‘We are going to prioritize growth over profit,’ says CEO

‘We are going to prioritize growth over profit,’ says CEO

Speaking on a video call with reporters after selling 84.4m American depositary shares for $17 a share (at the high end of the expected $15-$17 range) to raise $1.43bn, Petersson said: “The factory is now up and running, and we’ve started to produce finished products already, last week, which is really exciting, and which will enable us to close the gaps of fill rates, but also expand with new partners across retail and foodservice.”?

Asked about the potential for other products beyond oatmilk in the US market (Oatly recently launched oatgurt, frozen desserts and soft serve products in the US but they have limited distribution), he said: “We are really excited about that and the frozen items are the best performing in terms of velocity in the US, but it’s with very limited distribution so far due to production constraints.?

“So that is something that this new plant will solve. So we are really really excited about this year it’s going to be a super dynamic and interesting year for us.”?

‘It’s growth over profit…’?

Quizzed about the Malmö, Sweden-based company’s path to profitability – it posted a net loss of $60m and an operating loss of $47m in 2020 on sales up 106.5% year-on-year to $421.4m – Petersson said Oatly may incur losses for some time as it ramps up production and aggressively expands into new markets.

“We? have been building capacity for a long period of time but also building the organization, our systems and the back office structure across three continents, and I think this is super normal where you are growing as much as we are doing. And going forward on the profit side, we are going to prioritize growth, no matter what.”?


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