The Swedish oatmilk maker says increased production in key markets has shored up its supply chains and contributed to robust revenue growth across its global retail and foodservice channels
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Oatly appears to have addressed production and supply chain challenges over the last 12 months | Photo credit: Oatly
Oatly has credited the expansion of its production facilities around the world as driving 22% revenue growth during second quarter.
Reporting its results ended 30 June 2022, the Malmö-based company posted total revenues of $178m.
Oatly had previously reported lower-than-expected production in 2021 and the first quarter of 2022 as new production sites were impacted by supply chain disruption.
However, the oatmilk maker has since commenced scaling its production capabilities in the US, the UK and Asia and will phase further expansion in the second half of 2022.
Revenues from its Asian market increased 66% to $43.7m compared to the same period in 2021. Despite several lockdowns in China, approximately 58% of revenue in the region was from its foodservice channel.
Revenue in the Americas region increased 25% to $52m, led by retail trade, as Oatly increased production output at its Utah facility.
Retail also accounted for 82% of sales in the EMEA region where revenues increased 5% to reach $82.5m during the period.
Oat-based dairy alternatives have become a staple among coffee shops worldwide as consumers opt for healthier coffee pairings and seek to reduce their environmental impact.
In May 2022, Oatly, which supplies Starbucks stores worldwide, announced that Swedish coffee chain Espresso House would serve Oatly Barista Edition across its 488 coffee shops in the Nordics and Germany.
Oatly CEO Toni Petersson said global consumer demand and a ‘proven multi-channel strategy’ had positioned the company for long-term growth and profitability.
However, regarding the company’s outlook for the rest of 2022, Petersson said that the war in Ukraine, Covid-19, inflation and supply chain pressures are expected to slow the further rollout of Oatly’s distribution footprint in foodservice and new markets.
With Covid-19 related restrictions remaining in place across Asia and consumers not converting from dairy to plant-based as quickly as the company envisioned, Oatly has lowered its full-year revenue expectations from $880m to $830m.