Q1 2026 Oatly Group AB (publ) Earnings Call Transcript
Key Points
- Oatly Group AB (OTLY) reported a 15.6% increase in revenue for Q1 2026, with an 8.1% growth in constant currency.
- The company's gross margin improved by 188 basis points to 33.4%, indicating better cost management and efficiency.
- Adjusted EBITDA turned positive at $5 million, marking an $8.7 million improvement compared to the previous year.
- Oatly Group AB (OTLY) is seeing strong growth in Europe and International markets, with a 14.5% increase in constant currency sales.
- The company is successfully expanding its market share in North America, with a 12.3% growth in the segment excluding its largest foodservice customer.
- Oatly Group AB (OTLY) reported a negative free cash flow of $11.7 million for the quarter, despite an improvement from the previous year.
- The company faces cost pressures due to the Middle East conflict, particularly in shipping, logistics, and packaging costs.
- North America's segment adjusted EBITDA decreased by $0.5 million, driven by higher costs of goods sold related to increased freight and warehousing costs.
- Greater China saw a decline in constant currency revenue by 6.4%, attributed to strong competition in the out-of-home channel.
- Oatly Group AB (OTLY) expects adjusted EBITDA for the full year to be at the low end of the $25 million to $35 million range due to ongoing cost challenges.
Hello, and welcome to Oatly's first quarter 2026 earnings conference call. (Operator Instructions) Please note that today's call is being recorded, and I'll be standing by should you need any assistance.
It is now my pleasure to turn the meeting over to Blake Mueller. Please go ahead, sir.
Good morning, and thank you for joining us today. On today's call are our Chief Executive Officer, Jean-Christophe Lamotte; our Global President and Chief Operating Officer, Jean-Christophe Lamotte; and our Chief Financial Officer, Marie-José David.
Please review the cautionary statement regarding forward-looking statements and other disclaimers on slide 3, which are integrated into this presentation and include the Q&A that follows. Please refer to the documents we have filed with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.
Also, on today's call, management will refer to certain non-IFRS financial measures
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