Oatly Group AB (OTLY)

Oatly, based in Malmö, Sweden, calls itself the world’s original and largest oat drink company 2.

It reported second-quarter 2026 revenue of $240.1 million, up 15.2 percent from a year earlier 2.

Gross margin, the share of revenue left after the cost of making the product, was 33.9 percent 2.

The net loss attributable to shareholders was $31.3 million, against $55.9 million a year earlier 2.

Oatly now expects 2026 revenue growth at constant exchange rates of 8 to 10 percent, up from 3 to 5 percent 2.

Still open is a review of its Greater China business, which Oatly expects to finish within 2026 1.

The company found its answer in oats, using enzymes to break them down, and says the world’s first oatmilk launched in 1995 1.

The first product under the Oatly brand came in 2001, and the first Oatly factory opened in Landskrona, Sweden, in 2006 1.

Between 2016 and 2018 it re-launched in the United Kingdom, grew in Germany and entered the United States and China 1.

Growth then met a more careful plan for factories, called asset-light, which leans on partner plants instead of owning every site 1.

In the fourth quarter of 2023 Oatly dropped plans for plants in Peterborough, UK, and Dallas-Fort Worth, Texas 1.

In 2024 it closed its Singapore plant and stopped building a second plant in China 1.

The Singapore plant brought $19.1 million of write-downs and $23.0 million of other costs, and the unbuilt China plant brought $25.1 million 1.

In 2025 revenue rose 4.7 percent to $862.5 million 1.

Oatly said the rise came mainly from volume growth in Europe and International and Greater China, partly offset by lower North America volumes after its largest foodservice customer changed its sourcing 1.

Net loss attributable to shareholders narrowed to $152.8 million from $201.9 million 1.

Gross margin rose to 32.1 percent from 28.7 percent, which Oatly credited to lower production costs in every segment 1.

What it sells and where

Oatly sells alternatives to milk, ice cream, yogurt, cooking cream, spreads and on-the-go drinks 3.

Oatmilk made up 90 percent of revenue in 2025, the same share as in 2024 1.

The brand is sold in more than 60 countries 3.

Customers range from independent coffee shops and franchises like Starbucks to grocers like Target and Tesco and online stores like Alibaba’s Tmall 1.

In 2025 retail brought in 65.1 percent of revenue and foodservice, meaning cafes and restaurants, 32.8 percent 1.

Three regions

Europe and International is the largest segment at 56.0 percent of 2025 revenue, then North America at 28.9 percent and Greater China at 15.1 percent 1.

In the second quarter of 2026 revenue grew 21.0 percent in Europe and International, 5.9 percent in North America and 11.6 percent in Greater China 2.

Oatly credited accelerating growth in Europe and International, retail-led growth in North America, and volume growth in Greater China despite more competition in foodservice 2.

Sold volume in the quarter rose 11.2 percent to 156.1 million liters 2.

Factories and people

Oatly owns a factory in Landskrona, Sweden, and an oat base plant in Millville, New Jersey 1.

It leases two hybrid plants, in Vlissingen, the Netherlands, and Ogden, Utah, and a plant in Ma’anshan, China 1.

Jean-Christophe Flatin is the chief executive 2.

Oatly had 1,388 employees at the end of 2025, down from 1,482 a year earlier 1.

Debt and risks

In 2023 Oatly issued $300 million of 9.25 percent convertible notes due 2028 1.

Existing owners Nativus, Verlinvest and Blackstone funds bought $200.1 million of them 1.

On 30 September 2025 it issued bonds of SEK 1,700 million, and a prospectus for listing them on Nasdaq Stockholm was approved in September 2026 3.

Oatly lists a history of losses among its risks and says it may be unable to sustain profitability 3.

The umbrella, in words

Oatly Group AB is the parent of operating companies in Sweden, the United Kingdom, Germany, the United States and China, including Oatly Food Co. Ltd. in China 4.

Nativus Company Limited owns 271,763,953 ordinary shares directly, and its 44.6 percent figure also counts notes it can convert into up to 12,490,000 shares 1.

Nativus is a wholly owned subsidiary of CR Verlinvest Health Investment Limited, a joint venture owned 50 percent by Verlinvest of Belgium and 50 percent by Blossom Key (Hong Kong) Holdings Limited 1.

The filing also lists Platin at 10.1 percent, Blackstone Funds at 9.3 percent and Hillhouse Investment Management at 7.0 percent 1.

For 2026 Oatly expects adjusted EBITDA, a profit measure that leaves out interest, taxes, depreciation and some one-off costs, of $25 million to $35 million, unchanged 2.

It expects capital spending of $20 million to $30 million, also unchanged 2.

Oatly expects currency moves to add about 200 to 250 basis points to revenue growth, up from 100 to 200 2.

This outlook assumes the effect of the conflict in the Middle East does not worsen from what is expected today 2.

Oatly said it does not intend to give further updates on the Greater China review unless its board approves a specific course of action 1.