When Oatly reports its fourth-quarter results on March 15, some analysts expect the plant-based milk company to point a path toward profitability.
In the third quarter of 2022, Oatly’s revenue will increase to $183 million, up 7% from the same period last year. but its financial consequences fell short of expectationsAccording to the company, due to COVID-19 restrictions in Asia, production challenges in the US and adverse foreign exchange conditions.
For the past few years, Oatly has been build out Its manufacturing capability to address supply chain challenges such as rising raw material costs and labor shortages, and to meet growing consumer demand. In January, the oat milk maker announced it would move production from two US facilities to a Canadian producer. streamlining goal, The company recently said that it has taken steps to making operations more efficient By better allocation of resources and capital.
The demand for oat milk continues to boom. Global sales from 2016 to 2021 milk substitutes It rose 23% to $17.7 billion from $14.4 billion, according to Euromonitor, a London-based market research firm.
Oat milk is popular partly because of similar to cow’s milkwith the ability to To produce foam It is also considered good for the environment. When it comes to production, plant-based milk uses much less water than its conventional milk counterpart.
it helps to explain why Oat milk market is crowded, When Oatly, which is headquartered in Sweden, first launched in the US in 2016, the company largely had its market for itself. But its rapid growth and limited supply attracted rivals. Now, a handful of other brands are available on grocery store shelves, including Califia Farms, Muala, and Planet Oats. Big players like Danone, French Yogurt Giant, and Blue Diamond, US An agricultural company specializing in California almonds is also exiting the market.
Oatly shares have declined more than 88% since the company’s IPO in 2021.
more than quartz
sign up for Quartz newsletter. For latest news, Facebook, Twitter And Instagram,