The Swedish oatmilk manufacturer says its transition to an asset-light supply chain model and simplified cost structure will enable it to ‘start playing offense’ in 2023 ahead of forecasted profitability next year
Oatly expects to deliver positive adjusted EBITDA in 2024 | Photo credit: Oatly
Oatly has said it has a ‘clear line of sight to reaching profitability’ following steady 2022 sales and a transition to a more ‘asset-light’ supply chain.
The Swedish oatmilk manufacturer achieved 12% sales growth to reach $722m for the 12 months ended 31 December 2022.
Oatly reported strong revenue growth in the Americas and Asia, at 25% and 20% respectively.
Despite moderate sales growth of 3% in its EMEA segment, the region remains Oatly’s largest contributing market ($346m).
Following its fourth quarter, in which revenues grew 5% to $195m, Oatly partnered with Canadian packaging company Ya YA Foods to boost productivity and efficiency at its North American production facilities.
After several years of production capacity issues arising from surging demand, CEO Toni Petersson said Oatly is ‘back on firmer footing’ and now has ‘the liquidity needed to fully fund our growth investments’.
“I am proud of what the Oatly team accomplished in 2022. We took bold actions to strengthen our management team, transition our supply chain to a more asset-light model, and simplify our cost structure. Our supply chain is back on firmer footing, we have clear line of sight to reaching profitability, and we have the liquidity needed to fully fund our growth investments and reach financial self-sufficiency. Therefore, we believe we are well-positioned to start playing offense in 2023. Our teams will be focused on fully capturing the underlying global demand for our products while continuously improving our supply chain,” he said.
Taking into account inflation and rising interest rates, as well as its impact on consumer behaviour, Oatly is forecasting full-year revenue growth of 23-28% this year and sequential quarter-over-quarter gross margin growth to more than 25% in the fourth quarter of 2023.
Oatly expects to deliver positive adjusted EBITDA in 2024.