Oatly achieved its first quarter of profitable growth since going public, reporting gains in revenue and volume, despite nearly suffering a 10% drop in North American sales.
The publicly traded Swedish alt-dairy brand saw adjusted EBITDA return to profitability at $3.1 million, up from a $5 million loss in the same period last year, along with a 7.1% increase in revenue and 6.6% increase in volume. However, it still reported a $65.3 million net loss, a $30.4 million jump from Q3 2024, due to fair value losses on convertible notes.
The oat milk maker’s North America business was rocked during Q3, as revenue dropped 10.1% ($62.1 million) and volume fell 12.8% on the back of reduced sales to its “largest foodservice customer,” believed to be Starbucks. After reporting adjusted EBITDA as a $3.3 million profit in Q3 2024, that figure has fallen to a $1.3 million loss this year.
However, excluding the loss of that customer, North American foodservice sales were up 11% year-over-year, and overall revenue was up 5%.
Speaking to the Financial Times earlier this month, Oatly CEO Jean-Christophe Flatin blamed declining U.S. plant-based milk sales on consumer indifference to environmental sustainability claims and “too much greenwashing.”
The decline in North America partially offset gains in Europe (+12% revenue/+8.4% volume) and China (+32.2% volume). The latter business continues to be under strategic review, as announced in Q2.
“I am proud to report that we drove profitable growth in the quarter, with solid constant currency revenue growth and positive adjusted EBITDA. Achieving this milestone reflects the disciplined, strategic actions we have taken over the past three years to strengthen the foundation of our entire business,” Flatin said in a statement.
“While we are proud of this achievement, we know that profitable growth is a milestone and not the finish line. We 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.”
Oatly reaffirmed its 2025 guidance of flat-to-1% revenue growth and adjusted EBITDA of $5 million to $15 million.