Transcript: Oatly Group Q2 2026 Earnings Conference Call

On Wednesday, Oatly Group (NASDAQ: OTLY ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

7%, driven by strong volume growth and a positive mix. The company raised its full-year revenue guidance to 8%-10% constant currency growth, up from 3%-5%, but maintained its adjusted EBITDA guidance towards the low end of $25-$35 million due to increased reinvestment. Despite cost pressures from the Middle East conflict, Oatly Group continues to invest in growth, focusing on brand building and expanding distribution in retail and food service channels. 9% growth, aided by new customer acquisitions and existing customer expansion.

The company is exploring strategic options for its China business, including a potential carve-out, to accelerate growth and maximize value. Full Transcript OPERATOR Please stand by. Your meeting is about to begin. Hello and welcome everyone joining today's Oatly Group 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-1 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, Vice President of Investor Relations Good morning and 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 Ordonez, and our Chief Financial Officer Marie-Jose David. Please review the cautionary statement regarding forward-looking statements and other disclaimers on Slide 3, which are integrated into this presentation and include the Q and 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 Group 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, Chief Executive Officer Thank you, John, and good morning, everyone. Slide 5 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 foodservice 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 our expectations communicated in April. Our plan also reflects continued investments for further growth. Turning to Slide 6, here you can see our solid second quarter scorecard for important KPIs.

7% in constant currency. 9%, which represents an improvement of 140 basis points compared to last year. 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.

Evolving momentum and a resilient bottom line show progress in building a stronger growth model in a profitable manner. 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 pulling on all available levers, including continued improvement in the P and L and working capital. Slide 7 reiterates our focused areas for the rest of 2026.

As Daniel will soon outline, we continue to see positive traction from our investments in 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 expec