ck0001843586-6k_20210630.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of August, 2021

Commission File Number: 001-40401

 

Oatly Group AB

(Translation of registrant’s name into English)

 

Jagaregatan 4

211 19 Malmö

Sweden

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes      No  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes      No  

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oatly Group AB

 

Interim condensed consolidated financial statements

For the three and six months ended June 30, 2021

 



 

 

Table of contents

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Interim condensed consolidated statement of operations

1

Interim condensed consolidated statement of comprehensive loss

2

Interim condensed consolidated statement of financial position

3

Interim condensed consolidated statement of changes in equity

4

Interim condensed consolidated statement of cash flows

6

Notes to the interim condensed consolidated financial statements

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3. Quantitative and Qualitative Disclosures About Market Risk

32

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

33

Item 1A. Risk Factors

33

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

33

Item 3. Defaults Upon Senior Securities

34

Item 4. Mine Safety Disclosures

34

Item 5. Other Information

34

Signatures

35

 

 


 

 

Part I – FINANCIAL INFORMATION

Item 1. Financial Statements

Interim condensed consolidated statement of operations

 

(Unaudited)

 

 

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in thousands of U.S. dollars, except share and per share data)

 

Note

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

 

5

 

 

 

146,151

 

 

 

95,309

 

 

 

286,203

 

 

 

179,553

 

Cost of goods sold

 

 

 

 

 

 

(107,544

)

 

 

(64,498

)

 

 

(205,662

)

 

 

(121,459

)

Gross profit

 

 

 

 

 

 

38,607

 

 

 

30,811

 

 

 

80,541

 

 

 

58,094

 

Research and development expenses

 

 

 

 

 

 

(3,952

)

 

 

(1,303

)

 

 

(7,044

)

 

 

(2,482

)

Selling, general and administrative expenses

 

 

 

 

 

 

(83,132

)

 

 

(33,345

)

 

 

(149,939

)

 

 

(64,186

)

Other operating income and expense

 

 

 

 

 

 

373

 

 

 

(510

)

 

 

(177

)

 

 

(944

)

Operating loss

 

 

 

 

 

 

(48,104

)

 

 

(4,347

)

 

 

(76,619

)

 

 

(9,518

)

Finance income and expenses, net

 

 

7

 

 

 

(10,696

)

 

 

(23

)

 

 

(12,616

)

 

 

(2,673

)

Loss before tax

 

 

 

 

 

 

(58,800

)

 

 

(4,370

)

 

 

(89,235

)

 

 

(12,191

)

Income tax expense

 

 

8

 

 

 

(264

)

 

 

(420

)

 

 

(2,212

)

 

 

(772

)

Loss for the period attributable to shareholders of the parent

 

 

 

 

 

 

(59,064

)

 

 

(4,790

)

 

 

(91,447

)

 

 

(12,963

)

Loss per share, attributable to shareholders of the parent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

23

 

 

 

(0.11

)

 

 

(0.01

)

 

 

(0.18

)

 

 

(0.03

)

 

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

1


 

Interim condensed consolidated statement of comprehensive (loss)/income

 

(Unaudited)

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in thousands of U.S. dollars)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Loss for the period

 

 

(59,064

)

 

 

(4,790

)

 

 

(91,447

)

 

 

(12,963

)

Other comprehensive (loss)/income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to consolidated

   statement of operations (net of tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange differences from translation of foreign operations

 

 

(13,717

)

 

 

6,217

 

 

 

(24,068

)

 

 

(2,034

)

Total other comprehensive (loss)/income for the period

 

 

(13,717

)

 

 

6,217

 

 

 

(24,068

)

 

 

(2,034

)

Total comprehensive (loss)/income for the period

 

 

(72,781

)

 

 

1,427

 

 

 

(115,515

)

 

 

(14,997

)

 

Loss for the period and total comprehensive (loss)/income are, in their entirety, attributable to shareholders of the parent.

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

2


 

Interim condensed consolidated statement of financial position

 

(in thousands of U.S. dollars)

 

Note

 

 

June 30, 2021

(Unaudited)

 

 

December 31,

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

9

 

 

 

154,804

 

 

 

156,463

 

Property, plant and equipment

 

 

10

 

 

 

373,059

 

 

 

237,625

 

Right-of-use assets

 

 

11

 

 

 

82,774

 

 

 

38,103

 

Other non-current receivables

 

 

 

 

 

 

730

 

 

 

6,550

 

Deferred tax assets

 

 

8

 

 

 

253

 

 

 

26

 

Total non-current assets

 

 

 

 

 

 

611,620

 

 

 

438,767

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

13

 

 

 

57,074

 

 

 

39,115

 

Trade receivables

 

 

14

 

 

 

82,458

 

 

 

71,297

 

Current tax assets

 

 

 

 

 

 

235

 

 

 

514

 

Other current receivables

 

 

 

 

 

 

31,244

 

 

 

12,363

 

Prepaid expenses

 

 

 

 

 

 

26,876

 

 

 

11,509

 

Short-term investments

 

 

15

 

 

 

322,685

 

 

 

 

Cash and cash equivalents

 

 

16

 

 

 

524,238

 

 

 

105,364

 

Total current assets

 

 

 

 

 

 

1,044,810

 

 

 

240,162

 

TOTAL ASSETS

 

 

 

 

 

 

1,656,430

 

 

 

678,929

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

17

 

 

 

 

 

 

 

 

 

Share capital

 

 

 

 

 

 

105

 

 

 

21

 

Other contributed capital

 

 

 

 

 

 

1,628,103

 

 

 

448,251

 

Foreign currency translation reserve

 

 

 

 

 

 

(26,593

)

 

 

(2,525

)

Accumulated deficit

 

 

 

 

 

 

(206,642

)

 

 

(119,661

)

Total equity attributable to shareholders of the parent

 

 

 

 

 

 

1,394,973

 

 

 

326,086

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Lease liabilities

 

 

11

 

 

 

65,666

 

 

 

23,883

 

Liabilities to credit institutions

 

 

18

 

 

 

4,454

 

 

 

91,655

 

Other non-current liabilities

 

 

 

 

 

 

11

 

 

 

233

 

Deferred tax liabilities

 

 

8

 

 

 

2,670

 

 

 

1,307

 

Provisions

 

 

19

 

 

 

8,163

 

 

 

7,121

 

Total non-current liabilities

 

 

 

 

 

 

80,964

 

 

 

124,199

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Lease liabilities

 

 

11

 

 

 

7,546

 

 

 

6,261

 

Liabilities to credit institutions

 

 

18

 

 

 

2,591

 

 

 

5,532

 

Shareholder loans

 

 

20

 

 

 

 

 

 

106,118

 

Trade payables

 

 

 

 

 

 

64,316

 

 

 

45,295

 

Current tax liabilities

 

 

 

 

 

 

768

 

 

 

852

 

Other current liabilities

 

 

 

 

 

 

20,567

 

 

 

4,632

 

Accrued expenses

 

 

21

 

 

 

84,705

 

 

 

59,954

 

Total current liabilities

 

 

 

 

 

 

180,493

 

 

 

228,644

 

Total liabilities

 

 

 

 

 

 

261,457

 

 

 

352,843

 

TOTAL EQUITY AND LIABILITIES

 

 

 

 

 

 

1,656,430

 

 

 

678,929

 

 

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

3


 

Interim condensed consolidated statement of changes in equity

 

 

 

 

 

Attributable to shareholders of the parent

 

(Unaudited)

(in thousands of U.S. dollars)

 

Note

 

Share capital

 

 

Other contributed capital

 

 

Foreign currency translation reserve

 

 

Accumulated deficit

 

 

Total equity

 

January 1, 2021

 

6, 17

 

 

21

 

 

 

448,251

 

 

 

(2,525

)

 

 

(119,661

)

 

 

326,086

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

(32,383

)

 

 

(32,383

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

(10,351

)

 

 

 

 

 

(10,351

)

Total comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

(10,351

)

 

 

(32,383

)

 

 

(42,734

)

Bonus issue

 

 

 

 

63

 

 

 

(63

)

 

 

 

 

 

 

 

 

 

Balance at March 31, 2021

 

 

 

 

84

 

 

 

448,188

 

 

 

(12,876

)

 

 

(152,044

)

 

 

283,352

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

(59,064

)

 

 

(59,064

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

(13,717

)

 

 

 

 

 

(13,717

)

Total comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

(13,717

)

 

 

(59,064

)

 

 

(72,781

)

Bonus issue

 

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Issue of shares

 

 

 

 

12

 

 

 

1,099,684

 

 

 

 

 

 

 

 

 

1,099,696

 

Transaction costs

 

 

 

 

 

 

 

(62,371

)

 

 

 

 

 

 

 

 

(62,371

)

Conversion of shareholder loans

 

 

 

 

1

 

 

 

104,107

 

 

 

 

 

 

 

 

 

104,108

 

Exercise of warrants

 

 

 

 

7

 

 

 

38,496

 

 

 

 

 

 

 

 

 

38,503

 

Share-based payments

 

 

 

 

 

 

 

 

 

 

 

 

 

4,466

 

 

 

4,466

 

Balance at June 30, 2021

 

 

 

 

105

 

 

 

1,628,103

 

 

 

(26,593

)

 

 

(206,642

)

 

 

1,394,973

 


4


 

 

 

 

 

 

Attributable to shareholders of the parent

 

 

 

Note

 

Share capital

 

 

Other contributed capital

 

 

Foreign currency translation reserve

 

 

Accumulated deficit

 

 

Total equity

 

January 1, 2020

 

6, 17

 

 

19

 

 

 

267,806

 

 

 

(19,710

)

 

 

(60,314

)

 

 

187,801

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,173

)

 

 

(8,173

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

(8,251

)

 

 

 

 

 

(8,251

)

Total comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

(8,251

)

 

 

(8,173

)

 

 

(16,424

)

Transactions with shareholders

 

 

 

 

 

 

 

(3,276

)

 

 

 

 

 

 

 

 

(3,276

)

Share-based payments

 

 

 

 

 

 

 

 

 

 

 

 

 

1,014

 

 

 

1,014

 

Balance at March 31, 2020

 

 

 

 

19

 

 

 

264,530

 

 

 

(27,961

)

 

 

(67,473

)

 

 

169,115

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,790

)

 

 

(4,790

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

6,217

 

 

 

 

 

 

6,217

 

Total comprehensive income/(loss) for the period

 

 

 

 

 

 

 

 

 

 

6,217

 

 

 

(4,790

)

 

 

1,427

 

Transactions with shareholders

 

 

 

 

 

 

 

(438

)

 

 

 

 

 

 

 

 

(438

)

Warrant issue

 

 

 

 

 

 

 

464

 

 

 

 

 

 

 

 

 

464

 

Balance at June 30, 2020

 

 

 

 

19

 

 

 

264,556

 

 

 

(21,744

)

 

 

(72,263

)

 

 

170,568

 

 

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

5


 

Interim condensed consolidated statement of cash flows

 

(Unaudited)

 

 

 

For the six months ended June 30,

 

(in thousands of U.S. dollars)

 

Note

 

2021

 

 

2020

 

Operating activities

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

(91,447

)

 

 

(12,963

)

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

 

 

 

 

8,464

 

 

 

5,964

 

—Impairment (gain)/loss on trade receivables

 

 

 

 

(53

)

 

 

335

 

—Share-based payments expense

 

 

 

 

4,466

 

 

 

1,014

 

—Finance income and expenses, net

 

 

 

 

12,616

 

 

 

2,673

 

—Income tax expense

 

 

 

 

2,212

 

 

 

772

 

—Loss on disposal of property, plant and equipment

 

 

 

 

1

 

 

 

586

 

—Other

 

 

 

 

(31

)

 

 

(14

)

Interest received

 

 

 

 

286

 

 

 

2

 

Interest paid

 

 

 

 

(5,110

)

 

 

(1,779

)

Income tax paid

 

 

 

 

(882

)

 

 

(533

)

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

—Increase in inventories

 

 

 

 

(18,576

)

 

 

(8,214

)

—Increase in trade receivables, other current receivables, prepaid expenses

 

 

 

 

(42,385

)

 

 

(22,228

)

—Increase in trade payables, other current liabilities, accrued expenses

 

 

 

 

57,913

 

 

 

14,253

 

Net cash flows used in operating activities

 

 

 

 

(72,526

)

 

 

(20,132

)

Investing activities

 

 

 

 

 

 

 

 

 

 

Purchase of intangible assets

 

9

 

 

(6,560

)

 

 

(3,439

)

Purchase of property, plant and equipment

 

10

 

 

(134,379

)

 

 

(51,982

)

Proceeds from financial instruments

 

 

 

 

5,720

 

 

 

125

 

Purchase of short-term investments

 

15

 

 

(329,375

)

 

 

 

Net cash flows used in investing activities

 

 

 

 

(464,594

)

 

 

(55,296

)

Financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from issue of shares, net of transaction costs

 

 

 

 

1,037,325

 

 

 

 

Proceeds from shareholder loans

 

 

 

 

 

 

 

87,828

 

Repayment of shareholder loans

 

 

 

 

(10,941

)

 

 

 

Proceeds from liabilities to credit institutions

 

 

 

 

118,005

 

 

 

128,344

 

Repayment of liabilities to credit institutions

 

 

 

 

(211,837

)

 

 

(62,026

)

Repayment of lease liabilities

 

 

 

 

(5,290

)

 

 

(2,822

)

Proceeds from exercise of warrants

 

 

 

 

38,503

 

 

 

 

Payment of loan transaction costs

 

 

 

 

(4,900

)

 

 

 

Cash flows from financing activities

 

 

 

 

960,865

 

 

 

151,324

 

Net increase in cash and cash equivalents

 

 

 

 

423,745

 

 

 

75,896

 

Cash and cash equivalents at the beginning of the period

 

 

 

 

105,364

 

 

 

10,571

 

Exchange rate differences in cash and cash equivalents

 

 

 

 

(4,871

)

 

 

(2,195

)

Cash and cash equivalents at the end of the period

 

 

 

 

524,238

 

 

 

84,272

 

 

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

 

 

6


 

Notes to the interim condensed consolidated financial statements

(in thousands of U.S. dollars unless otherwise stated)

Note 1. Corporate information

Oatly Group AB (the “Company” or the “parent”) is a limited company incorporated and domiciled in Sweden. The Company’s registered office is located at Jagaregatan 4, Malmö, Sweden.

Oatly Group AB and its subsidiaries (together, the “Group”) manufacture, distribute and sell oat-based products.

Note 2. Summary of significant Accounting Policies

The interim condensed consolidated financial statements of Oatly AB for the three and six months ended June 30, 2021 and 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim condensed consolidated financial statements should be read in conjunction with the Group’s consolidated financial statements for the year ended December 31, 2020, as they do not include all the information and disclosures required in the annual consolidated financial statements. Interim results are not necessarily indicative of the results for a full year. The interim condensed consolidated financial statements are presented in thousands of U.S. dollars.

New and amended standards and interpretations issued but not yet adopted

There are no International Financial Reporting Standards (“IFRS”) or International Financial Reporting Standards Implementation Committee (“IFRS IC”) interpretations that are expected to have a material impact on the Group in the current or future reporting periods nor on foreseeable future transactions.

Note 3. Significant accounting judgments, estimates and assessments

In preparing these interim condensed consolidated financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation and uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2020.

During the three and six months ended June 30, 2021 areas with new events requiring estimates and judgments compared to the year ended December 31, 2020 were:

Group as lessee

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

The majority of the extension options in properties and production equipment have not been included in the lease liability, primarily due to the fact that the Group could replace the assets without significant cost or business disruption. However, for two new production plants, which commenced during the three months ended March 31, 2021, extension options have been included in the lease term since the Group intends to make larger investments in the plants. The total lease terms for these production plants are 10 and 20 years, respectively. For one existing production plant, the contract was amended during the period and additional extension options have been included for a total lease term of 40 years.

The lease term is reassessed when it is decided that an option will be exercised (or not exercised) or the Group becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, that affects this assessment and that is within the control of the lessee. Refer to Note 11 for further details.

Financial assets

Part of the proceeds from the Company’s initial public offering (“IPO”) has been invested in different short-term investments with low risk and high liquidity for the purpose of securing and increasing the value until the cash is needed for other purposes in the operations of the Group, for example investment in new production facilities.

7


Notes to the interim condensed consolidated financial statements

(in thousands of U.S. dollars unless otherwise stated)

 

The short-term investments are primarily comprised of funds, bonds and certificates carried at fair value through profit and loss. The primary purpose of the portfolio is to secure and increase value of the investments compared to keeping cash in bank accounts, until cash is needed for other investments in the business, for example new production facilities. Based on the primary purpose of the portfolio and indicators identified in the IFRS 9 Financial Instruments test, the overall assessment is that the portfolio is the business model “Other”. The investments in the portfolio are therefore recognized at fair value through profit or loss and presented as short-term investments and cash and cash equivalents in the statement of financial position. For more detailed accounting principles, see Note 2 in the Group’s consolidated financial statements for the year ended December 31, 2020, included in the Company’s final prospectus filed pursuant to Rule 424(b)(4) for its IPO. For details on fair value, see Note 12. For details of the investments, see Note 15 and Note 16.

Share-based payments

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value for stock options is estimated using a model, which requires the determination of the appropriate inputs. The assumptions and models used for estimating the fair value of share-based payment transactions are disclosed in Note 6.

Note 4. Seasonality

During the periods covered by this report, we have not experienced any pronounced seasonality, but such fluctuations may have been masked by our rapid growth.

Note 5. Segment information

The CEO is the chief operating decision maker of the Group. The CEO evaluates financial position and performance and makes strategic decisions. The CEO makes decisions on the allocation of resources and evaluates performance based on geographic perspective. Internal reporting is also based on the geographic perspective. Geographically, the CEO considers the performance in Europe, the Middle East and Africa (“EMEA”), Americas and Asia; thus, three geographical areas are considered to be the Group’s three reportable segments.

Revenue, Adjusted EBITDA and EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2021

 

EMEA

 

 

Americas

 

 

Asia

 

 

Corporate*

 

 

Eliminations**

 

 

Total all

segments

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

 

78,526

 

 

 

41,346

 

 

 

26,279

 

 

 

 

 

 

 

 

 

146,151

 

Intersegment revenue

 

 

23,199

 

 

 

219

 

 

 

 

 

 

 

 

 

(23,418

)

 

 

 

Total segment revenue

 

 

101,725

 

 

 

41,565

 

 

 

26,279

 

 

 

 

 

 

(23,418

)

 

 

146,151

 

Adjusted EBITDA

 

 

6,739

 

 

 

(9,207

)

 

 

(3,630

)

 

 

(25,833

)

 

 

 

 

 

(31,931

)

Share-based compensation expense

 

 

(741

)

 

 

(582

)

 

 

(814

)

 

 

(2,329

)

 

 

 

 

 

(4,466

)

IPO preparation and transaction costs

 

 

 

 

 

 

 

 

 

 

 

(7,065

)

 

 

 

 

 

(7,065

)

EBITDA

 

 

5,998

 

 

 

(9,789

)

 

 

(4,444

)

 

 

(35,227

)

 

 

 

 

 

(43,462

)

Finance income and expenses, net