Oatly Q2 Earnings Miss Estimates Dragged By Poor Asia Sales: 'Consumers Have Behaved Differently'

Oatly Group AB (NASDAQ: OTLY) reported second-quarter FY23 sales growth of 10.13% year-on-year to $195.99 million, missing the consensus of $209.67 million.

The increase was primarily driven by price increases implemented in EMEA primarily during the first quarter of 2023 and the Americas in the third quarter of 2022.

Revenue in the Americas jumped 19.4% Y/Y to $61.82 million, EMEA gained 17.6% to $96.9 million and declined 14.9% to $37.2 million.

The gross margin expanded by 340 basis points to 19.2% and the gross profit increased 34% Y/Y to $37.7 million.

The operating loss for the quarter was $75.48 million versus $74.4 million last year.

The company held $340.7 million in cash and equivalents as of June 30, 2023.

EBITDA loss expanded to $63 million versus $62.6 million last year.

EPS loss of $0.15 missed the analyst consensus of $0.12.

"However, as Asia has transitioned to a post-pandemic era, consumers have behaved differently than we had originally expected, and we need to adjust," said CEO Jean-Christophe Flatin.

Outlook: Oatly sees FY23 revenue growth on a constant currency basis in the range of 7%-12%. It expects capital expenditures of $110 million-$130 million.

OTLY Price Action: Oatly shares are trading lower by 23.54% at $1.66 at publication Thursday.

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