Swedish plant-based milk brand Oatly has reported a 53.3 per cent surge in revenue and hails a “successful completion” of its IPO in May, as the brand pushes on with plans to expand capacity and footprint.
In an earnings call reporting its Q2 results (ending 30 June), the company has revealed figures “in-line” with forecast growth despite headwinds on manufacturing due to the pandemic.
Oatley raked in $146.2 million (£105m), a 53.3 per cent increase compared to $95.3 million (£68.8m) in the same quarter a year ago, although the pandemic impacted sales by $12m to $14m, the company predicted. Meanwhile, gross profit is up to $38.6 million from $30.8m in the same period.
Marketing spend increased during the quarter to $5.3m after the brand pulled back on advertising due to the pandemic. On research and development, the brand increased investment to $4m from $1.3m for new innovations.
Looking ahead, Oatly is forecasting full-year 2021 revenue to surpass $690m (£497.6m).
The company went public on 24 May to bolster its war chest to fund global expansion plans. Shares were sold at $17.00 per share raising the company $1.03bn.
Oatley chief executive Toni Petersson says the IPO provided the company with enough funds to operate on three continents, and doubled its production capacity in Vlissingen, Netherlands.
It plans to use IPO funds to “fund incremental growth” including capacity expansion which entails the opening of a third US-based manufacturing site to be open in 2023 in Fort Worth Texas and has opened a facility in Singapore this year.
Oatly has partnered with brands globally to expand distribution, in China, it partnered with McDonald’s KFC, Walmart and convenience store chain 7-Eleven. The brand also began selling in Switzerland and Ireland.
