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 July 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/ab8bbc17e3c07f83231ce2880b25fd84-img33928957_0.jpg 

 

 

Oatly Group AB

 

Interim condensed consolidated financial statements

For the three and six months ended June 30, 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

26

Item 3. Quantitative and Qualitative Disclosures About Market Risk

37

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

37

Item 1A. Risk Factors

37

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

37

Item 3. Defaults Upon Senior Securities

37

Signatures

38

 

 


 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

5

 

 

195,987

 

 

 

177,958

 

 

 

391,632

 

 

 

344,144

 

Cost of goods sold

 

 

 

(158,331

)

 

 

(149,814

)

 

 

(319,888

)

 

 

(300,152

)

Gross profit

 

 

 

37,656

 

 

 

28,144

 

 

 

71,744

 

 

 

43,992

 

Research and development expenses

 

 

 

(5,321

)

 

 

(5,718

)

 

 

(11,035

)

 

 

(9,982

)

Selling, general and administrative expenses

 

 

 

(106,695

)

 

 

(97,060

)

 

 

(205,550

)

 

 

(201,133

)

Other operating income and (expenses), net

 

 

 

(1,120

)

 

 

205

 

 

 

(2,208

)

 

 

537

 

Operating loss

 

 

 

(75,480

)

 

 

(74,429

)

 

 

(147,049

)

 

 

(166,586

)

Finance income and (expenses), net

7

 

 

(11,512

)

 

 

(593

)

 

 

(13,508

)

 

 

2,984

 

Loss before tax

 

 

 

(86,992

)

 

 

(75,022

)

 

 

(160,557

)

 

 

(163,602

)

Income tax benefit/(expense)

8

 

 

273

 

 

 

3,032

 

 

 

(1,739

)

 

 

4,153

 

Loss for the period, attributable to shareholders of the parent

 

 

 

(86,719

)

 

 

(71,990

)

 

 

(162,296

)

 

 

(159,449

)

Loss per share, attributable to shareholders of the parent:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

25

 

 

(0.15

)

 

 

(0.12

)

 

 

(0.27

)

 

 

(0.27

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

25

 

 

593,189,505

 

 

 

591,945,667

 

 

 

592,757,116

 

 

 

591,861,800

 

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

 

1


 

Interim condensed consolidated statement of comprehensive loss

 

(Unaudited)

 

Note

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in thousands of U.S. dollars)

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Loss for the period

 

 

 

 

(86,719

)

 

 

(71,990

)

 

 

(162,296

)

 

 

(159,449

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange differences from translation of foreign operations

 

 

 

 

(28,216

)

 

 

(60,212

)

 

 

(20,863

)

 

 

(83,166

)

Items that will not be subsequently reclassified to the consolidated statement of operations (net of tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value changes on Convertible Notes attributable to changes in credit risk

 

13

 

 

(72,656

)

 

 

 

 

 

(72,656

)

 

 

 

Total other comprehensive loss for the period

 

 

 

 

(100,872

)

 

 

(60,212

)

 

 

(93,519

)

 

 

(83,166

)

Total comprehensive loss for the period

 

 

 

 

(187,591

)

 

 

(132,202

)

 

 

(255,815

)

 

 

(242,615

)

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

 

 

 

Note

 

June 30, 2023

 

 

December 31, 2022

 

(in thousands of U.S. dollars)

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Intangible assets

 

9

 

 

122,171

 

 

 

127,688

 

Property, plant and equipment

 

10

 

 

504,743

 

 

 

492,952

 

Right-of-use assets

 

11

 

 

109,379

 

 

 

108,598

 

Other non-current receivables

 

12,13

 

 

47,240

 

 

 

7,848

 

Deferred tax assets

 

8

 

 

14,717

 

 

 

5,860

 

Total non-current assets

 

 

 

 

798,250

 

 

 

742,946

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

14

 

 

102,825

 

 

 

114,475

 

Trade receivables

 

15

 

 

102,835

 

 

 

100,955

 

Current tax assets

 

 

 

 

307

 

 

 

243

 

Other current receivables

 

16

 

 

33,925

 

 

 

17,818

 

Prepaid expenses

 

 

 

 

22,244

 

 

 

23,413

 

Cash and cash equivalents

 

17

 

 

340,730

 

 

 

82,644

 

 

 

 

 

 

602,866

 

 

 

339,548

 

Assets held for sale

 

18

 

 

 

 

 

142,703

 

Total current assets

 

 

 

 

602,866

 

 

 

482,251

 

TOTAL ASSETS

 

 

 

 

1,401,116

 

 

 

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

 

Other reserves

 

 

 

 

(265,002

)

 

 

(171,483

)

Accumulated deficit

 

 

 

 

(817,351

)

 

 

(665,524

)

Total equity attributable to shareholders of the parent

 

 

 

 

545,797

 

 

 

791,143

 

Liabilities

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

11

 

 

87,418

 

 

 

82,285

 

Liabilities to credit institutions

 

20

 

 

115,211

 

 

 

2,668

 

Deferred tax liabilities

 

8

 

 

637

 

 

 

 

Provisions

 

21

 

 

6,600

 

 

 

7,194

 

Total non-current liabilities

 

 

 

 

209,866

 

 

 

92,147

 

Current liabilities

 

 

 

 

 

 

 

 

Lease liabilities

 

11

 

 

14,720

 

 

 

16,823

 

Convertible Notes

 

13,22

 

 

400,244

 

 

 

 

Liabilities to credit institutions

 

20

 

 

10,332

 

 

 

49,922

 

Trade payables

 

 

 

 

81,201

 

 

 

82,516

 

Current tax liabilities

 

 

 

 

4,299

 

 

 

5,515

 

Other current liabilities

 

 

 

 

11,644

 

 

 

11,823

 

Accrued expenses

 

23

 

 

116,475

 

 

 

123,037

 

Provisions

 

21

 

 

6,538

 

 

 

3,800

 

 

 

 

 

 

645,453

 

 

 

293,436

 

Liabilities directly associated with the assets held for sale

 

18

 

 

 

 

 

48,471

 

Total current liabilities

 

 

 

 

645,453

 

 

 

341,907

 

Total liabilities

 

 

 

 

855,319

 

 

 

434,054

 

TOTAL EQUITY AND LIABILITIES

 

 

 

 

1,401,116

 

 

 

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

 

 

Other reserves

 

 

Accumulated deficit

 

 

Total equity

 

Balance at December 31, 2022

 

19

 

 

105

 

 

 

(0

)

 

 

1,628,045

 

 

 

(171,483

)

 

 

(665,524

)

 

 

791,143

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(75,577

)

 

 

(75,577

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

7,353

 

 

 

 

 

 

7,353

 

Total comprehensive income/(loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

7,353

 

 

 

(75,577

)

 

 

(68,224

)

Share-based payments

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,047

 

 

 

8,047

 

Balance at March 31, 2023

 

 

 

 

105

 

 

 

(0

)

 

 

1,628,045

 

 

 

(164,130

)

 

 

(733,054

)

 

 

730,966

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(86,719

)

 

 

(86,719

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(100,872

)

 

 

 

 

 

(100,872

)

Total comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

(100,872

)

 

 

(86,719

)

 

 

(187,591

)

Issue of shares

 

 

 

 

0

 

 

 

(0

)

 

 

 

 

 

 

 

 

 

 

 

0

 

Share-based payments

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,422

 

 

 

2,422

 

Balance at June 30, 2023

 

 

 

 

105

 

 

 

(0

)

 

 

1,628,045

 

 

 

(265,002

)

 

 

(817,351

)

 

 

545,797

 

 

 

 

 

 

Attributable to shareholders of the parent

 

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

 

Note

 

Share capital

 

 

Treasury shares

 

 

Other contributed capital

 

 

Other reserves

 

 

Accumulated deficit

 

 

Total equity

 

Balance at December 31, 2021

 

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

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,185

 

 

 

9,185

 

Balance at June 30, 2022

 

 

 

 

105

 

 

 

(0

)

 

 

1,628,103

 

 

 

(157,652

)

 

 

(448,650

)

 

 

1,021,906

 

 

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 six months ended June 30,

 

(in thousands of U.S. dollars)

 

Note

 

2023

 

 

2022

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

(162,296

)

 

 

(159,449

)

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

 

 

24,697

 

 

 

22,607

 

—Write-downs of inventories

 

14

 

 

7,609

 

 

 

8,165

 

—Impairment (gain)/loss on trade receivables

 

15

 

 

(268

)

 

 

132

 

—Share-based payments expense

 

6

 

 

10,469

 

 

 

19,222

 

—Movements in provisions

 

21

 

 

2,797

 

 

 

 

—Finance (income) and expenses, net

 

7

 

 

13,508

 

 

 

(2,984

)

—Income tax expense/(benefit)

 

8

 

 

1,739

 

 

 

(4,153

)

—Loss/(gain) on disposal of property, plant and equipment

 

 

 

 

237

 

 

 

(682

)

—Other

 

 

 

 

(815

)

 

 

(227

)

Interest received

 

 

 

 

2,317

 

 

 

1,346

 

Interest paid

 

 

 

 

(7,657

)

 

 

(6,076

)

Income tax paid

 

 

 

 

(12,191

)

 

 

(1,042

)

Changes in working capital:

 

 

 

 

 

 

 

 

—Decrease/(increase) in inventories

 

14

 

 

2,371

 

 

 

(23,308

)

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

 

15,16

 

 

(1,934

)

 

 

(10,356

)

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

 

23

 

 

6,327

 

 

 

29,529

 

Net cash flows used in operating activities

 

 

 

 

(113,090

)

 

 

(127,276

)

Investing activities

 

 

 

 

 

 

 

 

Purchase of intangible assets

 

9

 

 

(1,569

)

 

 

(2,558

)

Purchase of property, plant and equipment

 

10

 

 

(39,465

)

 

 

(111,264

)

Investments in financial assets

 

12

 

 

(1,651

)

 

 

 

Proceeds from sale of assets held for sale

 

18

 

 

43,998

 

 

 

 

Proceeds from short-term investments

 

 

 

 

 

 

 

148,269

 

Net cash flows from investing activities

 

 

 

 

1,313

 

 

 

34,447

 

Financing activities

 

 

 

 

 

 

 

 

Proceeds from Convertible Notes

 

13,22

 

 

324,950

 

 

 

 

Proceeds from liabilities to credit institutions

 

20

 

 

176,956

 

 

 

 

Repayment of liabilities to credit institutions

 

20

 

 

(97,680

)

 

 

(1,032

)

Payment of loan transaction costs

 

7,20,22

 

 

(31,815

)

 

 

 

Repayment of lease liabilities

 

11

 

 

(5,102

)

 

 

(5,846

)

Cash flows from/(used in) financing activities

 

 

 

 

367,309

 

 

 

(6,878

)

Net increase/(decrease) in cash and cash equivalents

 

 

 

 

255,532

 

 

 

(99,707

)

Cash and cash equivalents at the beginning of the period

 

 

 

 

82,644

 

 

 

295,572

 

Exchange rate differences in cash and cash equivalents

 

 

 

 

2,554

 

 

 

(13,664

)

Cash and cash equivalents at the end of the period

 

17

 

 

340,730

 

 

 

182,201

 

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 and six months ended June 30, 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 financial covenants and other 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, with the addition of the previously not applicable accounting policy regarding financial liabilities designated at fair value through profit and loss. For further details refer to the section below “Financial liabilities designated at fair value through profit or loss”.

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.

Financial liabilities designated at fair value through profit or loss

The Group has Convertible Notes (as defined in Note 22 Convertible Notes) which are classified entirely as liabilities at the initial date of recognition at fair value through profit or loss under the fair value option in accordance with IFRS 9 Financial Instruments. The Convertible Notes were issued with a conversion option that does not fulfill the “fixed for fixed” criteria. As the instrument contains an embedded derivative that is not closely related, the Convertible Notes have been designated in its entirety as at fair value through profit or loss on initial recognition and as such the embedded conversion feature is not separated. All transaction costs related to financial instruments designated at fair value through profit or loss are expensed as incurred. Fair value changes relating to the Group's own credit risk is recognized in other comprehensive income. Amounts recorded in other comprehensive income related to credit risk are not subject to recycling in profit or loss, but are transferred to retained earnings when realized. Fair value changes relating to market risk are recognized in finance income and (expenses), net in the consolidated statement of operations.

New and amended standards and interpretations issued but not yet effective

In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements to specify the requirements for classifying liabilities as current or non-current. In November 2022, the IASB issued further amendments delaying the effective date to annual reporting periods beginning on or after January 1, 2024. The amendments are required to be applied on a retrospective basis. The amendments will require the Group to classify the Convertible Notes as current liabilities, even if no noteholder actually requires the Company to exchange their notes. The Group has chosen early adoption of this amendment and has classified the Convertible Notes as current liabilities as at June 30, 2023.

There are no other 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

6


Notes to the interim condensed consolidated financial statements

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

 

statements for the year ended December 31, 2022, with the addition of those applied to the fair value of the Convertible Notes, see Note 13 Fair value of financial instruments for details of assumptions and estimates.

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.

7


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 June 30, 2023

 

EMEA

 

 

Americas

 

 

Asia

 

 

Corporate*

 

 

Eliminations**

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

 

96,989

 

 

 

61,832

 

 

 

37,166