The following is a summary of the Oatly Group AB (OTLY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Oatly Group reported a solid Q1 financial performance, with gross margins expanding nearly 1000 basis points YoY, owing to operational improvements.
Volume growth accelerated to 3% in Q1, while gross margin increased to 27%; significant improvement from the 11% in the full year of 2022.
They reported 1.2% constant currency revenue growth for Q1, indicating steady financial growth.
However, the adjusted EBITDA was reported at a loss of $13 million, and cash balance decreased by $14 million in the quarter.
The company expects 2024 constant currency revenue growth of 5% to 10% and projects adjusted EBITDA to be a loss between $35 million and $16 million.
Business Progress:
The company's strategic pillars for 2024 highlight expansion, resource calibration, and a strong focus on execution.
New strategic partnerships are driving better growth opportunities, and the company has made significant progress with its resource calibration efforts, including a reduction in SG&A fixed cost by $85 million.
The company expanded its partnership with China's largest coffee chain and launched products targeting specific economic factors in the Greater China region.
Oatly reported the international growth, particularly in Europe and North America, where they saw retail growth accelerating revenue to 5%.
In China, they are making progress with the second phase of their plan to maximize growth within a defined perimeter after completing the first phase of reset.
Their U.S. business reported close to 50% growth in total distribution points (TDPs), indicating progress in market penetration.
The CapEx guidance remains below $75 million for 2024 due in large part to a project in Southern Ireland.
More details: Oatly Group AB IR
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