Oatly Shares Sour After Q4 Earnings Report, Despite Revenue Growth
Portfolio Pulse from Nabaparna Bhattacharya
Oatly Group AB (NASDAQ:OTLY) reported a Q4 loss per share of $(0.50), wider than the expected $(0.15), but surpassed revenue expectations with $204.12 million against a forecast of $191.34 million. Revenue grew by 4.6% year-over-year, with a slight increase in sold volume. The company improved its gross margin to 23.4% and reduced its adjusted EBITDA loss to $19.2 million. Despite these improvements, OTLY shares dropped 15.1% to $1.14. Oatly forecasts 5-10% revenue growth for 2024 with an adjusted EBITDA loss of $35-$60 million and capital expenditures below $75 million.
February 15, 2024 | 5:03 pm
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Oatly Group AB reported a Q4 loss wider than expected but exceeded revenue forecasts, leading to a 15.1% drop in share price to $1.14.
The wider-than-expected loss per share likely disappointed investors, overshadowing the revenue growth and leading to a significant drop in share price. The short-term impact is negative due to the immediate market reaction, but the company's positive outlook for 2024 and improved margins could offer some recovery potential.
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IMPORTANCE 90
RELEVANCE 100