OTLY · Oatly Group AB

Oatly's Q1 2026 results demonstrate disciplined execution of its growth strategy, with revenue surging 15.6% to $228.3 million, including an 8.1% constant currency increase. Europe & International led with 27.1% reported growth (14.5% constant currency), fueled by 12.6% volume expansion in Barista products and retail channel strength (80% of revenue). North America grew 3.8% to $62.2 million, supported by retail channel gains (65% of revenue) despite warehousing and transportation cost pressures. Greater China saw a 2.1% decline to $29.3 million (6.4% constant currency drop), due to foodservice competition, though retail partially offset this shift (foodservice down to 63% of revenue). Gross margin expanded 188 basis points to 33.4%, driven by supply chain efficiencies, favorable product/channel mix, and FX tailwinds, partially offset by lower fixed cost absorption in Greater China. Adjusted EBITDA flipped to a $5.0 million profit from a $3.7 million loss, primarily from higher gross profit, despite rises in R&D ($4.9 million) and SG&A ($83.5 million) due to FX and volume-linked costs. CEO Jean-Christophe Flatin highlighted momentum in North America akin to other markets and cost structure progress. Balance sheet shows $49.4 million cash against $513.1 million debt; free cash flow improved to -$11.7 million outflow. The company reiterated full-year 2026 guidance amid Middle East conflict impacts, including 3-5% constant currency revenue growth (FX tailwind of 100-200bps), $25-35 million Adjusted EBITDA, and $20-30 million capex. Ongoing Greater China strategic review adds uncertainty but is expected to conclude in 2026.