Oatly shares took a nosedive today after the company lowered 2021 sales expectations in its Q3 earnings, citing “supply-chain snarls and pandemic-related obstacles weighing on growth.” $OTLY got pummeled 21%. 😬
Oatly, the Swedish oak-milk maker and vegan brand, reduced its revenue outlook to $635 million (compared to $690 million in previous forecasts.) Analysts anticipated $694 million. Credit Suisse Analyst Kaumil Gajrawala said:
“I think the brand is really strong, so retailers are asking for the product. The problem is, if you can’t supply it, it doesn’t matter how strong the brand is. The market is worried they might be missing out on an opportunity to grow the business.”
Oatly’s U.S. manufacturing plant, headquartered in Utah, experienced mechanical issues during the pandemic which cut sales by $3 million. Trucking and logistics issues (which are prominent across the globe atm) have also hit the company hard — Oatly COO Peter Burgh commented “Production capacity has been a major constraint on our growth.” 👎
$OTLY shares closed at $9.36, well below the company’s $17 IPO price. $OTLY is down 0.53% after hours.