Oatly Group AB
Oatly Group AB Q4 FY2024 earnings call
February 12, 2025 · fiscal period ended 2024-12
EPS · actual vs est
Revenue · actual vs est
Summary
Generated 2025-02-12
Management highlights
• Over the past two years, Oatly has executed a significant transformation. Supply chain was simplified with closure of Singapore facility and discontinuation of second Chinese facility, leaving 5 manufacturing plants. • Overhead structure was simplified, reducing employees by 500 to ~1,500. • Marketing focus shifted to relevant and integrated brand activation. • Versus 2022, revenue grew by ~$100 million (14%), gross margin expanded 18 percentage points, and adjusted EBITDA improved by over $230 million.
Segment performance
Each of the three operating segments improved adjusted EBITDA by over $70 million in the past two years. In 2024, revenue growth was driven primarily by volume growth, with 9.9% volume growth in the fourth quarter and 8.8% for the full year. Constant currency revenue growth for the full year was 4.8%, slightly below guidance due to category sluggishness.
Guidance
• 2025 constant currency revenue growth expected in range of 2% to 4%, impacted by ~300-basis-point headwind from largest U.S. customer's sourcing change. • Adjusted EBITDA expected in range of $5 million to $15 million. • CapEx expected to be $30 million to $35 million, reflecting simplified supply chain with 5 plants and no new plants under construction.
Risks
• Category sluggishness affecting revenue growth. • Misinformation on nutritional value of oatmilk posing a barrier to category growth. • Exposure to a large customer in the U.S. which, while not unprofitable, impacts cost absorption and requires careful management of relationships and distribution.
Q&A highlights
Q: Kaumil Gajrawala asked about breaking down gross margin drivers.
A: Marie-José David said drivers include optimizing production footprint, maximizing global sourcing resources, managing product mix, and factors like sales guidance, customer mix, and foreign exchange.
Q: Max Davenport asked about category momentum and supply chain progress beyond 2025.
A: Jean-Christophe Flatin said strategic supply chain recalibration, including discontinuing factory projects and closing plants, allows focus on efficiency and performance.
Q: Michael Lavery asked about risk to the remaining business with the largest U.S. customer.
A: Daniel Ordoñez said exposure is reducing as growth outside the large customer is seen, and they continue to pursue other customers and drive distribution.
Key numbers
Reported versus consensus
Earnings calendar feed
| Metric | Reported | Consensus | Delta | Prior year |
|---|---|---|---|---|
| EPS | $-1.20 | $-1.60 | +25.0% | $-3.20 |
| Revenue | $214.3M | $199.8M | +7.3% | $204.1M |
Transcript
February 12, 2025Full transcript unavailable for redistribution
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