Oatly Reports First Profitable Year, Plans To Accelerate Growth Strategy

Swedish oat drink company Oatly has achieved its first full year of profitability, positioning the business to accelerate the execution of its growth strategy.

The company saw a 4.3% year-on-year increase in revenue (in constant currency) in the fourth quarter, to $233.8 million, while full-year revenue increased by 2.2%, to $862.5 million.

Gross margin in the fourth quarter stood at 34.5%, which is 5.8 percentage points higher compared to the prior-year period.

Fourth-quarter adjusted EBITDA amounted to $11.0 million, which marks an improvement of $17.1 million, compared to the same period last year.

Jean-Christophe Flatin, CEO of Oatly, commented, “We have right-sized our supply chain and overhead structure while simultaneously reinvesting behind our refreshed growth strategy.

“We are seeing clear evidence that our strategy is working and driving impact, as we are driving growth in every market where it is fully deployed and seeing good early results in the markets where we are still rolling out our playbook.

“We are also seeing improved profitability and cash flow across the business.”

Divisional Performance

Oatley’s Europe & International division saw a 6.4% increase in revenue (in constant currency) in full-year 2025, while the North American unit registered a 9.1% decline.

The Greater China segment registered growth of 12.9% in this period.

Fourth-quarter revenue in the Europe & International segment grew by 14.2% in constant currency, driven by volume growth of 13.9%.

The retail channel accounted for approximately 79% of revenue in the Europe & International division during the quarter, compared to 81% in the prior-year period.

Quarterly revenue in North America fell by 8.8%, driven by a decrease in sales to its largest foodservice customer.

The retail channel accounted for approximately 61% of revenue in North America, up from 48% in the prior-year period.

In Greater China, constant-currency revenue declined by 0.1% in the fourth quarter, due to reduced sales in the foodservice segment.

It was partially offset by growth in the retail channel.

Outlook

Oatly expects constant-currency revenue growth in the range of 3-5% in its 2026 financial year.

Adjusted EBITDA is expected to be in the range of $25 million to $35 million, while capital expenditures are expected to be in the range of $20 million to $30 million.

Flatin added, “We know that achieving our first full year of profitability is a milestone, not our destination.

“As we look forward, we expect to accelerate our impact as we continue to execute our growth strategy, drive incremental demand, and deliver even stronger profitable growth.

“We continue to see significant potential ahead of us, and we are confident that we are taking the right steps to drive durable, scalable and profitable growth as we execute on our mission.”