Sweden-based oak milk producer Oatly Group (NASDAQ:OTLY) posted fourth-quarter revenue that beat expectations and announced $425 million in financing transactions, sending shares higher.
The company reported revenue of over $195 million in the quarter ended December 31, up about 5% year-over-year and ahead of Street expectations of $181.5 million. Oatly’s loss of $0.21 per share widened from $0.13 a year earlier and was worse than analyst projections of $0.14.
However, CEO Toni Petersson believes the company is on a path to profitability.
“Our supply chain is back on firmer footing, we have clear line of sight to reaching profitability, and we have the liquidity needed to fully fund our growth investments and reach financial self-sufficiency,” Petersson said in a statement. "Therefore, we believe we are well-positioned to start playing offense in 2023.”
Looking ahead, Oatly projects 23% to 28% constant currency revenue growth in 2023 and gross margin to sequentially improve up to the high 20s, percentage-wise, by the fourth quarter.
“We expect this focus to enable us to move along our path to profitability, set up fiscal 2024 for positive adjusted EBITDA, and drive sustainable, long-term shareholder value creation,” Petersson said.
Shares of Oatly were up nearly 3% to $2.18 Wednesday morning.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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