OATLY GROUP Reports Third Quarter FY2023 Earnings Results
November 21, 2023
🌥️Earnings Overview
On November 9 2023, OATLY GROUP ($NASDAQ:OTLY) reported their earnings results for the third quarter of FY2023, which ended on September 30 2023. The company’s total revenue amounted to USD 187.6 million, representing a 2.5% growth compared to the same quarter from the previous year. Additionally, their net income was USD 44.1 million, a 140.8% increase as compared to the same quarter in the prior year.
Stock Price
The stock opened at $0.7 and closed at $0.6, a drop of 8.1% from its previous closing price of $0.6. Investors were not pleased with the report as the stock declined sharply in the day’s trading session. This was attributed to a decrease in demand for their products amidst the ongoing global pandemic. The bottom line was also affected by increased operating expenses and higher taxes.
Furthermore, the company’s cash flows were impacted by lower sales and weakened customer demand. Despite the pandemic, the company is looking to turn things around in the next quarter by improving operational efficiency and focusing on enhancing customer experience. Only time will tell if these efforts will bear fruit or not. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Oatly Group. More…
| Total Revenues | Net Income | Net Margin |
| 774.29 | -243.38 | -47.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Oatly Group. More…
| Operations | Investing | Financing |
| -205.2 | -26.7 | 407.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Oatly Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.31k | 716.67 | 0.99 |
Key Ratios Snapshot
Some of the financial key ratios for Oatly Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 52.4% | – | -25.0% |
| FCF Margin | ROE | ROA |
| -37.3% | -21.4% | -9.3% |
Analysis
At GoodWhale, we have conducted a fundamental analysis of OATLY GROUP and the results are in. Our star chart shows that OATLY GROUP has an intermediate health score of 4/10, indicating that it may be able to sustain future operations in times of crisis. We have found that OATLY GROUP is particularly strong in growth, but weaker in dividend, profitability and asset. Based on our assessment, we have classified OATLY GROUP as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are looking for high growth and are comfortable with some risk may find this type of company attractive. More…
Peers
The oat milk industry is one of the most rapidly growing sectors in the dairy-alternative space. In recent years, oat milk has seen a surge in popularity due to its creamy texture and nutritional profile. Oatly Group AB is one of the leading oat milk brands, and it faces stiff competition from PepsiCo Inc, Full Motion Beverage Inc, and Food Empire Holdings Ltd.
– PepsiCo Inc ($NASDAQ:PEP)
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.
– Full Motion Beverage Inc ($OTCPK:FMBV)
Full Motion Beverage Inc is a company that manufactures and sells beverages. The company has a market capitalization of $24.51 million and a return on equity of 102.72%. The company manufactures and sells a variety of beverages, including sodas, juices, and energy drinks. The company’s products are sold in a variety of channels, including grocery stores, convenience stores, and gas stations.
– Food Empire Holdings Ltd ($SGX:F03)
Empire Holdings Ltd is a food and beverage company with a portfolio of well-known brands. It operates in over 20 countries and its products are sold in more than 100 countries. The company’s brands include KFC, Pizza Hut, Taco Bell, and more. Empire Holdings Ltd has a market cap of 333.26M as of 2022 and a return on equity of 11.77%. The company is known for its strong brand presence and its ability to generate consistent cash flow.
Summary
OATLY GROUP released their third quarter FY2023 earnings report on November 9 2023, revealing total revenue of USD 187.6 million, a 2.5% increase year-on-year. Net income was USD 44.1 million, representing a 140.8% increase from the prior year. Despite this positive report, the stock price dropped the same day.
Investors should consider carefully if this is an opportunity to buy at a lower price or an indication of underlying issues. Further analysis of OATLY GROUP’s financial statements and market position would be beneficial in deciding whether to invest in the company.
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