The Swedish oatmilk brand achieved positive adjusted EBITDA and strong sales growth in two of its three geographic reporting segments last year and said stronger margins position it well to turn achieve group profitability in 2025
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Oatly forecasts it will achieve group-level positive adjusted EBITDA of $5-$15m in 2025 | Photo credit: Oatly
Oatly expects to achieve its first annual profit in 2025 after narrowing its losses and achieving robust revenue growth last year.
The Swedish oatmilk manufacturer posted a group-level adjusted EBITDA loss of $35.3m for the 12 months ended 31 December 2024, down from $158m and $268m losses in 2023 and 2022 respectively.
The losses were primarily driven by charges incurred from the closure of production facilities in East Asia.
Adjusted EBITDA in Oatly’s largest Europe & International geographic reporting segment reached $56m in 2024 while adjusted EBITDA in North America was in the black for the first time at $5m. Oatly narrowed its adjusted EBITDA loss in Greater China from $58m in 2023 to just $2m.
Oatly forecasts it will achieve group-level positive adjusted EBITDA of $5-$15m in 2025.
“We now have a much healthier business with clear strategies, clear accountability, stronger margins, and significantly improved profitability. I am proud of our team for embracing the challenge, making the necessary changes, and focusing on execution. All this hard work has enabled us to now expect 2025 to be our first full year of profitable growth as a public company,” said Jean-Christophe Flatin, CEO, Oatly.
Oatly’s full-year revenues grew 5% year-on-year to $824m, with fourth quarter revenues also increasing 5% to reach $214.3m. Sales in Europe & International grew 6% year-on-year to $434.2m, with North America up 9.7% to $274.4m. Oatly’s Greater China segment revenues fell 8% to $115m, despite fourth quarter sales in the region growing 8% year-on-year to $35.3m.
In December 2024, Oatly closed its production facility in Singapore as part of an ongoing strategy to streamline production and reduce operating costs in Asia.
In an investor update, Oatly announced it will also discontinue construction of a second manufacturing facility in China, dubbed Asia III. The Swedish oatmilk brand said production capabilities at its Ma’anshan production facility in China’s Anhui Province has capacity to serve existing customers and support future business growth. The site, opened in November 2021, has annual capacity to produce 150 million litres of Oatly’s oat-based products.