Oatly Group AB (NASDAQ:OTLY) reported modest revenue growth in the second quarter, with sales rising 3.0% year-over-year to $208.4 million. The gains were driven by strong performance in Europe, which helped offset declines in North America and Greater China.
Following the announcement, Oatly shares edged up 1.12% in pre-market trading.
The plant-based beverage maker posted an adjusted EBITDA loss of $3.6 million, representing a $7.4 million improvement compared to the same period last year. However, the company’s net loss widened to $55.9 million from $30.4 million, mainly due to fair value losses on convertible notes.
Oatly’s gross margin improved to 32.5%, up 3.3 percentage points from a year ago, supported by continued supply chain efficiencies, particularly in the Europe & International division.
“In the first half of the year, we made good progress on our 2025 priorities,” said Jean-Christophe Flatin, Oatly’s CEO. “We continue to drive cost efficiencies in our supply chain and overhead structure, and our disciplined execution of our growth playbook has seen success in our Europe & International segment, where we are seeing top line momentum.”
Revenue in the Europe & International segment grew 12.0% to $118.2 million, supported by 9.4% volume growth. By contrast, sales in North America declined 6.8% to $63.2 million, reflecting lower sales to Oatly’s largest foodservice customer. Revenue in Greater China also fell 6.4% to $27.0 million amid continued macroeconomic pressure.
In response to ongoing challenges in China, the company has launched a strategic review of its Greater China operations, which may include a potential carve-out to unlock growth opportunities and enhance shareholder value.
While maintaining its adjusted EBITDA guidance of $5 million to $15 million, Oatly cut its full-year revenue outlook. The company now expects constant currency revenue growth to be roughly flat to +1% in 2025, down from its earlier projection of +2% to +4%.
Capital expenditures for the year have also been revised downward to approximately $20 million, compared to previous guidance of $30 million to $35 million.
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