What in Coffee Makes Oatly a Partner for Coffee Chains?
Oatly reported third-quarter 2024 revenue of $208 million, up 10.9% year over year, with profitability reached in all three regional businesses. Greater China revenue rose 13.7% to $29.1 million and turned profitable. Growth there came mainly from new foodservice customers, and the foodservice share of revenue climbed from 68% to 72% year over year.
Positioning itself as a coffee companion, Oatly has built deep partnerships with coffee chains since entering the Chinese market, and major chains launched more than ten Oatly-based drinks in the quarter. Europe and International revenue rose 6.1% to $109.9 million, while North America grew 18.1% to $69.1 million on wider distribution and new products.
Oatly, the oat milk brand, recently announced its financial results for the third quarter of 2024, achieving profitability targets across all global regions. The company's revenue for the quarter reached $208 million, up 10.9% year-over-year. Greater China stood out with revenue growth of 13.7% to $29.1 million and successful profitability. Growth in Greater China was primarily driven by expanding new foodservice customers, with the foodservice channel's revenue share rising from 68% in the same period last year to 72%. Since entering the Chinese market, Oatly has established deep partnerships with numerous coffee chains by positioning itself as a "coffee companion," and in the third quarter of this year, major chains launched over ten beverages based on Oatly oat milk.
On November 7, Oatly, a leading company in the oat milk industry, disclosed its financial data for the third quarter of 2024 during its earnings call, showcasing revenue growth and cost management achievements to global investors.
Regarding the quarter's performance, Oatly CEO Jean-Christophe Flatin said: "I am pleased to announce that all three of our regional businesses achieved profitability targets this quarter. As I've said before, we still have a lot of work to do, but this is a very important milestone."
Financial data shows that the world's largest oat milk company reported third-quarter revenue of $208 million, up 10.9% from the same period last year, or 9.6% growth at constant currency, with solid volume growth across all operating segments.
By region, in the third quarter of 2024, Europe and International revenue increased by $6.3 million, or 6.1%, to $109.9 million, compared to $103.5 million in the same period last year. Excluding a $2.1 million foreign exchange tailwind, third-quarter Europe and International revenue was $107.7 million, up 4.0%.
In response, Oatly stated that the revenue growth in Europe and International was mainly driven by increased sales of Barista oat milk and ambient oat milk in mature markets, as well as continued expansion in new European markets.
In North America, third-quarter 2024 revenue increased by $10.6 million, or 18.1%, to $69.1 million, compared to $58.5 million in the same period last year, primarily due to the company's continued expansion of distribution and launch of new products, which boosted sales in both retail and foodservice channels. In the third quarter of 2024, approximately 52% of North American revenue came from retail channels, compared to 53% in the same period last year.
It is worth noting that during this earnings call, Oatly highly praised the performance of its Greater China business, which achieved profitability in the third quarter.
Specifically, in the third quarter of 2024, Greater China revenue was $29.1 million, an increase of $3.5 million, or 13.7%, from $25.6 million in the same period last year. Growth in Greater China was mainly driven by sales to new foodservice customers. In the third quarter of 2024, approximately 72% of Greater China revenue came from the foodservice channel, compared to 68% in the same period last year.
It is understood that since entering the Chinese market six years ago, OATLY has risen to prominence in the coffee shop sector through its role as a "coffee companion" and has established partnerships with major domestic chains. According to OATLY's statistics, from 2018 to 2023, the oat milk sold by OATLY in the Chinese market could make approximately 1 billion oat lattes.
In the third quarter of this year, OATLY further strengthened its relationships with these long-term partners. OATLY revealed that collaborations with numerous coffee chains, especially the three major coffee chains in China, are progressing smoothly and are expected to deepen. According to data provided by OATLY, between July and September this year, major coffee chains launched over ten beverages based on OATLY oat milk.
It is understood that domestic consumers' growing demand for health and their gradually established awareness of oat milk provide favorable conditions for OATLY to further expand in the Chinese market.
Image source: Internet
The above content is compiled by CoffeeHunters, a coffee news website.
