Oatly ‘leaving revenue on the table’ amid supply crunch: analyst

Oatly (OTLY) shares are tanking after the oat-milk producer skipped revenue expectations for its most current quarter and slashed its product sales direction. 

The final results were being “disappointing, but also transitory,” Cowen senior analyst Brian Holland advised Yahoo Finance Live. 

Income came in at $171.1 million in the 3rd quarter, missing consensus expectations of $185.7 million, based on Bloomberg information.

The organization forecasts profits will come in at far more than $635 million for the calendar year, a downward revision from its earlier forecast for more than $690 million.

“They guided down … I assume resetting anticipations is heading to assist below in the in the vicinity of expression. We’re heading to reset here right after this quarter,” reported Holland. 

“The capacity dynamic— which is a little something that is ongoing. With each individual passing quarter that they can reveal that they are equipped to add capability as promised, will assist the inventory.”

“On the charge side I feel which is heading to be with us for the upcoming 6-12 months, and that’s not just an Oatly problem. That is across the market,” said Holland.

Supply-chain concerns which include increased logistics and better container premiums, as perfectly as virus-related disruptions in Asia impacted the company’s results. 

“In EMEA, we are starting to create source to meet up with shopper demand from customers, but the tempo at which we expected to improve profits in new and present stores and to open up new markets is slower than we expected as we navigate a dynamic COVID operating natural environment,” Oatly said in its earnings report. 

CHICAGO, ILLINOIS – May well 20: Oatly oat milk and chocolate oat milk are revealed on Could 20, 2021 in Chicago, Illinois. Oatly started buying and selling on the Nasdaq right now soon after listing its first public offering at $17-for every-share, offering the organization an implied valuation of $10 billion. (Photograph Illustration by Scott Olson/Getty Pictures)

“We consider this is largely a timing difficulty and in the initial fifty percent of 2022, we count on to have an greater share of shelf space at retail given our sturdy velocities and present provide degrees.”

“In the Americas, we are happy with the weekly output output enhancements at our Ogden, Utah facility to-day in the fourth quarter, as we navigate a challenging provide chain setting,” the company included. 

Holland notes the firm’s prime line will boost as source difficulties ease.

“Oatly is leaving revenue on the desk with their inability to provide,” stated Holland. “As that improves— and once again — these are the transitory difficulties. You’d much relatively be in this predicament ideal now where this is a source problem somewhat than a need difficulty.”

Oatly went community in Could. On Monday, shares have been buying and selling as substantially as 46% under their IPO price tag of $17 every.

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Christopher Lewis

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