Stocks tumble as plant-based milk maker warns of sales
The Swedish oat milk maker has warned that a combination of slower production in the US, inflationary pressures and new Covid-19 restrictions in Asia will weigh on full-year revenue, causing Shares in the group fell.
Company, has worth 10 billion dollars in its New York initial public offering in May, blamed Asian customers for the closure of “foodservice establishments”, driver shortages in the UK and slower-than-expected output. ants at a new plant in Utah.
Revenue for the year will exceed $635 million, up from 2020, but below analyst estimates of $694 million. The forecast came along with weaker-than-expected third-quarter revenue of $171 million, lower than Wall Street’s $185.5 million expected.
The warning is the latest blow to OFast, whose chief executive Toni Petersson has transformed into a globally recognized brand by tapping into the growing appetite for alternatives to its products. dairy products, but that gave a public company a rough start.
The group’s shares, which sell for $17 a piece, were down nearly a fifth in early New York trading at $9.70.
According to Nik Modi, an analyst at RBC Capital Markets, the group’s operating results show very strong demand, but “volatility in the macro environment and growing difficulties have led to the production and distribution of goods and services. distribution is disrupted,” said Nik Modi, an analyst at RBC Capital Markets.
With prices for oats and canola oil and packaging soaring, Oedly said it will raise prices in certain regions of Europe and the US next year. However, the Swedish city-based company Malmo said improvements in gross margin for 2022 would be lower than previously forecast.
The group also surpassed its capital spending plan for this year, cutting it to about $280 million-$320 million from $350 million-$400 million.
However, the group expects results to gradually improve throughout 2022 as the expansion of production scale leads to lower costs, along with expected reductions in transportation and logistics costs.
Petersson warns of “certain shifts in our strong growth rate from quarter to quarter”, but insists the team feels “very confident with our business fundamentals” and “optimistic about entering 2022.”
The warning from Oedly echoes that of Beyond Meat, the plant-based meat company, last week be blamed Labor shortage resulted in lower-than-expected revenue growth.