Swedish oat drink firm Oatly has achieved its first full yr of profitability, positioning the enterprise to speed up the execution of its development technique.
The corporate noticed a 4.3% year-on-year improve in income in fixed forex within the fourth quarter, to $233.8 million, whereas full-year income elevated by 2.2%, to $862.5 million.
Gross margin within the fourth quarter stood at 34.5%, which is 5.8 share factors larger in comparison with the year-ago interval.
Fourth-quarter adjusted EBITDA amounted to $11.0 million, which marks an enchancment of $17.1 million in comparison with the identical interval final yr.
Jean-Christophe Flatin, CEO of Oatly, commented, “We now have right-sized our provide chain and overhead construction whereas concurrently reinvesting behind our refreshed development technique. We’re seeing clear proof that our technique is working and driving influence, as we’re driving development in each market the place it’s absolutely deployed and seeing good early ends in the markets the place we’re nonetheless rolling out our playbook.
“We’re additionally seeing improved profitability and money move throughout the enterprise.”
Divisional Efficiency
Oatley’s Europe & Worldwide division noticed a 6.4% improve in income (fixed forex) in full-year 2025, whereas the North American unit registered a 9.1% decline.
The Better China phase registered development of 12.9% on this interval.
Fourth-quarter income within the Europe & Worldwide phase grew 14.2% in fixed forex, pushed by quantity development of 13.9%.
The retail channel accounted for about 79% of income within the Europe and Worldwide division through the quarter, in comparison with 81% within the year-ago interval.
Quarterly income in North America fell 8.8%, pushed by a lower in gross sales to its largest foodservice buyer.
The retail channel accounted for about 61% of income in North America, up from 48% within the prior yr interval.
In Better China, fixed forex income declined by 0.1% within the fourth quarter as a result of diminished gross sales within the foodservice phase. It was partially offset by development within the retail channel.
Outlook
Oatly expects fixed forex income development within the vary of three% to five% in its 2026 monetary yr.
Adjusted EBITDA is anticipated to be within the vary of $25 million to $35 million, whereas capital expenditures are anticipated to be within the vary of $20 million to $30 million.
Flatin added, “We all know that reaching our first full yr of profitability is a milestone, not our vacation spot. As we glance ahead, we anticipate to speed up our influence as we proceed to execute our development technique, drive incremental demand, and ship even stronger worthwhile development.
“We proceed to see vital potential forward of us, and we’re assured that we’re taking the suitable steps to drive sturdy, scalable, and worthwhile development as we execute on our mission.”
