Plant-based milk substitute firm Oatly cuts its sales outlook

Firm's second-quarter revenue missed analysts’ estimates

The Swedish-based company expects cost savings of about €77m in 2024.

Plant-based milk substitute company Oatly cut its sales outlook and announced an improvement plan in Asia as consumers in the region moved away from its drinks post-covid.

The oat-drink maker now expects full-year revenue growth in a range of 7% to 12% on a constant-currency basis, down from 23% to 28% previously.

The plan, modelled on similar strategies in Europe, the Middle East, Africa, and the US, is intended to strengthen the business first and then lead to growth in the future. 

It includes a simplification of the portfolio of products and reduced operating costs.

The company made “significant” investments in new products, distribution, promotions, and advertising based on its predictions of a “large post-pandemic tailwind” that “has not materialised,” COO Daniel Ordoñez said.

The Swedish-based company expects cost savings of about $85m (€77m) in 2024. While those savings will focus on having fewer project-related expenses and less spending on outside consulting, some jobs will be eliminated and others roles will not be filled, CEO Jean-Christophe Flatin said.

Oatly reported second-quarter revenue that missed analysts’ estimates.

• Bloomberg