Oatly Group AB announced its financial results for the second quarter ended June 30, 2025, reporting a revenue increase of 3.0% to $208.4 million. However, on a constant currency basis, revenue decreased by 0.2% to $201.7 million, primarily due to declines in North America and Greater China, partially offset by strong growth in Europe and International.
The company's gross profit margin expanded by 330 basis points year-over-year to 32.5%, driven by supply chain efficiencies in Europe & International. Adjusted EBITDA loss improved to $3.6 million, compared to a loss of $11.0 million in the prior year period, reflecting higher gross profit and reduced research and development expenses.
Oatly initiated a strategic review of its Greater China business, exploring options such as a potential carve-out, with the goal of accelerating growth and maximizing value in the region. This review is a response to a challenging macro-environment in Greater China, which contributed to a 6.6% constant currency revenue decline in the segment.
The company refined its full-year 2025 outlook, now expecting constant currency revenue growth of approximately flat to +1%, a reduction from its prior guidance. Despite this, Oatly reaffirmed its Adjusted EBITDA guidance in the range of $5 million to $15 million, demonstrating confidence in achieving profitability through additional cost efficiencies. Capital expenditures for 2025 are now projected at approximately $20 million, down from the previous outlook.
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