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Investing.com – Oatly Group AB ADR (NASDAQ:OTLY) traded 5.5% higher in premarket Wednesday after the company issued a strong forecast for the ongoing financial year, hoping to make more consumers shift to its plant-based milk.
The company is guiding its 2022 revenue to be $900 million at the center of its guidance range, a new record following $643 million in 2021.
The robust outlook comes in even as the company tackled higher logistics and raw material costs in 2021. Oatly is banking on new supply tie-ups, like the one it struck with Starbucks (NASDAQ:SBUX) about a year back.
According to a Reuters report, performance of Oatly’s oatmilk at the coffee chain had exceeded expectations. CEO Toni Petersson has said Oatly aims to provide 85-90% of Starbucks’ oatmilk needs in 2022.
Revenue in the fourth quarter rose over 46% to a record $186 million on broad-based growth across retail and foodservice channels.
The contribution of foodservice channel to the company’s revenue rose as Western markets relaxed restrictions. Some closures in Asia, particularly in China, offset that growth a little.
The company said it is positioning itself “for an increased rate of growth” as the situation in Europe and other macro headwinds subside.
Oatly is adding capacity and, in the long term, aims to generate a gross profit margin of over 40% with an adjusted basic operating margin of near 20%. It expects its new capacities to lower costs and deliver economies of scale.
Fourth quarter loss before income tax more than doubled to over $85 million, owing to higher finance costs and depreciation due to three new facilities.