Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oatly Stock Tumbles - Struggles to Convert Consumers from Dairy to Plant-Based Milk

Stock Markets Aug 02, 2022 05:04PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters Oatly Stock Tumbles - Struggles to Convert Consumers from Dairy to Plant-Based Milk

By Sam Boughedda

Oatly (NASDAQ:OTLY) posted a narrower-than-expected loss and topped second-quarter revenue expectations when it reported Tuesday.

The Swedish company that produces alternatives to dairy products from oats posted a second-quarter loss per share of $0.12, $0.01 better than the analyst estimate of a $0.13 loss per share. Revenue for the quarter came in at $177.9 million versus the consensus estimate of $183.49 million and 21.8% above revenue in Q2 2021.

The company faced headwinds, including China Covid-related lockdowns and foreign exchange-related challenges during the quarter.

"We delivered strong second quarter financial results with sales growth of 22%, or 30% in constant currency, despite several headwinds including COVID-19 lockdowns in China. Profitability metrics improved compared to the first quarter of 2022 and we expect this trend to continue in the second half of the year," said Toni Petersson, Oatly's CEO.

Oatly lowered its full-year guidance. The company said they believe macroeconomic uncertainty has impacted the speed at which it is able to expand its distribution footprint in food service and new markets, and the pace at which it has been able to convert new consumers from dairy to plant-based milk is taking longer than it had hoped. Oatly expects this to continue for the remainder of the year.

The company sees full-year 2022 revenue of between $800 million and $830 million.

Reacting to the report, a Cowen analyst reiterated an Outperform rating and an $8 per share price target on the stock.

"OTLY 2Q22A were once again mixed (EBITDA beat, revenue missed); FY22 top-line and cap ex guide were lowered. Europe retail and China foodservice exposure are suboptimal today; however, we're encouraged by Q/Q gross margin progress, which likely would have been even stronger had production volume been in line. Stock should remain range bound NT, though we remain constructive on the LT opportunity," said the analyst.

Oatly shares tumbled more than 17% Tuesday.

Oatly Stock Tumbles - Struggles to Convert Consumers from Dairy to Plant-Based Milk
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email