SWEDEN – Oatly, a Sweden-based alt-dairy business, reported narrowing losses in the first quarter of 2024, signaling progress despite ongoing challenges.

The company reported a net loss of U$45.8 million for the quarter, compared to US$75.6 million in the same period last year.

Operating losses also decreased significantly from US$71.6 million to US$28.4 million year-on-year. While revenue saw a modest increase of 1.8% to US$199.2 million, volume grew by 3.1%, reflecting “solid growth” in North America and Europe & International divisions.

CEO Jean-Christophe Flatin emphasized the company’s positive first-quarter performance, highlighting improvements in gross margins resulting from strategic actions taken over the past two years.

Despite the encouraging results, Oatly maintained its financial forecasts for 2024, expecting annual revenue to rise by 5-10% and projecting an adjusted EBITDA loss of $35-60 million.

Flatin acknowledged the different stages of turnaround across Oatly’s operating segments and emphasized the need for sustained performance throughout the year.

While the Europe & International division saw revenue rise by 9.9%, North America reported a 4.6% increase.

However, Greater China experienced a 30% revenue decline, attributed to the company’s ongoing efforts to enhance performance in the region.

Oatly’s management addressed concerns about the broader plant-based milk category, highlighting the company’s consistent outperformance compared to the industry.

Despite challenges, Oatly remains focused on controlling controllables, including distribution, product innovation, and brand investment.

Shares in Oatly surged by 15% following the announcement, signaling investor confidence in the company’s progress.

Despite a decline in share price in 2023, Oatly continues to navigate challenges while maintaining its strategic focus on growth and innovation in the alt-dairy market.

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