Market News

Oatly Drops After Q4 Numbers and $425M Financing Commitments

Shares of oats-based products provider Oatly Group (NASDAQ:OTLY) are in the red today after the company announced fourth-quarter numbers.

Revenue rose 4.9% year-over-year to ~$195.1 million, managing to beat expectations by nearly $14 million. Net loss per share at $0.21 though missed estimates by $0.07. The company has transformed its supply chain to an asset-light model and expects to become positive on an adjusted EBITDA basis in fiscal 2024.

During the quarter, Oatly saw growth across the Americas and EMEA regions. Revenue from Asia though saw a single-digit decline.

Looking ahead, for the year 2023, Oatly expects top line to grow in the range of 23% and 28%. Further, on a longer time frame, gross margin is expected to hover between 35% and 40%.

Additionally, Oatly has also received financing commitments of $425 million. This includes 9.25% convertible senior PIK notes (due 2028) for $300 million and a $125 million credit facility commitment. The development puts Oatly on a strong footing to capture global product demand.

Overall, Wall Street has a consensus price target of $5 on OTLY, implying a massive 142.7% potential upside in the stock. That’s on top of a nearly 55% surge in the share price over the past three months.

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