This article first appeared on GuruFocus .
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Revenue Growth:15.2% increase, 12.7% in constant currency.
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Gross Margin:33.9%, an improvement of 140 basis points from last year.
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Adjusted EBITDA:Positive $0.4 million, an improvement of $4 million from last year.
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Free Cash Flow:Negative $0.6 million, an improvement of $4.6 million from last year.
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Volume Growth:11.2% increase.
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Price Mix Increase:1.5% increase.
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Europe and International Revenue Growth:18% in constant currency.
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North America Revenue Growth:5.9% increase.
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Greater China Revenue Growth:5.6% in constant currency.
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Full-Year Revenue Guidance:Raised to 8% to 10% constant currency growth.
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Adjusted EBITDA Guidance:Expected towards the low end of $25 million to $35 million range.
Release Date: July 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Oatly Group AB ( NASDAQ:OTLY ) reported a strong revenue growth of 15.2% and 12.7% in constant currency for the second quarter of 2026.
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The company achieved a gross margin of 33.9%, marking an improvement of 140 basis points compared to the previous year.
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Oatly Group AB ( NASDAQ:OTLY ) raised its revenue guidance for 2026, expecting constant currency revenue growth of 8% to 10%, up from the prior outlook of 3% to 5%.
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The company is experiencing strong volume growth and positive mix effects, contributing to its revenue momentum.
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Oatly Group AB ( NASDAQ:OTLY ) is expanding its distribution in both retail and food service outlets, enhancing its market presence.
Negative Points
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The company faced cost pressures due to the conflict in the Middle East, impacting logistics and packaging costs.
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Despite raising revenue guidance, Oatly Group AB ( NASDAQ:OTLY ) maintained its adjusted EBITDA outlook towards the low end of the range of $25 million to $35 million.
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Free cash flow for the quarter was negative $0.6 million, although this was an improvement from the previous year.
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The company continues to navigate uncertainty and volatility created by geopolitical conflicts, which could impact future financial performance.
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Oatly Group AB ( NASDAQ:OTLY ) is still working towards achieving positive free cash flow, with expectations that this milestone will not be reached in 2026.
Q & A Highlights
Q: Can you break down the drivers of your revenue growth? Is it new users, existing users consuming more, or a pricing component? A: Daniel Ordonez, Chief Operating Officer : The growth is driven by both existing and new users, customers, and countries. In Europe, growth is accelerating with strong volume-driven growth and mix on top. In North America, we're seeing strong dynamics in out-of-home channels and gaining penetration in retail, with new TDPs and strong velocities expected to continue into 2027.
Q: Why wasn't the EBITDA outlook raised despite strong top-line momentum and unchanged cost estimates from the Middle East conflict? A: Jean-Christophe Flatin, Chief Executive Officer : We are harvesting demand-generated growth through volume and positive price-mix effects. Despite the Middle East conflict, we are reinvesting in Europe and International to fuel success. We choose to be conservative and confirm our expectation to deliver adjusted EBITDA toward the low end of the $25 million to $35 million range.
Q: Can you provide more detail on the drivers of growth in North America, especially given the weak category and loss of a food service customer? A: Daniel Ordonez, Chief Operating Officer : We are outperforming the market with strong market share, velocities, and a clean beverage portfolio. Out-of-home performance is strong, and we are recruiting new consumers, especially Gen Z. Our share of oat milk TDPs is up, and we expect further share of shelf gains.
Q: What are the specifics of the shelf space opportunity in North America, and are there new partner opportunities emerging for 2027? A: Daniel Ordonez, Chief Operating Officer : We have significant opportunities in TDPs and ACVs, with growth potential in clubs and non-measured channels. The focus is on adopting the new beverage playbook and dynamics that Gen Z enjoys. We see significant opportunities in gut health and fibers, with exciting developments coming soon.
Q: How do you view the cost side and reinvestment for 2027, and what are your productivity priorities? A: Jean-Christophe Flatin, Chief Executive Officer : Volume is yielding cost improvements, but the Middle East conflict impacts our gross margin and EBITDA. We are confident in our productivity improvements, focusing on simplification, lean asset models, and efficiency. We have a continuous pipeline of improvement projects that will continue into 2027.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
