Oatly Group (NASDAQ: OTLY) is the world’s largest and original oat drink firm, and it recently announced its third-quarter financial results for 2021. The company went down by 20% after this announcement.
How does top management feel?
Oatly’s Chief Executive Officer, Toni Petersson, said:
Local consumer demand for our products continues to be strong and grow as we expand production and increasingly scale our operations. The robust third quarter revenue increase reflects broad-based growth across geographies and sales channels.
The CEO said that they’re happy with how they were able to continue leading the way when it comes to driving the growth in the sale of plant-based milk segments in the company’s key markets.
The partially offset of this momentum was caused by its scaling of its global production capacity in Ogden, Utah. However, despite this minor setback, the company remains confident in its ability to meet the ever-growing demands of its products.
The financial highlights
Revenue increased from $56.4 million to $171.1 million. This increase in revenue was mainly driven by the additional product supply from the new production site owned by the company in Vlissingen, Netherlands. Oatly set this up so as to meet the demands for its products.
The facility the Oatly was setting up in Utah, Ogden, partially offset revenue growth, in large part because of the temporary automation and mechanical problems that occurred around August. This impacted the company’s revenue by roughly $3 million.
The closures of its foodservice locations in Asia because of COVID-19 protocols impacted total revenue by roughly $3 million as well.
The company produced finished goods that amounted to about 131 million liters, representing a 77% increase compared to the 74 million liters it made in the same quarter of the previous fiscal year.
As expected, though, the foreign exchange didn’t bring in a lot of revenue. Nevertheless, the benefit the company recorded was roughly $4.5 million.
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