Oatly’s best turnaround recipe is dollops of cash

Oatly AB

25/11/2022 09:07

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Karen Kwok
       LONDON, Nov 25 (Reuters Breakingviews) - Shares in the
$950 mln faux-milk maker are down 80% this year, and revenue
growth is slowing. CEO Toni Petersson will struggle to stop
burning cash, and has ruled out selling the company. That means
a looming capital hike may have to be much bigger than he
currently thinks.
    Full view will be published shortly.
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    CONTEXT NEWS
    Oatly’s share price fell by 80% between the start of 2022
and Nov. 24. 
    On Nov. 14, the faux-milk maker lowered its annual revenue
forecast and announced plans to cut roughly $50 million of
annual costs, partly through layoffs. 
    The Swedish company is also trying to boost outsourcing at
some manufacturing sites, with the aim of reducing capital
expenditures.
 (Editing by Liam Proud and Oliver Taslic)
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