Oatly announced its financial results for the third quarter of 2023 on November 9, showing improvements but still with losses in the USA and Asia.
The company reported a loss before taxes and financial items of 55 million dollars, equivalent to 600 million Swedish kronor, for the third quarter of this year. This represents an improvement compared to a loss of 92 million dollars during the same quarter in 2022, according to ATL.
Jean-Christophe Flatin, Oatly’s CEO since May 2023, commented:
– I am pleased with the progress that we made in the third quarter. Our profitability exceeded our internal expectations and improved sequentially in each segment. We are clearly starting to see the positive impacts of the bold actions that we have been taking over the past year, and we remain on track to achieve profitable growth in 2024.
The losses primarily stem from operations in North America and Asia, while the company increased both its sales and profit in Europe during the quarter. According to the company, the demand for oat-based drinks increased by 15 percent during the quarter, twice as much as for other plant-based milk substitutes. Europe accounts for over half of Oatly’s revenue, with the highest sales in England, Germany, and the Netherlands. The company is now also aiming to grow in Spain and France.
Due to the losses in the USA, Oatly has decided to discontinue construction on a new production facility for its EMEA and Americas segments.
Despite positive statements, Oatly has still not shown a positive result since its stock was listed on Nasdaq in the USA, and the stock price fell by 8 percent to 55 cents after the results were presented yesterday. The stock has now lost 97 percent of its value compared to the opening price in May 2021.
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