Corporate Profiles - 2023 - 96

COMPANY overview
Oatly Group AB
Oat milk maker installs new leadership amid
challenges that reduce revenue prospects
W
ith new leadership in place, oat milk
manufacturer Oatly Group AB aims to
achieve profitability in the coming year
while implementing strategic plans in two of its
regions.
In June, Jean-Christophe Flatin became chief
executive officer of the Malmo, Sweden-based
company, replacing Toni Petersson, who led the organization
for more than a decade. Mr. Flatin had
joined Oatly a year prior as global president and
previously held various roles spanning three decades
at Mars, Inc.
" Jean-Christophe is a proven leader and the
ideal person to help usher Oatly in our next
phase, " said Mr. Petersson, who transitioned to
co-chairman of the board of directors. " He has already
strengthened our company for the better by
company's revenue outlook. As of July, executives
expected full-year sales growth in a range of 7%
to 12%, down from a previously stated target of
23% to 28% growth, over sales of $722.2 million
in the prior year.
The company's Asia segment drove most of
the anticipated shortfall. In preparation for Asian
markets reopening following pandemic restrictions,
Oatly invested in product innovation, distribution,
in-store
However, consumer behavior hasn't matched the
company's expectations, prompting a strategic
reset plan for Asia that executives detailed during
a conference call in July. Management expected to
record an impairment charge against its Asian business
later in the year.
Daniel Ordonez, chief operating officer, said the
company would decelerate product development
and eliminate many unnecessary products from the
portfolio.
In the Americas, increased sales primarily were
due to price increases. To adjust to the slower-thanexpected
pace of business development, Oatly aims
to reduce overhead costs in the region, according to
the company.
A bright spot for Oatly is Europe, the Middle East
and Africa, where a year earlier the company had
initiated a strategic plan that resulted in improved
market share and revenue growth.
" We have now expanded this approach to our
Chief executive officer -
Jean-Christophe Flatin
putting our supply chain back on firmer footing,
renewing our focus on innovation, and enabling
our organization to go on offense to drive profitable
growth. "
A little over a month later, Marie-Jose David was
named chief financial officer of Oatly, effective in
October, succeeding Christian Hanke, who held
the role for three years. Ms. David previously held
leadership positions in finance at Mars Veterinary
Health International, Americas for Pandora and
L'Oreal USA.
During the year, Oatly encountered various
challenges that led management to reduce the
96 \ October 2023
Americas business, where we have stabilized and
strengthened the supply chain, increased demand
driving investments and steadily improved adjusted
EBITDA, " Mr. Flatin said during the July call. " While
we are not yet all the way to where we want to be,
the consistent improvement is clear. "
The company also is applying similar efforts to
its Asia business, he added, noting its " long-term
conviction of the opportunity in Asia and taking
these actions will help us capture the opportunity. "
At the beginning of the year, Oatly said it was divesting
some manufacturing assets in North America
as part of plans to hybridize its manufacturing
footprint. By May, executives said the transition was
progressing well and expected to complete the operational
consolidation during the year. CP
Oatly Group net earnings (loss)
in millions
2022
($393)
promotions, sampling and advertising.
2021
($212)
2020
($60)
Source: Oatly Group
Oatly Group net revenue
in millions
2022
$722
2021
$643
2020
Source: Oatly Group
$421
Oatly Group share price
Source: New York Stock Exchange
$0.90
$1.45
$2.00
$2.55
$3.10
Sept. Nov.
2022
OATLY GROUP
Jan.
2023
HIGH = Sept. 16, 2022 = $2.99
LOW = Sept. 14, 2023 = $1.00
Sept. 15, 2023 = $1.04
March M Julyay
Sept.
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Corporate Profiles - 2023

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