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Image source: The Motley Fool. Wednesday, July 22, 2026 at 8:00 a.m. ET Chief Executive Officer - Jean-Christophe Flatin Global President and Chief Operating Officer - Daniel Ordoñez Chief Financial Officer - Marie-José David Vice President of Investor Relations - John Baumgartner Operator: Hello and welcome everyone joining today's Oatly second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to John Baumgartner, Vice President of Investor Relations. Please go ahead. John Baumgartner: Good morning, thank you for joining us today. On today's call are our Chief Executive Officer, Jean-Christophe Flatin, our Global President and Chief Operating Officer, Daniel Ordoñez, and our Chief Financial Officer, Marie-José David. Please review the cautionary statement regarding forward-looking statements and other disclaimers on slide three, which are integrated into this presentation and include the Q&A that follows. Please also refer to the documents we have filed with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Also, on today's call, management will refer to certain non-IFRS financial measures, including adjusted EBITDA, constant currency revenue, and free cash flow. Please refer to today's release for a reconciliation of non-IFRS financial measures to the most comparable measures prepared in accordance with IFRS. In addition, Oatly has posted a supplemental presentation on its website for reference. I'd now like to turn the call over to Jean-Christophe. Jean-Christophe Flatin: Thank you, John, good morning, everyone. Slide five features our key messages. First, our second quarter capped a very successful first half with strong volume growth and positive mix driving our revenue momentum. The results reinforce the success of our growth playbook and notably innovation that solidifies our identity and appeal as a full beverage company. The positive impact of our execution is evident in our expanded distribution in both retail and food service outlets. Second, we are driving improvements in our strategic mix of channels, customers, and products to enhance our underlying profit margin. As expected, the second quarter included headwinds from cost pressure due to the conflict in the Middle East. In addition to absorbing this financial impact, we are choosing to invest for growth while continuing to improve our structural profitability. Third, looking at our full-year guidance, we are raising our revenue guidance while remaining confident in maintaining our outlook for 2026 adjusted EBITDA. With what we know today, our full-year outlook for EBITDA takes into account absorption of increased costs, including from the Middle East conflict, which remains unchanged relative to expectations communicated in April. Our plan also reflects continued investments for further growth. Turning to slide six. Here you can see our solid second quarter scorecard for important KPIs. Our revenue grew by 15.2% and 12.7% in constant currency. Our gross margin reached 33.9%, which represents an improvement of 140 basis points compared to last year. Our adjusted EBITDA was positive $0.4 million and 0.2% of our net sales. This is an improvement of $4 million versus last year, despite reinvestment and the absorption of headwinds, including from the Middle East conflict. Revenue momentum and a resilient bottom line show progress in building a stronger growth model in a profitable manner. Finally, our free cash flow in the quarter was a negative $0.6 million, which is an improvement of $4.6 million versus last year. Our business plan remains fully funded, and we maintain focus on achieving positive free cash flow, a milestone that will be reached through putting on all available levers, including continued improvement in the P&L and working capital. Slide seven reiterates our focus areas for the rest of 2026. As Daniel will soon outline, we continue to see positive traction from our investments and brand building. As results exceed our expectations, we remain focused on executing our growth playbook. Second, we continue to navigate the uncertainty and volatility created by the conflict in the Middle East. I'm pleased to report that our proactive approach has helped us manage the related impact on our business. In the second quarter, costs matched our expectation, and based on what we know today, the pressure that we expect in the second half of 2026 remains consistent with our initial outlooks communicated in April. The global cost impact has been largely fuel related, either directly in logistics or indirectly through areas such as packaging. As a reminder, we are utilizing this disruption in part to evaluate and improve the flexibility in our supply chain. Finally, as it pertains to China, our strategic review is ongoing, and we intend to complete this review prior to the end of the year. We continue to evaluate a range of options, including a potential carve-out. Our goal is to accelerate growth and maximize the value of this business. We will update the market on our progress as necessary. In closing, slide eight summarizes our guidance. In 2026, we expect stronger conversion from the rollout of our refreshed growth playbook. We now expect to drive constant currency revenue growth of 8%-10%, up from our prior outlook for growth of 3%-5%. Further, we expect to maintain our ability to mitigate the cost impact of the Middle East conflict. Despite this inflationary impact and growth-fueling spending, we believe we are on course to deliver adjusted EBITDA towards the low end of the range of $25 million-$35 million, consistent with our outlook from last quarter. With that, dear Daniel, over to you. Daniel Ordoñez: Thank you, J.C., and good morning, everyone. I will start my discussion on slide 10. As we enter the second half of the year, our confidence remains strong on the results brought by the methodical deployment of our growth playbook. Over the past two years, we have focused on the barriers to consumption, creating new occasions, and driving consumer relevance. We remain well-positioned to serve the lactose-intolerant community and those who are primarily environmentally conscious in their choice. However, these segments represent only a portion of our addressable market opportunity. As shown by the success of our growth playbook across European markets, established or new, multiple new doors are opening as Oatly pivots to become a full-on beverages company, which is relevant to a much broader population and across multiple new occasions, still anchored on the same brand uniqueness, generational relevance with taste, health, and sustainability at the core. Our expanding portfolio of flavors and formats drive differentiation in the beverages market and they're going significant change as customers are eagerly renovating their menus and shelves to be more relevant in meeting the rising expectations of younger generations. Closing the loop, relevance is manifested again through the brand's iconic live events and digital presence. First, let's discuss our thought leadership in setting global beverage trends on slide 11. As we did in Berlin with Oatly on the Rocks in October last year, last month, we hosted 250 key players from the food and beverage industry at the After Taste event at the Flatiron District in New York. Attendance included members of the media, trendsetting leaders in coffee and beverage, key commercial partners, cultural opinion leaders, and creators. In addition to sharing some of our newest flavors and exciting drinks innovation, we hosted forums that explored how new generations are changing the coffee culture, social media's influence on beverage development, and other discussions at the forefront of this space. In the following weeks, the event generated over 70 million media impressions and reached over nine million people online globally. The event was one of our largest brand investments in North America this far, a clear manifestation of what local relevance with global scale means for the Oatly brand. Building on this, on slide 12, you see the latest iteration of our recipes lookbook that is hitting this summer in full. So far, we have introduced 63 new drinks, many of which have become category standard. Like for instance, Coconut Matcha Cloud, Salty Banana Split, and the Matcha Jello Shots. They are open to the public, representing the backbones for Oatly's progressive innovation, and we're highly confident in our ability to continue to surprise and set the industry space. On slide 13, you can see how prompted by the lookbook and with the recent expansion of our iconic barista offering, notably with the launch of Cold Foam, Oatly becomes increasingly relevant to the growing refreshment and mixology movement, significantly expanding the creativity of our food service partners. The most promising drinks make it all the way into the retail space for in-home consumption. As seen on slide 14, with the recent successful launches of Barista Popcorn Flavour, Barista Churros Flavour, and Barista Coconut Flavour, as well as the expanding matcha range. This model explains why we're growing penetration most strongly with younger consumers, and we view this demographic as strong foundation for multi-years growth. On slide 15, you see a concrete example of the cultural relevance of the Oatly brand at global scale with the recently announced second iteration of our partnership with Nespresso, present in over 220 boutiques across 26 markets during the coming months. Next, let's turn to a discussion of our regions to link our strategic initiatives with market success. In the Europe and International segment on slide 17, second quarter's constant currency revenue grew by 18%, driven by very strong volume growth. This is particularly impressive as we allowed volume growth of 9.4% in the last year's second quarter. Contributions are balanced from established and expansion markets and included growth in household penetration across our long-standing markets. At category level, growth in retail takeaway for plant-based beverages has remained solid in absolute terms. Up high single digits driven by volume and far above the rate of GDP growth. In our case, the story's even better. oat milk is outgrowing other plant-based milks, Oatly is the main driver with strong market share gains across all markets. We believe the growth opportunity across this segment is promising, I like to emphasize the reasons why we are outperforming the market on Slide 18. First, we are engaging the broader beverages industry and seeing strong traction as taste, refreshment, and health combined are particularly relevant to the young. Secondly, we're steadily evolving our strategic choices on channels and portfolio to be decisively accretive to our profit margin and volume, together with a pipeline of new retail and food service customers that underscore our outlook for continued strong growth. Finally, the conscious choice we made to decisively expand our geographic footprint in multiple new markets is paying off handsomely as they continue gaining critical mass with growth rates that keep accelerating as we see with an impressive 82% growth year-on-year for quarter two. On slide 19, I would like to emphasize the brand's cultural relevance, being part of the local communities in key cities and generating disproportionate global impact, thanks to a seamless brand playbook and efficient social media strategy. Two very concrete examples. In Mexico City, our Losers Café consoled the fans of losing World Cup teams through free drinks such as the Lost Matcha or Dulce Defeat, reaching so far more than 600 million people globally. In Amsterdam, our bike tour paired some of Europe's best coffee roasters with Oatly-inspired signature drinks in one of the bicycle capitals of the world. It not only delighted the local consumers but has reached so far over 100 million people globally. Slide 20 shows the power of our playbook as we see now significant market share and penetration gains in Sweden, our home market. Brand penetration in Sweden is three times higher than any other key plant-based market, like for instance, the U.K., is home to the most affluent plant-based consumer there is. Growth in Sweden had been flat since J.C. and I joined back in 2022. 18 months following the execution of the beverages playbook, we're now seeing increasing household penetration, notably among younger consumers. More trial and stronger velocities are driving accelerating growth in our share of milk alternative shelves, up 10 percentage points since 2023, and we have also gained nearly two percentage points of category market share in the past year. This gives us confidence that there is no such thing as a mature market. Slide 21 shows how our beverages stance drives significantly bigger stand out in retail display, geared to both ambient and chilled temperatures. For at home or on the go consumption, this impactful presence reflect our importance to retailers to better engage shoppers. Shifting now to North America on slide 23. I am very happy to report that growth keeps accelerating. In the second quarter, the segment constant currency revenue grew by 5.9% year-on-year, driven by positive volume growth of nearly 2%. This performance clearly exceeds the milk alternative category and includes decisive incremental mix effects. At a retail market level, the macro backdrop remains challenged by tight household financial conditions and the saturation of protein-fortified products. Retail takeaway of plant-based products continue to trail traditional cow's milk dairy. As we have seen in Europe two years ago, macro category dynamics can't be explained by the retail performance alone, especially when that doesn't represent the new beverages playbook. We are conscious and at the same time optimistic about our ability to change this dynamic. On slide 24, we see that in retail measured channels, we have reached our near record high market shares in both oat milk and plant-based beverages. Let's look at our out-of-home channel performance on slide 25. As previously discussed, we see growing consumer and customer excitement in this space, which is way closer to culture. For us, defines more clearly the underlying category dynamics I am very pleased to report that momentum from new and existing customers will soon eliminate the headwind from the customer who was previously our largest in this channel. At the end of the second quarter, the related year-on-year headwind to sales has substantially ended, and we have made significant progress diversifying our customer base. This will provide greater balance and resiliency for the channel in the future. On a like-for-like basis, our go-forward food service portfolio continues to grow strong, following the beverage playbook with drinks adapted to the local consumer, posting an exceptional 18% growth this quarter. As we discussed before, our confidence is not simply anchored on our growth in the channel, but the fact that we see an identical evolution in the beverage space driven by preferences of the younger generations. As you see on slide 26, we're driving significant penetration gains, all stemming from capturing these young generations of consumers. Not enough yet to return the category around in retail, but we're confident it is a matter of persevering in execution. Moving forward, as you see on slide 27, we expect to gain share of category distribution and new consumers from the full expansion of the new range. We also expect to build breadth and depth across key customers in the mass, club, and natural channels. This builds on already solid year-to-date volume growth in the retail and club channel. Our growing appeal among retailers is particularly evident in off-cycle product uptakes. Retailers will list all the products outside of the traditional category reset window starting later this year, a significant sign of momentum for our brand. Last, shifting to Greater China on slide 28. Although macro headwinds persist in the food service channel, our second quarter growth was encouraging. Constant currency revenue grew by 5.6% and included volume growth of 5.5% on a positive offset from the retail channel. Segment sales largely recovered from last year's decline of 6.6%. As JC mentioned, we intend to complete the strategic review this year. To wrap the business update, I would like to focus on the trajectory of the key business metrics on slide 29. Strong growth continues to drive a direct positive effect on cost absorption and profit margin. Put simply, steady progress on our model to drive profit growth through demand generation, essential to future value creation. With that, I will now turn the call over to Marie-José. MJ? Marie-José David: Thank you, Daniel, and good morning, everyone. Slide 31 summarize our solid financial delivery for the second quarter. Aside from strength in Europe, this quarter marked our second consecutive period of positive volume growth in North America following declines throughout 2025. In Q2, we grew net revenue 15.2% and 12.7% on a constant currency basis. Gross margin was 33.9%, an increase of 140 basis points compared to last year's Q2, and the result of efficiencies including facility optimization, volume absorption, productivity improvements, and favorable mix. Q2 adjusted EBITDA was a positive $0.4 million and an improvement of $4 million relative to last year's Q2. Although the magnitude of year-on-year improvement was smaller than Q1's $8.7 million, this year's Q2 absorbed incremental headwinds from a full quarter of cost pressure due to the Middle East conflict and the anticipated phasing of brand reinvestment. As a reminder, our investment in the growth playbook has been more concentrated in Q2 than the expected average for the year. Considering the strong growth in household penetration and consumption, we are pleased with the return on our brand investment. We also remain very pleased with the underlying trajectory of structural profit improvement. I will now provide more detail about our financial performance. Slide 32 shows the bridging items of our revenue growth. Volume grew 11.2%. Price mix increased by 1.5%. Foreign exchange was a 2.5% tailwind compared to 7.5% last quarter. Moving on to slide 33 and the year-over-year gross margin bridge, which shows the 140 basis point improvement. This improvement is explained by 210 basis points from fixed cost absorption and supply chain efficiencies, 30 basis points from product and channel mix, 10 basis points from foreign exchange currency tailwinds, and partially offset by a negative impact of inflation for 100 basis points. Slide 34 shows the quarter two year-over-year improvement in our adjusted EBITDA. The $4 million improvement was driven by $13.7 million increase in gross profit, partially offset by $9.7 million increase in SG&A and overhead. In SG&A, the increase is driven nearly in equal parts by customer distribution costs, which are linked to sold volumes and an increase in branding and advertising spend, in addition to foreign exchange headwinds that are offset by cost-cutting initiatives. As a volume-driven business, our cost structure scales with growth, and we remain focused on delivering profitable growth over time. Slide 35 shows segment-level detail. Europe and International grew net sales by 18% in constant currency. Brand reinvestment and cost inflation related to the Middle East conflict limited year-over-year growth in segment adjusted EBITDA to $0.7 million, yet still achieved a solid adjusted EBITDA margin of 17.5%. North America's revenue grew 5.9%. Segment adjusted EBITDA increased by $3.1 million to $0.7 million, identical with last quarter, as we proactively manage incremental headwinds from brand investments and costs related to the Middle East conflict. Greater China constant currency revenue increased by 5.6%. Increase was explained by growth in the retail channel that more than offset strong competition and weak macros in the out-of-home channel. The segment reported negative $1.5 million in adjusted EBITDA. In Q2, corporate expenses was $1 million lower year-over-year, as our continuous focus on increasing efficiencies has more than offset foreign exchange headwinds. Turning to our cash flow on slide 36. I reaffirm that our business plan remains fully funded. We remain focused on bringing the company to positive free cash flow following the positive inflection on our adjusted EBITDA. In Q2, free cash flow was a net outflow of $0.6 million, which is $4.6 million better than last year. Year-over-year improvement results from growth in EBITDA, smaller capital expenditures, and benefit from net working capital. Improvement exceeded our expectations and reflects our efforts to structurally improve profitability and cash generation. We believe that our progress is increasingly evident and see opportunities for further improvement across all levers of cash flow. We maintain our expectation that we do not anticipate positive free cash flow for the full year 2026, given the impact of seasoning factors in the second half, including larger inventories to support volume growth as well as capital expenditures. Turning to our 2026 outlook on slide 37. As Jean-Christophe mentioned at the top of the call, we are raising our outlook for constant currency revenue growth from 3%-5%, now up to 8%-10%. Our outlook implies year-over-year growth deceleration in second half, it is a result of a harder comparison relative to first half. A reported basis, considering recent FX rates and assuming no change for the rest of the year, we estimate FX to add approximately 200-250 basis points to net sales, a stronger tailwind relative to our prior expectations for a benefit of 100-200 basis points. For adjusted EBITDA, we maintain our outlook to deliver towards the low end of the existing range of $25 million-$35 million, including absorption of the cost impact of the Middle East conflict. Based on what we know today, our expectation for related cost pressure is unchanged from our forecast in April. We are pleased that proactive management has allowed us to maintain the EBITDA guidance range that we provided pre-conflict in February. We expect support from favorable reinvestment saving in SG&A and sustained improvement in gross profit from revenue growth and operating leverage. Our price mix is offsetting cost pressure from the conflict in the Middle East and the tight market for freight in North America. A reminder, our outlook is provided in the context of what we know today and set against elevated macro volatility. Our fundamentals remain strong, and we continue to execute against our growth playbook while maintaining agility to adapt to external factors. Last, our guidance for CapEx remains unchanged in the range of $20 million-$30 million for the full year. This concludes our prepared remarks. Operator, we are now prepared to take questions. Operator: Thank you. If you would like to ask a question, please press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star and one to ask a question. We will pause for a moment to allow everyone a chance to join the queue. We will take our first question from Kaumil Gajrawala with Jefferies. Please go ahead. Your line is open. Kaumil Gajrawala: Good morning, everybody. Well, I guess good afternoon, guys. Well done on the revenue front, on the volume front. If we could maybe break down a little bit, Daniel, on some of your comments on the drivers of that growth, specifically, is it bringing in new users? Is it existing users consuming more? Is there maybe a pricing component to it? Just more of a breakdown on what is driving some of the acceleration in your revenue growth would be helpful. Daniel Ordoñez: Hi, Kaumil. Great hearing from you. Thank you for the well done. That's certainly the sentiment here. Agree with you, we see momentum getting stronger. The specific answer to your question, is it existing or new? It is certainly both. In both regions, if I focus in North America and in Europe and international, it's existing and new. It's existing consumers and new consumers. It's existing customers and new customers. It's existing, I would say, countries and new countries. That's the kind of in a nutshell, the balance that we see between existing and new. Now, giving you a bit more color on both regions, Kaumil. We see growth accelerating. If I start with Europe, I take a couple of minutes. It's accelerating after two strong consecutive quarters of volume-driven growth with mix on top, we're lapping. In this quarter in particular, we're already lapping an almost 10% volume growth in 2025. We're really seeing incremental demand. We also went fully back to this dynamic where the Oatly growth brings oat milk growth on top, and certainly outweighs or outgrows plant-based in general. Plant-based, by the way, is in solid high single-digit growth. Outlook positive in this region, in Europe and international. Why? Going back to your point about existing and new. We see relevance of the beverage new portfolio with focus on new usage occasions, again, new, that allow the taste strategy to lead this reframing of the space. Coffee that now is full on beverages, with solidifying mix effect. The other thing that is working really well, as you saw with 82% growth in Europe and international, is the new markets maintaining the growth, but gaining in critical mass. This concludes Europe and international, Kaumil, with a very nice flywheel. As we always insist, 70% of penetration growth ahead of us, right? The users that still haven't adopted the category. If you allow me one more minute unpacking North America for you or your colleagues on the call, very encouraged with the progress we have done, still step by step. Two key dynamics here. Again, very strong, as strong as in Europe, dynamics in out of home, at the back of the identical consumer strengths. Coffee, flavors, tastes, signature drinks, et cetera. This segment now is one quarter of the total revenues of this segment and counting. We're very excited about that. I'm glad not having any questions about legacy customers here, but we are nicely lapping all that legacy effects. On top of that's my final remark for you and your colleagues. In the retail space, still soft, but clearly outperforming and gaining penetration. Again, gaining penetration, gaining share, gaining share of shelf, and gaining penetration with very strong velocities and new TDPs already in the making. Much more to come in the remaining parts of 2026, but also the early parts of 2027. That's the summary on the drivers, Kaumil. Kaumil Gajrawala: Very useful. Thank you very much. Operator: Thank you. We will move next with Max Gumport with BNP. Please go ahead. Your line is open. Max Gumport: Hey, thank you for the question. You had another strong quarter of top-line momentum, you've meaningfully raised your top-line outlook for the year. It seems like the costs associated with the Middle East conflict remain unchanged from your estimate in April. Just looking for more color on why your EBITDA outlook was not raised today. It seems like it's likely largely due to increased reinvestment. If that's true, can you talk a bit more about that increased reinvestment? Thanks very much. Jean-Christophe Flatin: Thanks a lot, Max, for the question. Great to hear from you. J.C. speaking here. Let me unpack our EBITDA guidance for you, I will split it in three inputs. First, we're clearly harvesting the demand-generated growth of margin, and we do that both through volume growth and positive price mix effects. We are confident that this momentum will continue in H2. That's the first part of the equation. Second, when it comes to the Middle East conflict impact, we continue not only to monitor but to absorb it. As I said, it's mostly on logistics and tax, our full-year estimate remains in line with what we have said. Practically, that means that when you think of Q3 and Q4, we expect a Middle East conflict impact that is broadly in line with what we had in quarter two. Daniel Ordoñez: Finally, because we are confident in our beverage playbook, because we see this momentum, we have decided, despite the Middle East conflict headwinds, to consciously and carefully reinvest behind the growth in Europe and international in order to fuel the success. How are we doing that? These choices are done meticulously, market by market, channel by channel. Of course, we will calibrate these choices going forward based on our overall profit delivery equation. From a pure phasing standpoint, you heard MJ say in her remark that probably Q2 was the strongest of these growth investments, therefore you can expect them to continue, but probably on a slightly lower hand. By the way, we continue to monitor them. When I group these three factors together as a net impact in an environment that remains super volatile and unpredictable, we choose to be conservative and to confirm our expectation to deliver adjusted EBITDA towards the low end of the range of SEK 25 million-SEK 35 million. Max Gumport: Okay, great. Very helpful. I'll leave it there. Thanks very much. Jean-Christophe Flatin: Thank you, Max. Operator: Thank you. We'll move next with Andrew Lazar with Barclays. Please go ahead. Your line is open. Andrew Lazar: Great. Thanks so much. Appreciate it. I was hoping maybe to get into a little bit more detail on some of the drivers of growth in North America, because obviously you're seeing pretty solid growth despite the category remaining weak and despite still in the quarter having been lapping some of the loss of a food service customer. Also maybe just a little bit on what is going on with the oat milk category specifically, even though obviously Oatly is outperforming. Thanks so much. Daniel Ordoñez: Thank you, Andrew. I will try my best not to repeat myself, but if I do, I apologize upfront. How to bundle? The drivers of performance were clearly outperforming the market. Market share of shelf, velocities, all the classic metrics of how we measure success in terms of our competitiveness, the strength of the brand, the resilience of our portfolio. Remember, as we are lapping, we have fully lapped portfolio delisting, right? I hope you appreciate I'm giving you more level of detail now, right? 97%, 98% of our portfolio is clean beverages, all with strong velocities. That's one driver. Customer base, you see we are just clean and neat. Moving forward, what we see the drivers of category growth, we see two things that make us feel very optimistic about the outlook. Number one is the out-of-home performance. I know you asked about retail, but we insist. Out-of-home is where the category is created, and that is where it's giving us growth at the level growth rates that we see in Europe with the exact identical dynamics. Some of the innovations may be slightly different, but we see the same dynamics. The second one is penetration. You saw the chart of penetration, especially on Gen Z. We are recruiting new consumers into the brand and into the category. Of course, I will pause there because you see why in aggregate that builds up to soft category total. I cannot comment about the other competitors in the field, right? You see movements there that are perhaps not helping with the mathematics. That's why controlling the controllables, we are obsessively focused on executing. Before moving into the outlook, I have another very good data point here to provide, which is our share of oat milk. TDP is now 22% up from 17% last year. We generate 30% of the oat milk category sales and growing. We have significant opportunity for further share of shelf gains. As we said before, we are engaged in a retail, old traditional school retail wake-up call for the retail space to adopt what we see in the dynamics on out-of-home. We have every hope that the new portfolio, when you see what's happening now, and that's my last data point, the off-cycle uptakes in retail, which means normally you would start getting the new distribution, new TDPs coming in February 2027. You will see them coming in late in quarter three and quarter four already. That gives us hope, or I would remove the word hope. That is a proof point of the relevance of the portfolio we're bringing in front of consumers and the velocities that they see could be coming. That's pretty much the double-click on the question I answered to Kaumil at the beginning, Andrew. Let me know if that's okay. Andrew Lazar: Thank you for that. A quick follow-up would be anything of note on just the competitive environment in retail oat milk in North America that's worth calling out, just because you are picking up, as you mentioned, pretty significant share of shelf and market share. I didn't know if there were some that were, whatever, de-emphasizing their competitiveness in some way or changing how they're thinking about competing in the category. If not, that's fine too, but just curious. Thank you. Daniel Ordoñez: Thank you, sir. Two data points. First, I will insist with our velocities, but if you see our highest ever shares first, that is telling you something, right? With both execution distribution plus velocities gives you that ever highest share. I think it's 31-something for oat milk. It's the highest ever, and we're really closing in to be, in the near future, number one, right? That's number one. Number two, hey, I'm not going to quote other brands by name, but we all see the same data, right? Some relevant brands losing significant share. I don't want to quote numbers because you're better at mathematics than me, Andrew, but we're taking the lion's share of that. Very significant lion's share of those dynamics, right? We expect to take share, but I would like to come back to the beginning of your question and Kaumil's, which is, we're not here only to take share. Take share is good because it means the brand is up there and the velocities are there. We're here to grow this category. I would like to go back to 22% penetration of oat milk in the U.S. There is an ocean for us to grow this category and multiply growth and multiply value creation. That's our obsession. Jean-Christophe Flatin: Thank you. Operator: Thank you. Once again, that is star and one on your telephone keypad, if you would like to join the queue. We will move next with Dara Mohsenian with Morgan Stanley. Please go ahead. Your line is open. Dara Mohsenian: Hey, guys. Just wanted to expand on that last point you had mentioned on shelf space opportunity. Clearly accelerated North American momentum from a top-line perspective. You mentioned some of the drivers behind that. Consumer strength also gives you more shelf opportunity going forward. Can you give a bit more specifics there, both in terms of existing accounts, the shelf space opportunity this might afford you going forward, and also, are there new partner opportunities that are emerging for you as you look out to 2027? Thanks. Daniel Ordoñez: Dara. Yes. You know our ACV numbers, right? We're up there. I think when J.C. and I walked in, we were at 32%. We're closing into 50%, which means that we have made significant progress in terms of presence in most accounts. Believe significant, without penetrating the least accretive accounts, we have significant headspace to grow in ACV. We have significant growth opportunities in clubs as well, which it qualifies as a non-measured channel and which we're doing pretty well. You see, I prefer not to go into specific details or names here, but we have significant opportunities on TDPs and ACV, right? If I look at 2027, it's more TDPs than ACVs, and I'm giving you a bit of a hint. The emphasis is more on that, this is why the TDPs are now ACVs. I go back to the root cause of the wake-up call to the retail space, the traditional retail space, which is portfolio, right? The mother of all opportunities for this category is to adopt the new beverage playbook, the new beverage dynamics, the dynamics that Gen Z is enjoying in North America at the moment when they go to a food service account. That's what we need to see in this old and traditional space. That's portfolio. Therefore, when you look at where we are in Europe, what we call the taste-driven portfolio, this is what progressively you will see the different accounts adopting in North America. We chose not to make a specific remark today, but we are super excited, Dara, on how, in the U.S. and as well in Europe, the search and the uptake for gut health and fibers seems to be significantly increasing. As we are an oat milk company that comes from the good of oats, we see a significant opportunity there. Nothing to announce today, but stay tuned because we have exciting stuff coming up in the next few months. Dara Mohsenian: Great. That's helpful. I just wanted to get a bit of an update on the cost side. Obviously, more reinvestment this year looks like it's working with the revenue yield you're getting from that. Although sometimes revenue upside can lead to more reinvestment also. There's a bit of chicken and egg dynamic there. Just as you think and look out to 2027, do you expect generally to increase the pace of investment in advertising spend over time? How do you think about that conceptually? Also, as part of that, just as you look at your pipeline of productivity, maybe give us an update on your progress in 2026, but also some of the key priorities from a productivity standpoint as you look out to 2027. Jean-Christophe Flatin: Thank you, Dara. I think far too early to discuss 2027. I'll focus on 2026. The first point is volume is clearly yielding cost improvement for us on both sides of the Atlantic, and it's volume absorption, but it also allows us to bring more efficiency in the system. Of course, why you don't see that fully panning out in our gross margin on the EBITDA is because of the Middle East conflict impact we have been quoting. What you see at the moment is really the net between these two pictures. Where are we? We are pleased and confident about the delivery of our productivity improvements, and they continue along the same lines that we have been pursuing since 4 years, since Daniel and I joined the business, which is simplification, lean asset model, and continue to push efficiency and quality at the same time across our supply network. Not the place to go into infinite details, but just to let you know, do we have a plan? Yes. Is that yielding what we expect? Yes. Do you see the full picture of that? Not yet, because of the Middle East impact. We believe in continuous improvement. I will end up there with that philosophy, which mean, of course, we have a permanent pipeline of improvement projects that keep going and will continue in 2027. Dara Mohsenian: Great. Thank you. Operator: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to John Baumgartner for closing comments. John Baumgartner: Thanks, Nikki. Thanks everyone for your participation today. Feel free to reach out with any follow-ups. Have a good day. Daniel Ordoñez: Thank you. Jean-Christophe Flatin: Thank you. Take care. Bye. Operator: Bye. Jean-Christophe Flatin: Thank you, Nikki. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Before you buy stock in Oatly Group Ab, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oatly Group Ab wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Oatly (OTLY) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Oatly Group AB Sponsored ADR? Here are five stocks we like better. Oatly raised its 2026 revenue outlook after posting stronger Q2 results, now expecting constant-currency revenue growth of 8% to 10% versus its prior 3% to 5% forecast. Management still sees adjusted EBITDA toward the low end of the $25 million to $35 million range due to cost pressures and ongoing growth spending. Second-quarter performance improved across key regions, with net revenue up 15.2% and gross margin rising to 33.9%. Europe and International led growth, while North America posted its second straight quarter of positive volume growth and near-record market share. China remains under strategic review as Oatly evaluates options including a potential carve-out to accelerate growth and maximize value. The company also improved free cash flow in the quarter, but still does not expect full-year 2026 to be cash-flow positive. The 8 best agricultural ETFs to consider for your portfolio Oatly Group (NASDAQ:OTLY) raised its full-year revenue outlook after reporting stronger second-quarter sales growth, citing gains from product innovation, expanded distribution and rising demand across key markets. Management said the company remains on track to deliver adjusted EBITDA toward the low end of its previously issued range despite cost pressure tied to the conflict in the Middle East and continued spending behind growth initiatives. For the second quarter of 2026, the oat-based beverage company reported net revenue growth of 15.2%, or 12.7% on a constant currency basis. Volume increased 11.2%, while price mix contributed 1.5%, Chief Financial Officer Marie-José David said. Foreign exchange provided a 2.5% tailwind. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Gross margin rose to 33.9%, up 140 basis points from the year-earlier period. David said the improvement reflected fixed-cost absorption, supply chain efficiencies, productivity gains and favorable product and channel mix, partially offset by inflation. Adjusted EBITDA was positive $0.4 million, improving by $4 million from the prior-year quarter. Chief Executive Officer Jean-Christophe Flatin said the quarter capped “a very successful first half” and showed progress in building a more profitable growth model. He said volume growth and positive mix supported revenue momentum, while innovation continued to reinforce Oatly’s positioning as a broader beverage company. → 3 Photonics Companies Making Quantum Tech Possible Oatly now expects constant currency revenue growth of 8% to 10% for 2026, up from its prior outlook of 3% to 5%. David said the revised forecast implies a deceleration in year-over-year growth in the second half because of tougher comparisons. On a reported basis, assuming recent foreign exchange rates remain unchanged, the company expects currency to add approximately 200 to 250 basis points to net sales, compared with its prior expectation for a 100 to 200 basis point benefit. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Oatly maintained its adjusted EBITDA outlook, saying it expects to deliver toward the low end of its existing $25 million to $35 million range. Management said the outlook includes the expected impact of higher costs related to the Middle East conflict, which remains consistent with the company’s April forecast. Flatin said the company is absorbing cost pressure, mainly in logistics and areas such as packaging, while continuing to invest in growth. He said the conflict-related cost impact expected in the second half is broadly in line with what the company experienced in the second quarter. Europe and International remained Oatly’s strongest region in the quarter, with constant currency revenue growth of 18%. Global President and Chief Operating Officer Daniel Ordoñez said the performance was driven by “very strong volume growth” and came on top of 9.4% volume growth in the prior-year quarter. Ordoñez said Oatly is gaining share across markets as oat milk outgrows other plant-based milks. He highlighted both established markets and newer expansion markets, saying newer markets within Europe and International grew 82% year over year in the quarter. Management credited the company’s “beverage playbook,” which focuses on new occasions, flavors and formats, with broadening the brand’s appeal beyond traditional plant-based milk consumers. Ordoñez said the company is seeing particular traction with younger consumers and pointed to flavored barista products, matcha offerings and cold foam as examples of innovation expanding usage occasions. The company also highlighted brand-building events, including the “After Taste” event in New York, which Ordoñez said drew 250 food and beverage industry participants and generated more than 70 million media impressions. He also cited local activations in Mexico City and Amsterdam as examples of Oatly’s effort to build cultural relevance. In North America, second-quarter constant currency revenue grew 5.9%, with volume up nearly 2%. David noted that this was the company’s second consecutive quarter of positive volume growth in North America after declines throughout 2025. Ordoñez said the region’s performance exceeded the milk alternative category, which remains challenged by tight household financial conditions and what he described as saturation in protein-fortified products. He said Oatly reached near-record market shares in both oat milk and plant-based beverages in measured retail channels. The company also said it has made progress reducing its reliance on a previously large food service customer. Ordoñez said the year-over-year sales headwind tied to that customer had “substantially ended” by the close of the second quarter, and that Oatly has diversified its out-of-home customer base. On a like-for-like basis, Oatly’s go-forward food service portfolio grew 18% in the quarter, Ordoñez said. He added that the out-of-home channel now represents about one quarter of North America revenue. During the question-and-answer portion of the call, Ordoñez said Oatly’s growth is being driven by both existing and new consumers, customers and markets. He said the company is gaining shelf share and improving velocities in North America, while also seeing new retail uptake outside traditional category reset periods. Greater China constant currency revenue increased 5.6% in the second quarter, supported by retail growth that more than offset competition and weak macro conditions in the out-of-home channel. The segment reported negative adjusted EBITDA of $1.5 million. Flatin said Oatly’s strategic review of China remains ongoing and is expected to be completed before the end of the year. He said the company is evaluating a range of options, including a potential carve-out, with the goal of accelerating growth and maximizing the value of the business. Oatly reported free cash flow of negative $0.6 million in the second quarter, an improvement of $4.6 million from the prior-year period. David said the improvement reflected adjusted EBITDA growth, lower capital expenditures and benefits from working capital. David reaffirmed that Oatly’s business plan remains fully funded and said the company remains focused on reaching positive free cash flow. However, she said Oatly does not expect positive free cash flow for full-year 2026 because of second-half seasonal factors, including higher inventories to support volume growth and capital expenditures. The company left its full-year capital expenditure guidance unchanged at $20 million to $30 million. Oatly Group is a Sweden-based food and beverage company specializing in the development, production and sale of oat-derived dairy alternatives. The company’s product lineup includes oat-based drinks, ice cream, yogurts, spreads and cooking creams, all marketed under the Oatly brand name. By leveraging proprietary processing technology, Oatly extracts the nutritional benefits of oats—such as soluble fiber and plant protein—while delivering taste and texture profiles that closely mimic traditional dairy products. Founded in 1994 as a spin-off from research at Lund University, Oatly initially focused on exploiting the health and functional benefits of oat beta-glucans. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Oatly Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue Growth: 15.2% increase, 12.7% in constant currency. Gross Margin: 33.9%, an improvement of 140 basis points from last year. Adjusted EBITDA: Positive $0.4 million, an improvement of $4 million from last year. Free Cash Flow: Negative $0.6 million, an improvement of $4.6 million from last year. Volume Growth: 11.2% increase. Price Mix Increase: 1.5% increase. Europe and International Revenue Growth: 18% in constant currency. North America Revenue Growth: 5.9% increase. Greater China Revenue Growth: 5.6% in constant currency. Full-Year Revenue Guidance: Raised to 8% to 10% constant currency growth. Adjusted EBITDA Guidance: Expected towards the low end of $25 million to $35 million range. Warning! GuruFocus has detected 3 Warning Signs with OTLY. Is OTLY fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Oatly Group AB (NASDAQ:OTLY) reported a strong revenue growth of 15.2% and 12.7% in constant currency for the second quarter of 2026. The company achieved a gross margin of 33.9%, marking an improvement of 140 basis points compared to the previous year. Oatly Group AB (NASDAQ:OTLY) raised its revenue guidance for 2026, expecting constant currency revenue growth of 8% to 10%, up from the prior outlook of 3% to 5%. The company is experiencing strong volume growth and positive mix effects, contributing to its revenue momentum. Oatly Group AB (NASDAQ:OTLY) is expanding its distribution in both retail and food service outlets, enhancing its market presence. The company faced cost pressures due to the conflict in the Middle East, impacting logistics and packaging costs. Despite raising revenue guidance, Oatly Group AB (NASDAQ:OTLY) maintained its adjusted EBITDA outlook towards the low end of the range of $25 million to $35 million. Free cash flow for the quarter was negative $0.6 million, although this was an improvement from the previous year. The company continues to navigate uncertainty and volatility created by geopolitical conflicts, which could impact future financial performance. Oatly Group AB (NASDAQ:OTLY) is still working towards achieving positive free cash flow, with expectations that this milestone will not be reached in 2026. Q: Can you break down the drivers of your revenue growth? Is it new users, existing users consuming more, or a pricing component? A: Daniel Ordonez, Chief Operating Officer: The growth is driven by both existing and new users, customers, and countries. In Europe, growth is accelerating with strong volume-driven growth and mix on top. In North America, we're seeing strong dynamics in out-of-home channels and gaining penetration in retail, with new TDPs and strong velocities expected to continue into 2027. Q: Why wasn't the EBITDA outlook raised despite strong top-line momentum and unchanged cost estimates from the Middle East conflict? A: Jean-Christophe Flatin, Chief Executive Officer: We are harvesting demand-generated growth through volume and positive price-mix effects. Despite the Middle East conflict, we are reinvesting in Europe and International to fuel success. We choose to be conservative and confirm our expectation to deliver adjusted EBITDA toward the low end of the $25 million to $35 million range. Q: Can you provide more detail on the drivers of growth in North America, especially given the weak category and loss of a food service customer? A: Daniel Ordonez, Chief Operating Officer: We are outperforming the market with strong market share, velocities, and a clean beverage portfolio. Out-of-home performance is strong, and we are recruiting new consumers, especially Gen Z. Our share of oat milk TDPs is up, and we expect further share of shelf gains. Q: What are the specifics of the shelf space opportunity in North America, and are there new partner opportunities emerging for 2027? A: Daniel Ordonez, Chief Operating Officer: We have significant opportunities in TDPs and ACVs, with growth potential in clubs and non-measured channels. The focus is on adopting the new beverage playbook and dynamics that Gen Z enjoys. We see significant opportunities in gut health and fibers, with exciting developments coming soon. Q: How do you view the cost side and reinvestment for 2027, and what are your productivity priorities? A: Jean-Christophe Flatin, Chief Executive Officer: Volume is yielding cost improvements, but the Middle East conflict impacts our gross margin and EBITDA. We are confident in our productivity improvements, focusing on simplification, lean asset models, and efficiency. We have a continuous pipeline of improvement projects that will continue into 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

MALMÖ, Sweden, July 22, 2026 (GLOBE NEWSWIRE) -- Oatly Group AB (publ) (Nasdaq: OTLY) (“Oatly”, the “Company” or the “Group”), the world’s original and largest oat drink company, today announced financial results for the second quarter ended June 30, 2026. Jean-Christophe Flatin, Oatly’s CEO, commented, “I am pleased to report another quarter of profitable growth marked by demand-led value creation. Our second quarter results reflect the disciplined execution of our strategy including improvements to the mix of channels, customers, and products. Our growth playbook is outperforming expectations in Europe and gaining traction in North America. These strong returns reinforce our commitment to reinvest in the business, and we are pleased to increase our outlook for revenue growth in 2026. We continue to make progress reducing our cost structure, and the cost pressures associated with the conflict in the Middle East are tracking according to our expectations.” He continued, “We remain focused on execution and are committed to building on this momentum to deliver consistent, sustainable, and profitable growth over time.” The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and six months ended June 30, 2026 and 2025. Highlights Second quarter revenue of $240.1 million, a 15.2% increase compared to the prior year period, with a constant currency revenue increase of 12.7% compared to the prior year period. Gross margin in the second quarter was 33.9%, which is a 1.4 percentage point increase compared to the prior year period. Second quarter net loss attributable to shareholders of the parent was $31.3 million, compared to a net loss attributable to shareholders of the parent of $55.9 million in the prior year period. Second quarter Adjusted EBITDA was $0.4 million, which is an improvement of $4.0 million compared to an Adjusted EBITDA loss of $3.6 million in the prior year period. Outlook The Company’s outlook is as follows (including an updated 2026 revenue outlook): This outlook assumes that the impact from the conflict in the Middle East does not worsen from what is expected today. Second Quarter 2026 Results Revenue increased $31.7 million, or 15.2% to $240.1 million for the second quarter ended June 30, 2026, compared to $208.4 million for the prior year period. Excluding a foreign currency exchange tailwind of $5.2 million, revenue for the second quarter was $234.9 million, or an increase of 12.7% compared to the prior year period. The growth in constant currency revenue was driven by another quarter of accelerating growth in Europe & International, a subsequent quarter of accelerating growth in North America driven mainly by the retail channel, and volume growth in Greater China despite increased competition in the foodservice channel. Sold volume for the second quarter of 2026 increased 11.2% to 156.1 million liters compared to 140.4 million liters in the second quarter of 2025. Produced finished goods volume for the second quarter of 2026 was 153.6 million liters compared to 142.8 million liters for the second quarter of 2025. Gross profit was $81.4 million for the second quarter of 2026 compared to $67.6 million for the second quarter of 2025. Gross profit margin was 33.9% in the second quarter of 2026, an increase of 143 basis points compared to the prior period. The margin improvement compared to the second quarter of 2025 was due to improvements in supply chain efficiency, channel mix in North America, and market and product mix in Europe & International, partially offset by the impact of the conflict in the Middle East on energy and logistics costs. Research and development expenses in the second quarter of 2026 was $4.6 million, which was flat compared to prior year period. Selling, general and administrative expenses in the second quarter of 2026 increased $10.6 million to $94.7 million compared to $84.1 million in the prior year period. The increase was driven by foreign currency exchange headwinds, increased branding and advertising spending, higher customer distribution costs due to increased sold volumes, and increased inflation driven by the conflict in the Middle East, partially offset by continued actions to reduce general and administrative expenses. Other operating income and (expenses), net for the second quarter of 2026 was an income of $0.6 million comprised primarily of net foreign exchange gains and grants, offset by $0.8 million in costs for our strategic review of the Greater China segment. Other operating income and (expenses), net for the prior year period was an expense of $1.0 million comprised primarily of $1.4 million in costs for the Company’s strategic review of the Greater China segment. Finance income and (expenses), net for the second quarter of 2026 was an expense of $13.4 million comprised primarily of net interest expenses of $13.9 million, offset by fair value gain on Convertible Notes of $2.3 million. The finance income and (expenses), net for the prior year period was an expense of $31.9 million comprised primarily of net interest expenses of $14.9 million, fair value losses on Convertible Notes of $8.6 million, and net foreign exchange losses of $7.8 million. Net loss attributable to shareholders of the parent was $31.3 million for the second quarter of 2026 compared to a loss of $55.9 million in the prior year period. Adjusted EBITDA for the second quarter of 2026 was $0.4 million, compared to a loss of $3.6 million in the prior year period. The improvement in Adjusted EBITDA was primarily a result of higher gross profit. EBITDA, Adjusted EBITDA and Constant Currency Revenue are non-IFRS financial measures defined under “Non-IFRS financial measures”. Please see above revenue at constant currency table and “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release. The following tables set forth revenue, Adjusted EBITDA, EBITDA and loss before tax for the Company’s three reportable segments for the periods presented. * Corporate consists of general costs not allocated to the segments.** Eliminations in 2026 refers to intersegment revenue for sales of products from Europe & International to Greater China and North America. Eliminations in 2025 refers to intersegment revenue for sales of products from Europe & International to Greater China.(1) Relates primarily to severance costs as the Group adjusts its organizational structure.(2) Relates to costs for the strategic review of the Greater China segment.(3) Relates to reversal of previously recognized exit costs related to closure of the Group’s production facility in Singapore. Europe & International Europe & International revenue increased $24.9 million, or 21.0%, to $143.1 million for the second quarter of 2026, compared to $118.2 million in the prior year period. Excluding a foreign currency exchange tailwind of $3.6 million, Europe & International revenue for the second quarter was $139.5 million, or an increase of 18.0%. For the second quarter of 2026, the increase in revenue was primarily due to volume growth of 16.9%, mainly driven by growth in the Barista products. Approximately 77% of Europe & International revenue was from the retail channel for the second quarter of 2026 compared to 79% in the prior year period. The sold finished goods volume for the three months ended June 30, 2026 and 2025 amounted to 94.8 and 81.1 million liters, respectively. Europe & International Adjusted EBITDA increased $0.7 million to $25.0 million for the second quarter of 2026 compared to $24.3 million in the prior year period. The improvement in Adjusted EBITDA was primarily driven by higher gross profit driven by higher revenue and continued supply chain productivity, partially offset by higher selling, general and administration expenses, mainly explained by higher branding and advertising costs and foreign currency exchange headwinds. North America North America revenue increased $3.7 million, or 5.9%, to $66.9 million for the second quarter of 2026, compared to $63.2 million in the prior year period. The sold finished goods volume for the three months ended June 30, 2026 and 2025 amounted to 36.2 million and 35.5 million liters, respectively. The 1.9% volume increase was mainly driven by growth in the retail channel. Approximately 63% of North America revenue was from the retail channel in the second quarter of 2026 compared to 59% in the prior year period. North America Adjusted EBITDA increased $3.1 million to $0.7 million for the second quarter of 2026, compared to a loss of $2.4 million in the prior year period. The increase in Adjusted EBITDA was primarily due to higher gross profit. Greater China Greater China revenue increased $3.1 million, or 11.6%, to $30.1 million for the second quarter of 2026, compared to $27.0 million in the prior year period. Excluding a foreign currency exchange tailwind of $1.6 million in the quarter, Greater China revenue for the quarter was $28.5 million or an increase of 5.6%. The Greater China segment growth was primarily driven by increase in the retail channel and partially offset by a decline in the foodservice channel due to higher competition. Approximately 54% of Greater China revenue was from the foodservice channel for the second quarter of 2026 compared to 62% in the prior year period. The sold finished goods volume for the three months ended June 30, 2026 and 2025 amounted to 25.0 million and 23.7 million liters, respectively. Greater China Adjusted EBITDA loss increased $0.8 million for a loss of $1.5 million in the second quarter of 2026, compared to a loss of $0.6 million in the prior year period. The decrease in Adjusted EBITDA is mainly explained by higher selling expenses. Corporate Oatly’s corporate expense, which consists of general costs not allocated to the segments, was $26.9 million in the second quarter of 2026, a decrease of $0.5 million compared to the prior year period, driven by continued actions to reduce general and administrative expenses but partially offset by foreign exchange headwinds. Adjusted EBITDA in the second quarter of 2026 was a loss of $23.8 million compared to a loss of $24.8 million in the prior year period. Balance Sheet and Cash Flows As of June 30, 2026, the Company had cash and cash equivalents of $44.6 million and total outstanding debt of $517.8 million consisting of Nordic Bonds, Convertible Notes and liabilities to credit institutions. Net cash used in operating activities was $1.6 million for the six months ended June 30, 2026, compared to $15.0 million during the prior year period, which was primarily driven by improved operating results. Capital expenditures were $10.7 million for the six months ended June 30, 2026, which was flat compared to the prior year period. Free cash flow was an outflow of $12.3 million for the six months ended June 30, 2026 compared to an outflow of $25.7 million during the prior year period. The improvement in free cash flow was driven by decreased net cash flows used in operating activities. Free Cash Flow is a non-IFRS liquidity measure defined under “Non-IFRS financial measures.” Please see “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release. Strategic Review of Greater China Business The Company continues its strategic review of the Company’s Greater China business. While there is no definitive timetable for completing the strategic review, the Company expects to complete the strategic review within 2026. The Company does not intend to provide further updates unless and until the Board of Directors has approved a specific course of action or determines that additional disclosure is appropriate or required. The Company cautions that there can be no assurances that the process will result in any transaction or strategic change. Outlook Based on the Company’s assessment of the current operating environment and the actions it is taking, the Company is raising its 2026 outlook for constant-currency revenue and reiterating its outlook for Adjusted EBITDA and capital expenditures. Constant currency revenue growth is now expected to be in the range of +8% to +10% (from +3% to +5% previously). Based on recent foreign exchange rates, the full-year impact of foreign exchange is expected to be a tailwind to revenue growth by approximately 200 to 250 basis points; up from the prior expectation of 100 to 200 basis points. Adjusted EBITDA is expected to be in the range of $25 million to $35 million (unchanged). Capital expenditures are expected to be in the range of $20 million to $30 million (unchanged). The Company’s outlook continues to include the expected results of the Greater China segment. As previously noted, there continue to be significant macroeconomic uncertainty and other geopolitical uncertainties and this outlook assumes that the impact from the conflict in the Middle East does not worsen from what is expected today. The Company cannot provide a reconciliation of constant currency revenue growth or Adjusted EBITDA guidance to the nearest comparable corresponding IFRS metric without unreasonable efforts due to difficulty in predicting certain items excluded from these non-IFRS measures. The items necessary to reconcile are not within Oatly’s control, may vary greatly between periods and could significantly impact future financial results. Conference Call, Webcast, Second Quarter 2026 Financial Report and Supplemental Presentation Details Oatly will host a conference call and webcast at 8:00 a.m. ET today to discuss these results. The conference call, simultaneous, live webcast and supplemental presentation can be accessed on Oatly’s Investors website at https://investors.oatly.com under “Events”. The webcast will be archived for 30 days. The complete Second Quarter 2026 Financial Report is available on Oatly’s Investors website at https://investors.oatly.com under “Financials and Filings”. About Oatly We are the world’s original and largest oat drink company. For over 30 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, spreads and on-the-go drinks. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 60 countries globally. For more information, please visit www.oatly.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding our financial outlook for 2026, profitability improvement, profitable growth in 2026, long-term growth strategy, expected capital expenditures, anticipated returns on our investments, anticipated supply chain performance, anticipated impact of our improvement plans, anticipated impact of our decision to discontinue construction of certain production facilities, plans to achieve profitable growth and anticipated cost savings and efficiencies as well as statements that include the words “expect”, “intend”, “plan”, “believe”, “project”, “forecast”, “estimate”, “may”, “should”, “anticipate”, “will”, “aim”, “potential”, “continue”, “is/are likely to” and similar statements of a future or forward-looking nature. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: we have a history of losses, and we may be unable to achieve or sustain profitability, including due to elevated inflation and increased costs for transportation, energy, and materials; our future business, financial condition and results of operations may be adversely affected by reduced or limited availability of oats and other raw materials and ingredients, which meet our quality standards, that our limited number of suppliers are able to sell to us; a failure to obtain necessary capital when needed on acceptable terms, or at all, may force us to delay, limit, reduce or terminate our product manufacturing and development and other operations; the primary components of all our products are manufactured in our production facilities, and damage or disruption at these facilities has in the past harmed, and may in the future harm, our business; our brand or reputation may be harmed due to real or perceived quality, food safety, nutrition or sustainability issues with our products, which could have an adverse effect on our business, reputation, financial condition and results of operations; food safety and food-borne illness incidents or other safety concerns have led to product recalls, and may materially adversely affect our business, financial condition and results of operations by exposing us to lawsuits or regulatory enforcement actions in the future, increasing our operating costs and reducing demand for our product offerings; failure by our suppliers of raw materials or co-manufacturers to comply with food safety, environmental or other laws and regulations, or with the specifications and requirements of our products, may disrupt our supply of products and adversely affect our business; we may not be able to compete successfully in our highly competitive markets; consolidation of customers, the loss of a significant customer or the decrease of sales from a significant customer, could negatively impact our sales and profitability; sales of our oatmilk varieties contribute a significant portion of our revenue and a reduction in such sales would have an adverse effect on our business, financial condition and results of operations; we continue to pursue largely an asset-light business model blending a heavy reliance on our co-manufacturing partners in addition to in-house capacity expansions where appropriate; our strategic partnerships with our co-manufacturers may not be successful, which could adversely affect our operations and manufacturing strategy; failure by our logistics providers to deliver our products on time, or at all, could result in lost sales; we may not successfully ramp up operations at any of our or our co-manufacturing partners’ facilities, or these facilities may not operate in accordance with our expectations; if we fail to effectively expand our processing, manufacturing and production capacity through existing facilities or acceptable co-manufacturing partners as we continue to grow and scale our business to a steady operating level, our business, financial condition, results of operations and our brand reputation could be harmed; if we fail to develop and maintain our brand, our business could suffer; failure to develop or introduce new products or successfully improve existing products may adversely affect our ability to continue to grow; if we fail to cost-effectively acquire new customers and consumers or retain our existing customers and consumers, or if we fail to derive revenue from our existing customers consistent with our historical performance, our business could be materially adversely affected; consumer preferences for our products are difficult to predict and may change, and, if we are unable to respond quickly to new trends, our business may be adversely affected; if we fail to manage our future growth effectively, including maintenance of our workforce, our business, financial condition and results of operations could be materially adversely affected; we have recognized impairment charges for long-lived assets and other exit costs in connection with our production facilities, and we may need to recognize further costs in the future, which could adversely impact our business, financial condition and results of operations; we are subject to risks related to sustainability (including environmental, climate change and broader corporate social responsibility matters), which may materially adversely affect our business as a result of lawsuits, regulatory investigations and enforcement actions, complaints concerning our disclosures, impacts on our operations and supply chain (particularly in connection with the physical impacts of climate change), and impacts on our brand and reputation; we rely on information technology systems and any inadequacy, failure or interruption of, or cybersecurity incidents affecting, those systems may harm our reputation and ability to effectively operate our business; a cybersecurity incident or other technology disruptions could negatively impact our business and our relationships with customers; to remain competitive, we believe we will need to adopt artificial intelligence and other machine learning technologies; our customer agreements do not contain long-term commitments and do not require our customers to continue purchasing products from us and this may negatively impact our business or financial condition; we may face difficulties as we expand our operations into countries in which we have no prior operating experience; the strategic review of the Company’s Greater China operations may not be successful; our operations in China could expose us to substantial business, regulatory, political, financial and economic risks; the international nature of our business subjects us to additional global economic and geopolitical risks; if we fail to comply with trade compliance and economic sanctions laws and regulations of the United States (the “U.S.”), the EU and other applicable international jurisdictions, it could materially adversely affect our reputation and results of operations; some of our debt agreements contain a floating interest rate component and as a result, an increase in market interest rates will increase our future interest payments under such agreements; our international operations expose us to the risk of fluctuations in currency exchange rates; we maintain cash and cash equivalents at financial institutions, often in amounts exceeding insured limits, and the failure of one or more of these institutions could result in a loss of deposits and adversely affect our liquidity or ability to raise capital; packaging costs are volatile and may rise significantly, which may negatively impact the profitability of our business; fluctuations in our results of operations may impact, and may have a disproportionate effect on, our overall financial condition and results of operations; litigation or legal proceedings could expose us to significant liabilities or costs and have a negative impact on our reputation or business; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all; failure to retain our senior management or to attract, train and retain qualified employees may adversely affect our operations or our ability to grow successfully; if we cannot maintain our company culture or focus on our mission as we grow, our success and our business and competitive position may be harmed; our insurance may not provide adequate levels of coverage against claims or we may be unable to find insurance with sufficient coverage at a reasonable cost; disruptions in the worldwide economy may adversely affect our business, financial condition and results of operations; our business is affected by macroeconomic conditions, including international tariffs and trade wars, rising inflation, interest rates and supply chain constraints; we are subject to risks inherent to organizations with international operations, which could harm our business, and global conflicts, including the ongoing conflict in the Middle East; legal claims, government investigations or other regulatory enforcement actions could subject us to civil and criminal penalties; our operations are subject to U.S., EU, China and other laws and regulations, and there is no assurance that we will be in compliance with all applicable laws and regulations; changes in existing laws or regulations, or the adoption of new laws or regulations may increase our costs and otherwise adversely affect our business, financial condition and results of operations; we are subject to stringent environmental regulation and potentially subject to environmental litigation, proceedings and investigations; we may not be able to protect, enforce or defend our intellectual property and other proprietary rights adequately, which may impact our commercial success; we have incurred substantial indebtedness that may decrease our business flexibility, access to capital, and/or increase our future borrowing costs; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2026, and our other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Oatly disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law. Non-IFRS Financial Measures We use EBITDA, Adjusted EBITDA, Constant Currency Revenue as non-IFRS financial measures in assessing our operating performance and Free Cash Flow as a non-IFRS liquidity measure, and each in our financial communications. “EBITDA” is defined as loss for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income and depreciation and amortization expense. “Adjusted EBITDA” is defined as loss for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income, depreciation and amortization expense, share-based compensation expense, restructuring costs, costs related to the strategic review of the Greater China business, impacts related to the closure of production facility and non-controlling interests. Adjusted EBITDA should not be considered as an alternative to loss for the period or any other measure of financial performance calculated and presented in accordance with IFRS. There are a number of limitations related to the use of Adjusted EBITDA rather than loss for the period, which is the most directly comparable IFRS measure. Some of these limitations are: Adjusted EBITDA excludes depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated may have to be replaced in the future increasing our cash requirements; Adjusted EBITDA does not reflect interest expense, or the cash required to service our debt, which reduces cash available to us; Adjusted EBITDA does not reflect income tax payments that reduce cash available to us; Adjusted EBITDA does not reflect recurring share-based compensation expense and, therefore, does not include all of our compensation costs; Adjusted EBITDA does not reflect restructuring costs that reduce cash available to us in future periods; Adjusted EBITDA does not reflect costs related to the strategic review of the Greater China business that reduce cash available to us; Adjusted EBITDA excludes impacts related to the closure of production facility, although some of these may reduce cash available to us in future periods; Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Adjusted EBITDA should not be considered in isolation or as a substitute for financial information provided in accordance with IFRS. Below we have provided a reconciliation of EBITDA and Adjusted EBITDA to loss for the period, the most directly comparable financial measure calculated and presented in accordance with IFRS, for the periods presented. “Constant Currency Revenue” is calculated by translating the current year reported revenue amounts into comparable amounts using the prior year reporting period’s average foreign exchange rates which have been provided by a third party. Constant Currency Revenue is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial performance. Constant currency revenue is used to provide a framework in assessing how our business and geographic segments performed excluding the effects of foreign currency exchange rate fluctuations and we believe this information is useful to investors to facilitate comparisons and better identify trends in our business. Above we have provided a reconciliation of revenue as reported to revenue on a constant currency basis for the periods presented. “Free Cash Flow” is defined as net cash flows used in operating activities less capital expenditures. We believe Free Cash Flow is a useful supplemental financial measure for us and investors in assessing our ability to pursue business opportunities and investments. Free Cash Flow is not a measure of our liquidity under IFRS and should not be considered as an alternative to net cash flows used in operating activities. Free Cash Flow is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial liquidity. Because Free Cash Flow is not a measurement determined in accordance with IFRS, and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies. Free Cash Flow should not be considered in isolation, or as a substitute for an analysis of our results as reported on our interim condensed consolidated financial statements appearing elsewhere in this document. Below we have provided a reconciliation of Free Cash Flow to net cash flows used in operating activities for the periods presented. For further information: Contact personJohn Baumgartner, CFA, Vice President, Investor RelationsE-mail: [email protected], [email protected] This information is information that Oatly Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 ET on July 22, 2026. (1) Relates primarily to severance costs as the Group adjusts its organizational structure.(2) Relates to costs for the strategic review of the Greater China segment.(3) Relates to reversal of previously recognized exit costs related to closure of the Group’s production facility in Singapore.

MALMÖ, Sweden, May 20, 2026 (GLOBE NEWSWIRE) -- Oatly Group AB (publ) (Nasdaq: OTLY) (“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced the results of its Annual General Meeting of shareholders (the “AGM”) held on May 20, 2026. The AGM adopted, inter alia, the following resolutions: Adoption of the Income Statement and Balance Sheet, Disposition Regarding the Company’s Results and Discharge from Liability The AGM adopted the Company’s income statement and balance sheet as well as the consolidated income statement and consolidated balance sheet. The AGM resolved, in accordance with the board of directors’ proposal, that no dividend was to be distributed for the financial year 2025 and that the Company’s result for the financial year 2025 was to be carried forward. The AGM also discharged the board of directors and the CEO from liability for the financial year 2025. Number of Members of the Board of Directors The AGM resolved, in accordance with the nominating, corporate governance and sustainability committee’s proposal, that the number of members of the board of directors elected by the general meeting or in accordance with Oatly’s articles of association shall be ten (10), without deputy members. Election of Members and Chairperson of the Board of Directors The AGM resolved, in accordance with the nominating, corporate governance and sustainability committee’s proposal, that: Eric Melloul shall be elected as an ordinary member of the board of directors for the period until the close of the annual general meeting to be held in 2029; Stefan Descheemaeker shall be elected as a new ordinary member of the board of directors for the period until the close of the annual general meeting to be held in 2029; and Martin Brok shall be elected as chairperson of the board of directors for the period until the close of the annual general meeting to be held in 2029. Remuneration to the Members of the Board of Directors The AGM resolved, in accordance with the remuneration committee’s proposal, that compensation shall be allocated to the directors in accordance with the following: USD 140,000 to the chairperson of the board of directors; USD 60,000 to each ordinary member of the board of directors, who is not employed by the Company or any of its subsidiaries; USD 22,500 to the chairperson of the audit committee; USD 10,000 to each ordinary member of the audit committee; USD 22,500 to the chairperson of the remuneration committee; USD 10,000 to each ordinary member of the remuneration committee; USD 22,500 to the chairperson of the nominating, corporate governance and sustainability committee; USD 10,000 to each ordinary member of the nominating, corporate governance and sustainability committee; and SEK 24,000 to each ordinary employee representative. Election of Auditor The AGM resolved, in accordance with the audit committee’s recommendation, that the registered auditing company Ernst & Young Aktiebolag is re-elected as auditor for the period until the end of the next AGM. Resolution Regarding (a) Implementation of the LTIP 2026–2028 Incentive Program and Increase in the Overall Share Limit, (b) Issuance of Warrants of Series 2026 and (c) Approval of Transfer of 2026 Warrant Instruments The AGM resolved, in accordance with the board of directors’ proposal, to implement a new long-term incentive program, LTIP 2026-2028, for the benefit of Oatly's chief executive officer, other members of the executive management team, top key personnel and selected senior key personnel. LTIP 2026-2028 is implemented under and pursuant to the Oatly Incentive Plan and provides for grants of stock options and restricted stock units ("RSUs" and together, "Awards"), with the Company being authorized to grant a total of 3,363,198 new Awards under the program. The AGM also resolved to increase the “Overall Share Limit” in the Oatly Incentive Plan to 143,861,475 Common Shares (as defined in the Oatly Incentive Plan). Awards may be granted on one or more occasions per financial year, no later than December 31, 2028. The stock options shall be granted at an exercise price equal to at least 100 percent of the fair market value of the relevant instrument at the time of grant, while RSUs are granted free of charge. Each stock option and RSU entitles the holder to acquire or receive, as determined by the board of directors, either twenty (20) ordinary shares in the Company, twenty (20) warrants of series 2026, or one (1) ADS. Both stock options and RSUs are subject to time-based vesting, normally three years from the grant date, conditional upon the participant remaining employed or engaged by the Oatly group at the applicable vesting date. Vested stock options remain exercisable for a period of up to seven years from the grant date. To secure delivery and settlement of Awards under LTIP 2026-2028, the AGM also resolved to issue not more than 67,263,960 new warrants of series 2026, which shall be issued and may be used only to secure delivery and settlement of the Awards. Resolution Regarding (a) Implementation of the Board Equity Program 2026–2028 and Increase in the Overall Share Limit, (b) a One-Time Issue of Share Awards to Certain Members of the Board of Directors and (c) Issuance of Warrants of Series 2026-B and Approval of Transfer of Warrants of Series 2026-B The AGM resolved, in accordance with the board of directors’ proposal, to implement a new board equity program, the Board Equity Program 2026-2028, under the Oatly Incentive Plan, to enable the Company to grant share awards ("Share Awards") to certain members of the board of directors. The Share Awards may be granted to the chairperson and to directors of the board of directors who are not employed by the Oatly group, Verlinvest or China Resources (the "Board Participants"). The program is intended to reward board members in equity instruments using ordinary shares, warrants of series 2026-B or American Depositary Shares ("ADSs"). The Company is authorized to grant a total of 300,000 new Share Awards under the Board Equity Program 2026-2028. The chairperson of the board of directors may each year be granted a number of Share Awards equivalent to USD 160,000 (but in no event more than 19,000 Share Awards per year), and each other Board Participant may each year be granted a number of Share Awards equivalent to USD 140,000 (but in no event more than 17,000 Share Awards per year), with grants to be made no later than December 31, 2028. Share Awards vest on the date of the next annual general meeting following the date of grant, subject to the relevant Board Participant continuing as a member of the board of directors at such time, with each vested Share Award entitling the holder to receive, as determined by the board of directors, either twenty (20) ordinary shares in the Company, twenty (20) warrants of series 2026-B, or one (1) ADS, without any compensation being payable. In addition, the AGM resolved to approve a one-time grant of Share Awards to certain members of the board of directors (the "2026 Additional Allocation"). The 2026 Additional Allocation is intended to compensate relevant members of the board of directors for a shortfall in grants made in 2025, when the decrease in the market value of Oatly's ADSs led to the maximum number of awards approved under the prior board program being fully utilized, resulting in relevant board members receiving less than their intended grants. Under the 2026 Additional Allocation, the chairperson of the board of directors during 2025 may be granted a maximum of 16,050 Share Awards and each other eligible Board Participant may be granted a maximum of 9,750 Share Awards, with the total number of Share Awards under the 2026 Additional Allocation not to exceed 55,050. These Share Awards are to be granted free of charge no later than June 30, 2026, and will vest as soon as practically possible after the grant date, provided that the relevant participant is still a member of the board of directors at such time. To secure delivery and settlement of Share Awards granted under both the Board Equity Program 2026-2028 and the 2026 Additional Allocation, the AGM also resolved to issue not more than 7,101,000 new warrants of series 2026-B, which shall be issued and may be used only to secure delivery and settlement of the Share Awards. Amendment to the Articles of Association The AGM resolved, in accordance with the proposal submitted by Nativus Company Limited, to amend the Company’s articles of association to change the reference from “China Resources (Holdings) Co. Limited” to “Blossom Key (Hong Kong) Holdings Limited” in Section 6 of the articles of association. For more detailed information regarding the content of the resolutions, please refer to the notice to the AGM and the comprehensive proposals, which have previously been published and are available on the Company’s website, https://investors.oatly.com/corporate-governance/annual-general-meeting-2026. About OatlyWe are the world’s original and largest oat drink company. For over 30 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, spreads and on-the-go drinks. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 60 countries globally. For more information, please visit www.oatly.com. Contact personMarie-José David, Chief Financial OfficerE-mail: [email protected], [email protected]

Image source: The Motley Fool. Wednesday, April 29, 2026 at 8 a.m. ET Chief Executive Officer — Jean-Christophe Flatin Chief Operating Officer — Daniel Ordonez Chief Financial Officer — Marie-Jose David Jean-Christophe Flatin: Thank you, Blake, and good morning, everyone. Slide 5 are the key messages I want you to take away. First, we have delivered a solid performance in quarter 1, both on top line and bottom line. This continues to build our confidence in our journey to accelerate profitable growth. Second, we continue to see clear signs that our growth playbook is working. It's already driving real impact in Europe and International as well as increasingly so in North America. We are, therefore, focusing on executing against this playbook more broadly in order to continue to drive further incremental demand. And finally, we are reaffirming our 2026 guidance in a context where the impact of the conflict in the Middle East is already visible in our costs from March onwards and brings further uncertainty for the rest of the year. Turning to Slide 6. Here, you can see our solid quarter 1 scorecard on our most important KPIs. Our revenue grew by 15.6% and 8.1% in constant currency. Our gross margin reached 33.4%, which represents an improvement of 188 basis points as compared to last year, while our adjusted EBITDA reached positive $5 million, which represents 2.2% of our net sales and an improvement of $8.7 million versus last year. This combined improved performance on top line and bottom line confirms that we remain focused on driving growth and impact in a disciplined and profitable way. We believe that this is a winning recipe for our company. Finally, our free cash flow in the quarter was a negative $11.7 million, which is an $8.8 million improvement versus last year. Our business plan remains fully funded and bringing the company to structurally positive free cash flow is important to us. We fully intend to drive the business to that milestone, not just from improvements in the P&L, but also from putting on all available levers, including working capital. Slide 7 confirms our focus areas for 2026. As Daniel will outline, we are seeing very positive traction on our refreshed growth playbook, and we will be doubling down on its execution. While we do not have a detailed update for you today, in 2026, we plan on completing the strategic review of the Greater China segment. We continue to evaluate a range of options, including a potential carve out with the goal of accelerating growth and maximizing the value of the business. We will update the market on our progress as necessary. Finally, we are navigating the context of uncertainty and volatility created by the conflict in the Middle East with a clear objective to minimize as much as possible its impact on our performance. We are permanently adapting our end to end supply chain choices to ensure we could serve consumers and customers. When it comes to the global cost impact, they are so far mostly fuel prices related, either directly in logistics or indirectly like in packaging. We are mobilizing our culture of efficiency and frugality in order to mitigate those and continue to adapt with agility to this pretty unpredictable context. In this context, Slide 8 reaffirms our guidance. In 2026, we expect the continued rollout of our refreshed growth playbook to drive an acceleration in our profitable growth. Specifically, we expect to drive constant currency revenue growth of 3% to 5%. And with what we know today about our ability to mitigate the cost impact of the Middle East conflict, we expect to deliver adjusted EBITDA towards the low end of the range of $25 million to $35 million. With that, Daniel, over to you. Daniel Ordonez: Thank you, JC, and good morning, everyone. I will start my discussion on Slide 10. Over the past 2 years, we have methodically deployed this new playbook with the objective to attack barriers to consumption, drive relevance and increase availability. We are confident it is working, as we see continued positive results in Europe and increasingly so in North America, as we will discuss today. Staying true to what makes Oatly, this playbook change is founded on the strategic choice to be relevant to a much broader population, a decision not just to aim at growing consumption within our historical consumer base, the lactose intolerant and the environmentally conscious, but to also expand our target market to the upcoming younger generations to drive true incremental consumption growth. That means we're focusing on our strength within beverages. This is taste and health instead of trying to mimic dairy in all its forms. In this exciting space, the room for penetration growth is enormous, and it is precisely where our strengths and assets are rooted. As you heard us say, an alternative to dairy no more, but an experience canvas for the beverages market, working with customers to renovate their menus and shelves to be more relevant, more provocative and more on trend with today's consumer. Taste & Health defined a clear high ground for the new generations, in particular for this category, but we have also adapted how we communicate to them. They are digital natives, and we have migrated from analog heavy individual advertising to a more relevant, integrated and digital first approach, always blended with iconic culture making life events. So as we say we're doubling down on the playbook, let me show you some examples of what we mean by that and in which specific areas we do invest. On Slide 11, you see how we're doubling down on our taste leadership in beverages. Our iconic Barista product remains our top selling item and continues to grow very fast. And the flavored Baristas such as the caramel, vanilla and popcorn flavors keep showing healthy growing velocities, proven to be a hit with consumers. As anticipated last time, we have launched in the last few days additional flavors in selected markets such as churros or coconut, and we're expanding the matcha range with the addition of a strawberry flavor, which is the most popular combination in foodservice. This will enable customers to create an even wider range of drinks. I am particularly excited to say that our Cold Foam Barista has already reached the menu of many of our top customers. It can be added on top of any beverage, hot or cold. Plant based cold foam options weren't widely available in the market thus far. So this is a breakthrough product that delights consumers and elevates the experience for our foodservice customers. See, taste is a new platform for Oatly and for the category. This is not just random innovation. Slide 12 shows the foundation of our unique and differentiated model. We have over 60 beverage market developers around the world who spend over 1,500 hours a week with our out of home customers, deploying our lookbooks and designing recipes to make our customer menus more on trend and therefore, more relevant to their customers. We are doubling down. We continue to steadily increase coverage across this space, considering every different customer type and adapting our route to market accordingly. As you can see on this slide, I am particularly proud to see how we are sophisticating our service package to be relevant on and offline and deploying a tailored neighborhood attack approach with our already famous Oatly Week concept, like you see in the Barcelona example here. Finally, I am very excited to see how this is working in the U.S., having experienced it myself in the streets of Brooklyn and the Lower East Side in Manhattan or Venice and the Arts District in L.A. Slide 13 shows you selected examples of the types of outdoor communications we do, in this case, in the streets of Warsaw in Poland, so Oatly, but the new Oatly in its essence. Slide 14 shows you another example of the sort of culture creating experiences we do. In this case, a collaboration with AVAVAV, one of the most talked about indie fashion brands at the Fashion Week Milan some weeks ago. While guests and models could enjoy Oatly signature drinks live, the social media impact of this collaboration spread across Europe and North America at the very same time as a true global event. On Slide 15, you can see the latest and greatest of our social media presence, where most of our brand investment is being deployed, both with brand generated but also user generated content by our brand ambassadors. Finally, on Slide 16, we demonstrate how the new strategy is helping us to make shelves more exciting and relevant, occupying more space than before, but not only for Oatly, but also for the category as customers start sensing a new momentum. I am particularly excited to see the first in store executions of the new strategy in Canada. Our team there are doing a phenomenal job anticipating what we're capable of doing in North America. When we look at the growth trajectory on Slide 17, we see accelerating growth, which gives us additional confidence that the strategy is working. Europe and International keeps on strengthening with another quarter at 14.5% growth in constant currency. That's a stellar performance and a very healthy mix of growth in both the established and in the new markets. I am very pleased to say that at the back of strong performance across all channels, the North America segment has seen growth in the quarter of 12.3%, excluding the segment's largest foodservice customer, or 3.8% total net growth when you click through to Slide 18. So step by step, we're bringing this segment into its growth path following the European model footsteps. As we said, we expect it will take longer than in Europe because of the time lag in retail, but we are mildly optimistic that we're reaching a tipping point in this segment.Moving forward, we will continue to focus on the controllables and the deployment of the growth playbook. Slide 19 shows that we continue to consistently outperform our competition in the tracked channel data, more than ever before. We continue to expand our retail market share in every single European market that we measure, whether it is an established or an expansion market. And in the U.S., as we continue to lap last year's portfolio delistings, our drinks portfolio consolidated the growth trajectory we started in the fourth quarter at the back of sustained strong velocities and strong distribution gains in the core portfolio, showing record highest TDPs and ACV. Slide 20 shows that when we look at the European markets in aggregate, since the implementation of the new playbook last year, oats keeps gaining momentum, showing its decisive role in driving the overall category upwards despite most other crops that continue to lose traction. Slide 21 shows 2 important dynamics that prove the core objective of the new strategy, generate incremental consumption from new younger consumers. First, switching analysis in the core European market shows the ability of the new portfolio to drive incremental sales. Second, as we dig into the data, we see that consumers that are coming into the category via the new portfolio tend to be younger consumers, which we find very encouraging. As we move into Slide 22, many of you might be thinking how fast can we replicate this in the U.S. Well, first things first, controlling the controllables, we have progressively taken this segment into positive growth and profit. Out of home continues to grow steadily, 12.4% growth outside the largest customer and at the back of the identical model we've implemented in Europe, enamoring the new coffee and beverages space with Oatly's Magic. Having signed a partnership with Onyx, recently named one of the most notable coffee specialty brands in the world, is a concrete sign of what's happening in the U.S. Excluding that large customer, this channel represents over 25% of this segment, and we expect it to continue to grow by increasing coverage and by driving more customer diversification. In retail, our core beverages portfolio now represents over 95% of the channel's revenue. We continue to gain strong distribution points within this portfolio, taking the measured retail channel to 10.5% growth in the quarter and to the record highest market share, breaking the 30% for the first time. To this, we should add the 150% growth in clubs with opportunities to continue to expand velocities and regions. So the outlook is good. So while category softness in the measured retail channel continues, we expect that will start changing the moment we are able to list the new portfolio. And I'm happy to say that early customer conversations for the upcoming reviews seem promising. Now that we have discussed the past, I want to give you a preview of our future plans, as you see on Slide 23. And this is simply a confirmation of the last discussion. You should not expect any significant change, but a relentless consolidation of the new playbook execution. First, we will be decisively leveraging our fiber credentials by campaigning about the fiber content of our product. Many global health authorities estimate that people have a fiber deficiency of about 10 grams per day. As a company that is rooted in science, our visionary founders have historically advocated for the benefits of fiber in people's diets. So what you see here is just the first step, and you should expect to see more from us in the near future. Second, step by step, we are working to accelerate the introduction of the new portfolio in the U.S. retail during the upcoming range reviews. While we expect the new listings to start taking place at the back of this year, we also expect that the full rollout will move well into next year. On Slide 24, I will refer to the progress we're making in China. Consistent with previous discussions, the general context and the price pressure in the foodservice business continues. At the same time, I am pleased to report that the strong development of the retail channel accelerated, doubling in quarter 1 year on year and representing already close to 1/3 of the segment's revenue. Finally, as JC mentioned, we intend to complete the strategic review during this year. To finish this business update, I would like us to step back and pay attention to the trajectory of the key business metrics of the year since JC and I joined the business, taking quarter 1 as a reference to make the comparison like for like with today's results disclosure. Here, you can see how the growth evolution is yielding a direct positive effect in cost absorption and muscle building margin. This has allowed us to continue to reinvest in growth while steadily reducing SG&A, and in so doing, building a more resilient business able to better navigate one off effects like the volatile context we described during the introduction. Way further to go, but we're confident we're making significant decisive steps in the right direction. With that, I will now turn the call over to Marie-Jose, MJ? Marie-Jose David: Thank you, Daniel, and good morning, everyone. Slide 27 highlights our ability to execute globally with continued strength in the European and International segment and increasingly so in North America. As an illustration, this quarter marked our first period of positive volume growth in North America since Q4 2024, an encouraging signal our growth playbook is working. In Q1, we grew revenue 15.6% and 8.1% on a constant currency basis. Gross margin was 33.4%, which is an increase of 188 basis points compared to last year's Q1. This was a result of efficiencies across the organization, including facility optimization, volume absorption and ongoing productivity improvements, in addition to a strong mix in Europe and International. Adjusted EBITDA was a positive $5 million in the quarter, which is $8.7 million higher than last year's Q1. The significant increase in adjusted EBITDA was a result of strong top line growth and gross margin expansion. I will now provide more detail about our financial performance. Slide 28 shows the bridging items of our revenue growth. In the quarter, volume grew 5.6%, price/mix increased by 2.5%. Foreign exchange was a 7.5% tailwind compared to 4.8% last quarter. The increase in revenue comes from the execution of our growth playbook, which includes increased consumer relevance through new flavors and formats. Moving into Slide 29 and the year over year gross margin bridge, which shows the 188 basis points year over year improvement. This improvement is explained by 110 basis points from fixed cost absorption and supply chain efficiencies, 110 basis points from product and channel mix, 40 basis points from foreign exchange currency tailwinds, partially offset by a negative impact of inflation for 80 basis points. Slide 30 shows the Q1 year over year improvement in our adjusted EBITDA. The $8.7 million improvement was driven by a $14 million increase in gross profit, partially offset by a $5.3 million increase in SG&A and overhead. In SG&A, our ongoing cost savings actions in areas such as indirect procurement were more than offset by $7.2 million year over year FX headwinds as well as customer distribution costs, mostly linked to higher volumes sold. As a volume driven business, our cost structure scales with growth, and we remain focused on delivering profitable growth over time. Slide 31 shows segment level detail. Europe and International grew net sales by 14.5% in constant currency, which is another proof that the growth playbook is working. This helped drive a $16 million increase in the segment adjusted EBITDA versus first quarter of 2025. North America's revenue grew 3.8% in the quarter. The segment adjusted EBITDA decreased by $0.5 million to $0.7 million, driven by higher cost of goods sold, explained by an increase in freight and warehousing costs. Greater China constant currency revenue declined by 6.4% in the quarter. The decline was explained by strong competition in the out of home channel and partially offset by growth in retail. The segment reported negative $0.8 million in adjusted EBITDA. Despite these challenges, our team continues to work together to navigate the macroeconomic headwinds in the region while managing the ongoing strategic review. In the quarter, corporate declined by $4.5 million, mostly as a result of FX headwinds and timing of global branding and advertising expenses. These expenses were partially offset by the ongoing efforts to increase efficiency of spend. Turning to our cash flow on Slide 32. First, I want to remind everyone that our business plan remains fully funded, and we are focused on bringing the company to structurally positive free cash flow. For the quarter, free cash flow was a net outflow of $11.7 million, which is $8.8 million better than last year. It is worth highlighting that the free cash flow in the quarter includes annual bonus payments, which would not occur again this year, as well as $3.5 million payments linked to the exit from our production facility in Singapore, which will finish in first quarter of 2027. I continue to see good progress throughout the company on all levels of cash flow, and I believe we still have room for improvement. While we do not anticipate delivering positive free cash flow for the full year 2026, we do expect that the biggest drivers of our improvement will come from higher adjusted EBITDA and working capital improvements. We will continue to maintain discipline in our investment choices. Turning to our 2026 outlook on Slide 33. As Jean-Christophe mentioned at the top of the call, we are reaffirming our outlook for 2026. We expect constant currency revenue growth in the range of 3% to 5%. Based on recent FX rates and assuming no change for the rest of the year, we estimate FX to add approximately 100 to 200 basis points to full year net sales growth. On adjusted EBITDA, as we navigate the impact of the Middle East conflict, we now expect to deliver towards the low end of the range of $25 million to $35 million. As we stand today, we anticipate Q2 to be lower than our first quarter with visible negative impact from the Middle East conflict, combined with a strong brand investment season. As we move through the year, we expect performance to improve meaningfully in the back half. This is supported both by a normalization of near term volatility and by the continued rollout of our growth playbook, where investments in selling, branding and distribution, which are front half weighted, are building benefits over time. As a reminder, this is, of course, only based on what we know today. Importantly, we do not currently view any change in the underlying health of the business. The fundamentals remain strong, and we are continuing to execute against our growth playbook while remaining agile in our ability to adapt when necessary. Lastly, our guidance for CapEx remains unchanged, which we expect to be in the range of $20 million to $30 million for the full year. This concludes our prepared remarks. Operator, we are now prepared to take questions. Operator: [Operator Instructions] Our first question will come from John Baumgartner with Mizuho. John Baumgartner: Maybe first off for MJ. I'm wondering if you can touch a bit on Europe, the EBITDA delivery there in Q1, how much of that strength was driven by maybe beneficial timing shifts from reinvestment as opposed to delivery that's more structural and more sustainable in nature from operating leverage or product mix? Marie-Jose David: Yes. So thank you for your question, John. The way to look at Q1, to be clear, and I'm sure you'll recall prior conversations where we always explain our phasing between first half and second half. So if you look at how we invest, which was your question, we usually weight more on first half than second half. That's point number one. As we continue as well, if I go below just the branding investment, there is as well investment when it comes to the business and the way that we operate for our initiatives. So if you have to think about the full year, Q1 is weighted more when it comes to investment, branding, selling expenses, initiatives when it comes to SG&A will go more for the year. Did I answer your question, John? John Baumgartner: Yes. Perfect. And then, Daniel, a follow up. The prepared comments noted that the brand communications are emphasizing taste and health. And I'm curious how you think about the health component. If plant based no longer needs to be positioned as an alternative to cow's milk because the category can stand on its own, well, that overlaps now non plant beverages trying to differentiate by including the prebiotics and fiber that's already core to oats. So the trends seem to be coming to oats overall. It's obviously early days, but how expansive do you think these health efforts can be? Does it open additional opportunities in products like yogurt? Is it possible to leverage health organizations for product claims? Just how do you think about communicating or scaling the health benefits going forward? Daniel Ordonez: Very good. So I could notice 3 questions in one, John, and I would love to take a double click on MJ's answer as well to give you comfort about how we're building EBITDA in Europe. Listen, 3 things to unpack there. First, as far as Oatly is concerned, we don't see a shift in terms of communication focus. Taste & Health has been part of the brand's voice and vision from the very beginning, at least since the 2012 inception of the contemporary brand vision, right? That's absolutely number one. Number two, there is no either/or when it comes to the focus on target market, right? It is true, however, as we have said for many quarters to date that there was a bit of a limitation when it comes to lactose intolerant target audience and environmentally conscious, you would say, the epitome of the alternative to cow's milk target audience. When we look at the young generations, both Gen Z and Alpha, we see that they look at this with a much broader perspective. It's not that being an alternative to milk to cows is irrelevant. It's that they look at taste and health combined as the primary area of attraction to our appeal to consumption, right? And of course, with a double click on sustainability, if you want, or being an alternative to dairy. And then when it comes to health, we do see momentum. We discussed with you in these discussions before. There is a significant momentum growing in both sides of the Atlantic when it comes to fibers, prebiotics, gut health, and we really, really welcome that with open arms. So there is an incrementality on that. Definitely, yes. But there is also an incrementality when it comes to the whole combination of taste and health. Mind you, when you see the results that we have just posted, both in the U.S. and in Europe, you see the new consumers coming into the category. And that is not just taste, but it's both taste and health combined, John. So yes to that, but the incrementality will not only come from health, but from taste and health combined. Operator: Our next question will come from Max Gumport with BNP. Max Andrew Gumport: It's nice to see the continued momentum in Europe and the improved growth in North America. And along those lines, with the growth playbook clearly working and gaining traction, I was hoping to get an updated view of how you think about the long term top line growth for both your North America business and your Europe and International business. Daniel Ordonez: Thank you, Max. Is that -- you have a second question, you want to double click on that one? Max Andrew Gumport: I will have a second. Let me start with that one. Daniel Ordonez: Very good. Thank you. Just checking. Listen, let me unpack that to you. You saw first on Europe, we do see the momentum continues to build, right? So before going into the outlook, allow me 1 minute to focus on the now. We have just posted, as you saw, 2 consecutive quarters on the mid teens, and we're clearly generating new incremental demand. So the important thing here is that we see growth consolidating at Oatly. It's doubling the growth of oat milk and almost tripling the growth of plant based milk. And you see that is a platform that makes us look into the future with different parties. This combined is giving us a sustained growth momentum in plant based milk of mid single digits, which is strong compared to where we were a couple of years ago. So that sets you already for a trend. Going into the future, the first thing we look at is that very, very important data point, which the growth comes from younger generations of consumers entering the category. We now have abundant evidence that, that is the case. So then definitely looking into the future, we look at the 70% penetration headroom we have in front of us. And that's why we believe the opportunity is enormous. In terms of where we see the growth coming from, number one, a much stronger portfolio, which is fully focused on beverages. And in a way, I'm using this question from you to come back to something that John was asking before. We will remain for the foreseeable future focused on drinks because it's where we have our assets, where we have our strength, where we have our superiority and where we're winning. And there's a lot of opportunity. And the other thing to give you a lever for Europe, Max, is the new markets, what we call the expansion markets of the International markets, whether it's France or Poland or Mexico in this segment. You're talking about markets that are large, large in their potential and are building really critical mass. So the 2 of them combined, a new portfolio and channel expansion in the established markets and the expansion in the new markets, gives you a real, real sweet spot for us to think on a second revolution for plant based drinkers in Europe. If I now move the attention to North America in the now, I am very encouraged. We are very encouraged by how things are developing in the U.S. First, what we see happening in coffee and foodservice. We're spending a lot of time with the teams there, and I'm very encouraged to report the progress that you see. For us, why this is important is because it's the best marker for category momentum. This channel is where habits are created. And excluding the largest customer, this channel represents already over 25% of the segment's revenue and has been growing in double digits for some quarters now. So when we look ahead, we only see opportunities, Max. And finally, just to round up on the U.S., on North America, the category remains soft, but there is a very significant part in traditional retail only. And it is strengthening. If you have checked the latest scanning data, the more Oatly gains traction, the more the category strengthens. And now we're winning, we're outperforming market and competitors with crossing the line of 30% share in oat milk for the first time. So as the outlook for North America, I would say controlling the controllables. And at the top of the controllables, we put the category development. Now we do put the category development. And for that, you will see 2 things. First, more visible brand investment, step by step, of course, because you know how we manage, how rigorous we are about our financial equation. And secondly, a step change in the U.S. traditional retail adopting the kind of portfolio you see in Europe. And I have to underline, step by step, you will see some this year, but the progress will go well into 2027. Hopefully, that gives you a full picture, Max. Operator: Our next question comes from Tom Palmer with JPMorgan. Unknown Analyst: It's Elsa on for Tom. So you now expect EBITDA to be at the low end of the full year range, just given some cost headwinds related to the Middle East conflict. Can you walk us through how those cost headwinds have impacted results in the first quarter? And what impact do you expect to see going forward, including any levers you potentially have to offset those costs as we move throughout the year? Jean-Christophe Flatin: Thank you. It's Jean-Christophe. I'll take this one. I mean it's a very important topic, as you can imagine. So I'll take the time to unpack that. Starting by the key statement that to date, we don't see an impact on demand because of the Middle East conflict. This is why I'm only answering on cost and EBITDA. So quickly, if we step back, what's the context of this guidance? Remember, everything we discuss today is only with what we know today. We continue to face daily unpredictability and volatility, and we really need to mobilize our agility to react and adapt. So now going to the heart of your question, when you look at the COGS, what do we see? On one hand, some of our COGS benefit from the fact that we have hedging on a number of energy contracts in our Europe factories. We have a number of advanced contracts on raw materials, and we have some structural advantages, which are related to choices we have made, like we have a pellet boiler in our Landskrona factory. We have an electric truck fleet in our Europe and International freight to warehouse network. All of that is helping us. However, on the other hand, the Middle East conflict has brought impacts into our P&L from the month of March onwards, and these costs are specifically fuel price related. The biggest one, shipping and logistics costs, both in Europe and International as well as North America. The second noticeable one is packaging costs worldwide. So when we do the net of the advantages we have and the new costs we see from the conflict, the net of the 2 is showing a total COGS and logistics net increase, which is already visible in March P&L and that we now expect to be fully at play in quarter 2. And honestly, too early to be much more precise than that for what could come after quarter 2, which is why when we had to review the full year outlook for this conversation, beyond the normal course of business, it means we have to evaluate both the potential full year cost impact of the conflict on one hand and our a bility to mitigate that on the other hand. And having done that, we now expect to deliver adjusted EBITDA towards the low end of the range of $25 million to $35 million. Operator: Our next question will come from Samu Wilhelmsson with Nordea Markets. Samu Wilhelmsson: A few questions from my side. I could start with North America. You mentioned that North American EBITDA was pressured by warehousing and transportation. So I was just wondering, is there a timeline or any measures in place to structurally fix the distribution economics? And do you project that it requires any additional CapEx? Daniel Ordonez: Sam, would you like to add to your list? Or is that the only -- you suggest that you have more questions? Samu Wilhelmsson: Yes, there are a few related to the cash flow. I can take them combined with. Daniel Ordonez: No, I'll take that from a business operation standpoint. I mean, listen, warehouse and transport, there are 2 ways to discuss that. There is the ongoing business as usual. We are dealing with that, and this is part of both the reports you have seen of quarter 1 and how we expect for the outlook of the market. There is -- of course, there is progress, but it has to do with the business as usual, nothing to highlight, to be honest with you. And then, of course, we're dealing with some of the consequences of the context that JC was just describing. All of that is blended on the guidance. So there is nothing structural and to be concerned about when it comes to the actual business operation in North America to highlight in this earnings call. Jean-Christophe Flatin: And to the double click of your question, Samu, there is no specific CapEx required or considered to deal with that. Samu Wilhelmsson: All right. Got it. Then on the free cash flow, first of all, maybe like thinking that how should we think about the Greater China strategic review's impact on free cash flow? Obviously, you can't comment on investment proceeds, but maybe from a point of view of the restructuring cash costs and from potential working capital release, is there anything relating to those that you would be willing to elaborate further? And then on the follow up, have you tracked what kind of revenue gross margin improvement levels you would need to get to a structural free cash flow, of course, excluding the effect of Greater China from that? Jean-Christophe Flatin: Thank you, Samu. I'll start with the context of your question, which is the strategic review. And here, as you know, our answer, our messaging is exactly the same as the last quarters. We continue to evaluate a range of options, including a potential carve out, with the very clear objective to accelerate growth and maximize value. As we work on that, we remain committed to our team, customers and suppliers. And it's a great opportunity for us, I think, to pay tribute to our great China team, who have remained focused on the business and continue to fight every day as we execute the ongoing strategic review. So a shout out to them at this occasion. MJ, I think you want to double click on the specifics. Marie-Jose David: Yes. The only specific, Samu, is on the allocation. We do not allocate any corporate costs to any individual segment. So just keep that in mind as well. Samu Wilhelmsson: All right. Then perhaps last question, a follow up with previous analysts regarding the guidance. You mentioned some rationale behind the guidance and what you have done there. But what kind of uncertainties would you see around the guidance, given that if the situation continues as planned, does that support your ongoing guidance? Or what would need to happen in order you to go back to the table or revise your guidance assumptions? Jean-Christophe Flatin: Thank you, Samu. Perhaps let me first repeat, to date, we are not seeing a demand impact from the Middle East conflict. So the question so far, with what we know today, the answer to your question is only on cost and therefore EBITDA. And when it comes to that, I think, honestly, I cannot predict the unpredictable or be any certain on the uncertainty. I think we flagged to you, like a lot of industries, most of the cost impact is fuel, so oil leading to fuel and then fuel leading to a few categories. These are the areas we are currently and constantly looking at and monitoring. So if there is one space we need to continue to pay attention daily to see what could happen, it is that. Operator: We'll take our last question from Andrew Lazar from Barclays. Samu Wilhelmsson: You mentioned that so far, you've not seen any impact on demand from the Middle East conflict. Organic sales were up 8% in the first quarter, and you're still looking for 3% to 5% for the full year. So I'm curious if there is something sort of discrete that you know of that will cause organic sales growth to decelerate from here to get into that 3% to 5% range for the full year? Or you're just being, I guess, prudent and thoughtful in case you see some impact on demand going forward? Jean-Christophe Flatin: Thank you so much, Andrew. And I think you just provided me with 2 great objectives that I will use again. But first, positioning ourselves on guidance is a balancing act. So let me unpack that for you. On one hand, as you can imagine, our recent quarter's performance definitely gives us confidence in our sales guidance. We just posted Q1. We drove very good growth in Europe and International. We see a return to positive volume and sales growth in North America. All of that are great signs of progress. It means our growth playbook is working, reinforcing the strategy, and therefore, we really focus ourselves on execution, controlling the controllables. That's on one hand. On the other hand, there are 3 considerations I want you to have in mind. First, you know better than me, 1 quarter does not make the year. Second, Europe and International sales strongly picked up in the second part of last year, which means we will compare ourselves to a stronger comp base in H2. And finally, as you said, even if to date we don't see a demand impact from the Middle East conflict, we all know how volatile and dynamic the current environment is and remains. And therefore, as you very well highlighted in your second option, we choose to be conservative and maintain our current outlook for the moment. And we will, of course, continue to monitor the conditions closely and come back to you. So I think you used prudent. I totally subscribe to that. Samu Wilhelmsson: Great. And then one last quick one. You mentioned that EBITDA in Q2 likely below the level that we saw in Q1. This might be getting too prescriptive, but would -- is your expectation that EBITDA could still be positive in Q2? Or based on what you know today, we should be thinking it's potentially even a bit negative year over year? Marie-Jose David: Andrew, this is MJ. So what we said is that Q2 will be lower than Q1. And what you've just heard is that we are managing current situation with all levers that we have. I'm not going to say more than that. We are definitely confirming our guidance. So I think with those 3 topics, you can take it. Operator: That does reach our allotted time for Q&A. I'll now turn the call back over to our presenters for any final or closing remarks. Daniel Ordonez: Thank you very much. Jean-Christophe Flatin: Thank you, everyone. Thank you for joining, and have a great day. Have a good day. Marie-Jose David: Thank you very much. Operator: Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Oatly (OTLY) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Oatly delivered a strong Q1 with revenue up 15.6% (8.1% cc), gross margin rising to 33.4% (+188 bps) and Adjusted EBITDA of SEK 5m, but free cash flow remained negative and management reaffirmed 2026 guidance while warning costs—especially logistics and packaging—are rising due to the Middle East conflict. The company is rolling out a “refreshed growth playbook” focused on beverage innovation (Barista Edition, flavored barista items, Cold Foam Barista, matcha expansions), digital-first marketing and 60+ out-of-home market developers to drive relevance with younger consumers. Regionally, Europe was strong (14.5% cc), North America is improving with the first positive volume growth since Q4 2024, but Greater China revenue fell 6.4% cc amid competitive and price pressure, prompting a strategic review of the China business including a potential carve-out. Interested in Oatly Group AB Sponsored ADR? Here are five stocks we like better. The 8 best agricultural ETFs to consider for your portfolio Oatly Group (NASDAQ:OTLY) reported what management called a “solid performance” in the first quarter of 2026, driven by revenue growth, gross margin expansion, and improved profitability, while reaffirming full-year guidance amid rising cost uncertainty tied to the conflict in the Middle East. Chief Executive Officer Jean-Christophe Flatin said the company delivered a strong start to the year “both on top line and bottom line,” which he said builds confidence in Oatly’s plan to “accelerate profitable growth.” → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank For the quarter, Oatly’s revenue increased 15.6%, or 8.1% on a constant currency basis. Gross margin rose to 33.4%, an improvement of 188 basis points compared to the prior year’s first quarter. Adjusted EBITDA was SEK 5 million, or 2.2% of net sales, representing an improvement of SEK 8.7 million year-over-year. Free cash flow was an outflow of SEK 11.7 million, which Flatin said was an SEK 8.8 million improvement versus last year. CFO Marie-José David emphasized that the company’s business plan “remains fully funded,” though she added that Oatly does not expect positive free cash flow for the full year 2026. She said improvement is expected to come primarily from “higher Adjusted EBITDA and working capital improvements.” → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report Global President and Chief Operating Officer Daniel Ordoñez said Oatly has spent the past two years deploying a “new playbook” designed to “attack barriers to consumption, drive relevance, and increase availability.” Ordoñez described the strategy as expanding beyond Oatly’s historical consumer base—lactose-intolerant and environmentally conscious shoppers—to target younger consumers by emphasizing “taste and health” in beverages. Ordoñez pointed to product and commercial activity centered on beverages, including the Barista Edition, flavored barista items (such as caramel, vanilla, and popcorn), and recent flavor launches in selected markets including churros and coconut. He also highlighted expansion of the matcha range with a strawberry flavor, and said the company’s Cold Foam Barista has reached “many of our top customers,” calling it a “breakthrough product” for foodservice. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? As part of execution, Ordoñez said Oatly has “over 60 beverage market developers around the world” who spend “over 1,500 hours a week” with out-of-home customers to help design menus and recipes. He also described Oatly’s increased focus on digital-first communications and social media, alongside culture-focused collaborations, including a partnership with indie fashion brand AVAVAV during Milan Fashion Week. Ordoñez said the company is seeing the playbook work “in Europe and increasingly so in North America.” In Europe and International, he reported another quarter of 14.5% constant currency growth, describing it as a “stellar performance,” supported by growth across both established and newer markets. In North America, Ordoñez said the segment posted 12.3% growth in the quarter excluding the segment’s largest foodservice customer, while total net growth was 3.8%. He characterized the trajectory as “step by step” progress and said the company is “mildly optimistic” it is approaching a tipping point, while noting retail changes can take longer due to timing lags. David added that the quarter marked “our first period of positive volume growth in North America since Q4 2024.” She said North America segment Adjusted EBITDA decreased by SEK 0.5 million to SEK 0.7 million, driven by higher costs of goods sold tied to increased freight and warehousing costs. In Greater China, Oatly’s constant currency revenue declined 6.4% in the quarter, which David attributed to strong competition and price pressure in the out-of-home channel, partially offset by retail growth. Ordoñez said retail in China “doubled in quarter one year-over-year” and now represents “close to a third of the segment’s revenue.” The segment recorded negative SEK 0.8 million in Adjusted EBITDA. While reaffirming full-year guidance, management emphasized that costs have been impacted since March by the Middle East conflict. Flatin said the company has not seen a demand impact so far, but the conflict is “already visible in our costs from March onwards and brings further uncertainty for the rest of the year.” He said the cost impact has been “mostly fuel prices related,” affecting logistics directly and packaging indirectly. In response, he said Oatly is “permanently adapting” supply chain choices and leveraging “efficiency and frugality” to mitigate impacts. Responding to a JPMorgan question, Flatin detailed that Oatly has some structural and contractual protections, including hedged energy contracts at European factories, advanced raw material contracts, a pellet boiler at its Landskrona facility, and an electric truck fleet used in parts of its European logistics network. However, he said higher shipping and logistics costs in both Europe and North America, along with higher packaging costs worldwide, have created a “net increase” in cost of goods sold and logistics that was visible in March and is expected to be “fully at play” in the second quarter. Oatly reaffirmed its 2026 outlook for constant currency revenue growth of 3% to 5% and Adjusted EBITDA of SEK 25 million to SEK 35 million, but now expects EBITDA “towards the low end” of the range. David said that based on recent FX rates, foreign exchange is expected to add roughly 100 to 200 basis points to full-year net sales growth, assuming no change in rates for the remainder of the year. David also said the company expects the second quarter to be lower than the first quarter, citing the cost impact from the Middle East conflict and a “strong brand investment season,” with improvement expected in the back half of the year as volatility normalizes and as front-half-weighted selling, branding, and distribution investments begin to yield benefits. On the top line, Flatin addressed why guidance remains below first-quarter constant currency growth, saying “one quarter does not make the year,” pointing to a tougher comparison base in the second half of 2026 and ongoing macro volatility. He said the company is choosing to be “conservative” and will monitor conditions closely. Management also reiterated plans to complete the strategic review of the Greater China segment during 2026. Flatin said Oatly continues to evaluate “a range of options, including a potential carve-out,” with the goal of accelerating growth and maximizing value, and said the company would update the market “as necessary.” David noted that Oatly does not allocate corporate costs to individual segments. For capital spending, David said guidance remains unchanged, with 2026 CapEx expected to be SEK 20 million to SEK 30 million. Oatly Group is a Sweden-based food and beverage company specializing in the development, production and sale of oat-derived dairy alternatives. The company’s product lineup includes oat-based drinks, ice cream, yogurts, spreads and cooking creams, all marketed under the Oatly brand name. By leveraging proprietary processing technology, Oatly extracts the nutritional benefits of oats—such as soluble fiber and plant protein—while delivering taste and texture profiles that closely mimic traditional dairy products. Founded in 1994 as a spin-off from research at Lund University, Oatly initially focused on exploiting the health and functional benefits of oat beta-glucans. The article "Oatly Group Q1 Earnings Call Highlights" was originally published by MarketBeat.