Oatly (NASDAQ: OTLY) reported Q4 EPS of ($0.21), $0.07 worse than the analyst estimate of ($0.14). Revenue for the quarter came in at $195.1 million versus the consensus estimate of $180.4 million.

Outlook

The Company’s outlook assumes 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, rising interest rates, and the impact on consumer behavior, the Company expects the following for the full year ending December 31, 2023:

Revenue growth of 23% to 28% on a constant currency basis compared to full year 2022. The Company currently expects foreign currency to be a headwind of approximately 250 basis points for the year,
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 believes this progress will enable full year fiscal 2024 to deliver positive adjusted EBITDA.

Longer-term, the Company expects:

To generate gross profit margin in the range of 35% to 40%,
Adjusted EBITDA margin in the mid- to high-teens.

The Company cannot provide a reconciliation of Adjusted EBITDA or Adjusted EBITDA margin guidance to the 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.

For earnings history and earnings-related data on Oatly (OTLY) click here.