‘We continue to prioritize growth investments over profitability in the next few years…’

Speaking on Oatly’s Q2 earnings call after posting a $59.1m net loss on net revenues up 53% to $146m in the second quarter, CEO Toni Petersson said: “Global demand for Oatly products continued to outpace our supply, with capacity constraining our growth in the second quarter, and certain COVID-19 and start-up manufacturing headwinds impacted our revenue by approximately $12-14m.”

However, any losses in US market share flagged up in the recent report from activist investor Spruce Point Capital​ were likely “temporary,” ​he insisted.

Our brand is so strong, we are regaining every single time when we are off shelf and get back again because we are playing a different game than competitors.

“Having Ogden​ [its new plant in Utah] on board here producing commercial product brings a lot of confidence… going forward… Just improving our fill rates alone will generate substantial incremental revenue for our business.

‘Long term, we expect to generate gross margin greater than 40% [vs 26.4% in Q2, 2021]’

When it comes to gross margins, which were down to 26.4% in Q2, 2021, Oatly said it anticipated they would increase to 40%+ over [an unspecified amount of] time as the company produced more of its products in-house and built more localized manufacturing models.

In the first half of 2021, for example, self-manufacturing [where Oatly makes its own oat base and finished products onsite] accounted for “20% of Oatly’s total volumes compared to co-packing at 53%, and hybrid at 27% ​[in the hybrid model, Oatly transports its oat base through pipelines to an adjacent plant operated by a 3rd party partner for filling and mixing],” explained COO Peter Bergh.

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