Oatly’s inventory slides 10% after loss greater than doubles and it warns of a foul 2024

The loss got here as different working earnings and bills rose to an expense of $204.3 million, from $41.1 million within the year-earlier interval. The rise was principally as a result of non-cash asset-impairment fees of $172.6 million and different prices of $29 million, stemming from the discontinued building of sure manufacturing services.

Revenue rose to $204.1 million from $195.1 million a 12 months in the past, forward of the $191 million FactSet analyst consensus.

The inventory, which went public in 2021 at $17 a share, fell to as little as $1.10 in early buying and selling, earlier than closing at $1.21. At the time of its preliminary public providing, Oatly’s valuation was about $10 billion; on Thursday, its market capitalization stood at $800.8 million.

The firm is now anticipating income to develop 5% to 10% in 2024 on a constant-currency foundation. It expects an adjusted Ebitda lack of $35 million to $60 million.

CFRA reiterated its maintain score on the inventory and raised its 12-month worth goal to $1.20 from $1.00.

Analyst Arun Sundaram stated the numbers have been “solid” however that the gross sales outlook was overshadowed by the Ebitda loss steerage.

“While we think there is some conservatism in the outlook, it is difficult to know the extent given OTLY has pushed its profitability target a few times now,” he wrote.

Oatly has about $444 million in debt however round $454 million in liquidity, “which should help it avoid a capital raise this year,” he added.

The inventory has fallen 42% within the final 12 months, whereas the S&P 500
SPX
has gained 23%.