On February 13, the oat milk brand OATLY announced its performance for the fourth quarter and the full year of 2024.
In the fourth quarter of 2024, the company's revenue increased by 5.0% year-on-year to USD 214.3 million; adjusted EBITDA recorded a loss of USD 6.079 million.
By region, revenue in North America grew by 7.1% to USD 70.6 million, while Europe and international markets grew by 2.7% to USD 108.5 million.
In the fourth quarter of 2024, revenue in the Greater China region increased by 8.2% year-on-year to USD 35.258 million; adjusted EBITDA was a profit of USD 589,000, compared to a loss of USD 5.156 million in the same period last year.
The company stated that the growth in performance was mainly due to the successful expansion of a new food service client during the period.
In this quarter, the revenue share from the food service channel in the Greater China region rose from 73% in the same period last year to 76%.
CEO Jean-Christophe Flatin emphasized during the earnings call that OATLY's relationships with key clients and partners in the Greater China region are very stable and productive.
In May 2024, over ten products under Luckin Coffee added oat milk options, allowing consumers to replace the regular base with OATLY oat milk.
Throughout the year, the company also collaborated with brands such as Starbucks, K COFFEE, COSTA, and Peet's Coffee to launch more than ten new products.
However, looking at the full-year performance, the Greater China region is experiencing a contraction.
For the full year of 2024, OATLY's revenue in the Greater China region was USD 115 million, a year-on-year decline of 7.8%, further widening from a 6.7% drop in 2023.
Following the closure of its Singapore factory at the end of 2024, OATLY recently halted the construction plan for its second factory in China.
Additionally, the price competition among chain coffee shops is severe, and even OATLY cannot escape the low price of 9.9 yuan at Luckin.
As a result, the company has not abandoned its expansion plans for the consumer retail market.
OATLY's President for Greater China, Zhang Chun, stated in July 2024 that oat milk has transitioned from a fresh niche product to a common category, and this change will affect OATLY's strategies, products, channels, and other layouts.
In September 2024, OATLY launched two ready-to-drink coffee products: &#34;Rich Oat Latte&#34; and &#34;Dark Chocolate Flavor Oat Latte.&#34;
In early 2025, the company collaborated with Nestlé's capsule coffee brand Nespresso to jointly launch a limited edition capsule coffee product.
OATLY will increase cooperation with membership store channels, having already entered Costco, and cooperation with Sam's Club is also in progress.
For the full year of 2024, OATLY achieved revenue of USD 823.7 million, a year-on-year increase of 5.1%; adjusted EBITDA recorded a loss of USD 35.325 million.
OATLY's CEO stated that the company has implemented a major strategic reset over the past two years. The number of OATLY employees has been reduced to approximately 1,500, down by 500 over the past two years.
He revealed, &#34;We expect 2025 to be our first full year of profit growth as a publicly traded company.&#34;

OTLY

- On February 13, OATLY reported a 5.0% year-on-year revenue increase to $214.3 million for Q4 2024, despite an adjusted EBITDA loss of $6.079 million.  
- The company experienced regional growth, particularly in North America and the Greater China region, where revenue rose 8.2% to $35.258 million, with a shift in the foodservice channel's revenue share.  
- However, OATLY's full-year revenue in Greater China declined by 7.8% to $115 million, prompting the halt of its second factory's construction in China, while the CEO anticipates 2025 will mark the first full year of profitability growth as a public company.

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Oat milk hard to sell? Oatly's annual performance in Greater China declined by 7.8%