Oatly Delivers Strong Q2 2026 Results Amid Global Headwinds
Oatly, a leading global brand in the beverage industry, has released its second quarter 2026 earnings conference call transcript, highlighting a successful first half with strong volume growth and positive mix driving revenue momentum. According to Jean-Christophe Flatin, Chief Executive Officer of Oatly, the company's second quarter results "reinforce the success of our growth playbook and notably innovation that solidifies our identity and appeal as a full beverage company."
The company's strong volume growth was evident in its expanded distribution in both retail and food service outlets, with a 15.2% increase in revenue in constant currency. This significant growth is attributed to the success of Oatly's execution strategy, which includes driving improvements in its strategic mix of channels, customers, and products to enhance underlying profit margins.
However, the company faced headwinds due to the conflict in the Middle East, which led to increased costs. Despite this challenge, Oatly managed to maintain a resilient bottom line by absorbing these costs while continuing to invest in growth initiatives. The company's adjusted EBITDA was positive $0.4 million and 0.2% of net sales, an improvement of $4 million versus last year.
Marie-José David, Chief Financial Officer of Oatly, highlighted the company's focus on achieving positive free cash flow, a milestone that will be reached through continued improvement in the P&L and working capital. The company's free cash flow in the quarter was a negative $0.6 million, an improvement of $4.6 million versus last year.
In its full-year guidance, Oatly raised revenue guidance while maintaining its outlook for 2026 adjusted EBITDA. The company's plan reflects continued investments for further growth, including utilizing the disruption caused by the conflict in the Middle East to evaluate and improve the flexibility in their supply chain.
As Daniel Ordoñez, Global President and Chief Operating Officer of Oatly, emphasized during the call, "we continue to see positive traction from our investments and brand building." The company remains focused on executing its growth playbook and navigating the uncertainty and volatility created by global events.
Oatly's strategic review in China is ongoing, with plans to complete this review prior to the end of the year. This strategic assessment aims to further enhance the company's position in a rapidly evolving market.
