By Will Feuer
Oatly, the popular oat drink maker, has announced its launch of an improvement plan to assess its Asia business. This strategic initiative includes cost cutting measures, reduction of its product portfolio, and a renewed focus on its core business.
The objective of the plan is to align Oatly’s operations with the evolving consumer landscape in Asia, post-pandemic, and position itself for future profitable growth. While it is still in its early stages, Oatly has acknowledged the possibility of restructuring the business, which may result in an impairment charge. Further updates are expected to be provided alongside the release of the company’s third-quarter results.
Additionally, Oatly has successfully reduced overhead costs within both its Americas segment and corporate functions.
In the second quarter, Oatly experienced a decline of approximately 15% in sales, amounting to $37.2 million, primarily due to a slower-than-anticipated recovery in China following the pandemic.
As a result of these developments, American depositary receipts tied to Oatly’s shares saw a significant drop of 16% to $1.82 in premarket trading.