Oatly has hit a milestone of registering a quarter of underlying profitable growth as a turnaround at the plant-based drink group takes shape.
Revenues in the third quarter increased 7.1% to $222.8m thanks to a currency exchange tailwind and consistent performance in Europe and China, with volumes up 6.6%. However, sales declined 10% in North America, driven mainly by a reduction in business with a large foodservice customer.
Adjusted EBITDA in Q3 climbed from a $5m loss a year ago to a $3.1m profit as gross profit improved and expenses reduced.
Oatly still recorded a net loss of $65.3m, compared with a $34.6m loss in Q3 2024, as the group refinanced, cancelled convertible loan notes in the US and replaced its revolving credit facility.
CEO Jean-Christophe Flatin, appointed in 2023 to turn around the group’s ailing performance, said: “I am proud to report that we drove profitable growth in the quarter, with solid constant currency revenue growth and positive adjusted EBITDA.
“Achieving this milestone reflects the disciplined, strategic actions we have taken over the past three years to strengthen the foundation of our entire business.
“While we are proud of this achievement, we know that profitable growth is a milestone and not the finish line. We see significant potential ahead of us, and we are confident that we are taking the right steps to drive durable, scalable, and profitable growth as we execute on our mission.”
Oatly reaffirmed its annual outlook, with sales growth of flat to 1% expected and positive adjusted EBITDA of $5m to $15m.
Shares in New York-listed Oatly are now up 8.8% to $15.67 for 2025 to date after recovering from all-time lows of less than $8 earlier in the year.
The stock has lost 96.5% of its value since floating in 2021 as investors lost faith in the group following disastrous trading updates, ongoing massive losses, downgrades and supply chain issues.
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