Oatly Group AB Q4 FY2024 earnings call

• Over the past two years, Oatly has executed a significant transformation. Supply chain was simplified with closure of Singapore facility and discontinuation of second Chinese facility, leaving 5 manufacturing plants. • Overhead structure was simplified, reducing employees by 500 to ~1,500. • Marketing focus shifted to relevant and integrated brand activation. • Versus 2022, revenue grew by ~$100 million (14%), gross margin expanded 18 percentage points, and adjusted EBITDA improved by over $230 million.

Each of the three operating segments improved adjusted EBITDA by over $70 million in the past two years. In 2024, revenue growth was driven primarily by volume growth, with 9.9% volume growth in the fourth quarter and 8.8% for the full year. Constant currency revenue growth for the full year was 4.8%, slightly below guidance due to category sluggishness.

• 2025 constant currency revenue growth expected in range of 2% to 4%, impacted by ~300-basis-point headwind from largest U.S. customer's sourcing change. • Adjusted EBITDA expected in range of $5 million to $15 million. • CapEx expected to be $30 million to $35 million, reflecting simplified supply chain with 5 plants and no new plants under construction.

• Category sluggishness affecting revenue growth. • Misinformation on nutritional value of oatmilk posing a barrier to category growth. • Exposure to a large customer in the U.S. which, while not unprofitable, impacts cost absorption and requires careful management of relationships and distribution.

Q: Kaumil Gajrawala asked about breaking down gross margin drivers.

A: Marie-José David said drivers include optimizing production footprint, maximizing global sourcing resources, managing product mix, and factors like sales guidance, customer mix, and foreign exchange.

Q: Max Davenport asked about category momentum and supply chain progress beyond 2025.

A: Jean-Christophe Flatin said strategic supply chain recalibration, including discontinuing factory projects and closing plants, allows focus on efficiency and performance.

Q: Michael Lavery asked about risk to the remaining business with the largest U.S. customer.

A: Daniel Ordoñez said exposure is reducing as growth outside the large customer is seen, and they continue to pursue other customers and drive distribution.