Oatly Reports Third Quarter 2024 Financial Results
Rhea-AI Summary
Oatly Group AB (OTLY) reported Q3 2024 financial results with revenue of $208.0 million, up 10.9% year-over-year. The company achieved solid volume growth across all segments, with gross margin improving to 29.8%, a 12.4 percentage point increase. Net loss was $34.6 million, compared to a profit of $44.1 million in Q3 2023. For the first time since IPO, all operating segments reported positive Adjusted EBITDA. The company refined its 2024 outlook, expecting constant currency revenue growth near or slightly below 6-10%, Adjusted EBITDA near the favorable end of $(35)-$(50) million range, and capital expenditures below $55 million.
Positive
- Revenue increased 10.9% to $208.0 million in Q3 2024
- Gross margin improved by 12.4 percentage points to 29.8%
- All operating segments achieved positive Adjusted EBITDA for the first time since IPO
- Sold volume increased 13.0% to 141.3 million liters
- Adjusted EBITDA loss improved by $31.0 million to -$5.0 million
Negative
- Net loss of $34.6 million compared to profit of $44.1 million in prior year
- Negative free cash flow of $133.1 million for nine months ended September 30, 2024
- Total outstanding debt of $441.3 million
- Downward revision of revenue growth outlook to near or below 6%
News Market Reaction 1 Alert
On the day this news was published, OTLY declined 17.46%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MALMÖ, Sweden, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced financial results for the third quarter and nine months ended September 30, 2024.
Jean-Christophe Flatin, Oatly’s CEO, commented, “I am pleased to report another quarter of solid progress in strengthening our business. Our team’s continued focus on solid execution has enabled us to drive profitable growth in each of our three operating segments. As we move forward, we will maintain our north star of driving the total business toward structural, consistent profitable growth, and we intend to continue to invest behind our unique brand voice to recruit more consumers to our brand and further stimulate demand.”
The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and nine months ended September 30, 2024.
| Three months ended September 30, | $ Change | % Change | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | Volume | Constant currency price/mix | ||||||||||||||||||||||||||||
| Europe & International | 109,853 | 103,526 | 109,853 | 2,140 | 107,713 | 6.1 | % | 4.0 | % | 5.4 | % | -1.4 | % | |||||||||||||||||||||||
| North America | 69,073 | 58,491 | 69,073 | — | 69,073 | 18.1 | % | 18.1 | % | 17.6 | % | 0.5 | % | |||||||||||||||||||||||
| Greater China | 29,074 | 25,578 | 29,074 | 327 | 28,747 | 13.7 | % | 12.4 | % | 35.3 | % | -22.9 | % | |||||||||||||||||||||||
| Total revenue | 208,000 | 187,595 | 208,000 | 2,467 | 205,533 | 10.9 | % | 9.6 | % | 13.0 | % | -3.4 | % | |||||||||||||||||||||||
| Nine months ended September 30, | $ Change | % Change | ||||||||||||||||||||||||||||||||||
| 2024 | 2023 | As reported | Foreign exchange impact | In constant currency | As reported | In constant currency | Volume | Constant currency price/mix | ||||||||||||||||||||||||||||
| Europe & International | 325,801 | 302,790 | 325,801 | 3,488 | 322,313 | 7.6 | % | 6.4 | % | 5.1 | % | 1.3 | % | |||||||||||||||||||||||
| North America | 203,859 | 184,364 | 203,859 | — | 203,859 | 10.6 | % | 10.6 | % | 11.9 | % | -1.3 | % | |||||||||||||||||||||||
| Greater China | 79,690 | 92,073 | 79,690 | (1,887 | ) | 81,577 | -13.4 | % | -11.4 | % | 15.1 | % | -26.5 | % | ||||||||||||||||||||||
| Total revenue | 609,350 | 579,227 | 609,350 | 1,601 | 607,749 | 5.2 | % | 4.9 | % | 8.4 | % | -3.5 | % | |||||||||||||||||||||||
Highlights
- Third quarter revenue of
$208.0 million , a10.9% increase compared to the prior year period, with a constant currency revenue increase of9.6% compared to the prior year period, with solid volume growth in each operating segment. - Gross margin in the third quarter was
29.8% , which is a 12.4 percentage points increase compared to the prior year period. - Third quarter net loss attributable to shareholders of the parent was
$34.6 million , which is a decline of$78.6 million compared to net profit attributable to shareholders of the parent of$44.1 million in the prior year period. - Third quarter Adjusted EBITDA loss was
$5.0 million , which is an improvement of$31.0 million compared to the prior year period. - For the first time since the Company’s IPO, each operating segment reported positive Adjusted EBITDA for the full quarter.
- With one quarter remaining in the year, the Company is refining its full year 2024 outlook. The Company now expects:
- Constant currency revenue growth near, or slightly below, the low end of the previously-provided range of
6% to10% , - Adjusted EBITDA near the favorable end of its previously-provided range of
$(35) million to$(50) million , and - Capital expenditures below
$55 million , compared to the prior expectation of below$70 million .
- Constant currency revenue growth near, or slightly below, the low end of the previously-provided range of
Third Quarter 2024 Results
Revenue increased
The Company continued to drive revenue growth in both the retail channel and foodservice channel in the third quarter of 2024 compared to the third quarter of 2023.
Gross profit was
Research and development expenses in the third quarter of 2024 increased
Selling, general and administrative expenses in the third quarter of 2024 decreased
Other operating income and (expenses), net for the third quarter of 2024 was an expense of
Finance income and (expenses), net for the third quarter of 2024 was an expense of
Net loss attributable to shareholders of the parent was
Adjusted EBITDA loss for the third quarter of 2024 was
EBITDA, Adjusted EBITDA loss, and Constant Currency Revenue are non-IFRS financial measures defined under “Non-IFRS financial measures”. Please see above revenue at constant currency table and “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
The following tables set forth revenue, Adjusted EBITDA, EBITDA and (loss)/profit before tax for the Company’s three reportable segments for the periods presented.
Revenue, Adjusted EBITDA and EBITDA
Segment information for the three and nine months ended September 30, 2023 presented below has been updated to reflect previously disclosed changes to our operating segments, which were effective as of January 1, 2024. Please see our press release, dated April 17, 2024, furnished on Form 6-K with the SEC for further information regarding these changes.
| Revenue, Adjusted EBITDA and EBITDA | ||||||||||||||||||||||||
| Three months ended September 30, 2024 (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 109,853 | 69,073 | 29,074 | — | — | 208,000 | ||||||||||||||||||
| Intersegment revenue | 1,325 | — | — | — | (1,325 | ) | — | |||||||||||||||||
| Total segment revenue | 111,178 | 69,073 | 29,074 | — | (1,325 | ) | 208,000 | |||||||||||||||||
| Adjusted EBITDA | 12,414 | 3,271 | 1,622 | (22,352 | ) | — | (5,045 | ) | ||||||||||||||||
| Share-based compensation expense | (800 | ) | (141 | ) | (411 | ) | (1,949 | ) | — | (3,301 | ) | |||||||||||||
| Restructuring costs(1) | (35 | ) | (97 | ) | — | (808 | ) | — | (940 | ) | ||||||||||||||
| New product launch issue(2) | — | (6,888 | ) | — | — | — | (6,888 | ) | ||||||||||||||||
| Non-controlling interests | — | — | (70 | ) | — | — | (70 | ) | ||||||||||||||||
| EBITDA | 11,579 | (3,855 | ) | 1,141 | (25,109 | ) | — | (16,244 | ) | |||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (4,284 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (12,713 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (33,241 | ) | |||||||||||||||||
| Three months ended September 30, 2023 (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 103,526 | 58,491 | 25,578 | — | — | 187,595 | ||||||||||||||||||
| Intersegment revenue | 3,717 | — | 59 | — | (3,776 | ) | — | |||||||||||||||||
| Total segment revenue | 107,243 | 58,491 | 25,637 | — | (3,776 | ) | 187,595 | |||||||||||||||||
| Adjusted EBITDA | 8,476 | (8,035 | ) | (16,481 | ) | (19,958 | ) | — | (35,998 | ) | ||||||||||||||
| Share-based compensation expense | (580 | ) | (978 | ) | (1,205 | ) | (3,527 | ) | — | (6,290 | ) | |||||||||||||
| Restructuring costs(1) | (29 | ) | 112 | (2,292 | ) | (968 | ) | — | (3,177 | ) | ||||||||||||||
| Legal settlement(3) | — | — | — | (9,250 | ) | — | (9,250 | ) | ||||||||||||||||
| Non-controlling interests | — | — | (74 | ) | — | — | (74 | ) | ||||||||||||||||
| EBITDA | 7,867 | (8,901 | ) | (20,052 | ) | (33,703 | ) | — | (54,789 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | 112,841 | ||||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (12,559 | ) | |||||||||||||||||
| Profit before tax | — | — | — | — | — | 45,493 | ||||||||||||||||||
| Nine months ended September 30, 2024 (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 325,801 | 203,859 | 79,690 | — | — | 609,350 | ||||||||||||||||||
| Intersegment revenue | 5,103 | — | — | — | (5,103 | ) | — | |||||||||||||||||
| Total segment revenue | 330,904 | 203,859 | 79,690 | — | (5,103 | ) | 609,350 | |||||||||||||||||
| Adjusted EBITDA | 39,548 | 4,049 | (2,234 | ) | (70,609 | ) | — | (29,246 | ) | |||||||||||||||
| Share-based compensation expense | (1,679 | ) | 886 | (1,590 | ) | (7,712 | ) | — | (10,095 | ) | ||||||||||||||
| Restructuring costs(1) | (890 | ) | (866 | ) | (1,940 | ) | (879 | ) | — | (4,575 | ) | |||||||||||||
| Discontinued construction of production facilities(4) | (2,923 | ) | 1,161 | — | — | — | (1,762 | ) | ||||||||||||||||
| New product launch issue(2) | — | (12,565 | ) | — | — | — | (12,565 | ) | ||||||||||||||||
| Non-controlling interests | — | — | (172 | ) | — | — | (172 | ) | ||||||||||||||||
| EBITDA | 34,056 | (7,335 | ) | (5,936 | ) | (79,200 | ) | — | (58,415 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | (11,272 | ) | |||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (38,034 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (107,721 | ) | |||||||||||||||||
| Nine months ended September 30, 2023 (in thousands of U.S. dollars) | Europe & International | North America | Greater China | Corporate* | Eliminations** | Total | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Revenue from external customers | 302,790 | 184,364 | 92,073 | — | — | 579,227 | ||||||||||||||||||
| Intersegment revenue | 23,268 | — | 181 | — | (23,449 | ) | — | |||||||||||||||||
| Total segment revenue | 326,058 | 184,364 | 92,254 | — | (23,449 | ) | 579,227 | |||||||||||||||||
| Adjusted EBITDA | 16,967 | (29,221 | ) | (52,387 | ) | (73,698 | ) | — | (138,339 | ) | ||||||||||||||
| Share-based compensation expense | (1,699 | ) | (2,830 | ) | (3,984 | ) | (8,246 | ) | — | (16,759 | ) | |||||||||||||
| Restructuring costs(1) | (1,063 | ) | (2,482 | ) | (2,402 | ) | (6,397 | ) | — | (12,344 | ) | |||||||||||||
| Legal settlement(3) | — | — | — | (9,250 | ) | — | (9,250 | ) | ||||||||||||||||
| Costs related to the YYF Transaction(5) | — | (375 | ) | — | — | — | (375 | ) | ||||||||||||||||
| Non-controlling interests | — | — | (74 | ) | — | — | (74 | ) | ||||||||||||||||
| EBITDA | 14,205 | (34,908 | ) | (58,847 | ) | (97,591 | ) | — | (177,141 | ) | ||||||||||||||
| Finance income and (expenses), net | — | — | — | — | — | 99,333 | ||||||||||||||||||
| Depreciation and amortization | — | — | — | — | — | (37,256 | ) | |||||||||||||||||
| Loss before tax | — | — | — | — | — | (115,064 | ) | |||||||||||||||||
| * Corporate consists of general costs not allocated to the segments. | ||
| ** Eliminations in 2024 and 2023 primarily refer to intersegment revenue for sales of products from Europe & International to Greater China. | ||
| (1) | Relates primarily to severance payments as the Group continues to adjust its organizational structure to the macro environment. | |
| (2) | Expenses related to a new product launch issue. | |
| (3) | Relates to US securities class action litigation settlement expenses. | |
| (4) | Relates primarily to non-cash impairments related to discontinued construction of the Group’s production facility in Peterborough, UK, and reversal of previously recognized non-cash impairments related to discontinued construction of the Group’s production facility in Dallas-Fort Worth, Texas. | |
| (5) | Relates to the Ya YA Foods USA LLC transaction (the “YYF Transaction”). See the Company’s Forms 6-K filed on January 3, 2023 and March 2, 2023 for further details. | |
Europe & International
Europe & International revenue increased
Europe & International Adjusted EBITDA increased
North America
North America revenue increased
North America Adjusted EBITDA improved
Greater China
Greater China revenue increased
Greater China Adjusted EBITDA improved
Corporate
Oatly’s corporate expense, which consists of general costs not allocated to the segments, in the third quarter of 2024 was
Balance Sheet and Cash Flows
As of September 30, 2024, the Company had cash and cash equivalents of
Capital expenditures were
Free cash flow was an outflow of
Free Cash Flow is a non-IFRS liquidity measure defined under “Non-IFRS financial measures.” Please see “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
Outlook
Based on the Company’s assessment of the current operating environment and the actions it is taking, the Company is refining its full year 2024 outlook. The Company now expects:
- Constant currency revenue growth near, or slightly below, the low end of the previously-provided range of
6% to10% , - Adjusted EBITDA near the favorable end of its previously-provided range of
$(35) million to$(50) million , and - Capital expenditures below
$55 million , compared to the prior expectation of below$70 million .
This outlook is provided in the context of significant macroeconomic uncertainty and other geopolitical uncertainties.
The Company cannot provide a reconciliation of constant currency revenue growth or Adjusted EBITDA guidance to the nearest comparable corresponding IFRS metric without unreasonable efforts due to difficulty in predicting certain items excluded from these non-IFRS measures. The items necessary to reconcile are not within Oatly’s control, may vary greatly between periods and could significantly impact future financial results.
Conference Call, Webcast and Supplemental Presentation Details
Oatly will host a conference call and webcast at 8:30 a.m. ET today to discuss these results. The conference call, simultaneous, live webcast and supplemental presentation can be accessed on Oatly’s Investors website at https://investors.oatly.com under “Events.” The webcast will be archived for 30 days.
About Oatly
We are the world’s original and largest oat drink company. For over 25 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties suited for sustainability and human health. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, and spreads. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 20 countries globally.
For more information, please visit www.oatly.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding our financial outlook for 2024, profitability improvement, long-term growth strategy, expected capital expenditures, anticipated returns on our investments, anticipated supply chain performance, anticipated impact of our improvement plans, anticipated impact of our decision to discontinue construction of certain production facilities, plans to achieve profitable growth and anticipated cost savings as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “is/are likely to” and similar statements of a future or forward-looking nature. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: our history of losses and inability to achieve or sustain profitability; including due to elevated inflation and increased costs for transportation, energy and materials; reduced or limited availability of oats or other raw materials and ingredients that meet our quality standards; failure to obtain additional financing to achieve our goals or failure to obtain necessary capital when needed on acceptable terms, or at all; failure of the financial institutions in which we hold our deposits; damage or disruption to our production facilities; harm to our brand and reputation as a result of real or perceived quality or food safety issues with our products; food safety and food-borne illness incidents or other safety concerns which may lead to lawsuits, product recalls or regulatory enforcement actions; our ability to successfully compete in our highly competitive markets; reduction in the sales of our oatmilk varieties; failure to effectively navigate our shift to an asset-light business model; failure to successfully achieve any or all of the benefits of the YYF Transaction; failure to meet our existing or new environmental metrics and other risks related to sustainability and corporate social responsibility; litigation, regulatory actions or other legal proceedings including environmental and securities class action lawsuits and settlements; changes to international trade policies, treaties and tariffs; global conflict, including the ongoing wars in Ukraine and Israel; changes in our tax rates or exposure to additional tax liabilities or assessments; supply chain delays, including delays in the receipt of product at factories and ports, and an increase in transportation costs; the impact of rising commodity prices, transportation and labor costs on our cost of goods sold; failure by our logistics providers to deliver our products on time, or at all; our ability to successfully execute our cost reduction activities in accordance with our expectations and the impact of such actions on our company; failure to develop and maintain our brand; our ability to introduce new products or successfully improve existing products; failure to retain our senior management or to attract, train and retain employees; cybersecurity incidents or other technology disruptions; risks associated with our operations in the People’s Republic of China; the success of our strategic reset in Asia; failure to protect our intellectual property and other proprietary rights adequately; our ability to successfully remediate previously disclosed material weaknesses or other future control deficiencies, in our internal control over financial reporting; impairments of the value of our assets; potential delisting from Nasdaq; our status as a foreign private issuer; risks related to the significant influence of our largest shareholder, Nativus Company Limited, entities affiliated with China Resources Verlinvest Health Investment Ltd. has over us, including significant influence over decisions that require the approval of shareholders; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 22, 2024 and our other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Oatly disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Non-IFRS Financial Measures
We use EBITDA, Adjusted EBITDA, Constant Currency Revenue as non-IFRS financial measures in assessing our operating performance and Free Cash Flow as a liquidity measure, and each in our financial communications:
“EBITDA” is defined as (loss)/profit for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income and depreciation and amortization expense.
“Adjusted EBITDA” is defined as (loss)/profit for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income, depreciation and amortization expense, share-based compensation expense, restructuring costs, expenses related to a new product launch issue, costs related to legal settlement, impacts related to discontinued construction of production facilities, costs related to the YYF Transaction, and non-controlling interests.
Adjusted EBITDA should not be considered as an alternative to (loss)/profit for the period or any other measure of financial performance calculated and presented in accordance with IFRS. There are a number of limitations related to the use of Adjusted EBITDA rather than (loss)/profit for the period, which is the most directly comparable IFRS measure. Some of these limitations are:
- Adjusted EBITDA excludes depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated may have to be replaced in the future increasing our cash requirements;
- Adjusted EBITDA does not reflect interest expense, or the cash required to service our debt, which reduces cash available to us;
- Adjusted EBITDA does not reflect income tax payments that reduce cash available to us;
- Adjusted EBITDA does not reflect recurring share-based compensation expense and, therefore, does not include all of our compensation costs;
- Adjusted EBITDA does not reflect restructuring costs that reduce cash available to us in future periods;
- Adjusted EBITDA does not reflect expenses related to a new product launch issue that reduce cash available to us;
- Adjusted EBITDA does not reflect costs related to legal settlement that reduce cash available to us in future periods;
- Adjusted EBITDA excludes impacts related to discontinued construction of production facilities, although some of these may reduce cash available to us in future periods;
- Adjusted EBITDA does not reflect costs related to the YYF Transaction that reduced cash available to us;
- Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Adjusted EBITDA should not be considered in isolation or as a substitute for financial information provided in accordance with IFRS. Below we have provided a reconciliation of EBITDA and Adjusted EBITDA to (loss)/profit for the period, the most directly comparable financial measure calculated and presented in accordance with IFRS, for the periods presented.
“Constant Currency Revenue” is calculated by translating the current year reported revenue amounts into comparable amounts using the prior year reporting period’s average foreign exchange rates which have been provided by a third party. Constant Currency Revenue is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial performance.
Constant currency revenue is used to provide a framework in assessing how our business and geographic segments performed excluding the effects of foreign currency exchange rate fluctuations and believe this information is useful to investors to facilitate comparisons and better identify trends in our business. Above we have provided a reconciliation of revenue as reported to revenue on a constant currency basis for the periods presented.
“Free Cash Flow” is defined as net cash flows used in operating activities less capital expenditures. We believe Free Cash Flow is a useful supplemental financial measure for us and investors in assessing our ability to pursue business opportunities and investments. Free Cash Flow is not a measure of our liquidity under IFRS and should not be considered as an alternative to net cash flows from operating activities.
Free Cash Flow is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial liquidity. Because Free Cash Flow is not a measurement determined in accordance with IFRS, and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies. Free Cash Flow should not be considered in isolation, or as a substitute for an analysis of our results as reported on our interim condensed consolidated financial statements appearing elsewhere in this document. Below we have provided a reconciliation of Free Cash Flow to net cash flows used in operating activities for the periods presented.
Financial Statements
Interim condensed consolidated statement of operations
| (Unaudited) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| (in thousands of U.S. dollars, except share and per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | 208,000 | 187,595 | 609,350 | 579,227 | ||||||||||||
| Cost of goods sold | (145,979 | ) | (155,034 | ) | (434,475 | ) | (474,922 | ) | ||||||||
| Gross profit | 62,021 | 32,561 | 174,875 | 104,305 | ||||||||||||
| Research and development expenses | (10,867 | ) | (4,684 | ) | (26,407 | ) | (15,719 | ) | ||||||||
| Selling, general and administrative expenses | (79,743 | ) | (87,125 | ) | (242,746 | ) | (292,675 | ) | ||||||||
| Other operating income and (expenses), net | (368 | ) | (8,100 | ) | (2,171 | ) | (10,308 | ) | ||||||||
| Operating loss | (28,957 | ) | (67,348 | ) | (96,449 | ) | (214,397 | ) | ||||||||
| Finance income and (expenses), net | (4,284 | ) | 112,841 | (11,272 | ) | 99,333 | ||||||||||
| (Loss)/profit before tax | (33,241 | ) | 45,493 | (107,721 | ) | (115,064 | ) | |||||||||
| Income tax expense | (1,389 | ) | (1,482 | ) | (3,194 | ) | (3,221 | ) | ||||||||
| (Loss)/profit for the period | (34,630 | ) | 44,011 | (110,915 | ) | (118,285 | ) | |||||||||
| Attributable to: | ||||||||||||||||
| Shareholders of the parent | (34,560 | ) | 44,085 | (110,743 | ) | (118,211 | ) | |||||||||
| Non-controlling interests | (70 | ) | (74 | ) | (172 | ) | (74 | ) | ||||||||
| (Loss)/profit per share, attributable to shareholders of the parent: | ||||||||||||||||
| Basic | (0.06 | ) | 0.07 | (0.19 | ) | (0.20 | ) | |||||||||
| Diluted | (0.06 | ) | (0.07 | ) | (0.19 | ) | (0.26 | ) | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 597,968,449 | 594,255,240 | 596,434,390 | 593,261,979 | ||||||||||||
| Diluted | 597,968,449 | 994,871,584 | 596,434,390 | 832,310,554 | ||||||||||||
Interim condensed consolidated statement of financial position
| (Unaudited) | September 30, 2024 | December 31, 2023 | ||||||
| (in thousands of U.S. dollars) | ||||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Intangible assets | 127,135 | 130,326 | ||||||
| Property, plant and equipment | 352,138 | 360,286 | ||||||
| Right-of-use assets | 56,270 | 88,393 | ||||||
| Other non-current receivables | 44,450 | 44,378 | ||||||
| Deferred tax assets | 8,428 | 10,203 | ||||||
| Total non-current assets | 588,421 | 633,586 | ||||||
| Current assets | ||||||||
| Inventories | 81,793 | 67,882 | ||||||
| Trade receivables | 102,177 | 112,951 | ||||||
| Current tax assets | 3,742 | 2,505 | ||||||
| Other current receivables | 13,068 | 33,820 | ||||||
| Prepaid expenses | 12,260 | 16,928 | ||||||
| Cash and cash equivalents | 119,333 | 249,299 | ||||||
| Total current assets | 332,373 | 483,385 | ||||||
| TOTAL ASSETS | 920,794 | 1,116,971 | ||||||
| EQUITY AND LIABILITIES | ||||||||
| Equity | ||||||||
| Share capital | 106 | 105 | ||||||
| Treasury shares | (0 | ) | (0 | ) | ||||
| Other contributed capital | 1,628,045 | 1,628,045 | ||||||
| Other reserves | (236,972 | ) | (233,204 | ) | ||||
| Accumulated deficit | (1,161,600 | ) | (1,060,952 | ) | ||||
| Equity attributable to shareholders of the parent | 229,579 | 333,994 | ||||||
| Non-controlling interests | 1,629 | 1,787 | ||||||
| Total equity | 231,208 | 335,781 | ||||||
| Liabilities | ||||||||
| Non-current liabilities | ||||||||
| Lease liabilities | 36,189 | 72,570 | ||||||
| Liabilities to credit institutions | 115,056 | 114,249 | ||||||
| Provisions | 1,667 | 10,716 | ||||||
| Total non-current liabilities | 152,912 | 197,535 | ||||||
| Current liabilities | ||||||||
| Lease liabilities | 13,990 | 16,432 | ||||||
| Convertible Notes | 320,191 | 323,528 | ||||||
| Liabilities to credit institutions | 6,020 | 6,056 | ||||||
| Trade payables | 57,303 | 64,368 | ||||||
| Current tax liabilities | 762 | 2,732 | ||||||
| Other current liabilities | 7,666 | 13,873 | ||||||
| Accrued expenses | 123,859 | 121,338 | ||||||
| Provisions | 6,883 | 35,328 | ||||||
| Total current liabilities | 536,674 | 583,655 | ||||||
| Total liabilities | 689,586 | 781,190 | ||||||
| TOTAL EQUITY AND LIABILITIES | 920,794 | 1,116,971 | ||||||
Interim condensed consolidated statement of cash flows
| (Unaudited) | Nine months ended September 30, | |||||||
| (in thousands of U.S. dollars) | 2024 | 2023 | ||||||
| Operating activities | ||||||||
| Net loss | (110,915 | ) | (118,285 | ) | ||||
| Adjustments to reconcile net loss to net cash flows | ||||||||
| —Depreciation of property, plant and equipment and right-of-use assets and amortization of intangible assets | 38,034 | 37,256 | ||||||
| —Write-downs of inventories | 1,558 | 14,258 | ||||||
| —Impairment loss on trade receivables | 94 | 461 | ||||||
| —Share-based compensation | 10,095 | 16,759 | ||||||
| —Movements in provisions | (37,520 | ) | 10,447 | |||||
| —Finance (income) and expenses, net | 11,272 | (99,333 | ) | |||||
| —Income tax expense | 3,194 | 3,221 | ||||||
| —Loss on disposal of property, plant and equipment | — | 317 | ||||||
| —Impairment related to discontinued construction of production facilities | 1,747 | — | ||||||
| —Other | 1,307 | — | ||||||
| Interest received | 6,791 | 5,028 | ||||||
| Interest paid | (18,767 | ) | (13,912 | ) | ||||
| Income tax paid | (5,325 | ) | (15,001 | ) | ||||
| Changes in working capital: | ||||||||
| —(Increase)/decrease in inventories | (15,110 | ) | 15,059 | |||||
| —Decrease in trade receivables, other current receivables, prepaid expenses | 23,164 | 6,967 | ||||||
| —Decrease in trade payables, other current liabilities, accrued expenses | (13,811 | ) | (14,721 | ) | ||||
| Net cash flows used in operating activities | (104,192 | ) | (151,479 | ) | ||||
| Investing activities | ||||||||
| Purchase of intangible assets | (1,439 | ) | (2,392 | ) | ||||
| Purchase of property, plant and equipment | (27,483 | ) | (49,591 | ) | ||||
| Investments in financial assets | — | (1,651 | ) | |||||
| Proceeds from sale of property, plant and equipment | 24,405 | — | ||||||
| Proceeds from sale of assets held for sale | — | 43,998 | ||||||
| Other | 774 | — | ||||||
| Net cash flows used in investing activities | (3,743 | ) | (9,636 | ) | ||||
| Financing activities | ||||||||
| Proceeds from Convertible Notes | — | 324,950 | ||||||
| Proceeds from liabilities to credit institutions | — | 176,854 | ||||||
| Repayment of liabilities to credit institutions | (2,012 | ) | (98,088 | ) | ||||
| Payment of loan transaction costs | (4,965 | ) | (32,550 | ) | ||||
| Repayment of lease liabilities | (17,246 | ) | (9,133 | ) | ||||
| Cash flows (used in)/from financing activities | (24,223 | ) | 362,033 | |||||
| Net (decrease)/increase in cash and cash equivalents | (132,158 | ) | 200,918 | |||||
| Cash and cash equivalents at the beginning of the period | 249,299 | 82,644 | ||||||
| Exchange rate differences in cash and cash equivalents | 2,192 | (378 | ) | |||||
| Cash and cash equivalents at the end of the period | 119,333 | 283,184 | ||||||
Reconciliation of IFRS to Non-IFRS Financial measures
Reconciliation of EBITDA and Adjusted EBITDA to (loss)/profit for the period
| (Unaudited) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| (in thousands of U.S. dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Loss)/profit for the period | (34,630 | ) | 44,011 | (110,915 | ) | (118,285 | ) | |||||||||
| Income tax expense | 1,389 | 1,482 | 3,194 | 3,221 | ||||||||||||
| Finance (income) and expenses, net | 4,284 | (112,841 | ) | 11,272 | (99,333 | ) | ||||||||||
| Depreciation and amortization expense | 12,713 | 12,559 | 38,034 | 37,256 | ||||||||||||
| EBITDA | (16,244 | ) | (54,789 | ) | (58,415 | ) | (177,141 | ) | ||||||||
| Share-based compensation expense | 3,301 | 6,290 | 10,095 | 16,759 | ||||||||||||
| Restructuring costs(1) | 940 | 3,177 | 4,575 | 12,344 | ||||||||||||
| Discontinued construction of production facilities(2) | — | — | 1,762 | — | ||||||||||||
| New product launch issue(3) | 6,888 | — | 12,565 | — | ||||||||||||
| Legal settlement(4) | — | 9,250 | — | 9,250 | ||||||||||||
| Costs related to the YYF Transaction(5) | — | — | — | 375 | ||||||||||||
| Non-controlling interests | 70 | 74 | 172 | 74 | ||||||||||||
| Adjusted EBITDA | (5,045 | ) | (35,998 | ) | (29,246 | ) | (138,339 | ) | ||||||||
| (1) | Relates primarily to severance payments as the Group continues to adjust its organizational structure to the macro environment. | |
| (2) | Relates primarily to non-cash impairments related to discontinued construction of the Group’s production facility in Peterborough, UK, and reversal of previously recognized non-cash impairments related to discontinued construction of the Group’s production facility in Dallas-Fort Worth, Texas. | |
| (3) | Expenses related to a new product launch issue. | |
| (4) | Relates to US securities class action litigation settlement expenses. | |
| (5) | Relates to the YYF Transaction. See the Company’s Forms 6-K filed on January 3, 2023 and March 2, 2023 for further details. | |
Reconciliation of Free Cash Flow to Net Cash Flows used in Operating Activities
| (Unaudited) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| (in thousands of U.S. dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash flows used in operating activities | (18,179 | ) | (38,389 | ) | (104,192 | ) | (151,479 | ) | ||||||||
| Capital expenditures | (8,502 | ) | (10,949 | ) | (28,922 | ) | (51,983 | ) | ||||||||
| Free Cash Flow | (26,681 | ) | (49,338 | ) | (133,114 | ) | (203,462 | ) | ||||||||
FAQ
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