Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the
world’s original and largest oat drink company, today announced
financial results for the first quarter ended March 31, 2023.
Toni Petersson, Oatly’s CEO, commented, “We
delivered a solid start to the year, with an acceleration of
growth, sequential gross margin expansion, and an improvement in
profitability. Importantly, the supply chain has continued to
perform well. This strong supply chain performance has enabled us
to make progress against our 2023 priorities and start playing
offense again.”
Petersson continued, “Looking ahead, we remain
focused on our 2023 priorities of accelerating top line growth,
continuous improvement in the supply chain, and driving towards
positive adjusted EBITDA in 2024. In the upcoming quarters, we plan
to increase our investments in exciting demand-generating
initiatives to ensure that we maintain our momentum in the
marketplace. Given our solid first quarter performance and our
expectations for continued momentum, we are reiterating our 2023
guidance.”
The table below reconciles revenue as reported
to revenue on a constant currency basis by segment for the three
months ended March 31, 2023.
|
|
Three months endedMarch 31, |
|
|
$ Change |
|
|
% Change |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Asreported |
|
|
Foreignexchangeimpact |
|
Inconstantcurrency |
|
|
Asreported |
|
|
Inconstantcurrency |
|
|
Volume |
|
|
Constantcurrencyprice/mix |
|
EMEA |
|
98,216 |
|
|
90,483 |
|
|
98,216 |
|
|
7,495 |
|
105,711 |
|
|
8.5 |
% |
|
16.8 |
% |
|
6.4 |
% |
|
10.4 |
% |
Americas |
|
64,041 |
|
|
47,017 |
|
|
64,041 |
|
|
— |
|
64,041 |
|
|
36.2 |
% |
|
36.2 |
% |
|
6.5 |
% |
|
29.7 |
% |
Asia |
|
33,388 |
|
|
28,686 |
|
|
33,388 |
|
|
2,118 |
|
35,506 |
|
|
16.4 |
% |
|
23.8 |
% |
|
23.0 |
% |
|
0.8 |
% |
Total revenue |
|
195,645 |
|
|
166,186 |
|
|
195,645 |
|
|
9,613 |
|
205,258 |
|
|
17.7 |
% |
|
23.5 |
% |
|
8.7 |
% |
|
14.8 |
% |
Recent Highlights
- Revenue of $195.6 million, a 17.7%
increase compared to the prior year period, on a constant currency
basis, revenue increased 23.5%.
- Gross margin in the quarter was
17.4% an increase of 790 basis points compared to the prior year
period and 150 basis points compared to the fourth quarter of
2022.
- Net loss attributable to
shareholders of the parent was $75.6 million compared to net loss
of $87.5 million in the prior year period.
- EBITDA loss of $59.3 million;
adjusted EBITDA loss of $49.9 million, which is an improvement of
$21.5 million compared to the prior year period and an improvement
of $10.6 million compared to the fourth quarter of 2022.
- Reiterating fiscal 2023 guidance
for each metric.
- Subsequent to quarter-end, the
Company completed its previously-announced $430 million financing
and completed the amendment and restatement of the Sustainable
Revolving Credit Facility Agreement.
- Subsequent to quarter end, the
Company entered into an agreement with an affiliate of Hillhouse
Investment Management Ltd. to raise an additional $35 million
through the sale of convertible notes, pending shareholder approval
and consents under certain of the Company's financing
arrangements.
First Quarter 2023 Results
Revenue increased $29.5 million, or 17.7%, to
$195.6 million for the first quarter ended March 31, 2023,
compared to $166.2 million for the first quarter ended
March 31, 2022. Excluding a foreign currency exchange headwind
of $9.6 million, revenue for the first quarter was $205.3 million,
or an increase of 23.5%, using constant exchange rates. The revenue
increase was driven by continued sold volume growth for the
Company’s products across the three segments, in addition to price
increases implemented in EMEA primarily during the first quarter of
2023 and the Americas in the third quarter of 2022. Sold volume for
the first quarter of 2023 amounted to 128 million liters compared
to 118 million liters last year. Produced finished goods volume for
the first quarter of 2023 amounted to 122 million liters compared
to 121 million liters for the same period last year.
The Company continued to experience revenue
growth across the retail and foodservice channels in the first
quarter of 2023.
Gross profit was $34.1 million for the first
quarter of 2023 compared to $15.8 million for the first quarter of
2022 and $31.1 million for the fourth quarter of 2022. The gross
profit margin increase of 150 basis points in the first quarter of
2023 compared to the fourth quarter of 2022 was primarily from
pricing actions in EMEA and improved customer and channel mix,
which were partially offset by lower utilization of the Asia
facilities as well as higher cost of production due to our planned
co-packer consolidation activities in the Americas.
Research and development expenses in the first
quarter of 2023 increased $1.5 million to $5.7 million compared to
$4.3 million in the prior year period.
Selling, general and administrative expenses in
the first quarter of 2023 decreased $5.2 million to $98.9 million
compared to $104.1 million in the prior year period. The decrease
was primarily due to a decrease of $3.9 million in branding,
advertising and marketing expenses, $2.6 million in customer
distribution costs, $2.5 million in external consultants, legal
contractor and other professional fees, and $1.2 million in other
related selling costs and third-party consultancy fees, which was
offset by an increase of $5.2 million in employee related expenses
driven by higher headcount as well as restructuring costs of $1.2
million.
Other operating income and expenses, net for the
first quarter of 2023 decreased to an expense of $1.1 million
compared to income of $0.3 million in the prior year period,
comprised primarily of a net foreign exchange loss.
Net loss attributable to shareholders of the
parent was $75.6 million for the first quarter of 2023 compared to
net loss of $87.5 million in the prior year period.
EBITDA loss for the first quarter of 2023 was
$59.3 million, compared to an EBITDA loss of $81.4 million in the
first quarter of 2022. The decrease in EBITDA loss was primarily a
result of higher gross profit.
Adjusted EBITDA loss for the first quarter of
2023 was $49.9 million, compared to a loss of $71.4 million in the
first quarter of 2022. The decrease in Adjusted EBITDA was
primarily related to higher gross profit.
EBITDA, Adjusted EBITDA (Loss), and Constant
currency revenue are non-IFRS financial measures defined under
“Non-IFRS financial measures.” Please see above revenue at constant
currency table and “Reconciliation of IFRS to Non-IFRS Results” at
the end of this press release.
The following tables set forth revenue, Adjusted
EBITDA, EBITDA and loss before income tax for the Company's three
reportable segments for the periods presented.
Revenue, Adjusted EBITDA and EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2023 (in
thousands of U.S. dollars) |
|
EMEA |
|
|
Americas |
|
|
Asia |
|
|
Corporate* |
|
|
Eliminations** |
|
|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
98,216 |
|
|
64,041 |
|
|
33,388 |
|
|
— |
|
|
— |
|
|
195,645 |
|
Intersegment revenue |
|
851 |
|
|
— |
|
|
1,440 |
|
|
— |
|
|
(2,291 |
) |
|
— |
|
Total segment revenue |
|
99,067 |
|
|
64,041 |
|
|
34,828 |
|
|
— |
|
|
(2,291 |
) |
|
195,645 |
|
Adjusted EBITDA |
|
6,584 |
|
|
(10,306 |
) |
|
(16,716 |
) |
|
(29,435 |
) |
|
— |
|
|
(49,873 |
) |
Share-based compensation expense |
|
(1,022 |
) |
|
(1,044 |
) |
|
(1,411 |
) |
|
(4,570 |
) |
|
— |
|
|
(8,047 |
) |
Restructuring costs(1) |
|
(1,008 |
) |
|
(187 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1,195 |
) |
Cost related to the YYF transaction(2) |
|
— |
|
|
(221 |
) |
|
— |
|
|
— |
|
|
|
|
|
(221 |
) |
EBITDA |
|
4,554 |
|
|
(11,758 |
) |
|
(18,127 |
) |
|
(34,005 |
) |
|
— |
|
|
(59,336 |
) |
Finance income and (expenses), net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,996 |
) |
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(12,233 |
) |
Loss before income tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(73,565 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2022(in
thousands of U.S. dollars) |
|
EMEA |
|
|
Americas |
|
|
Asia |
|
|
Corporate* |
|
|
Eliminations** |
|
|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
90,483 |
|
|
47,017 |
|
|
28,686 |
|
|
— |
|
|
— |
|
|
166,186 |
|
Intersegment revenue |
|
15,046 |
|
|
572 |
|
|
— |
|
|
— |
|
|
(15,618 |
) |
|
— |
|
Total segment revenue |
|
105,529 |
|
|
47,589 |
|
|
28,686 |
|
|
— |
|
|
(15,618 |
) |
|
166,186 |
|
Adjusted EBITDA |
|
(5,856 |
) |
|
(22,013 |
) |
|
(14,967 |
) |
|
(28,553 |
) |
|
— |
|
|
(71,389 |
) |
Share-based compensation expense |
|
(1,584 |
) |
|
(1,292 |
) |
|
(1,949 |
) |
|
(5,212 |
) |
|
— |
|
|
(10,037 |
) |
EBITDA |
|
(7,440 |
) |
|
(23,305 |
) |
|
(16,916 |
) |
|
(33,765 |
) |
|
— |
|
|
(81,426 |
) |
Finance income and (expenses), net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,577 |
|
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(10,731 |
) |
Loss before income tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(88,580 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________
* Corporate consists of general overhead costs
not allocated to the segments. ** Eliminations in 2023 refer to
intersegment revenue for sales of products from EMEA to Asia and
from Asia to EMEA. Eliminations in 2022 refer to intersegment
revenue for sales of products from EMEA to Asia and from the
Americas to Asia.
(1) Relates to severance payments as the Company reviews its
organizational structure.(2) Relates to the close of the Ya Ya
Foods USA LLC transaction.
EMEA
EMEA revenue increased $7.7 million, or 8.5%, to
$98.2 million for the first quarter of 2023, compared to $90.5
million in the prior year period. Excluding a significant foreign
currency exchange headwind of $7.5 million, EMEA revenue for the
first quarter was $105.7 million, or an increase of 16.8%, using
constant exchange rates. This increase using constant exchange
rates was primarily driven by growth in oat drink product
offerings. Approximately 84% of EMEA revenue was from the retail
channel for the first quarter of 2023. The sold finished goods
volume for the three months ended March 31, 2023 and 2022
amounted to 73 million and 69 million liters, respectively.
EMEA EBITDA increased $12.0 million to a profit
of $4.6 million for the first quarter of 2023 compared to a loss of
$7.4 million in the prior year period. This increase in EMEA EBITDA
was primarily due to higher gross profit but also lower operating
expenses, primarily driven by lower branding and advertising
expense. Adjusted EMEA EBITDA, which excluded restructuring costs
of $1.0 million and recurring share-based compensation expense of
$1.0 million, was a profit of $6.6 million compared to a loss of
$5.9 million in the prior year period.
Americas
Americas revenue increased $17.0 million, or
36.2%, to $64.0 million for the first quarter of 2023, compared to
$47.0 million in the prior year period. This increase was primarily
due to price increases across all customers and channels during the
third quarter coupled with sold volume growth of 6.5 percentage
points across oat drink product offerings. Approximately 52% of
Americas revenue was from the retail channel in the first quarter
of 2023. The sold finished goods volume for the three months ended
March 31, 2023 and 2022 amounted to 35 million and 33 million
liters, respectively.
Americas EBITDA loss decreased $11.5 million to
a loss of $11.8 million for the first quarter of 2023 compared to a
loss of $23.3 million in the prior year period. primarily due to
higher gross profit as the first quarter of 2022 was impacted by
COVID-19 related factors. Adjusted Americas EBITDA, which excluded
recurring share-based compensation expense of $1.0 million, was a
loss of $10.3 million compared to a loss of $22.0 million in the
prior year period.
Asia
Asia revenue increased $4.7 million, or 16.4%,
to $33.4 million for the first quarter of 2023, compared to $28.7
million in the prior year period. Excluding a foreign currency
exchange headwind of $2.1 million, Asia revenue for the first
quarter was $35.5 million, or an increase of 23.8%, using constant
exchange rates. The Asia segment was partially impacted by a
COVID-19 break-out early in the quarter, which impacted both demand
and our production in China during the first quarter of 2023.
Approximately 65% of Asia revenue was from the foodservice channel
for the first quarter of 2023. The sold finished goods volume for
the three months ended March 31, 2023 and 2022 amounted to 20
million and 16 million liters, respectively.
Asia EBITDA loss increased $1.2 million to a
loss of $18.1 million for the first quarter of 2023 compared to a
loss of $16.9 million in the prior year period. The increase in
Asia EBITDA loss was due to lower gross profit margin as our
capacity utilization was impacted by COVID-19 related factors in
China but also higher operating expenses. Adjusted Asia EBITDA,
which excluded recurring share-based compensation expense of $1.4
million, was a loss of $16.7 million compared to a loss of $15.0
million in the prior year period.
Corporate Expense
Oatly’s corporate expense, which consists of
general overhead costs not allocated to the segments, in the first
quarter of 2023 was $34.0 million, an increase of $0.2 million
compared to the prior year period.
Balance Sheet and Cash Flow
As of March 31, 2023, the Company had cash
and cash equivalents of $78.8 million, and total outstanding debt
to credit institutions of $105.5 million. Net cash used in
operating activities was $71.2 million for the three months ended
March 31, 2023, compared to $68.9 million during the prior
year period which was primarily driven by a loss from operations.
Capital expenditures were $27.1 million compared to $53.3 million
in the prior year period and, in addition, proceeds from the sale
of assets related to the YYF transaction was $44.0 million for the
three months ended March 31, 2023. Net cash from financing
activities was $48.8 million reflecting primarily another drawdown
under our revolving credit facility during the quarter.
On March 23, 2023 and April 18, 2023 the Company
completed two substantially similar issuances resulting in $300
million in aggregate principal amount of convertible notes (with an
original issuance discount of 3%) (the “U.S. Notes” and “Swedish
Notes,” respectively). On April 18, 2023, the Company completed the
funding of its $130 million term loan B credit facility, and on
April 19, 2023, the Company consummated the amendment and
restatement of its Sustainable Revolving Credit Facility
Agreement.
On May 9, 2023 the Company entered into an
agreement with an affiliate of Hillhouse Investment Management Ltd.
("Hillhouse") to sell an additional $35 million in convertible
notes, resulting in approximately $34 million in financing after
reflecting an original issue discount of 3% (the “HH Notes”). The
economic terms of the HH Notes are substantially identical to the
economic terms of the U.S. Notes as part of the
previously-mentioned financing, except (i) that the HH Notes are
convertible at Hillhouse’s option at an initial conversion price of
$2.52 per American Depositary Share (“ADS”), representing an
approximate 17% premium to the last reported sale price of Oatly’s
ADSs on the Nasdaq Global Market on May 8, 2023, and (ii) with
respect to the specified prices in connection with the conversion
rate resets of the HH Notes. In addition, on May 9, 2023, one of
the existing holders of Swedish Notes and an affiliate of one
of the Company's shareholders, Verlinvest S.A. (“Verlinvest”),
agreed to sell and Hillhouse agreed to purchase from Verlinvest $15
million aggregate principal amount of Swedish Notes (the
“Resale Notes”). The purchase and sale of the HH Notes and the
Resale Notes are expected to close no later than May 31, 2023,
subject to receipt of shareholder approval, consents under certain
of the Company’s financing arrangements, and the satisfaction or
waiver of customary closing conditions.
Outlook
The Company’s outlook continues to assume
reasonable containment of COVID-19 related infection rates
globally, including no further major lockdowns in Asia, and does
not reflect any additional deterioration in the European macro
environment, or any significant changes in the geopolitical impact
of the current war in Ukraine. Based on the Company’s assessment of
the current operating environment, including inflation, interest
rates, and the impact on consumer behavior, the Company is
reiterating its guidance for the full year ending December 31,
2023:
- Revenue growth of 23% to 28% on a constant currency basis
compared to full year 2022,
- Gross margin to improve sequentially quarter-over-quarter in
fiscal 2023, reaching the high-20%s in the fourth quarter,
- Capital expenditures between $180 million and $200
million.
The Company continues to believe this progress
will enable it to deliver positive adjusted EBITDA for the fiscal
year 2024.
The Company cannot provide a reconciliation of
Adjusted EBITDA or Adjusted EBITDA margin guidance to the nearest
comparable corresponding IFRS metric without unreasonable efforts
due to difficulty in predicting certain items excluded from this
non-IFRS measure. The items necessary to reconcile are not within
Oatly’s control, may vary greatly between periods and could
significantly impact future financial results.
Conference Call, Webcast and
Supplemental Presentation Details
Oatly will host a conference call and webcast at
8:30 a.m. ET today to discuss these results. The conference call,
simultaneous, live webcast and supplemental presentation can be
accessed on Oatly’s Investors website at
https://investors.oatly.com under “Events.” The webcast will be
archived for 30 days.
About Oatly
We are the world’s original and largest oat
drink company. For over 25 years, we have exclusively focused on
developing expertise around oats: a global power crop with inherent
properties suited for sustainability and human health. Our
commitment to oats has resulted in core technical advancements that
enabled us to unlock the breadth of the dairy portfolio, including
alternatives to milks, ice cream, yogurt, cooking creams, and
spreads. Headquartered in Malmö, Sweden, the Oatly brand is
available in more than 20 countries globally.
For more information, please visit
www.oatly.com
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Any express or implied statements contained in
this press release that are not statements of historical fact may
be deemed to be forward-looking statements, including, without
limitation, statements regarding our financial outlook for 2023 and
long-term growth strategy, anticipated supply chain performance,
and the closing of the convertible notes offering, as well as
statements that include the words “expect,” “intend,” “plan,”
“believe,” “project,” “forecast,” “estimate,” “may,” “should,”
“anticipate,” “will,” “aim,” “potential,” “continue,” “is/are
likely to” and similar statements of a future or forward-looking
nature. Forward-looking statements are neither promises nor
guarantees, but involve known and unknown risks and uncertainties
that could cause actual results to differ materially from those
projected, including, without limitation: our history of losses and
inability to achieve or sustain profitability; including due to
elevated inflation and increased costs for transportation, energy
and materials; the impact of the COVID-19 pandemic, including the
spread of variants of the virus, on our business and the
international economy; reduced or limited availability of oats or
other raw materials and ingredients that meet our quality
standards; failure to successfully achieve any or all of the
benefits of the Ya Ya Foods USA LLC transaction; failure to obtain
additional financing to achieve our goals or failure to obtain
necessary capital when needed on acceptable terms, or at all;
failure of the financial institutions in which we hold our
deposits; damage or disruption to our production facilities; harm
to our brand and reputation as a result of real or perceived
quality or food safety issues with our products; food safety and
food-borne illness incidents or other safety concerns which may
lead to lawsuits, product recalls or regulatory enforcement
actions; our ability to successfully compete in our highly
competitive markets; reduction in the sales of our oatmilk
varieties; failure to effectively expand our processing,
manufacturing and production capacity, or failure to find
acceptable co-packing partners to help us expand, as we continue to
grow and scale our business; our ability to ramp up operations at
any of our new facilities; failure to meet our existing or new
environmental metrics and other risks related to sustainability and
corporate social responsibility; litigation, regulatory actions or
other legal proceedings including environmental and securities
class action lawsuits; changes to international trade policies,
treaties and tariffs; global conflict and the ongoing war in
Ukraine; changes in our tax rates or exposure to additional tax
liabilities or assessments; failure to expand our manufacturing and
production capacity as we grow our business; supply chain delays,
including delays in the receipt of product at factories and ports,
and an increase in transportation costs; the impact of rising
commodity prices, transportation and labor costs on our cost of
goods sold; failure by our logistics providers to deliver our
products on time, or at all; our ability to successfully ramp up
operations at any of our new facilities and operate them in
accordance with our expectations; failure to develop and maintain
our brand; our ability to introduce new products or successfully
improve existing products; failure to retain our senior management
or to attract, train and retain employees; cybersecurity incidents
or other technology disruptions; failure to protect our
intellectual property and other proprietary rights adequately; our
ability to successfully remediate previously disclosed material
weaknesses (which remained unremediated as of our most recent
fiscal year end) or other future control deficiencies, in our
internal control over financial reporting; our status as a foreign
private issuer; risks related to the significant influence of our
largest shareholder, Nativus Company Limited, entities affiliated
with China Resources Verlinvest Health Investment Ltd. has over us,
including significant influence over decisions that require the
approval of shareholders; and the other important factors discussed
under the caption “Risk Factors” in our Annual Report on Form 20-F
for the year ended December 31, 2022 filed with the U.S. Securities
and Exchange Commission (“SEC”) on April 19, 2023, and our other
filings with the SEC as such factors may be updated from time to
time. Any forward-looking statements contained in this press
release speak only as of the date hereof and accordingly undue
reliance should not be placed on such statements. Oatly disclaims
any obligation or undertaking to update or revise any
forward-looking statements contained in this press release, whether
as a result of new information, future events or otherwise, other
than to the extent required by applicable law.
Non-IFRS Financial Measures
We use EBITDA, Adjusted EBITDA and Constant
Currency Revenue as non-IFRS financial measures in assessing our
operating performance and in our financial communications:
“EBITDA” is defined as loss for the period
attributable to shareholders of the parent adjusted to exclude,
when applicable, income tax expense, finance expenses, finance
income and depreciation and amortization expense.
“Adjusted EBITDA” is defined as loss for the
period attributable to shareholders of the parent adjusted to
exclude, when applicable, income tax expense, finance expenses,
finance income, depreciation and amortization expense, share-based
compensation expense, restructuring costs, asset impairment charge
and other costs related to assets held for sale.
“Constant Currency Revenue” is calculated by
translating the current year reported revenue amounts into
comparable amounts using the prior year reporting period’s average
foreign exchange rates which have been provided by a third
party.
Adjusted EBITDA should not be considered as an
alternative to loss for the period or any other measure of
financial performance calculated and presented in accordance with
IFRS. There are a number of limitations related to the use of
Adjusted EBITDA rather than loss for the period attributable to
shareholders of the parent, which is the most directly comparable
IFRS measure. Some of these limitations are:
- Adjusted EBITDA excludes
depreciation and amortization expense and, although these are
non-cash expenses, the assets being depreciated may have to be
replaced in the future increasing our cash requirements;
- Adjusted EBITDA does not reflect
interest expense, or the cash required to service our debt, which
reduces cash available to us;
- Adjusted EBITDA does not reflect
income tax payments that reduce cash available to us;
- Adjusted EBITDA does not reflect
recurring share-based compensation expense and, therefore, does not
include all of our compensation costs;
- Adjusted EBITDA does not reflect
restructuring costs that reduce cash available to us in future
periods;
- Adjusted EBITDA excludes asset
impairment charge and other costs related to assets held for sale,
although these are non-cash expenses, the assets being impaired may
have to be replaced in the future increasing our cash requirements;
and
- Other companies, including
companies in our industry, may calculate Adjusted EBITDA
differently, which reduces its usefulness as a comparative
measure.
Adjusted EBITDA should not be considered in
isolation or as a substitute for financial information provided in
accordance with IFRS. Below we have provided a reconciliation of
EBITDA and Adjusted EBITDA to loss attributable to shareholders of
the parent, the most directly comparable financial measure
calculated and presented in accordance with IFRS, for the periods
presented.
We use constant currency information to provide
a framework in assessing how our business and geographic segments
performed excluding the effects of foreign currency exchange rate
fluctuations and believe this information is useful to investors to
facilitate comparisons and better identify trends in our business.
Above we have provided a reconciliation of revenue as reported to
revenue on a constant currency basis for the periods presented.
Financial Statements
Interim condensed consolidated statement
of operations
(Unaudited) |
|
Three months ended March 31, |
|
(in thousands of U.S. dollars, except share and per share
data) |
|
2023 |
|
|
2022 |
|
Revenue |
|
195,645 |
|
|
166,186 |
|
Cost of goods sold |
|
(161,557 |
) |
|
(150,338 |
) |
Gross profit |
|
34,088 |
|
|
15,848 |
|
Research and development expenses |
|
(5,714 |
) |
|
(4,264 |
) |
Selling, general and administrative expenses |
|
(98,855 |
) |
|
(104,073 |
) |
Other operating income and (expenses), net |
|
(1,088 |
) |
|
332 |
|
Operating loss |
|
(71,569 |
) |
|
(92,157 |
) |
Finance income and (expenses), net |
|
(1,996 |
) |
|
3,577 |
|
Loss before tax |
|
(73,565 |
) |
|
(88,580 |
) |
Income tax (expense)/benefit |
|
(2,012 |
) |
|
1,121 |
|
Loss for the period attributable to shareholders of the
parent |
|
(75,577 |
) |
|
(87,459 |
) |
Loss per share, attributable to shareholders of the
parent: |
|
|
|
|
|
|
Basic and diluted |
|
(0.13 |
) |
|
(0.15 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
Basic and diluted |
|
592,319,923 |
|
|
591,777,001 |
|
Interim condensed consolidated statement
of financial position
(in thousands of U.S. dollars) |
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Intangible assets |
|
128,301 |
|
|
127,688 |
|
Property, plant and equipment |
|
505,930 |
|
|
492,952 |
|
Right-of-use assets |
|
113,257 |
|
|
108,598 |
|
Other non-current receivables |
|
44,382 |
|
|
7,848 |
|
Deferred tax assets |
|
3,637 |
|
|
5,860 |
|
Total non-current assets |
|
795,507 |
|
|
742,946 |
|
Current assets |
|
|
|
|
|
|
Inventories |
|
108,207 |
|
|
114,475 |
|
Trade receivables |
|
106,676 |
|
|
100,955 |
|
Current tax assets |
|
254 |
|
|
243 |
|
Other current receivables |
|
32,197 |
|
|
17,818 |
|
Prepaid expenses |
|
26,909 |
|
|
23,413 |
|
Cash and cash equivalents |
|
78,830 |
|
|
82,644 |
|
|
|
353,073 |
|
|
339,548 |
|
Assets held for sale |
|
— |
|
|
142,703 |
|
Total current assets |
|
353,073 |
|
|
482,251 |
|
TOTAL ASSETS |
|
1,148,580 |
|
|
1,225,197 |
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Share capital |
|
105 |
|
|
105 |
|
Treasury shares |
|
(0 |
) |
|
(0 |
) |
Other contributed capital |
|
1,628,045 |
|
|
1,628,045 |
|
Foreign currency translation reserve |
|
(164,130 |
) |
|
(171,483 |
) |
Accumulated deficit |
|
(733,054 |
) |
|
(665,524 |
) |
Total equity attributable to shareholders of the
parent |
|
730,966 |
|
|
791,143 |
|
Liabilities |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Lease liabilities |
|
88,191 |
|
|
82,285 |
|
Liabilities to credit institutions |
|
2,725 |
|
|
2,668 |
|
Deferred tax liabilities |
|
679 |
|
|
— |
|
Provisions |
|
7,422 |
|
|
7,194 |
|
Total non-current liabilities |
|
99,017 |
|
|
92,147 |
|
Current liabilities |
|
|
|
|
|
|
Lease liabilities |
|
14,949 |
|
|
16,823 |
|
Liabilities to credit institutions |
|
102,791 |
|
|
49,922 |
|
Trade payables |
|
66,912 |
|
|
82,516 |
|
Current tax liabilities |
|
3,713 |
|
|
5,515 |
|
Other current liabilities |
|
10,259 |
|
|
11,823 |
|
Accrued expenses |
|
117,746 |
|
|
123,037 |
|
Provisions |
|
2,227 |
|
|
3,800 |
|
|
|
318,597 |
|
|
293,436 |
|
Liabilities directly associated with the assets held for sale |
|
— |
|
|
48,471 |
|
Total current liabilities |
|
318,597 |
|
|
341,907 |
|
Total liabilities |
|
417,614 |
|
|
434,054 |
|
TOTAL EQUITY AND LIABILITIES |
|
1,148,580 |
|
|
1,225,197 |
|
Interim condensed consolidated statement
of cash flows
(Unaudited) |
|
For the three months ended March 31, |
|
(in thousands of U.S. dollars) |
|
2023 |
|
|
2022 |
|
Operating activities |
|
|
|
|
|
|
Net loss |
|
(75,577 |
) |
|
(87,459 |
) |
Adjustments to reconcile net loss to net cash flows |
|
|
|
|
|
|
—Depreciation of property, plant and equipment and right-of-use
assets andamortization of intangible assets |
|
12,233 |
|
|
10,731 |
|
—Write-downs of inventories |
|
3,468 |
|
|
2,024 |
|
—Impairment gain on trade receivables |
|
(342 |
) |
|
(207 |
) |
—Share-based payments expense |
|
8,047 |
|
|
10,037 |
|
—Movements in provisions |
|
(1,596 |
) |
|
— |
|
—Finance income and expenses, net |
|
1,996 |
|
|
(3,577 |
) |
—Income tax expense expense/(benefit) |
|
2,012 |
|
|
(1,121 |
) |
—Other |
|
(478 |
) |
|
8 |
|
Interest received |
|
346 |
|
|
668 |
|
Interest paid |
|
(3,752 |
) |
|
(3,067 |
) |
Income tax paid |
|
(1,031 |
) |
|
(476 |
) |
Changes in working capital: |
|
|
|
|
|
|
—Decrease/(increase) in inventories |
|
3,524 |
|
|
(6,271 |
) |
—(Increase)/decrease in trade receivables, other current
receivables, prepaid expenses |
|
(7,120 |
) |
|
8,903 |
|
—(Decrease)/increase in trade payables, other current liabilities,
accrued expenses |
|
(12,942 |
) |
|
869 |
|
Net cash flows used in operating activities |
|
(71,212 |
) |
|
(68,938 |
) |
Investing activities |
|
|
|
|
|
|
Purchase of intangible assets |
|
(983 |
) |
|
(1,435 |
) |
Purchase of property, plant and equipment |
|
(27,139 |
) |
|
(53,278 |
) |
Proceeds from sale of assets held for sale |
|
43,998 |
|
|
— |
|
Proceeds from short-term investments |
|
— |
|
|
53,266 |
|
Net cash flows from/(used) in investing
activities |
|
15,876 |
|
|
(1,447 |
) |
Financing activities |
|
|
|
|
|
|
Repayment of liabilities to credit institutions |
|
(339 |
) |
|
(528 |
) |
Proceeds from liabilities to credit institutions |
|
52,736 |
|
|
— |
|
Repayment of lease liabilities |
|
(3,592 |
) |
|
(3,637 |
) |
Net cash flows from/(used) in financing
activities |
|
48,805 |
|
|
(4,165 |
) |
Net increase in cash and cash equivalents |
|
(6,531 |
) |
|
(74,550 |
) |
Cash and cash equivalents at the beginning of the period |
|
82,644 |
|
|
295,572 |
|
Exchange rate differences in cash and cash equivalents |
|
2,717 |
|
|
(1,977 |
) |
Cash and cash equivalents at the end of the
period |
|
78,830 |
|
|
219,045 |
|
Non-IFRS Financial Measures –
Reconciliation
(Unaudited) |
|
Three months ended March 31, |
|
(in thousands of U.S. dollars) |
|
2023 |
|
|
2022 |
|
Loss for the period attributable to shareholders of the parent |
|
(75,577 |
) |
|
(87,459 |
) |
Income tax expense/(benefit) |
|
2,012 |
|
|
(1,121 |
) |
Finance (income) and expenses, net |
|
1,996 |
|
|
(3,577 |
) |
Depreciation and amortization expense |
|
12,233 |
|
|
10,731 |
|
EBITDA |
|
(59,336 |
) |
|
(81,426 |
) |
Share-based compensation expense |
|
8,047 |
|
|
10,037 |
|
Restructuring costs(1) |
|
1,195 |
|
|
— |
|
Costs related to the YYF transaction(2) |
|
221 |
|
|
— |
|
Adjusted EBITDA |
|
(49,873 |
) |
|
(71,389 |
) |
__________________
(1) Relates to severance payments as the Company reviews its
organizational structure.(2) Relates to the close of the Ya Ya
Foods USA LLC transaction.
Contacts
Oatly Group AB
+1 866-704-0391
investors@oatly.com
press.us@oatly.com
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