Oatly Cuts Profit Forecast to $16–20 Million Despite 9.1% Revenue Growth
Key Facts
Oatly reported revenue of $243.1 million in the third quarter of 2026, up 9.1% from the same period a year earlier, while revenue grew 8.9% on a constant-currency basis, the company said. On October 28, the company lowered its full-year forecast for adjusted earnings before interest, taxes, depreciation and amortization to $16–20 million, from a previous range of $25–35 million. It kept its constant-currency revenue growth forecast at 8% to 10%, unchanged from its previous estimate. The chief executive said fuel and freight inflation in North America was “stronger and faster than expected.” He added that delays in the timing of mitigating actions would weigh on fourth-quarter earnings, linking the annual forecast cut to operating-cost pressures and the timing of the response, despite continued sales growth.
Quarterly profitability indicators improved alongside revenue growth. Gross margin was 34.1% in the third quarter, up 4.4 percentage points from the same period a year earlier, according to Oatly’s statement. Net loss attributable to the parent company’s shareholders narrowed to $27.5 million, compared with a loss of $65.3 million in the third quarter of 2025. The company also reported adjusted earnings before interest, taxes, depreciation and amortization of $9.4 million, versus $3.1 million a year earlier, an improvement of $6.3 million. These measures show progress in margin, losses and adjusted profitability during the quarter, while the lower annual forecast indicates that the quarterly improvement did not offset the impact of higher fuel and freight costs expected in the remaining months of the year.
Revenue growth varied across regions. Revenue in Europe and the International segment rose 19.5% to $147.2 million, while North American revenue increased 2.8% to $63.8 million, the company said. In Greater China, revenue fell 14.6% to $32.0 million in the third quarter, from $37.4 million a year earlier, a decline of $5.5 million. Oatly attributed the drop mainly to competition in the foodservice market and said increased retail sales offset part of the decline. Europe and the International segment therefore recorded the strongest regional growth, while North America posted modest growth and Greater China faced a decline linked to competition in the foodservice channel.
Volume sold increased 4.2% to 156.9 million liters in the third quarter, from 150.6 million liters in the same period of 2025, adding an indicator of higher sales volume to the revenue growth. For cash flow, net cash used in operating activities was $11.5 million during the nine months ended September 30, 2026, compared with $17.4 million in the same period a year earlier. At the end of September, cash and cash equivalents stood at $23.3 million, against total outstanding debt of $523.2 million. These figures reflect a year-on-year decline in cash used in operations, alongside the cash position and outstanding debt reported by the company on that date. Oatly also announced the launch of a new fiber drink platform to expand its product portfolio in the wellness segment.
The company expects to complete its strategic review of its Greater China business during 2026, but said there is no guarantee the review will result in a transaction or strategic change. The review comes as third-quarter results showed regional revenue falling 14.6%, with the company citing foodservice competition and increased retail sales as a factor that offset part of the decline. Oatly is scheduled to hold an earnings call on October 28 at 8:00 a.m. Eastern Time. Kirby also reported its third-quarter results on the same day; it narrowed its 2026 earnings-per-share growth forecast to 10%–15% and said it currently expects results near the high end of the range. Kirby shares closed at $137.06 and Oatly shares at $11.75 on October 27, 2026.