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 May 2023

Commission File Number: 001-40401

 

Oatly Group AB

(Translation of registrant’s name into English)

 

Ångfärjekajen 8

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/4e477018715fbb13c11dffe545d81845-img33899166_0.jpg 

 

 

Oatly Group AB

 

Interim condensed consolidated financial statements

For the three months ended March 31, 2023

 


 

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

5

Notes to the interim condensed consolidated financial statements

6

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

20

Item 3. Quantitative and Qualitative Disclosures About Market Risk

31

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

31

Item 1A. Risk Factors

31

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

31

Item 3. Defaults Upon Senior Securities

31

Item 4. Mine Safety Disclosures

31

Item 5. Other Information

31

Signatures

32

 

 


 

Part I – FINANCIAL INFORMATION

Item 1. Financial Statements

Interim condensed consolidated statement of operations

 

(Unaudited)

 

 

Three months ended March 31,

 

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

Note

 

2023

 

 

2022

 

Revenue

5

 

 

195,645

 

 

 

166,186

 

Cost of goods sold

 

 

 

(161,557

)

 

 

(150,338

)

Gross profit

 

 

 

34,088

 

 

 

15,848

 

Research and development expenses

 

 

 

(5,714

)

 

 

(4,264

)

Selling, general and administrative expenses

 

 

 

(98,855

)

 

 

(104,073

)

Other operating income and (expenses), net

 

 

 

(1,088

)

 

 

332

 

Operating loss

 

 

 

(71,569

)

 

 

(92,157

)

Finance income and (expenses), net

7

 

 

(1,996

)

 

 

3,577

 

Loss before tax

 

 

 

(73,565

)

 

 

(88,580

)

Income tax (expense)/benefit

8

 

 

(2,012

)

 

 

1,121

 

Loss for the period attributable to shareholders of the parent

 

 

 

(75,577

)

 

 

(87,459

)

Loss per share, attributable to shareholders of the parent:

 

 

 

 

 

 

 

Basic and diluted

24

 

 

(0.13

)

 

 

(0.15

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic and diluted

24

 

 

592,319,923

 

 

 

591,777,001

 

 

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 March 31,

 

(in thousands of U.S. dollars)

 

2023

 

 

2022

 

Loss for the period

 

 

(75,577

)

 

 

(87,459

)

Other comprehensive loss:

 

 

 

 

 

 

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

 

 

 

 

 

 

Exchange differences from translation of foreign operations

 

 

7,353

 

 

 

(22,954

)

Total other comprehensive loss for the period

 

 

7,353

 

 

 

(22,954

)

Total comprehensive loss for the period

 

 

(68,224

)

 

 

(110,413

)

 

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

 

March 31, 2023

 

 

December 31, 2022

 

 

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Intangible assets

 

9

 

 

128,301

 

 

 

127,688

 

Property, plant and equipment

 

10

 

 

505,930

 

 

 

492,952

 

Right-of-use assets

 

11

 

 

113,257

 

 

 

108,598

 

Other non-current receivables

 

12

 

 

44,382

 

 

 

7,848

 

Deferred tax assets

 

8

 

 

3,637

 

 

 

5,860

 

Total non-current assets

 

 

 

 

795,507

 

 

 

742,946

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

14

 

 

108,207

 

 

 

114,475

 

Trade receivables

 

15

 

 

106,676

 

 

 

100,955

 

Current tax assets

 

 

 

 

254

 

 

 

243

 

Other current receivables

 

16

 

 

32,197

 

 

 

17,818

 

Prepaid expenses

 

 

 

 

26,909

 

 

 

23,413

 

Cash and cash equivalents

 

17

 

 

78,830

 

 

 

82,644

 

 

 

 

 

353,073

 

 

 

339,548

 

Assets held for sale

 

18

 

 

 

 

 

142,703

 

Total current assets

 

 

 

 

353,073

 

 

 

482,251

 

TOTAL ASSETS

 

 

 

 

1,148,580

 

 

 

1,225,197

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

Equity

 

19

 

 

 

 

 

 

Share capital

 

 

 

 

105

 

 

 

105

 

Treasury shares

 

 

 

 

(0

)

 

 

(0

)

Other contributed capital

 

 

 

 

1,628,045

 

 

 

1,628,045

 

Foreign currency translation reserve

 

 

 

 

(164,130

)

 

 

(171,483

)

Accumulated deficit

 

 

 

 

(733,054

)

 

 

(665,524

)

Total equity attributable to shareholders of the parent

 

 

 

 

730,966

 

 

 

791,143

 

Liabilities

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

11

 

 

88,191

 

 

 

82,285

 

Liabilities to credit institutions

 

20

 

 

2,725

 

 

 

2,668

 

Deferred tax liabilities

 

8

 

 

679

 

 

 

 

Provisions

 

21

 

 

7,422

 

 

 

7,194

 

Total non-current liabilities

 

 

 

 

99,017

 

 

 

92,147

 

Current liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

11

 

 

14,949

 

 

 

16,823

 

Liabilities to credit institutions

 

20

 

 

102,791

 

 

 

49,922

 

Trade payables

 

 

 

 

66,912

 

 

 

82,516

 

Current tax liabilities

 

 

 

 

3,713

 

 

 

5,515

 

Other current liabilities

 

 

 

 

10,259

 

 

 

11,823

 

Accrued expenses

 

22

 

 

117,746

 

 

 

123,037

 

Provisions

 

21

 

 

2,227

 

 

 

3,800

 

 

 

 

 

318,597

 

 

 

293,436

 

Liabilities directly associated with the assets held for sale

 

18

 

 

 

 

 

48,471

 

Total current liabilities

 

 

 

 

318,597

 

 

 

341,907

 

Total liabilities

 

 

 

 

417,614

 

 

 

434,054

 

TOTAL EQUITY AND LIABILITIES

 

 

 

 

1,148,580

 

 

 

1,225,197

 

 

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, 2022

 

6, 19

 

 

105

 

 

 

(0

)

 

 

1,628,045

 

 

 

(171,483

)

 

 

(665,524

)

 

 

791,143

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(75,577

)

 

 

(75,577

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

7,353

 

 

 

 

 

 

7,353

 

Total comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

7,353

 

 

 

(75,577

)

 

 

(68,224

)

Share-based payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,047

 

 

 

8,047

 

Balance at March 31, 2023

 

 

 

 

105

 

 

 

(0

)

 

 

1,628,045

 

 

 

(164,130

)

 

 

(733,054

)

 

 

730,966

 

 

 

 

 

 

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, 19

 

 

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

 

 

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

4


 

Interim condensed consolidated statement of cash flow

 

(Unaudited)

 

 

 

For the three months ended March 31,

 

(in thousands of U.S. dollars)

 

Note

 

2023

 

 

2022

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

(75,577

)

 

 

(87,459

)

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

 

 

12,233

 

 

 

10,731

 

—Write-downs of inventories

 

14

 

 

3,468

 

 

 

2,024

 

—Impairment gain on trade receivables

 

15

 

 

(342

)

 

 

(207

)

—Share-based payments expense

 

6

 

 

8,047

 

 

 

10,037

 

—Movements in provisions

 

21

 

 

(1,596

)

 

 

 

—Finance income and expenses, net

 

7

 

 

1,996

 

 

 

(3,577

)

—Income tax expense/(benefit)

 

8

 

 

2,012

 

 

 

(1,121

)

—Other

 

 

 

 

(478

)

 

 

8

 

Interest received

 

 

 

 

346

 

 

 

668

 

Interest paid

 

 

 

 

(3,752

)

 

 

(3,067

)

Income tax paid

 

 

 

 

(1,031

)

 

 

(476

)

Changes in working capital:

 

 

 

 

 

 

 

 

—Decrease/(increase) in inventories

 

14

 

 

3,524

 

 

 

(6,271

)

—(Increase)/decrease in trade receivables, other current receivables, prepaid expenses

 

15,16

 

 

(7,120

)

 

 

8,903

 

—(Decrease)/increase in trade payables, other current liabilities, accrued expenses

 

22

 

 

(12,942

)

 

 

869

 

Net cash flows used in operating activities

 

 

 

 

(71,212

)

 

 

(68,938

)

Investing activities

 

 

 

 

 

 

 

 

Purchase of intangible assets

 

9

 

 

(983

)

 

 

(1,435

)

Purchase of property, plant and equipment

 

10

 

 

(27,139

)

 

 

(53,278

)

Proceeds from sale of assets held for sale

 

18

 

 

43,998

 

 

 

 

Proceeds from short-term investments

 

 

 

 

 

 

 

53,266

 

Net cash flows from/(used) in investing activities

 

 

 

 

15,876

 

 

 

(1,447

)

Financing activities

 

 

 

 

 

 

 

 

Repayment of liabilities to credit institutions

 

20

 

 

(339

)

 

 

(528

)

Proceeds from liabilities to credit institutions

 

20

 

 

52,736

 

 

 

 

Repayment of lease liabilities

 

11

 

 

(3,592

)

 

 

(3,637

)

Net cash flows from/(used) in financing activities

 

 

 

 

48,805

 

 

 

(4,165

)

Net increase in cash and cash equivalents

 

 

 

 

(6,531

)

 

 

(74,550

)

Cash and cash equivalents at the beginning of the period

 

 

 

 

82,644

 

 

 

295,572

 

Exchange rate differences in cash and cash equivalents

 

 

 

 

2,717

 

 

 

(1,977

)

Cash and cash equivalents at the end of the period

 

17

 

 

78,830

 

 

 

219,045

 

 

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

5


 

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 Ångfärjekajen 8, 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 months ended March 31, 2023 and 2022 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 a 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. In forming this judgment the Group has taken into consideration principal conditions, events and assumptions in relation to the Group’s ability to meet its obligations. This includes plans specific to forecast business performance, capex phasing and, cost-saving initiatives. 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, 2022, 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, 2022.

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 historical rapid growth, COVID-19 consumption dynamics, and macroeconomic trends, including higher inflation. As the Group continues to grow, including the relative size of our markets, 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. For example, the Lunar New Year one week celebration occurring in the first quarter of the calendar year has resulted in lower volumes sold in the Asia region compared to the remaining quarterly periods of the year.

6


Notes to the interim condensed consolidated financial statements

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

 

Note 5. Segment information

5.1 Revenue, Adjusted EBITDA and EBITDA

Revenue, Adjusted EBITDA and EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2023

 

EMEA

 

 

Americas

 

 

Asia

 

 

Corporate*

 

 

Eliminations**

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

 

98,216

 

 

 

64,041

 

 

 

33,388

 

 

 

 

 

 

 

 

 

195,645

 

Intersegment revenue

 

 

851

 

 

 

 

 

 

1,440

 

 

 

 

 

 

(2,291

)

 

 

 

Total segment revenue

 

 

99,067

 

 

 

64,041

 

 

 

34,828

 

 

 

 

 

 

(2,291

)

 

 

195,645

 

Adjusted EBITDA

 

 

6,584

 

 

 

(10,306

)

 

 

(16,716

)

 

 

(29,435

)

 

 

 

 

 

(49,873

)

Share-based compensation expense

 

 

(1,022

)

 

 

(1,044

)

 

 

(1,411

)

 

 

(4,570

)

 

 

 

 

 

(8,047

)

Restructuring costs(1)

 

 

(1,008

)

 

 

(187

)

 

 

 

 

 

 

 

 

 

 

 

(1,195

)

Costs related to the YYF transaction(2)

 

 

 

 

 

(221

)

 

 

 

 

 

 

 

 

 

 

 

(221

)

EBITDA

 

 

4,554

 

 

 

(11,758

)

 

 

(18,127

)

 

 

(34,005

)

 

 

 

 

 

(59,336

)

Finance income and (expenses), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,996

)

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,233

)

Loss before income tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(73,565

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2022

 

EMEA

 

 

Americas

 

 

Asia

 

 

Corporate*

 

 

Eliminations**

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

 

90,483

 

 

 

47,017

 

 

 

28,686

 

 

 

 

 

 

 

 

 

166,186

 

Intersegment revenue

 

 

15,046

 

 

 

572

 

 

 

 

 

 

 

 

 

(15,618

)

 

 

 

Total segment revenue

 

 

105,529

 

 

 

47,589

 

 

 

28,686

 

 

 

 

 

 

(15,618

)

 

 

166,186

 

Adjusted EBITDA

 

 

(5,856

)

 

 

(22,013

)

 

 

(14,967

)

 

 

(28,553

)

 

 

 

 

 

(71,389

)

Share-based compensation expense

 

 

(1,584

)

 

 

(1,292

)

 

 

(1,949

)

 

 

(5,212

)

 

 

 

 

 

(10,037

)

EBITDA

 

 

(7,440

)

 

 

(23,305

)

 

 

(16,916

)

 

 

(33,765

)

 

 

 

 

 

(81,426

)

Finance income and (expenses), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,577

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,731

)

Loss before income tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(88,580

)

 

* Corporate consists of general overhead costs not allocated to the segments.

** Eliminations in 2023 refer to intersegment revenue for sales of products from EMEA to Asia and from Asia to EMEA. Eliminations in 2022 refer to intersegment revenue for sales of products from EMEA to Asia and from Americas to Asia.

(1)
Relates to severance payments as the Company reviews its organizational structure.
(2)
Relates to the close of the YYF Transaction. See Note 18 Non-current assets held for sale for further details.

 

5.2 Non-current assets by country

Non-current assets for this purpose consist of property, plant and equipment and right-of-use assets.

 

 

 

March 31, 2023

 

 

December 31, 2022

 

UK

 

 

198,661

 

 

 

186,759

 

US

 

 

130,390

 

 

 

130,295

 

China

 

 

122,979

 

 

 

122,495

 

Sweden

 

 

113,278

 

 

 

108,073

 

Singapore

 

 

29,083

 

 

 

29,944

 

Other

 

 

24,796

 

 

 

23,984

 

Total

 

 

619,187

 

 

 

601,550

 

 

7


Notes to the interim condensed consolidated financial statements

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

 

5.3 Revenue from external customers, broken down by location of the customers

The Group is domiciled in Sweden. The amount of its revenue from external customers, broken down by location of the customers, is shown in the table below.

 

 

 

For the three months ended March 31,

 

 

 

2023