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    Oatly Group (OTLY)

    Q2 2024 Earnings Summary

    Reported on Feb 18, 2025 (Before Market Open)
    Pre-Earnings Price$20.00Last close (Jul 23, 2024)
    Post-Earnings Price$22.00Open (Jul 24, 2024)
    Price Change
    $2.00(+10.00%)
    • Oatly is achieving triple-digit percentage growth in new European markets such as France, Spain, and Belgium, quickly becoming the #1 turning brand in these markets, which demonstrates the effectiveness of their expansion model across different market maturities.
    • Despite a generalized market slowdown in the foodservice sector, Oatly continues to see significant growth and a positive outlook in all three regions, indicating resilience and strong demand for their products.
    • The company has outperformed internal expectations in the first half of the year, delivering expected gains in distribution, making progress with new products, driving consumer trial, and is reinvesting in demand-generating activities to accelerate growth in the second half of the year and into 2025.
    • Oatly's performance in China shows a big deceleration in the second quarter , and the company is relying on growth from lower-priced segments, which may impact margins and pricing power. The new customer in China operates in the mid-priced tier segment, affecting the segment's price mix.
    • The generalized market slowdown in away-from-home consumption, such as coffee shops and foodservice, could pose a risk to Oatly's growth if it eventually affects them, despite management's claim that they are "not seeing such a slowdown".
    • The company's increased investments into demand-driving activities carry risk, as management acknowledges that the "unfavorable end of our EBITDA range now assumes that this investment would not bring the full return we saw in H1", suggesting potential pressure on earnings if these investments do not yield expected returns.

    Research analysts covering Oatly Group.