Oatly has reported significant year-on-year sales growth in all global markets for the third quarter of 2024, with notable gains in Greater China, driven by its supply deal with Luckin Coffee.
The Swedish oatmilk maker posted an 11% increase in group revenue, reaching $208 million for the three months ending September 30, 2024.
Sales in Greater China rose 14% compared to the same period last year, totaling $29 million—marking the highest figures since Oatly began reporting on the region in early 2024.
In an investor presentation, Oatly credited its collaboration with Luckin Coffee, China’s largest coffee chain, for boosting foodservice sales and enhancing brand visibility. The partnership, which included a promotional RMB 9.9 Oat Milk Series range, has helped Oatly expand its presence in the Chinese market. The company also supplies oatmilk to other major coffee chains in China, such as Cotti Coffee, Starbucks, and Tim Hortons China, the world’s largest branded coffee shop market.
Foodservice now accounts for 72% of Oatly’s revenue in Greater China, significantly higher than North America (48%) and Europe & International (18%).
Currently, Oatly’s Greater China segment contributes 14% of total group revenue, compared to 53% from Europe & International and 33% from North America.
The Europe & International segment, which includes regions such as Europe, the Middle East, Africa, Asia Pacific (excluding Greater China), and Latin America, saw a 6% increase in sales to $110 million. In North America, Oatly’s revenues grew by 18% year-on-year, reaching $69 million.
The results are positive news for CEO Jean-Christophe Flatin, who has been credited with improving Oatly’s operational structure and driving cost efficiencies. Oatly has shown continued growth despite a significant decision in November 2023 to halt expansion plans for production facilities in Europe and North America.
“We are pleased to report another quarter of solid progress. Our team’s focus on execution has driven profitable growth in each of our three operating segments,” Flatin said.
For the first time since its $1.4 billion IPO in May 2021, all three of Oatly’s operating segments reported positive adjusted EBITDA for the quarter—$12.4 million in Europe & International, $3.2 million in North America, and $1.6 million in Greater China.
However, Oatly’s total third-quarter adjusted EBITDA loss was $5.0 million, an improvement from a $36 million loss in the same period of 2023. The company’s net loss for the quarter was $34.6 million. Despite this, Oatly reported a profit before tax of $45.5 million for the first nine months of 2024.
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