• Oatly Reports Second Quarter 2023 Financial Results

    Источник: Nasdaq GlobeNewswire / 27 июл 2023 07:30:00   America/New_York

    MALMÖ, Sweden, July 27, 2023 (GLOBE NEWSWIRE) -- Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced financial results for the second quarter and six months ended June 30, 2023.

    Jean-Christophe Flatin, Oatly’s CEO, commented, “In the second quarter, we continued to make progress towards our goal of achieving profitable growth in 2024. As expected, we continued our sequential improvement of gross margin and increased our advertising investments to continue to fuel growth. This progress is most evident in our EMEA and Americas segments, both of which continued to improve Adjusted EBITDA while increasing demand-generating investments.”

    Flatin continued, “However, as Asia has transitioned to a post-pandemic era, consumers have behaved differently than we had originally expected, and we need to adjust. Similar to the improvement plans that we have been executing in EMEA and Americas, we have initiated a comprehensive improvement plan that will enable our Asia business to adapt to the evolving environment and strengthen the core business before building a significantly bigger business. We have also taken actions to further simplify our corporate functions and Americas segment overhead, which will lead to additional cost savings as well as increased focus and agility. While we are reducing our 2023 sales guidance, we continue to expect to achieve our fourth quarter gross margin target of the high 20%s, and we remain on-track for achieving positive adjusted EBITDA in 2024.”

    The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and six months ended June 30, 2023 and 2022.

      Three months ended June 30,  $ Change  % Change    
      2023  2022  As reported  Foreign exchange impact  In constant currency  As reported  In constant currency  Volume  Constant currency price/mix 
    EMEA  96,989   82,485   96,989   30   96,959   17.6%  17.5%  7.2%  10.3%
    Americas  61,832   51,775   61,832   —   61,832   19.4%  19.4%  1.7%  17.7%
    Asia  37,166   43,698   37,166   (1,840)  39,006   -14.9%  -10.7%  -5.1%  -5.6%
    Total revenue  195,987   177,958   195,987   (1,810)  197,797   10.1%  11.1%  3.4%  7.7%
                                
      Six months ended June 30,  $ Change  % Change    
      2023  2022  As reported  Foreign exchange impact  In constant currency  As reported  In constant currency  Volume  Constant currency price/mix 
    EMEA  195,205   172,968   195,205   (7,478)  202,683   12.9%  17.2%  6.8%  10.4%
    Americas  125,873   98,792   125,873   —   125,873   27.4%  27.4%  4.1%  23.3%
    Asia  70,554   72,384   70,554   (3,806)  74,360   -2.5%  2.7%  6.8%  -4.1%
    Total revenue  391,632   344,144   391,632   (11,284)  402,916   13.8%  17.1%  6.0%  11.1%


    Second Quarter 2023 Highlights

    • Revenue of $196.0 million, a 10.1% increase compared to the prior year period; on a constant currency basis, revenue increased 11.1%.
    • Gross margin in the quarter was 19.2%, an increase of 340 basis points compared to the prior year period and 180 basis points compared to the first quarter of 2023.
    • Net loss attributable to shareholders of the parent was $86.7 million compared to net loss of $72.0 million in the prior year period.
    • EBITDA loss of $63.0 million; Adjusted EBITDA loss of $52.5 million, which is a decrease of $0.9 million compared to the prior year period.
    • Closed on all previously-announced financing transactions during the quarter, raising $465 million before fees and other related expenses.
    • After the quarter ended, initiated a comprehensive improvement plan in the Asia segment, which includes increasing focus on the core business, a simplification of the product portfolio, and a reduction in operating costs.
    • The Company has taken the necessary steps to further reduce its SG&A costs in both its Americas segment and its Corporate functions in order to further enhance the simplicity and agility of the organization. Collectively between the SG&A savings in the Asia segment, the Americas segment, and Corporate functions, the Company targets to achieve approximately $85 million of savings in 2024.

    Second Quarter 2023 Results

    Revenue increased $18.0 million, or 10.1%, to $196.0 million for the second quarter ended June 30, 2023, compared to $178.0 million for the second quarter ended June 30, 2022. Excluding a foreign currency exchange headwind of $1.8 million, revenue for the second quarter was $197.8 million, or an increase of 11.1%, on a constant currency basis. 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, in addition to continued volume growth for the Company’s products in each of the EMEA and Americas segments. Sold volume for the second quarter of 2023 amounted to 125 million liters compared to 121 million liters in the same period last year. Produced finished goods volume for the second quarter of 2023 amounted to 130 million liters compared to 124 million liters for the same period last year.

    The Company experienced revenue growth in the retail and foodservice channels in the second quarter of 2023 compared to the second quarter of 2022.

    Gross profit was $37.7 million for the second quarter of 2023 compared to $28.1 million for the second quarter of 2022, and $34.1 million for the first quarter of 2023. Gross margin in the second quarter was 19.2% compared to 17.4% in the first quarter. The quarter-over-quarter increase was primarily driven by cost improvements in the Americas supply chain, which were partially offset by increased inventory write-offs and co-manufacturer penalties in the Asia segment linked to the slower than expected post COVID-19 recovery.

    Research and development expenses in the second quarter of 2023 decreased $0.4 million to $5.3 million compared to $5.7 million in the prior year period.

    Selling, general and administrative expenses in the second quarter of 2023 increased $9.6 million to $106.7 million compared to $97.1 million in the prior year period. The increase was primarily due to $5.6 million in employee related expenses, $2.9 million in branding, advertising and marketing expenses, and a $3.7 million reduction in reimbursement from the depositary relating to the administration of the ADR program. The increase was offset by a decrease of $2.2 million in customer distribution costs.

    Other operating income and expenses, net for the second quarter of 2023 decreased to an expense of $1.1 million compared to an income of $0.2 million in the prior year period, comprised primarily of a net foreign exchange loss.

    In the second quarter of 2023, finance expenses were $11.5 million compared to $0.6 million in the prior-year period. The increase was primarily driven by expenses related to the Company’s recent financing activities.

    Net loss attributable to shareholders of the parent was $86.7 million for the second quarter of 2023 compared to net loss of $72.0 million in the prior year period. The increase in net loss was almost entirely driven by the increase in finance expenses.

    EBITDA loss for the second quarter of 2023 was $63.0 million, compared to an EBITDA loss of $62.6 million in the second quarter of 2022. The increase in EBITDA loss was primarily a result of higher selling, general and administrative expenses offset by higher gross profit.

    Adjusted EBITDA loss for the second quarter of 2023 was $52.5 million, compared to a loss of $53.4 million in the second quarter of 2022, or essentially flat.

    EBITDA, Adjusted EBITDA (Loss), and Constant currency revenue are non-IFRS financial measures defined under “Non-IFRS financial measures.” Please see above revenue at constant currency table and “Reconciliation of IFRS to Non-IFRS Results” at the end of this press release.

    The following tables set forth revenue, Adjusted EBITDA, EBITDA and loss before tax for the Company's three reportable segments for the periods presented.

    Revenue, Adjusted EBITDA and EBITDA                  
    Three months ended June 30, 2023
    (in thousands of U.S. dollars)    		 EMEA  Americas  Asia  Corporate*  Eliminations**  Total 
    Revenue                  
    Revenue from external customers  96,989   61,832   37,166   —   —   195,987 
    Intersegment revenue  359   —   1,696   —   (2,055)  — 
    Total segment revenue  97,348   61,832   38,862   —   (2,055)  195,987 
    Adjusted EBITDA  7,270   (9,414)  (21,900)  (28,424)  —   (52,468)
    Share-based compensation expense  261   (607)  (1,291)  (785)  —   (2,422)
    Restructuring costs(1)  —   (2,407)  (136)  (5,429)  —   (7,972)
    Costs related to the YYF Transaction(2)  —   (154)  —   —   —   (154)
    EBITDA  7,531   (12,582)  (23,327)  (34,638)  —   (63,016)
    Finance income and (expenses), net  —   —   —   —   —   (11,512)
    Depreciation and amortization  —   —   —   —   —   (12,464)
    Loss before tax  —   —   —   —   —   (86,992)
                       
    Three months ended June 30, 2022
    (in thousands of U.S. dollars)    		 EMEA  Americas  Asia  Corporate*  Eliminations**  Total 
    Revenue                  
    Revenue from external customers  82,485   51,775   43,698   —   —   177,958 
    Intersegment revenue  9,493   241   537   —   (10,271)  — 
    Total segment revenue  91,978   52,016   44,235   —   (10,271)  177,958 
    Adjusted EBITDA  5,313   (19,584)  (10,765)  (28,331)  —   (53,367)
    Share-based compensation expense  (1,433)  (1,120)  (1,842)  (4,790)  —   (9,185)
    EBITDA  3,880   (20,704)  (12,607)  (33,121)  —   (62,552)
    Finance income and (expenses), net  —   —   —   —   —   (593)
    Depreciation and amortization  —   —   —   —   —   (11,877)
    Loss before tax  —   —   —   —   —   (75,022)
                       
    Six months ended June 30, 2023
    (in thousands of U.S. dollars)    		 EMEA  Americas  Asia  Corporate*  Eliminations**  Total 
    Revenue                  
    Revenue from external customers  195,205   125,873   70,554   —   —   391,632 
    Intersegment revenue  1,210   —   3,136   —   (4,346)  — 
    Total segment revenue  196,415   125,873   73,690   —   (4,346)  391,632 
    Adjusted EBITDA  13,854   (19,720)  (38,616)  (57,859)  —   (102,341)
    Share-based compensation expense  (761)  (1,651)  (2,702)  (5,355)  —   (10,469)
    Restructuring costs(1)  (1,008)  (2,594)  (136)  (5,429)  —   (9,167)
    Costs related to the YYF Transaction(2)  —   (375)  —   —   —   (375)
    EBITDA  12,085   (24,340)  (41,454)  (68,643)  —   (122,352)
    Finance income and (expenses), net  —   —   —   —   —   (13,508)
    Depreciation and amortization  —   —   —   —   —   (24,697)
    Loss before tax  —   —   —   —   —   (160,557)
                       
    Six months ended June 30, 2022
    (in thousands of U.S. dollars)    		 EMEA  Americas  Asia  Corporate*  Eliminations**  Total 
    Revenue                  
    Revenue from external customers  172,968   98,792   72,384   —   —   344,144 
    Intersegment revenue  24,539   813   537   —   (25,889)  — 
    Total segment revenue  197,507   99,605   72,921   —   (25,889)  344,144 
    Adjusted EBITDA  (543)  (41,597)  (25,732)  (56,884)  —   (124,756)
    Share-based compensation expense  (3,017)  (2,412)  (3,791)  (10,002)  —   (19,222)
    EBITDA  (3,560)  (44,009)  (29,523)  (66,886)  —   (143,978)
    Finance income and (expenses), net  —   —   —   —   —   2,984 
    Depreciation and amortization  —   —   —   —   —   (22,608)
    Loss before tax  —   —   —   —   —   (163,602)

    * Corporate consists of general overhead costs not allocated to the segments.

    ** Eliminations in 2023 refer to intersegment revenue for sales of products from EMEA to Asia and from Asia to EMEA. Eliminations in 2022 refer to intersegment revenue for sales of products from EMEA to Asia, from Americas to Asia, and from Asia to EMEA.
    (1) Relates primarily to severance payments as the Company continues to adjust its organizational structure to the current macro environment.
    (2) Relates to the closing of the Ya Ya Foods USA LLC Transaction.

    EMEA

    EMEA revenue increased $14.5 million, or 17.6%, to $97.0 million for the second quarter of 2023, compared to $82.5 million in the prior year period. The foreign exchange impact on revenue was minor for the period. The increase in revenue was primarily driven by price increases introduced at the beginning of the year as well as solid volume growth in oat drinks. Approximately 81.7% of EMEA revenue was from the retail channel for the second quarter of 2023 compared to 81.8% in the prior year quarter. The sold finished goods volume for the three months ended June 30, 2023 and 2022 amounted to 68 million and 64 million liters, respectively.

    EMEA EBITDA increased $3.7 million to a benefit of $7.5 million for the second quarter of 2023 compared to a benefit of $3.9 million in the prior year period. The increase in EMEA EBITDA was primarily due to higher gross profit offset by higher operating expenses, primarily driven by higher branding and advertising expenses. Adjusted EMEA EBITDA was a benefit of $7.3 million compared to a benefit of $5.3 million in the prior year period.

    Americas

    Americas revenue increased $10.1 million, or 19.4%, to $61.8 million for the second quarter of 2023, compared to $51.8 million in the prior year period. This increase was primarily due to price increases across all customers and channels. Approximately 51.2% of Americas revenue was from the retail channel in the second quarter of 2023 compared to 55.3% in the prior year quarter. The sold finished goods volume for the three months ended June 30, 2023 and 2022 amounted to 36 million and 35 million liters, respectively.

    Americas EBITDA improved $8.1 million to a loss of $12.6 million for the second quarter of 2023 compared to a loss of $20.7 million in the prior year period. The increase in Americas EBITDA was primarily due to higher gross profit driven by the price increases implemented in the third quarter of 2022. Adjusted Americas EBITDA, which excluded restructuring cost of $2.4 million and recurring share-based compensation expense of $0.6 million, was a loss of $9.4 million compared to a loss of $19.6 million in the prior year period.

    Asia

    Asia revenue decreased $6.5 million, or 14.9%, to $37.2 million for the second quarter of 2023, compared to $43.7 million in the prior year period. Excluding a foreign currency exchange headwind of $1.8 million, Asia revenue for the second quarter was $39.0 million, or a decrease of 10.7%. The Asia segment was impacted by a slower-than-expected post-COVID-19 recovery in China. Approximately 56.9% of Asia revenue was from the foodservice channel for the second quarter of 2023 compared to 58.3% in the prior year quarter. The sold finished goods volume for the three months ended June 30, 2023 and 2022 amounted to 21 million and 22 million liters, respectively.

    Asia EBITDA decreased $10.7 million to a loss of $23.3 million for the second quarter of 2023 compared to a loss of $12.6 million in the prior year period. The decrease in Asia EBITDA was primarily due to lower gross profit and margin as our revenue and capacity utilization was impacted by the previously mentioned slower than expected recovery in China and higher operating expenses. Adjusted Asia EBITDA, which excluded recurring share-based compensation expense of $1.3 million, was a loss of $21.9 million compared to a loss of $10.8 million in the prior year period.

    Corporate Overhead

    Oatly’s Corporate overhead adjusted EBITDA, which consists of general overhead costs not allocated to the segments, in the second quarter of 2023 was $28.4 million, an increase of $0.1 million compared to the prior year period.

    Balance Sheet and Cash Flow

    As of June 30, 2023, the Company had cash and cash equivalents of $340.7 million, and total outstanding debt to credit institutions of $125.5 million. Net cash used in operating activities was $113.1 million for the six months ended June 30, 2023, compared to $127.3 million during the prior year period which was primarily driven by improved working capital. Capital expenditures were $39.5 million compared to $111.3 million in the prior year period and, in addition, proceeds from the sale of assets related to the YYF Transaction was $44.0 million for the six months ended June 30, 2023. Net cash from financing activities was $367.3 million reflecting the close on the previously-announced financing transactions.

    As previously communicated, on May 9, 2023 the Company entered into an agreement with an affiliate of Hillhouse Investment Management Ltd. ("Hillhouse") to sell an additional $35 million in Convertible Notes, resulting in approximately $34 million in financing after reflecting an original issue discount of 3% (the “HH Notes”). The purchase and sale of the HH Notes closed on May 31, 2023.

    Outlook
    The Company has initiated a comprehensive improvement plan in its Asia segment that the Company believes will enable it to adapt to the evolving post-pandemic consumer environment, and prepare it for profitable growth. The improvement plan includes increasing focus on the core business, a simplification of the product portfolio, and a reduction in operating costs.

    The Company has also taken the necessary steps to further reduce its SG&A overhead costs in both its Americas segment and its Corporate functions. These reductions are expected to further enhance the simplicity and agility of the organization.

    Collectively between the anticipated SG&A savings in the Asia segment, the Americas segment, and Corporate functions, the Company targets to achieve approximately $85 million of savings in 2024.

    While the Asia improvement plans are in the early stages, changes in our structure, operations and business plan can be expected. The improvement actions, once fully determined, could result in an impairment charge of the Asia segment assets. The Company is unable to make a reasonable determination of an estimate of the severance and, if any, other costs and charges associated with its organizational improvement plans in Asia at this time and expects to communicate the outcome of such determination no later than the time at which it reports results for the third quarter of 2023.

    Based on the Company’s assessment of the current operating environment, the Company is updating its revenue and capital expenditure guidance for the full year ending December 31, 2023 and maintaining its fourth quarter gross margin guidance. The Company now expects:

    • Revenue growth on a constant currency basis in the range of 7% to 12% compared to full year 2022,
    • Foreign exchange to reduce net sales by approximately 130 basis point for the year,
    • Gross margin to improve sequentially quarter-over-quarter in fiscal 2023, reaching the high-20%s in the fourth quarter, and
    • Capital expenditures between $110 million and $130 million.

    Also the Company continues to believe this progress will enable it to deliver positive Adjusted EBITDA for the fiscal year 2024.

    This outlook is provided in the context of significant volatility related to the COVID-19 pandemic and the transition to a post-pandemic environment, the war in Ukraine, macroeconomic uncertainty, and other geopolitical uncertainties.

    The Company cannot provide a reconciliation of constant currency revenue growth or Adjusted EBITDA guidance to the nearest comparable corresponding IFRS metric without unreasonable efforts due to difficulty in predicting certain items excluded from these non-IFRS measures. The items necessary to reconcile are not within Oatly’s control, may vary greatly between periods and could significantly impact future financial results.

    Conference Call, Webcast and Supplemental Presentation Details

    Oatly will host a conference call and webcast at 8:30 a.m. ET today to discuss these results. The conference call, simultaneous, live webcast and supplemental presentation can be accessed on Oatly’s Investors website at https://investors.oatly.com under “Events.” The webcast will be archived for 30 days.

    About Oatly

    We are the world’s original and largest oat drink company. For over 25 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties suited for sustainability and human health. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, and spreads. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 20 countries globally.

    For more information, please visit www.oatly.com

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding our financial outlook for 2023 and long-term growth strategy, anticipated supply chain performance, anticipated impact of our improvement plans, plans to achieve profitable growth and anticipated cost savings as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “is/are likely to” and similar statements of a future or forward-looking nature. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: our history of losses and inability to achieve or sustain profitability; including due to elevated inflation and increased costs for transportation, energy and materials; the impact of the COVID-19 pandemic, including the spread of variants of the virus, on our business and the international economy; reduced or limited availability of oats or other raw materials and ingredients that meet our quality standards; failure to successfully achieve any or all of the benefits of the Ya Ya Foods USA LLC Transaction; failure to obtain additional financing to achieve our goals or failure to obtain necessary capital when needed on acceptable terms, or at all; failure of the financial institutions in which we hold our deposits; damage or disruption to our production facilities; harm to our brand and reputation as a result of real or perceived quality or food safety issues with our products; food safety and food-borne illness incidents or other safety concerns which may lead to lawsuits, product recalls or regulatory enforcement actions; our ability to successfully compete in our highly competitive markets; reduction in the sales of our oatmilk varieties; failure to effectively expand our processing, manufacturing and production capacity, or failure to find acceptable co-packing partners to help us expand, as we continue to grow and scale our business; our ability to ramp up operations at any of our new facilities; failure to meet our existing or new environmental metrics and other risks related to sustainability and corporate social responsibility; litigation, regulatory actions or other legal proceedings including environmental and securities class action lawsuits; changes to international trade policies, treaties and tariffs; global conflict and the ongoing war in Ukraine; changes in our tax rates or exposure to additional tax liabilities or assessments; failure to expand our manufacturing and production capacity as we grow our business; supply chain delays, including delays in the receipt of product at factories and ports, and an increase in transportation costs; the impact of rising commodity prices, transportation and labor costs on our cost of goods sold; failure by our logistics providers to deliver our products on time, or at all; our ability to successfully ramp up operations at any of our new facilities and operate them in accordance with our expectations; failure to develop and maintain our brand; our ability to introduce new products or successfully improve existing products; failure to retain our senior management or to attract, train and retain employees; cybersecurity incidents or other technology disruptions; failure to protect our intellectual property and other proprietary rights adequately; our ability to successfully remediate previously disclosed material weaknesses (which remained unremediated as of our most recent fiscal year end) or other future control deficiencies, in our internal control over financial reporting; our status as a foreign private issuer; risks related to the significant influence of our largest shareholder, Nativus Company Limited, entities affiliated with China Resources Verlinvest Health Investment Ltd. has over us, including significant influence over decisions that require the approval of shareholders; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2022 filed with the U.S. Securities and Exchange Commission (“SEC”) on April 19, 2023, and our other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Oatly disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.

    Non-IFRS Financial Measures

    We use EBITDA, Adjusted EBITDA and Constant Currency Revenue as non-IFRS financial measures in assessing our operating performance and in our financial communications:

    “EBITDA” is defined as loss for the period attributable to shareholders of the parent adjusted to exclude, when applicable, income tax expense, finance expenses, finance income and depreciation and amortization expense.

    “Adjusted EBITDA” is defined as loss for the period attributable to shareholders of the parent adjusted to exclude, when applicable, income tax expense, finance expenses, finance income, depreciation and amortization expense, share-based compensation expense, restructuring costs, asset impairment charge and other costs related to assets held for sale.

    “Constant Currency Revenue” is calculated by translating the current year reported revenue amounts into comparable amounts using the prior year reporting period’s average foreign exchange rates which have been provided by a third party.

    Adjusted EBITDA should not be considered as an alternative to loss for the period or any other measure of financial performance calculated and presented in accordance with IFRS. There are a number of limitations related to the use of Adjusted EBITDA rather than loss for the period attributable to shareholders of the parent, which is the most directly comparable IFRS measure. Some of these limitations are:

    • Adjusted EBITDA excludes depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated may have to be replaced in the future increasing our cash requirements;
    • Adjusted EBITDA does not reflect interest expense, or the cash required to service our debt, which reduces cash available to us;
    • Adjusted EBITDA does not reflect income tax payments that reduce cash available to us;
    • Adjusted EBITDA does not reflect recurring share-based compensation expense and, therefore, does not include all of our compensation costs;
    • Adjusted EBITDA does not reflect restructuring costs that reduce cash available to us in future periods;
    • Adjusted EBITDA excludes asset impairment charge and other costs related to assets held for sale, although these are non-cash expenses, the assets being impaired may have to be replaced in the future increasing our cash requirements; and
    • Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

    Adjusted EBITDA should not be considered in isolation or as a substitute for financial information provided in accordance with IFRS. Below we have provided a reconciliation of EBITDA and Adjusted EBITDA to loss attributable to shareholders of the parent, the most directly comparable financial measure calculated and presented in accordance with IFRS, for the periods presented.

    We use constant currency information to provide a framework in assessing how our business and geographic segments performed excluding the effects of foreign currency exchange rate fluctuations and believe this information is useful to investors to facilitate comparisons and better identify trends in our business. Above we have provided a reconciliation of revenue as reported to revenue on a constant currency basis for the periods presented.

    Financial Statements

    Interim condensed consolidated statement of operations

    (Unaudited) Three months ended June 30,  Six months ended June 30, 
    (in thousands of U.S. dollars, except share and per share data) 2023  2022  2023  2022 
    Revenue  195,987   177,958   391,632   344,144 
    Cost of goods sold  (158,331)  (149,814)  (319,888)  (300,152)
    Gross profit  37,656   28,144   71,744   43,992 
    Research and development expenses  (5,321)  (5,718)  (11,035)  (9,982)
    Selling, general and administrative expenses  (106,695)  (97,060)  (205,550)  (201,133)
    Other operating income and (expenses), net  (1,120)  205   (2,208)  537 
    Operating loss  (75,480)  (74,429)  (147,049)  (166,586)
    Finance income and (expenses), net  (11,512)  (593)  (13,508)  2,984 
    Loss before tax  (86,992)  (75,022)  (160,557)  (163,602)
    Income tax benefit/(expense)  273   3,032   (1,739)  4,153 
    Loss for the period, attributable to shareholders of the parent  (86,719)  (71,990)  (162,296)  (159,449)
    Loss per share, attributable to shareholders of the parent:            
    Basic and diluted  (0.15)  (0.12)  (0.27)  (0.27)
    Weighted average common shares outstanding:            
    Basic and diluted  593,189,505   591,945,667   592,757,116   591,861,800 


    Interim condensed consolidated statement of financial position

    (in thousands of U.S. dollars) June 30, 2023  December 31, 2022 
      (Unaudited)    
    ASSETS      
    Non-current assets      
    Intangible assets  122,171   127,688 
    Property, plant and equipment  504,743   492,952 
    Right-of-use assets  109,379   108,598 
    Other non-current receivables  47,240   7,848 
    Deferred tax assets  14,717   5,860 
    Total non-current assets  798,250   742,946 
    Current assets      
    Inventories  102,825   114,475 
    Trade receivables  102,835   100,955 
    Current tax assets  307   243 
    Other current receivables  33,925   17,818 
    Prepaid expenses  22,244   23,413 
    Cash and cash equivalents  340,730   82,644 
       602,866   339,548 
    Assets held for sale  —   142,703 
    Total current assets  602,866   482,251 
    TOTAL ASSETS  1,401,116   1,225,197 
    EQUITY AND LIABILITIES      
    Equity      
    Share capital  105   105 
    Treasury shares  (0)  (0)
    Other contributed capital  1,628,045   1,628,045 
    Other reserves  (265,002)  (171,483)
    Accumulated deficit  (817,351)  (665,524)
    Total equity attributable to shareholders of the parent  545,797   791,143 
    Liabilities      
    Non-current liabilities      
    Lease liabilities  87,418   82,285 
    Liabilities to credit institutions  115,211   2,668 
    Deferred tax liabilities  637   — 
    Provisions  6,600   7,194 
    Total non-current liabilities  209,866   92,147 
    Current liabilities      
    Lease liabilities  14,720   16,823 
    Convertible Notes  400,244   — 
    Liabilities to credit institutions  10,332   49,922 
    Trade payables  81,201   82,516 
    Current tax liabilities  4,299   5,515 
    Other current liabilities  11,644   11,823 
    Accrued expenses  116,475   123,037 
    Provisions  6,538   3,800 
       645,453   293,436 
    Liabilities directly associated with the assets held for sale  —   48,471 
    Total current liabilities  645,453   341,907 
    Total liabilities  855,319   434,054 
    TOTAL EQUITY AND LIABILITIES  1,401,116   1,225,197 


    Interim condensed consolidated statement of cash flows

    (Unaudited) For the six months ended June 30, 
    (in thousands of U.S. dollars) 2023  2022 
    Operating activities      
    Net loss  (162,296)  (159,449)
    Adjustments to reconcile net loss to net cash flows      
    —Depreciation of property, plant and equipment and right-of-use assets and
    amortization of intangible assets    		  24,697   22,607 
    —Write-downs of inventories  7,609   8,165 
    —Impairment (gain)/loss on trade receivables  (268)  132 
    —Share-based payments expense  10,469   19,222 
    —Movements in provisions  2,797   — 
    —Finance (income) and expenses, net  13,508   (2,984)
    —Income tax expense/(benefit)  1,739   (4,153)
    —Loss/(gain) on disposal of property, plant and equipment  237   (682)
    —Other  (815)  (227)
    Interest received  2,317   1,346 
    Interest paid  (7,657)  (6,076)
    Income tax paid  (12,191)  (1,042)
    Changes in working capital:      
    —Decrease/(increase) in inventories  2,371   (23,308)
    —Increase in trade receivables, other current receivables, prepaid expenses  (1,934)  (10,356)
    —Increase in trade payables, other current liabilities, accrued expenses  6,327   29,529 
    Net cash flows used in operating activities  (113,090)  (127,276)
    Investing activities      
    Purchase of intangible assets  (1,569)  (2,558)
    Purchase of property, plant and equipment  (39,465)  (111,264)
    Investments in financial assets  (1,651)  — 
    Proceeds from sale of assets held for sale  43,998   — 
    Proceeds from short-term investments  —   148,269 
    Net cash flows from investing activities  1,313   34,447 
    Financing activities      
    Proceeds from Convertible Notes  324,950   — 
    Proceeds from liabilities to credit institutions  176,956   — 
    Repayment of liabilities to credit institutions  (97,680)  (1,032)
    Payment of loan transaction cost  (31,815)  — 
    Repayment of lease liabilities  (5,102)  (5,846)
    Cash flows from/(used in) financing activities  367,309   (6,878)
    Net increase/(decrease) in cash and cash equivalents  255,532   (99,707)
    Cash and cash equivalents at the beginning of the period  82,644   295,572 
    Exchange rate differences in cash and cash equivalents  2,554   (13,664)
    Cash and cash equivalents at the end of the period  340,730   182,201 


    Non-IFRS Financial Measures – Reconciliation

    (Unaudited) Three months ended June 30,  Six months ended June 30, 
    (in thousands of U.S. dollars) 2023  2022  2023  2022 
    Loss for the period, attributable to shareholders of the parent  (86,719)  (71,990)  (162,296)  (159,449)
    Income tax (benefit)/expense  (273)  (3,032)  1,739   (4,153)
    Finance (income) and expenses, net  11,512   593   13,508   (2,984)
    Depreciation and amortization expense  12,464   11,877   24,697   22,608 
    EBITDA  (63,016)  (62,552)  (122,352)  (143,978)
    Share-based compensation expense  2,422   9,185   10,469   19,222 
    Restructuring costs(1)  7,972   —   9,167   — 
    Costs related to the YYF Transaction(2)  154   —   375   — 
    Adjusted EBITDA  (52,468)  (53,367)  (102,341)  (124,756)

    (1) Relates primarily to severance payments as the Company continues to adjust its organizational structure to the current macro environment.
    (2) Relates to the close of the Ya Ya Foods USA LLC Transaction.


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Oatly Group AB
+1 866-704-0391
investors@oatly.com
press.us@oatly.com

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