Dairy-alternatives group Oatly is weighing up the future of its business in China.
The Sweden-based group said today (23 July) it would explore “a range of options” for its operations in China, which include a factory in the east of the country.
“The review will consider a range of options, including a potential carve-out of the Greater China segment, with the goal of accelerating growth and maximising the value of the business,” Oatly said in a statement. “There is no definitive timetable for completing the strategic review.”
In February, Oatly announced it would “discontinue” the building of its second factory in China after deciding it had enough capacity at its site in Ma’anshan, which opened in 2021.
Last year, Oatly generated revenue of $114.9m from its Greater China business unit, down from $124.7m in 2023. Group revenue was $823.7m in 2024.
Oatly’s Greater China arm made an EBITDA loss of $31.1m last year, compared to one of $65m in 2023.
The company announced the China review alongside its first-half results, which also included a cut to its group sales forecast.
Oatly is projecting its constant-currency revenue will be in a range of flat to up 1% in 2025, compared to its previous forecast of growth of 2-4%.
The company said the new forecast “reflected reduced expectations” for its business in North America and a “softer-than-expected macro-environment” in Greater China.
It still expects its group adjusted EBITDA continues to be $5-15m. Last year, Oatly booked a group adjusted EBITDA loss of $35.3m.
Oatly CEO Jean-Christophe Flatin said the company “made good progress on our 2025 priorities” in the first half of the year.
“We continue to drive cost efficiencies in our supply chain and overhead structure, and our disciplined execution of our growth playbook has seen success in our Europe & International segment, where we are seeing top line momentum," Flatin said. "All of these steps are aimed toward our goal of consistently improved profitability.”
Oatly booked a 1.1% rise in first-half revenue to $405.9m. Revenues in North America fell 8.7% but rose 12.5% in Greater China. The company’s Europe & International division saw its revenues grow 4.6%.
The group recorded an EBITDA loss of $17.2m, down from one of $42.2m in the first half of 2023.
Oatly posted a net loss attributable to shareholders of the parent of $68.3m, compared to one of $76.2m in the corresponding period a year earlier.
