Oatly’s steady decline in value continued apace overnight after another set of disappointing numbers was accompanied by a warning that things aren’t getting better for the fancy milk maker.
While its oat milk-based ranges are loved by GenZers and hipsters generally, getting others to lap up its products has proved more problematic.
Losses in the final quarter of 2023 jumped to US$298m or more than double a year ago as the Swedish group booked hefty impairments for abandoning plans for manufacturing facilities in the UK, China and Texas.
Though higher than last year and ahead of forecasts, revenues still came in well short of the losses at US$204m against $195.1 million a year ago.
For the year, Oatly made losses of US$408m on sales of US$783m.
Having been valued at US$10bn when it was listed in 2017, the group’s market cap slipped to just US$800m overnight as the group warned it would post a loss in the current year as well.
Revenue this year is forecast to grow 5% to 10% in 2024 on a constant-currency basis with an adjusted [Ebitda] loss of between $35m to $60m.
Shares were trading at US$1.21 down 10% overnight.