6-K

 

 

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, 2022

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

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

https://cdn.kscope.io/3f90bd9e96c82a698a426a7e1decb888-img33928956_0.jpg 

 

 

Oatly Group AB

 

Interim condensed consolidated financial statements

For the three and six months ended June 30, 2022

 

 


 

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

1

Notes to the interim condensed consolidated financial statements

2

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

14

Item 3. Quantitative and Qualitative Disclosures About Market Risk

26

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

26

Item 1A. Risk Factors

26

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

27

Item 3. Defaults Upon Senior Securities

27

Item 4. Mine Safety Disclosures

27

Item 5. Other Information

27

Signatures

28

 

 


 

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

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

5

 

 

177,958

 

 

 

146,151

 

 

 

344,144

 

 

 

286,203

 

Cost of goods sold

 

 

 

 

(149,814

)

 

 

(107,544

)

 

 

(300,152

)

 

 

(205,662

)

Gross profit

 

 

 

 

28,144

 

 

 

38,607

 

 

 

43,992

 

 

 

80,541

 

Research and development expenses

 

 

 

 

(5,718

)

 

 

(3,952

)

 

 

(9,982

)

 

 

(7,044

)

Selling, general and administrative expenses

 

 

 

 

(97,060

)

 

 

(83,132

)

 

 

(201,133

)

 

 

(149,939

)

Other operating income and (expenses), net

 

 

 

 

205

 

 

 

373

 

 

 

537

 

 

 

(177

)

Operating loss

 

 

 

 

(74,429

)

 

 

(48,104

)

 

 

(166,586

)

 

 

(76,619

)

Finance income and (expenses), net

 

7

 

 

(593

)

 

 

(10,696

)

 

 

2,984

 

 

 

(12,616

)

Loss before tax

 

 

 

 

(75,022

)

 

 

(58,800

)

 

 

(163,602

)

 

 

(89,235

)

Income tax benefit/(expense)

 

8

 

 

3,032

 

 

 

(264

)

 

 

4,153

 

 

 

(2,212

)

Loss for the period attributable to shareholders of the parent

 

 

 

 

(71,990

)

 

 

(59,064

)

 

 

(159,449

)

 

 

(91,447

)

Loss per share, attributable to shareholders of the parent:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

23

 

 

(0.12

)

 

 

(0.11

)

 

 

(0.27

)

 

 

(0.18

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

23

 

 

591,945,667

 

 

 

530,773,072

 

 

 

591,861,800

 

 

 

505,675,939

 

 

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

1


 

Interim condensed consolidated statement of comprehensive loss

 

(Unaudited)

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in thousands of U.S. dollars)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Loss for the period

 

 

(71,990

)

 

 

(59,064

)

 

 

(159,449

)

 

 

(91,447

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to consolidated statement of operations (net of tax):

 

 

 

 

 

 

 

 

 

 

 

 

Exchange differences from translation of foreign operations

 

 

(60,212

)

 

 

(13,717

)

 

 

(83,166

)

 

 

(24,068

)

Total other comprehensive loss for the period

 

 

(60,212

)

 

 

(13,717

)

 

 

(83,166

)

 

 

(24,068

)

Total comprehensive loss for the period

 

 

(132,202

)

 

 

(72,781

)

 

 

(242,615

)

 

 

(115,515

)

 

Loss for the period and total comprehensive loss 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, 2022

 

 

December 31, 2021

 

 

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Intangible assets

 

9

 

 

129,644

 

 

 

145,925

 

Property, plant and equipment

 

10

 

 

598,814

 

 

 

509,648

 

Right-of-use assets

 

11

 

 

159,908

 

 

 

158,448

 

Other non-current receivables

 

 

 

 

7,851

 

 

 

5,534

 

Deferred tax assets

 

8

 

 

3,293

 

 

 

2,293

 

Total non-current assets

 

 

 

 

899,510

 

 

 

821,848

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

13

 

 

104,439

 

 

 

95,661

 

Trade receivables

 

14

 

 

109,518

 

 

 

105,519

 

Current tax assets

 

 

 

 

306

 

 

 

435

 

Other current receivables

 

 

 

 

28,968

 

 

 

32,229

 

Prepaid expenses

 

 

 

 

25,152

 

 

 

27,711

 

Short-term investments

 

15

 

 

92,898

 

 

 

249,937

 

Cash and cash equivalents

 

16

 

 

182,201

 

 

 

295,572

 

Total current assets

 

 

 

 

543,482

 

 

 

807,064

 

TOTAL ASSETS

 

 

 

 

1,442,992

 

 

 

1,628,912

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

Equity

 

17

 

 

 

 

 

 

Share capital

 

 

 

 

105

 

 

 

105

 

Treasury shares

 

 

 

 

0

 

 

 

 

Other contributed capital

 

 

 

 

1,628,103

 

 

 

1,628,103

 

Foreign currency translation reserve

 

 

 

 

(157,652

)

 

 

(74,486

)

Accumulated deficit

 

 

 

 

(448,650

)

 

 

(308,423

)

Total equity attributable to shareholders of the parent

 

 

 

 

1,021,906

 

 

 

1,245,299

 

Liabilities

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

11

 

 

125,101

 

 

 

126,516

 

Deferred tax liabilities

 

8

 

 

2,984

 

 

 

2,677

 

Provisions

 

19

 

 

12,740

 

 

 

11,033

 

Total non-current liabilities

 

 

 

 

140,825

 

 

 

140,226

 

Current liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

11

 

 

20,049

 

 

 

16,703

 

Liabilities to credit institutions

 

18

 

 

4,519

 

 

 

5,987

 

Trade payables

 

 

 

 

97,155

 

 

 

93,043

 

Current tax liabilities

 

 

 

 

1,585

 

 

 

567

 

Other current liabilities

 

 

 

 

12,941

 

 

 

9,614

 

Accrued expenses

 

21

 

 

144,012

 

 

 

117,473

 

Total current liabilities

 

 

 

 

280,261

 

 

 

243,387

 

Total liabilities

 

 

 

 

421,086

 

 

 

383,613

 

TOTAL EQUITY AND LIABILITIES

 

 

 

 

1,442,992

 

 

 

1,628,912

 

 

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

 

 

Treasury shares

 

 

Other contributed capital

 

 

Foreign currency translation reserve

 

 

Accumulated deficit

 

 

Total equity

 

Balance at December 31, 2021

 

6, 17

 

 

105

 

 

 

 

 

 

1,628,103

 

 

 

(74,486

)

 

 

(308,423

)

 

 

1,245,299

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(87,459

)

 

 

(87,459

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,954

)

 

 

 

 

 

(22,954

)

Total comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

(22,954

)

 

 

(87,459

)

 

 

(110,413

)

Share-based payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,037

 

 

 

10,037

 

Balance at March 31, 2022

 

 

 

 

105

 

 

 

 

 

 

1,628,103

 

 

 

(97,440

)

 

 

(385,845

)

 

 

1,144,923

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(71,990

)

 

 

(71,990

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(60,212

)

 

 

 

 

 

(60,212

)

Total comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

(60,212

)

 

 

(71,990

)

 

 

(132,202

)

Issue of shares

 

 

 

 

0

 

 

 

(0

)

 

 

 

 

 

 

 

 

 

 

 

0

 

Share-based payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,185

 

 

 

9,185

 

Balance at June 30, 2022

 

 

 

 

105

 

 

 

(0

)

 

 

1,628,103

 

 

 

(157,652

)

 

 

(448,650

)

 

 

1,021,906

 

 

 

4


 

 

 

 

 

Attributable to shareholders of the parent

 

(Unaudited)
(in thousands of U.S. dollars)

 

Note

 

Share capital

 

 

Treasury shares

 

 

Other contributed capital

 

 

Foreign currency translation reserve

 

 

Accumulated deficit

 

 

Total equity

 

Balance at December 31, 2020

 

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

 

 

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

 

2022

 

 

2021

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

(159,449

)

 

 

(91,447

)

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

 

9,10,11

 

 

22,607

 

 

 

8,464

 

—Share-based payments expense

 

6

 

 

19,222

 

 

 

4,466

 

—Finance (income) and expenses, net

 

7

 

 

(2,984

)

 

 

12,616

 

—Income tax (benefit)/expense

 

8

 

 

(4,153

)

 

 

2,212

 

—Gain on disposal of property, plant and equipment

 

10

 

 

(682

)

 

 

 

—Other

 

 

 

 

(227

)

 

 

(83

)

Interest received

 

 

 

 

1,346

 

 

 

286

 

Interest paid

 

 

 

 

(6,076

)

 

 

(5,110

)

Income tax paid

 

 

 

 

(1,042

)

 

 

(882

)

Changes in working capital:

 

 

 

 

 

 

 

 

—Increase in inventories

 

 

 

 

(15,143

)

 

 

(18,576

)

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

 

 

 

 

(10,224

)

 

 

(42,385

)

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

 

 

 

 

29,529

 

 

 

57,913

 

Net cash flows used in operating activities

 

 

 

 

(127,276

)

 

 

(72,526

)

Investing activities

 

 

 

 

 

 

 

 

Purchase of intangible assets

 

9

 

 

(2,558

)

 

 

(6,560

)

Purchase of property, plant and equipment

 

10

 

 

(111,264

)

 

 

(134,379

)

Proceeds from financial instruments

 

 

 

 

 

 

 

5,720

 

Purchase of short-term investments

 

 

 

 

 

 

 

(329,375

)

Proceeds from short-term investments

 

15

 

 

148,269

 

 

 

 

Net cash flows from/(used in) investing activities

 

 

 

 

34,447

 

 

 

(464,594

)

Financing activities

 

 

 

 

 

 

 

 

Proceeds from issue of shares, net of transaction costs

 

17

 

 

0

 

 

 

1,037,325

 

Proceeds from exercise of warrants

 

 

 

 

 

 

 

38,503

 

Repayment of shareholder loans

 

20

 

 

 

 

 

(10,941

)

Proceeds from liabilities to credit institutions

 

18

 

 

 

 

 

118,005

 

Repayment of liabilities to credit institutions

 

18

 

 

(1,032

)

 

 

(211,837

)

Repayment of lease liabilities

 

11

 

 

(5,846

)

 

 

(5,290

)

Payment of loan transaction costs

 

 

 

 

 

 

 

(4,900

)

Net cash flows from/(used in) financing activities

 

 

 

 

(6,878

)

 

 

960,865

 

Net (decrease)/increase in cash and cash equivalents

 

 

 

 

(99,707

)

 

 

423,745

 

Cash and cash equivalents at the beginning of the period

 

 

 

 

295,572

 

 

 

105,364

 

Exchange rate differences in cash and cash equivalents

 

 

 

 

(13,664

)

 

 

(4,871

)

Cash and cash equivalents at the end of the period

 

 

 

 

182,201

 

 

 

524,238

 

 

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

1


 

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 public 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 Group AB for the three and six months ended June 30, 2022 and 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern, and there is reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

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, 2021, 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, unless otherwise stated.

New and amended standards and interpretations issued but not yet adopted

There are no International Financial Reporting Standards (“IFRS”) or International Financial Reporting Standards Interpretations Committee (“IFRS IC”) interpretations that are expected to have a material impact on the Group in the current or future reporting periods or 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, 2021.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events.

Note 4. Seasonality

To date, the Group has not experienced any pronounced seasonality, but such fluctuations may have been masked by the Group’s rapid growth and impacted by COVID-19 consumption dynamics. As the Group continues to grow, the Group expects to see additional seasonality effects, especially within the food retail channel, with revenue contribution from this channel tending to be linked with holiday season periods.

Note 5. Segment information

5.1 Description of segments and principal activities

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, Africa and Australia (“EMEA”), the Americas and Asia; thus, three geographical areas are considered to be the Group’s three reportable segments.

2


Notes to the interim condensed consolidated financial statements

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

 

5.2 Revenue and EBITDA

Revenue, Adjusted EBITDA and EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2022

 

EMEA

 

 

Americas

 

 

Asia

 

 

Corporate*

 

 

Eliminations**

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

 

82,485

 

 

 

51,775

 

 

 

43,698

 

 

 

 

 

 

 

 

 

177,958

 

Intersegment revenue

 

 

9,493

 

 

 

241

 

 

 

537

 

 

 

 

 

 

(10,271

)

 

 

 

Total segment revenue

 

 

91,978

 

 

 

52,016

 

 

 

44,235

 

 

 

 

 

 

(10,271

)

 

 

177,958

 

Adjusted EBITDA

 

 

5,313

 

 

 

(19,584

)

 

 

(10,765

)

 

 

(28,331

)

 

 

 

 

 

(53,367

)

Share-based compensation expense

 

 

(1,433

)

 

 

(1,120

)

 

 

(1,842

)

 

 

(4,790

)