Oatly (NASDAQ:OTLY) shares fell as much as 11.5% in premarket Thursday after the company reported weaker-than-expected second-quarter results.
A loss per share of $0.15 came in worse than the analyst estimate for a loss per share of $0.12. Revenue for the quarter came in at $196 million, missing the $210.59M analyst target.
While EMEA region revenue modestly topped analyst expectations, Oatly missed consensus for revenue generated from the Americas segment and Asia.
“As Asia has transitioned to a post-pandemic era, consumers have behaved differently than we had originally expected, and we need to adjust,” said Jean-Christophe Flatin, CEO of Oatly.
Following Q2 underperformance, which the company blamed on Asia, Oatly said it launched “a comprehensive improvement plan in its Asia segment that the Company believes will enable it to adapt to the evolving post-pandemic consumer environment, and prepare it for profitable growth.”
“The improvement plan includes increasing focus on the core business, a simplification of the product portfolio, and a reduction in operating costs,” Oatly added in a statement.
The company will also further cut its SG&A overhead costs in both its Americas segment and its Corporate functions.
Still, Oatly was forced to cut its full-year revenue guidance. It now expects growth of 7-12% compared to 2022.