Oatly Reports Second Quarter 2025 Financial Results
MALMÖ, Sweden, July 23, 2025 (GLOBE NEWSWIRE) -- Oatly Group AB (NASDAQ:OTLY) ("Oatly", the "Company" or the "Group"), the world's original and largest oat drink company, today announced financial results for the second quarter ended June 30, 2025.
Jean-Christophe Flatin, Oatly's CEO, commented, "In the first half of the year, we made good progress on our 2025 priorities. We continue to drive cost efficiencies in our supply chain and overhead structure, and our disciplined execution of our growth playbook has seen success in our Europe & International segment, where we are seeing top line momentum. All of these steps are aimed toward our goal of consistently improved profitability. Our updated guidance reflects slower-than-expected top-line progress in our North America segment, as well as a soft macro-environment in our Greater China business. Importantly, we continue to drive additional cost efficiencies to keep us on-track to deliver on our profitability commitment, enabling us to reaffirm our adjusted EBITDA guidance."
He continued, "Additionally, we are conducting a strategic review of our Greater China business, with the goal of accelerating the growth and maximizing the value of the business."
The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and six months ended June 30, 2025.
(Unaudited)
Three months ended June 30,
$ Change
% Change
(in thousands of U.S. dollars)
2025
2024
As reported
Foreign exchange impact
In constant currency
As reported
In constant currency
Volume
Constant currency price/mix
Europe & International
118,193
105,541
118,193
6,593
111,600
12.0
%
5.7
%
9.4
%
-3.7
%
North America
63,185
67,819
63,185
—
63,185
-6.8
%
-6.8
%
-7.5
%
0.7
%
Greater China
26,976
28,835
26,976
49
26,927
-6.4
%
-6.6
%
-1.2
%
-5.4
%
Total revenue
208,354
202,195
208,354
6,642
201,712
3.0
%
-0.2
%
2.8
%
-3.0
%
(Unaudited)
Six months ended June 30,
$ Change
% Change
(in thousands of U.S. dollars)
2025
2024
As reported
Foreign exchange impact
In constant currency
As reported
In constant currency
Volume
Constant currency price/mix
Europe & International
225,858
215,948
225,858
3,991
221,867
4.6
%
2.7
%
6.6
%
-3.9
%
North America
123,071
134,786
123,071
—
123,071
-8.7
%
-8.7
%
-9.2
%
0.5
%
Greater China
56,955
50,616
56,955
(240
)
57,195
12.5
%
13.0
%
32.5
%
-19.5
%
Total revenue
405,884
401,350
405,884
3,751
402,133
1.1
%
0.2
%
6.0
%
-5.8
%
Highlights
Second quarter revenue of $208.4 million, a 3.0% increase compared to the prior year period, with a constant currency revenue decrease of 0.2% compared to the prior year period.
Gross margin in the second quarter was 32.5%, which is a 3.3 percentage points increase compared to the prior year period.
Second quarter net loss attributable to shareholders of the parent was $55.9 million, which is an increase of $25.5 million compared to a net loss attributable to shareholders of the parent of $30.4 million in the prior year period.
Second quarter Adjusted EBITDA loss was $3.6 million, which is an improvement of $7.4 million compared to the prior year period.
The Company has initiated a strategic review of its Greater China business.
The Company is refining its 2025 outlook as follows:
Constant currency revenue growth is now expected to be in the range of approximately flat to +1%, compared to the prior expectation of +2% to +4%, reflecting reduced expectations in the North America segment as well as a softer-than-expected macro-environment in the Greater China segment;
Adjusted EBITDA continues to be expected to be in the range of positive $5 million to $15 million;
Capital expenditures are now expected to be approximately $20 million, compared to the prior expectation of $30 to $35 million; and
Based on recent foreign exchange rates, the full-year impact of foreign exchange is now expected to be a tailwind to revenue growth by approximately 150 basis, compared to the prior expectation of an approximately 100 basis point headwind.
Second Quarter 2025 Results
Revenue increased $6.2 million, or 3.0% to $208.4 million for the second quarter ended June 30, 2025, compared to $202.2 million for the prior year period. Excluding a foreign currency exchange tailwind of $6.6 million, revenue for the second quarter was $201.7 million, or a decrease of 0.2% compared to the prior year period. The decrease in constant currency revenue was primarily driven by decline in North America and Greater China, partially offset by strong growth in Europe and International. Sold volume for the second quarter of 2025 increased 2.8% to 140.4 million liters compared to 136.6 million liters in the second quarter of 2024. Produced finished goods volume for the second quarter of 2025 was 142.8 million liters compared to 142.0 million liters for the second quarter of 2024.
Gross profit was $67.6 million for the second quarter of 2025 compared to $59.0 million for the second quarter of 2024. Gross profit margin was 32.5% in the second quarter of 2025, an increase of 330 basis points compared to the prior year period. The margin improvement compared to the second quarter of 2024 was primarily driven by improvements in supply chain efficiency in Europe & International.
Research and development expenses in the second quarter of 2025 decreased $6.3 million to $4.6 million compared to $10.9 million in the prior year period. The decrease was mainly explained by expenses in the prior year period related to a new product launch issue in the North America segment.
Selling, general and administrative expenses in the second quarter of 2025 decreased $0.2 million to $84.1 million compared to $84.3 million in the prior year period. The Company continued to take actions to reduce overhead expenses, which was partially offset by foreign exchange movements, an increase in branding & advertising investments, and increased customer distribution expenses related to increased sold volume.
Other operating income and (expenses), net for the second quarter of 2025 was an expense of $1.0 million comprised primarily of $1.4 million in costs for the Company's strategic review of the Greater China segment. Other operating income and (expenses), net for the prior year period was an expense of $2.9 million comprised primarily of non-cash impairment charges related to the Group's discontinued construction of its production facility in Peterborough, UK.
Finance income and (expenses), net for the second quarter of 2025 was an expense of $31.9 million comprised primarily of net interest expenses of $14.9 million, fair value losses on Convertible Notes of $8.6 million, and net foreign exchange losses of $7.8 million. The finance income and (expenses), net for the prior year period was an income of $10.4 million comprised primarily of fair value gains on Convertible Notes of $23.9 million, offset by net interest expenses of $13.0 million.
Net loss attributable to shareholders of the parent was $55.9 million for the second quarter of 2025 compared to a loss of $30.4 million in the prior year period. The increase in loss was primarily due to fair value losses on Convertible Notes, partially offset by higher gross profit and lower research and development expenses.
Adjusted EBITDA loss for the second quarter of 2025 was $3.6 million, compared to a loss of $11.0 million in the prior year period. The improvement in Adjusted EBITDA loss was primarily a result of higher gross profit and lower research and development 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 June 30, 2025(Unaudited)(in thousands of U.S. dollars)
Europe & International
North America
Greater China
Corporate*
Eliminations**
Total
Revenue
Revenue from external customers
118,193
63,185
26,976
—
—
208,354
Intersegment revenue
455
—
—
—
(455
)
—
Total segment revenue
118,648
63,185
26,976
—
(455
)
208,354
Adjusted EBITDA
24,261
(2,369
)
(636
)
(24,819
)
—
(3,563
)
Share-based compensation expense
(515
)
(328
)
(334
)
(2,276
)
—
(3,453
)
Restructuring costs(1)
(471
)
(585
)
(42
)
(295
)
—
(1,393
)
Strategic review of Greater China business(2)
—
—
(1,378
)
—
—
(1,378
)
Non-controlling interests
—
—
(35
)
—
—
(35
)
EBITDA
23,275
(3,282
)
(2,425
)
(27,390
)
—
(9,822
)
Finance income and (expenses), net
—
—
—
—
—
(31,916
)
Depreciation and amortization
—
—
—
—
—
(12,294
)
Loss before tax
—
—
—
—
—
(54,032
)
Three months ended June 30, 2024(Unaudited)(in thousands of U.S. dollars)
Europe & International
North America
Greater China
Corporate*
Eliminations**
Total
Revenue
Revenue from external customers
105,541
67,819
28,835
—
—
202,195
Intersegment revenue
1,814
—
—
—
(1,814
)
—
Total segment revenue
107,355
67,819
28,835
—
(1,814
)
202,195
Adjusted EBITDA
12,638
1,166
(428
)
(24,373
)
—
(10,997
)
Share-based compensation expense
(501
)
(232
)
(479
)
(2,967
)
—
(4,179
)
Restructuring costs(1)
(855
)
