Oatly revenues jump 53% as appetite for dairy alternatives rises

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Oatly updates

Oatly, the Swedish oat milk maker which floated in New York in May, reported a 53 per cent rise in second-quarter revenues as it benefited from the dairy alternative boom and forecast full-year sales ahead of expectations.

The plant milk company said on Monday it expected full-year revenues of more than $690m for 2021. This would be a 64 per cent increase from the previous year and above analyst forecasts of $681m, according to Refinitiv data.

Revenues for the three months to June rose to $146.2m, helped by a 43 per cent increase in production volumes to 106m litres.

Toni Petersson, Oatly’s chief executive, described 2021 as “the most transformational year”, while announcing investments to increase production capacity at its plant in Utah in the second half.

The company raised $1.4bn in its Nasdaq IPO, valuing it at $10bn, and Petersson confirmed that the company’s second plant in Asia was on track to open later this year, adding: “Our new and existing production capacity gives us confidence in our ability to achieve an accelerated revenue growth rate in the second half of this year.”

However increased logistics costs in Europe and the Americas, as well as higher container rates for shipments to Asia, ate into its quarterly gross profit margin, taking it to 26 per cent from 32 per cent.

Oatly said changes in its regional, channel and customer mix and a negative foreign exchange effect also affected margins.

Shares were at $17.13 in pre-market trading.

The plant milk company’s American Depositary Shares, which had been hit by a report from hedge fund Spruce Point in June questioning its environmental credentials and financial accounting, last week fell below its IPO price of $17 a share from a high of $29.

Oatly said that it “rejects all these false claims by the short seller and stands behind all activities and financial reporting”.

The company faced another setback earlier this month when it lost its trademark infringement case against a UK family farm over its PureOaty drink.

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