Oatly Group (NASDAQ:OTLY) Announces Quarterly Earnings Results

Key Points

• Oatly beat expectations with EPS of ($0.38) versus ($0.90) forecast and revenue of $228.3M (+15.6% y/y; 8.1% constant currency), while gross margin improved to 33.4% and Adjusted EBITDA rose to SEK 5M, driven by stronger performance in Europe and North America (U.S. oat market share >30%).
• Management cautioned that higher fuel, shipping and packaging costs tied to the Middle East conflict will likely weaken Q2 and push Adjusted EBITDA toward the low end of the SEK 25–35M range, and the company is conducting a strategic review of its Greater China business while not expecting full‑year positive free cash flow.
• Shares fell to $10.82 on the news; the consensus analyst rating is Hold with a $14.11 price target, and roughly 68% of the stock is held by institutional investors.

Oatly Group (NASDAQ:OTLY - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($0.38) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.90) by $0.52, Zacks reports. The company had revenue of $228.33 million for the quarter, compared to analysts' expectations of $214.61 million. Oatly Group had a negative net margin of 17.71% and a negative return on equity of 236.71%.

Here are the key takeaways from Oatly Group's conference call:

• Q1 results showed a stronger quarter on both top- and bottom-line — revenue +15.6% (8.1% constant currency), gross margin 33.4% (↑188 bps), and Adjusted EBITDA SEK 5M (SEK 8.7M improvement vs. prior year).
• Management says the refreshed growth playbook is gaining traction — particularly in Europe and increasingly in North America — driven by beverage-focused innovation (new Barista flavors, Cold Foam), digital-first brand work, and rising retail/out‑of‑home distribution (U.S. oat market share >30%).
• The Middle East conflict has pushed up fuel, shipping and packaging costs since March, and Oatly now expects Q2 weakness and Adjusted EBITDA toward the low end of the SEK 25–35M range despite some hedges and efficiency offsets.
• Oatly is conducting a strategic review of its Greater China business (including a possible carve‑out) after China revenue declined 6.4% CC, with retail growing but out‑of‑home under pressure.
• Free cash flow improved to a negative SEK 11.7M (SEK 8.8M better y/y) and the business plan is fully funded, but the company does not expect full‑year positive FCF; CapEx guidance remains SEK 20–30M.

Oatly Group Price Performance

NASDAQ OTLY traded down $1.20 during trading hours on Thursday, reaching $10.82. The company's stock had a trading volume of 117,049 shares, compared to its average volume of 70,288. The stock has a market cap of $337.85 million, a PE ratio of -2.11 and a beta of 1.94. Oatly Group has a fifty-two week low of $9.26 and a fifty-two week high of $18.84. The company's 50-day moving average is $11.29 and its two-hundred day moving average is $12.00. The company has a debt-to-equity ratio of 10.55, a quick ratio of 0.35 and a current ratio of 0.48.

Institutional Investors Weigh In On Oatly Group

Large investors have recently added to or reduced their stakes in the business. Van ECK Associates Corp grew its stake in Oatly Group by 19.0% in the 3rd quarter. Van ECK Associates Corp now owns 11,001 shares of the company's stock valued at $178,000 after acquiring an additional 1,756 shares during the last quarter. Geode Capital Management LLC acquired a new stake in Oatly Group in the 2nd quarter valued at about $151,000. Cubist Systematic Strategies LLC acquired a new stake in Oatly Group in the 1st quarter valued at about $133,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Oatly Group by 9.5% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 18,130 shares of the company's stock valued at $215,000 after acquiring an additional 1,568 shares during the last quarter. Finally, Millennium Management LLC acquired a new stake in Oatly Group in the 4th quarter valued at about $252,000. 68.15% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the stock. Morgan Stanley set a $12.55 price target on shares of Oatly Group in a research note on Thursday. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Oatly Group in a research note on Friday, March 27th. Finally, Barclays set a $14.00 price target on shares of Oatly Group and gave the stock an "overweight" rating in a research note on Tuesday, April 14th. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $14.11.

Oatly Group Company Profile

Oatly Group is a Sweden-based food and beverage company specializing in the development, production and sale of oat-derived dairy alternatives. The company’s product lineup includes oat-based drinks, ice cream, yogurts, spreads and cooking creams, all marketed under the Oatly brand name. By leveraging proprietary processing technology, Oatly extracts the nutritional benefits of oats—such as soluble fiber and plant protein—while delivering taste and texture profiles that closely mimic traditional dairy products.

Founded in 1994 as a spin-off from research at Lund University, Oatly initially focused on exploiting the health and functional benefits of oat beta-glucans.

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