Shares of newly listed vegan food and drink maker plunge 20% on lower sales expectation
Oatly Group tumbled after the newly public maker of vegan food and drink cut its sales expectation for the year, citing supply chain shortages and pandemic-related obstacles that are weighing on growth.
Revenue will exceed $635m in 2021, Oatly said on Monday in a statement as it reported third-quarter earnings, a reduction from its prior forecast of above $690m. Analysts had expected about $694m, according to the average of estimates compiled by Bloomberg. Oatly, which went public in May, said it struggled with pandemic restrictions in Asia and challenges to scale up production in the US. In the Europe-Middle East-Africa region, “the pace at which we expected to increase revenue in new and existing retailers and to open new markets is slower than we anticipated as we navigate a dynamic Covid operating environment.”
The issues underscore the concerns for plant-based food companies as they try to build upon the recent surge in consumer demand at a time of widespread production challenges for the food industry. Manufacturers are grappling with issues from rising costs to labour shortages. Oatly’s US shares plunged 20% to $9.44 in New York. The stock is trading well below its $17 IPO price.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asia shares inch up as sound Chinese data buoys bullsAnnual growth in retail sales and industrial output handily beat forecasts, a positive given pandemic bars
Read more »
SNAPS | Katlego Maboe’s ex Monique Muller shares pics with her ‘new man’Monique Muller seems to have found new love
Read more »
K Naomi shares pregnancy journey, says it isn’t ‘as easy as people make it’K Naomi can't wait to step into maternity.
Read more »
Asia shares inch up as sound Chinese data buoys bullsAnnual growth in retail sales and industrial output handily beat forecasts, a positive given pandemic bars
Read more »
Airbus upbeat as aircraft sales forecast to soarThough the pandemic hurt sales, the European aircraft maker plans an ambitious production ramp-up for its A320-family of jets
Read more »
Bullish China data boosts world stocks towards recent record highsAnnual growth in Chinese retail sales and industrial output beat forecasts, easing worries about a slowdown in the world’s No.2 economy
Read more »