million and other costs of $29.0 million related to discontinued construction of certain production facilities. The Company may incur additional costs not currently contemplated due to events associated with the discontinuation of construction at these facilities. The charges that the Company expects to incur are estimates subject to several assumptions, and actual results may differ.
Finance income and expenses, net for the fourth quarter of 2023 increased to an expense of $50.5 million compared to an income of $3.1 million in the prior-year period. The increase in the fourth quarter of 2023 was primarily driven by change in the fair value of the Convertible Notes issued in the second quarter of 2023.
Net loss attributable to shareholders of the parent was $298.7 million for the fourth quarter of 2023 compared to $125.2 million in the prior year period. The increase in net loss was primarily a result of increased other operating expenses, consisting of non-cash asset impairment charges and other costs related to discontinued construction of certain production facilities, and increased finance expenses offset by higher gross profit and lower selling, general and administrative expenses.
EBITDA loss for the fourth quarter of 2023 was $228.0 million, compared to an EBITDA loss of $111.2 million in the prior year period. The decline in EBITDA loss was primarily a result of higher non-cash asset impairment charges and other costs related to the discontinued construction of certain production facilities.
Adjusted EBITDA loss for the fourth quarter of 2023 was $19.2 million, compared to a loss of $60.5 million in the prior year period. The improvement in Adjusted EBITDA loss was primarily a result of higher gross profit as well as lower selling, general and administrative expenses.
EBITDA, Adjusted EBITDA loss, and Constant Currency Revenue are non-IFRS financial measures defined under “Non-IFRS financial measures.” Please see above revenue at constant currency table and “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
The following tables set forth revenue, Adjusted EBITDA, EBITDA and loss before tax for the Company’s three reportable segments for the periods presented.
Revenue, Adjusted EBITDA and EBITDA
Three months ended December 31, 2023
(Unaudited)
(in thousands of U.S. dollars)
EMEA
Americas
Asia
Corporate*
Eliminations**
Total
Revenue
Revenue from external customers
105,201
65,900
33,020
—
—
204,121
Intersegment revenue
203
—
1,852
—
(2,055
)
—
Total segment revenue
105,404
65,900
34,872
—
(2,055
)
204,121
Adjusted EBITDA
16,771
(1,783
)
(8,045
)
(26,165
)
—
(19,222
)
Share-based compensation expense
(542
)
(930
)
(753
)
(2,462
)
—
(4,687
)
Restructuring costs(1)
(95
)
(580
)
(497
)
(1,244
)
—
(2,416
)
Asset impairment charges and other costs related to discontinued construction of production facilities(2)
(158,551
)
(43,009
)
—
—
—
(201,560
)
Non-controlling interests
—
—
(112
)
—
—
(112
)
EBITDA
(142,417
)
(46,302
)
(9,407
)
(29,871
)
—
(227,997
)
Finance income and (expenses), net
—
—
—
—
—
(50,486
)
Depreciation and amortization
—
—
—
—
—
(14,618
)
Loss before tax
—
—
—
—
—
(293,101
)
Three months ended December 31, 2022
(Unaudited)
(in thousands of U.S. dollars)
EMEA
Americas
Asia
Corporate*
Eliminations**
Total
Revenue
Revenue from external customers
89,974
64,386
40,708
—
—
195,068
Intersegment revenue
4,165
—
2,187
—
(6,352
)
—
Total segment revenue
94,139
64,386
42,895
—
(6,352
)
195,068
Adjusted EBITDA
1,735
(4,661
)
(21,004
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