Oatly Group AB's Strategic Reverse Stock Split and Business Transformation
- Oatly Group AB (NASDAQ:OTLY) executed a reverse stock split at a 20-for-1 ratio, aiming to increase its stock price.
- The company has undergone significant changes, including overhauling its supply chain and restructuring overheads, positioning it for its first full year of profitable growth in 2025.
- Despite these efforts, OTLY's stock price has decreased to $0.495, reflecting market volatility and the challenges ahead.
Oatly Group AB, listed on the NASDAQ as OTLY, is a leading company in the oat drink industry. Known for its plant-based products, Oatly has been a significant player in the market, competing with other non-dairy beverage brands. On February 18, 2025, NASDAQ:OTLY executed a reverse stock split at a 20-for-1 ratio, a strategic move often used to increase the stock price by reducing the number of shares outstanding.
The reverse stock split comes after a period of transformation for Oatly. CEO Jean-Christophe Flatin has emphasized the company's efforts over the past two years to overhaul its supply chain and restructure overheads. These changes have led to a healthier business model with clearer strategies and stronger margins. The company is now positioned to anticipate 2025 as its first full year of profitable growth since going public.
Despite these positive changes, OTLY's current stock price is $0.495, reflecting a decrease of 6.62% with a change of $0.0351. The stock has fluctuated today between a low of $0.4945 and a high of $0.545. Over the past year, OTLY has seen a high of $26.8 and a low of $0.4945, indicating significant volatility in its stock performance.
Oatly's market capitalization is approximately $295.5 million, and the trading volume for OTLY is 4,197,840 shares. These figures highlight the company's presence in the market and the interest it generates among investors. As Oatly continues to implement its new strategies, the market will be watching closely to see if the anticipated profitable growth in 2025 materializes.
| Symbol | Price | %chg |
|---|---|---|
| KO.BA | 18700 | -0.27 |
| PEP.BA | 10875 | -0.92 |
| CLEO.JK | 1430 | 0 |
| ADES.JK | 9900 | 0 |
Oatly Shares Gain 18% Since Q4 Earnings Announcement
Oatly (NASDAQ:OTLY) shares rose nearly 18% since the company’s reported Q4 results last week, with revenue of $195.1 million coming in better than the Street estimate of $180.4 million. EPS was ($0.21), compared to the Street estimate of ($0.14).
A surprisingly strong top-line performance, coupled with margin recovery and $425 million of fresh financing (that is expected to fuel growth until positive free cash flow), sets up the company well into 2023 and beyond.
While weaker pricing in Asia and lagging US growth should both be resolved in the near term, long-term gross margin and EBITDA margin targets were lowered as expected.
For fiscal 2023, the company expects revenue growth in the range of 23%-28% on a constant currency basis.
Oatly Shares Gain 18% Since Q4 Earnings Announcement
Oatly (NASDAQ:OTLY) shares rose nearly 18% since the company’s reported Q4 results last week, with revenue of $195.1 million coming in better than the Street estimate of $180.4 million. EPS was ($0.21), compared to the Street estimate of ($0.14).
A surprisingly strong top-line performance, coupled with margin recovery and $425 million of fresh financing (that is expected to fuel growth until positive free cash flow), sets up the company well into 2023 and beyond.
While weaker pricing in Asia and lagging US growth should both be resolved in the near term, long-term gross margin and EBITDA margin targets were lowered as expected.
For fiscal 2023, the company expects revenue growth in the range of 23%-28% on a constant currency basis.
