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Oatly Shares Drop on Lower-Than-Forecast Revenue

Oatly said that scale of production was partially offset, particularly in Ogden, Utah, by Covid Delta-variant led restrictions and temporary foodservice closures in Asia.

U.S.-listed shares of Oatly  (OTLY) - Get Oatly Report tumbled Monday after the oat milk producer reported fiscal third quarter revenue that missed analysts' forecast.

Shares of the Swedish plant based milk producer closed 20.81% lower  at $9.36.

For the third quarter ended Sept. 30, Oatly's net loss widened to 7 cents a share from 2 cents in the year ago period. Revenue rose 49% to $171 million from $114.6 million in the same period a year ago.

Analysts at FactSet estimated a loss of 10 cents a share on revenue of $185.57 million.

"Global consumer demand for our products continues to be strong and grow as we expand production and increasingly scale our operations. The robust third quarter revenue increase reflects broad-based growth across geographies and sales channels," said Chief Executive Toni Petersson in a statement.

Revenue from Americas rose 87.3% to $49.5 million from $26.4 million over the year-ago quarter.

The company added that rising production was partially offset, particularly in Ogden, Utah, by Covid Delta-variant led restrictions and temporary food service closures in Asia.

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Oatly focuses on developing oats: a global power crop with inherent properties suited for sustainability and human health. 

The firm's products aim to grow the plant-based movement and help people shift from traditional dairy to plant-based products. 

The company was founded by Björn Öste in 1994 and is headquartered in Malmö, Sweden.

For Europe, Middle East and Africa region, Oatly said the pace at which it expected to increase revenue with new and existing retailers and to open new markets was slower than anticipated due to Covid.

"We believe this is primarily a timing issue and in the first half of 2022, we expect to have an increased share of shelf space at retail given our strong velocities and current supply levels," said Petersson.

For fiscal year 2021, the company expects revenue to exceed $635 million.

"We may experience certain variability in our strong growth rates quarter-to-quarter," Petersson cautioned.