Oatly’s stock slides 10% after loss more than doubles and it warns of a bad 2024

Oatly Inc.’s stock fell 10% Thursday to hover close to its all-time low, after the oat-milk maker’s fourth-quarter loss more than doubled from a year prior and its revenue fell far short of analyst estimates.

The Sweden-based company

posted a net loss of $298.7 million, or 50 cents a share, for the quarter — wider than the loss of $125.2 million, or 21 cents a share, it posted in the year-earlier period. The FactSet analyst consensus was for a loss of 11 cents.

The loss came as other operating income and expenses rose to an expense of $204.3 million, from $41.1 million in the year-earlier period. The rise was mostly due to non-cash asset-impairment charges of $172.6 million and other costs of $29 million, stemming from the discontinued construction of certain production facilities.

Revenue rose to $204.1 million from $195.1 million a year ago, ahead of the $191 million FactSet analyst consensus.

The stock, which went public in 2021 at $17 a share, fell to as low as $1.10 in early trading, before closing at $1.21. At the time of its initial public offering, Oatly’s valuation was about $10 billion; on Thursday, its market capitalization stood at $800.8 million.

The company is now expecting revenue to grow 5% to 10% in 2024 on a constant-currency basis. It expects an adjusted Ebitda loss of $35 million to $60 million.

CFRA reiterated its hold rating on the stock and raised its 12-month price target to $1.20 from $1.00.

Analyst Arun Sundaram said the numbers were “solid” but that the sales outlook was overshadowed by the Ebitda loss guidance.

“While we think there is some conservatism in the outlook, it is difficult to know the extent given OTLY has pushed its profitability target a few times now,” he wrote.

Oatly has about $444 million in debt but around $454 million in liquidity, “which should help it avoid a capital raise this year,” he added.

The stock has fallen 42% in the last 12 months, while the S&P 500
has gained 23%.

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