Oatly Group AB 6-K, filed Feb 12, 2025
Oatly Group AB (OTLY)
About this 6-K
Oatly Group AB filed this 6-K on February 12, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2025
Commission File Number: 001-40401
Oatly Group AB
(Translation of registrant’s name into English)
Ångfärjekajen 8
211 19 Malmö
Sweden
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ |
|
Form 40-F ☐ |
Amendments to Sustainable Revolving Credit Facility Agreement and Term Loan B Credit Agreement
On February 11, 2025, the Group’s Sustainable Revolving Credit Facility Agreement and Term Loan B Credit Agreement were amended and restated to, among other things, (i) reset certain financial covenant levels applying to the minimum liquidity financial covenant, (ii) revise certain financial definitions to permit additional adjustments for the purpose of the calculation of certain financial covenants, including in relation to certain costs relating to the discontinuance of certain of the Group’s manufacturing facilities and (iii) provide certain flexibility for disposals of assets relating to the relevant manufacturing facilities.
The amended agreements impose limitations on drawdowns under the Sustainable Revolving Credit Facility Agreement (other than under ancillary facilities, such as overdraft facilities and bank guarantees, which are exempted from these limitations) based on the last four quarters’ consolidated EBITDA of the group, where, if last four quarters’ consolidated EBITDA of the group is:
with interim steps in between, and increases requiring improved performance for two consecutive four quarter periods and reductions requiring decreased performance for one four quarter period.
Results of Operations and Financial Condition
On February 12, 2025, the Company issued a press release announcing its financial results for the quarter and year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Report on Form 6-K. This includes an update on our Asia supply chain.
EXHIBIT INDEX
Exhibit No. |
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Description |
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99.1 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Oatly Group AB |
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Date: February 12, 2025 |
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By: |
/s/ Marie-José David |
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Name: |
Marie-José David |
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Title: |
Chief Financial Officer |
Exhibit 99.1
Oatly Reports Fourth Quarter and Full Year 2024 Financial Results
MALMÖ, Sweden, February 12, 2025 – Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the world’s original and largest oat drink company, today announced financial results for the fourth quarter and twelve months ended December 31, 2024.
Jean-Christophe Flatin, Oatly’s CEO, commented, “Over the past two years, we have executed a significant transformation of our company. We have overhauled our supply chain, our overhead structure, and our mindset. We now have a much healthier business with clear strategies, clear accountability, stronger margins, and significantly improved profitability. I am proud of our team for embracing the challenge, making the necessary changes, and focusing on execution. All this hard work has enabled us to now expect 2025 to be our first full year of profitable growth as a public company.”
The tables below reconcile revenue as reported to revenue on a constant currency basis by segment for the three and twelve months ended December 31, 2024 and 2023.
|
|
Three months ended |
|
|
$ Change |
|
|
% Change |
|
|
||||||||||||||||||
(Unaudited) |
|
2024 |
|
|
2023 |
|
|
As reported |
|
|
Foreign exchange impact |
|
|
In constant currency |
|
|
As reported |
|
In constant currency |
|
Volume |
|
Constant currency price/mix |
|||||
Europe & International |
|
|
108,462 |
|
|
|
105,620 |
|
|
|
108,462 |
|
|
|
577 |
|
|
|
107,885 |
|
|
2.7% |
|
2.1% |
|
4.1% |
|
-2.0% |
North America |
|
|
70,596 |
|
|
|
65,900 |
|
|
|
70,596 |
|
|
|
— |
|
|
|
70,596 |
|
|
7.1% |
|
7.1% |
|
5.1% |
|
2.0% |
Greater China |
|
|
35,258 |
|
|
|
32,601 |
|
|
|
35,258 |
|
|
|
118 |
|
|
|
35,140 |
|
|
8.2% |
|
7.8% |
|
34.7% |
|
-26.9% |
Total revenue |
|
|
214,316 |
|
|
|
204,121 |
|
|
|
214,316 |
|
|
|
695 |
|
|
|
213,621 |
|
|
5.0% |
|
4.7% |
|
9.9% |
|
-5.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Twelve months ended |
|
|
$ Change |
|
|
% Change |
|
|
||||||||||||||||||
(Unaudited) |
|
2024 |
|
|
2023 |
|
|
As reported |
|
|
Foreign exchange impact |
|
|
In constant currency |
|
|
As reported |
|
In constant currency |
|
Volume |
|
Constant currency price/mix |
|||||
Europe & International |
|
|
434,263 |
|
|
|
408,410 |
|
|
|
434,263 |
|
|
|
4,104 |
|
|
|
430,159 |
|
|
6.3% |
|
5.3% |
|
4.8% |
|
0.5% |
North America |
|
|
274,455 |
|
|
|
250,264 |
|
|
|
274,455 |
|
|
|
— |
|
|
|
274,455 |
|
|
9.7% |
|
9.7% |
|
10.0% |
|
-0.3% |
Greater China |
|
|
114,948 |
|
|
|
124,674 |
|
|
|
114,948 |
|
|
|
(1,865 |
) |
|
|
116,813 |
|
|
-7.8% |
|
-6.3% |
|
21.2% |
|
-27.5% |
Total revenue |
|
|
823,666 |
|
|
|
783,348 |
|
|
|
823,666 |
|
|
|
2,239 |
|
|
|
821,427 |
|
|
5.1% |
|
4.8% |
|
8.8% |
|
-4.0% |
Highlights
1
Fourth Quarter 2024 Results
Revenue increased $10.2 million, or 5.0% to $214.3 million for the fourth quarter ended December 31, 2024, compared to $204.1 million for the prior year period. Excluding a foreign currency exchange tailwind of $0.7 million, revenue for the fourth quarter was $213.6 million, or an increase of 4.7% compared to the prior year period. The growth in constant currency revenue was primarily driven by solid volume growth in each operating segment, partially offset by negative price/mix effect, particularly in Greater China. Sold volume for the fourth quarter of 2024 increased 9.9% to 153.2 million liters compared to 139.4 million liters in the fourth quarter of 2023. Produced finished goods volume for the fourth quarter of 2024 was 145.3 million liters compared to 135.8 million liters for the fourth quarter of 2023.
The Company continued to drive revenue growth in both the retail channel and foodservice channel in the fourth quarter of 2024 compared to the fourth quarter of 2023.
Gross profit was $61.6 million for the fourth quarter of 2024 compared to $47.8 million for the fourth quarter of 2023. Gross profit margin was 28.8% in the fourth quarter of 2024, an increase of 540 basis points compared to the prior year period. The margin improvement compared to the fourth quarter of 2023 was primarily driven by improvements in supply chain efficiency across all segments, most notably in the North America segment.
Research and development expenses in the fourth quarter of 2024 decreased $1.6 million to $3.7 million compared to $5.3 million in the prior year period. The decrease was primarily related to lower employee expenses and a reduction in external consultants, contractors and other professional fees.
Selling, general and administrative expenses in the fourth quarter of 2024 increased $1.3 million to $82.0 million compared to $80.7 million in the prior year period. The increase was primarily related to higher employee expenses due to restructuring activities in the fourth quarter of 2024.
Other operating income and (expenses), net for the fourth quarter of 2024 was an expense of $65.6 million comprised primarily of non-cash impairment charges of $41.7 million related to the discontinued construction of the second production facility in China (Asia III) and the closure of the production facility in Singapore, and other exit costs of $23.0 million related to the closure of the production facility in Singapore. Other operating income and (expenses), net for the prior year period was an expense of $204.3 million primarily driven by non-cash impairment charges and other exit costs related to discontinued construction of the new production facilities in Peterborough, UK and Dallas-Fort Worth, Texas.
Finance income and (expenses), net for the fourth quarter of 2024 was an expense of $1.1 million comprised primarily of net interest expenses of $13.6 million, offset by fair value gains on Convertible Notes of $4.6 million and net foreign exchange gains of $8.2 million. The finance income and (expenses), net for the prior year period was an expense of $50.5 million primarily driven by fair value losses on Convertible Notes.
Net loss attributable to shareholders of the parent was $91.2 million for the fourth quarter of 2024 compared to $298.7 million in the prior year period. The improvement was primarily a result of decreased other operating income and (expenses), net.
Adjusted EBITDA loss for the fourth quarter of 2024 was $6.1 million, compared to a loss of $19.2 million in the prior year period. The improvement in Adjusted EBITDA loss was primarily a result of higher gross profit.
EBITDA, Adjusted EBITDA loss, and Constant Currency Revenue are non-IFRS financial measures defined under “Non-IFRS financial measures”. Please see above revenue at constant currency table and “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
The following tables set forth revenue, Adjusted EBITDA, EBITDA and loss before tax for the Company’s three reportable segments for the periods presented.
Revenue, Adjusted EBITDA and EBITDA
Segment information for the three and twelve months ended December 31, 2023 presented below has been updated to reflect previously disclosed changes to our operating segments, which were effective as of January 1, 2024. Please see our press release, dated April 17, 2024, furnished on Form 6-K with the SEC for further information regarding these changes.
2
Three months ended December 31, 2024 |
|
Europe & International |
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North America |
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Greater China |
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Corporate* |
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|
Eliminations** |
|
|
Total |
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||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers |
|
|
108,462 |
|
|
|
70,596 |
|
|
|
35,258 |
|
|
|
— |
|
|
|
— |
|
|
|
214,316 |
|
Intersegment revenue |
|
|
1,326 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,326 |
) |
|
|
— |
|
Total segment revenue |
|
|
109,788 |
|
|
|
70,596 |
|
|
|
35,258 |
|
|
|
— |
|
|
|
(1,326 |
) |
|
|
214,316 |
|
Adjusted EBITDA |
|
|
16,580 |
|
|
|
1,249 |
|
|
|
589 |
|
|
|
(24,497 |
) |
|
|
— |
|
|
|
(6,079 |
) |
Share-based compensation expense |
|
|
(306 |
) |
|
|
(230 |
) |
|
|
(511 |
) |
|
|
(2,456 |
) |
|
|
— |
|
|
|
(3,503 |
) |
Restructuring costs(1) |
|
|
(1,520 |
) |
|
|
(356 |
) |
|
|
— |
|
|
|
(1,721 |
) |
|
|
— |
|
|
|
(3,597 |
) |
New product launch issue(2) |
|
|
— |
|
|
|
567 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
567 |
|
Asset impairment charges and other costs related to discontinued construction of production facilities(3) |
|
|
48 |
|
|
|
2,122 |
|
|
|
(25,068 |
) |
|
|
— |
|
|
|
— |
|
|
|
(22,898 |
) |
Asset impairment charges and other costs related to closure of production facility(4) |
|
|
(42,110 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(42,110 |
) |
Non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
(151 |
) |
|
|
— |
|
|
|
— |
|
|
|
(151 |
) |
EBITDA |
|
|
(27,308 |
) |
|
|
3,352 |
|
|
|
(25,141 |
) |
|
|
(28,674 |
) |
|
|
— |
|
|
|
(77,771 |
) |
Finance income and (expenses), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,149 |
) |
Depreciation and amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,932 |
) |
Loss before tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(90,852 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Three months ended December 31, 2023 |
|
Europe & International |
|
|
North America |
|
|
Greater China |
|
|
Corporate* |
|
|
Eliminations** |
|
|
Total |
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers |
|
|
105,620 |
|
|
|
65,900 |
|
|
|
32,601 |
|
|
|
— |
|
|
|
— |
|
|
|
204,121 |
|
Intersegment revenue |
|
|
2,333 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,333 |
) |
|
|
— |
|
Total segment revenue |
|
|
107,953 |
|
|
|
65,900 |
|
|
|
32,601 |
|
|
|
— |
|
|
|
(2,333 |
) |
|
|
204,121 |
|
Adjusted EBITDA |
|
|
11,410 |
|
|
|
(2,689 |
) |
|
|
(5,156 |
) |
|
|
(22,787 |
) |
|
|
— |
|
|
|
(19,222 |
) |
Share-based compensation expense |
|
|
(679 |
) |
|
|
(990 |
) |
|
|
(624 |
) |
|
|
(2,394 |
) |
|
|
— |
|
|
|
(4,687 |
) |
Restructuring costs(1) |
|
|
(319 |
) |
|
|
(580 |
) |
|
|
(273 |
) |
|
|
(1,244 |
) |
|
|
— |
|
|
|
(2,416 |
) |
Asset impairment charges and other costs related to discontinued construction of production facilities(5) |
|
|
(158,551 |
) |
|
|
(43,009 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(201,560 |
) |
Non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
(112 |
) |
|
|
— |
|
|
|
— |
|
|
|
(112 |
) |
EBITDA |
|
|
(148,139 |
) |
|
|
(47,268 |
) |
|
|
(6,165 |
) |
|
|
(26,425 |
) |
|
|
— |
|
|
|
(227,997 |
) |
Finance income and (expenses), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50,486 |
) |
Depreciation and amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14,618 |
) |
Loss before tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(293,101 |
) |
3
Twelve months ended December 31, 2024 |
|
Europe & International |
|
|
North America |
|
|
Greater China |
|
|
Corporate* |
|
|
Eliminations** |
|
|
Total |
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers |
|
|
434,263 |
|
|
|
274,455 |
|
|
|
114,948 |
|
|
|
— |
|
|
|
— |
|
|
|
823,666 |
|
Intersegment revenue |
|
|
6,429 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,429 |
) |
|
|
— |
|
Total segment revenue |
|
|
440,692 |
|
|
|
274,455 |
|
|
|
114,948 |
|
|
|
— |
|
|
|
(6,429 |
) |
|
|
823,666 |
|
Adjusted EBITDA |
|
|
56,128 |
|
|
|
5,298 |
|
|
|
(1,645 |
) |
|
|
(95,106 |
) |
|
|
— |
|
|
|
(35,325 |
) |
Share-based compensation expense |
|
|
(1,985 |
) |
|
|
656 |
|
|
|
(2,101 |
) |
|
|
(10,168 |
) |
|
|
— |
|
|
|
(13,598 |
) |
Restructuring costs(1) |
|
|
(2,410 |
) |
|
|
(1,222 |
) |
|
|
(1,940 |
) |
|
|
(2,600 |
) |
|
|
— |
|
|
|
(8,172 |
) |
New product launch issue(2) |
|
|
— |
|
|
|
(11,998 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,998 |
) |
Asset impairment charges and other costs related to discontinued construction of production facilities(3) |
|
|
(2,875 |
) |
|
|
3,283 |
|
|
|
(25,068 |
) |
|
|
— |
|
|
|
— |
|
|
|
(24,660 |
) |
Asset impairment charges and other costs related to closure of production facility(4) |
|
|
(42,110 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(42,110 |
) |
Non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
(323 |
) |
|
|
— |
|
|
|
— |
|
|
|
(323 |
) |
EBITDA |
|
|
6,748 |
|
|
|
(3,983 |
) |
|
|
(31,077 |
) |
|
|
(107,874 |
) |
|
|
— |
|
|
|
(136,186 |
) |
Finance income and (expenses), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,421 |
) |
Depreciation and amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,966 |
) |
Loss before tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(198,573 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Twelve months ended December 31, 2023 |
|
Europe & International |
|
|
North America |
|
|
Greater China |
|
|
Corporate* |
|
|
Eliminations** |
|
|
Total |
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue from external customers |
|
|
408,410 |
|
|
|
250,264 |
|
|
|
124,674 |
|
|
|
— |
|
|
|
— |
|
|
|
783,348 |
|
Intersegment revenue |
|
|
25,601 |
|
|
|
— |
|
|
|
181 |
|
|
|
— |
|
|
|
(25,782 |
) |
|
|
— |
|
Total segment revenue |
|
|
434,011 |
|
|
|
250,264 |
|
|
|
124,855 |
|
|
|
— |
|
|
|
(25,782 |
) |
|
|
783,348 |
|
Adjusted EBITDA |
|
|
28,377 |
|
|
|
(31,910 |
) |
|
|
(57,543 |
) |
|
|
(96,485 |
) |
|
|
— |
|
|
|
(157,561 |
) |
Share-based compensation expense |
|
|
(2,378 |
) |
|
|
(3,820 |
) |
|
|
(4,608 |
) |
|
|
(10,640 |
) |
|
|
— |
|
|
|
(21,446 |
) |
Restructuring costs(1) |
|
|
(1,382 |
) |
|
|
(3,062 |
) |
|
|
(2,675 |
) |
|
|
(7,641 |
) |
|
|
— |
|
|
|
(14,760 |
) |
Asset impairment charges and other costs related to discontinued construction of production facilities(5) |
|
|
(158,551 |
) |
|
|
(43,009 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(201,560 |
) |
Costs related to the YYF Transaction(6) |
|
|
— |
|
|
|
(375 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(375 |
) |
Legal settlement(7) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,250 |
) |
|
|
— |
|
|
|
(9,250 |
) |
Non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
(186 |
) |
|
|
— |
|
|
|
— |
|
|
|
(186 |
) |
EBITDA |
|
|
(133,934 |
) |
|
|
(82,176 |
) |
|
|
(65,012 |
) |
|
|
(124,016 |
) |
|
|
— |
|
|
|
(405,138 |
) |
Finance income and (expenses), net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
48,847 |
|
Depreciation and amortization |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51,874 |
) |
Loss before tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(408,165 |
) |
* Corporate consists of general costs not allocated to the segments.
** Eliminations in 2024 and 2023 primarily refer to intersegment revenue for sales of products from Europe & International to Greater China.
4
Europe & International
Europe & International revenue increased $2.8 million, or 2.7%, to $108.5 million for the fourth quarter of 2024, compared to $105.6 million in the prior year period. Excluding a foreign currency exchange tailwind of $0.6 million, Europe & International revenue for the fourth quarter was $107.9 million, or an increase of 2.1%. The increase in revenue was driven by volume growth of 4.1% from primarily increased Barista and ambient oatmilk sales in established markets, as well as continued expansion in the new European and International markets. This was partially offset by a price/mix decline of 2.0%. Approximately 81% of Europe & International revenue was from the retail channel for the fourth quarter of 2024 compared to 80% in the prior year period. The sold finished goods volume for the three months ended December 31, 2024 and 2023 amounted to 78.3 million and 75.2 million liters, respectively.
Europe & International Adjusted EBITDA increased $5.2 million to $16.6 million for the fourth quarter of 2024 compared to $11.4 million in the prior year period. The improvement in Adjusted EBITDA was primarily driven by higher gross profit as well as lower selling, general and administrative expenses through stronger cost controls.
North America
North America revenue increased $4.7 million, or 7.1%, to $70.6 million for the fourth quarter of 2024, compared to $65.9 million in the prior year period. The sold finished goods volume for the fourth quarter 2024 was 41.1 million compared to 39.1 million liters in the prior year period. The 5.1% volume increase was due to higher volumes across the retail and foodservice channels as the Company continued to expand distribution and launch new products. Approximately 48% of North America revenue was from the retail channel in the fourth quarter of 2024 and 2023, respectively.
North America Adjusted EBITDA improved $3.9 million to $1.2 million compared to a loss of $2.7 million in the prior year period. The improvement in Adjusted EBITDA was primarily due to higher gross profit, largely driven by improved supply chain efficiency, partially offset by higher selling, general and administrative expenses as the Company invested in branding activities to continue driving growth.
Greater China
Greater China revenue increased $2.7 million, or 8.2%, to $35.3 million for the fourth quarter of 2024, compared to $32.6 million in the prior year period. Excluding a foreign currency exchange tailwind of $0.1 million, Greater China revenue for the fourth quarter was $35.1 million, or an increase of 7.8%. The Greater China segment growth was primarily driven by sales to a new foodservice customer. Approximately 76% of Greater China revenue was from the foodservice channel for the fourth quarter of 2024 compared to 73% in the prior year period. The sold finished goods volume for the three months ended December 31, 2024 and 2023 amounted to 33.8 million and 25.1 million liters, respectively.
Greater China Adjusted EBITDA improved $5.7 million to $0.6 million compared to a loss of $5.2 million in the prior year period. The improvement in Adjusted EBITDA was primarily due to higher gross profit and reduction in selling, general and administrative expenses, as the segment continued to right-size its expenses to improve profitability.
Corporate
Oatly’s corporate expense, which consists of general costs not allocated to the segments, in the fourth quarter of 2024 was $28.7 million, an increase of $2.2 million compared to the prior year period. Adjusted EBITDA in the fourth quarter of 2024 was a loss of $24.5 million compared to a loss of $22.8 million in the prior year period.
Balance Sheet and Cash Flows
As of December 31, 2024, the Company had cash and cash equivalents of $98.9 million and total outstanding debt of $446.4 million consisting of Convertible Notes and liabilities to credit institutions. Net cash used in operating activities was $114.4 million for the twelve months ended December 31, 2024, compared to $165.6 million during the prior year period, which was primarily driven by improved operating result, partly offset by cash outflow of $29.7 million related to discontinued construction of the Group’s production facilities in Peterborough, UK and Dallas-Fort Worth, Texas, and a cash outflow of $9.3 million related to the settlement of US securities class action litigation.
Capital expenditures were $41.2 million for the twelve months ended December 31, 2024, compared to $69.0 million in the prior year period as the Company prioritized investments in its existing production facilities. In addition, proceeds from the sale of property, plant and equipment was $31.2 million for the twelve months ended December 31, 2024.
5
Free cash flow was an outflow of $155.6 million for the twelve months ended December 31, 2024 compared to an outflow of $234.7 million during the prior year period. The improvement in free cash flow was driven both by decreased net cash flows used in operating activities and lower capital expenditures.
Free Cash Flow is a non-IFRS liquidity measure defined under “Non-IFRS financial measures.” Please see “Reconciliation of IFRS to Non-IFRS Financial measures” at the end of this press release.
Update on Asian Supply Chain
As previously announced on December 18, 2024, the Company decided to close its manufacturing facility in Singapore. As part of the closure, in the fourth quarter, the Company incurred a non-cash impairment of $19.1 million and other restructuring and exit costs of $23.0 million.
Separately, after a thorough evaluation of its supply chain, the Company is today announcing the decision to discontinue the construction of the second production facility in China, which the Company historically referred to as “Asia III”. The Company has determined that the production capabilities in the existing Ma’anshan production site, including the possibility of future expansion at that site, will be sufficient to support current customers and business growth. As a result of this decision, the Company in the fourth quarter recorded $25.1 million primarily relating to non-cash impairment charges.
Outlook
Based on the Company’s assessment of the current operating environment and the actions it is taking, the Company expects to achieve its first full year of profitable growth in 2025. Specifically, in 2025 the Company expects:
This outlook is provided in the context of significant macroeconomic uncertainty and other geopolitical uncertainties.
The Company cannot provide a reconciliation of constant currency revenue growth or Adjusted EBITDA guidance to the nearest comparable corresponding IFRS metric without unreasonable efforts due to difficulty in predicting certain items excluded from these non-IFRS measures. The items necessary to reconcile are not within Oatly’s control, may vary greatly between periods and could significantly impact future financial results.
Conference Call, Webcast and Supplemental Presentation Details
Oatly will host a conference call and webcast at 8:00 a.m. ET today to discuss these results. The conference call, simultaneous, live webcast and supplemental presentation can be accessed on Oatly’s Investors website at https://investors.oatly.com under “Events.” The webcast will be archived for 30 days.
About Oatly
We are the world’s original and largest oat drink company. For over 30 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, spreads and on-the-go drinks. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 40 countries globally.
For more information, please visit www.oatly.com.
6
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding our financial outlook for 2025, profitability improvement, profitable growth in 2025, long-term growth strategy, expected capital expenditures, anticipated returns on our investments, anticipated supply chain performance, anticipated impact of our improvement plans, anticipated impact of our decision to discontinue construction of certain production facilities, plans to achieve profitable growth and anticipated cost savings and efficiencies as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “is/are likely to” and similar statements of a future or forward-looking nature. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: our history of losses and inability to achieve or sustain profitability; including due to elevated inflation and increased costs for transportation, energy and materials; reduced or limited availability of oats or other raw materials and ingredients that meet our quality standards; our ability to generate additional revenue, failure to obtain additional financing to achieve our goals or failure to obtain necessary capital when needed on acceptable terms, or at all; failure of the financial institutions in which we hold our deposits; damage or disruption to our production facilities; harm to our brand and reputation as a result of real or perceived quality or food safety issues with our products; food safety and food-borne illness incidents or other safety concerns which may lead to lawsuits, product recalls or regulatory enforcement actions; our ability to successfully compete in our highly competitive markets; reduction in the sales of our oat drink varieties; failure to effectively navigate our shift to an asset-light business model; successful exit and closure of the Singapore facility and discontinuation of construction of the Asia III site; failure to successfully achieve any or all of the benefits of the YYF Transaction; failure to meet our existing or new environmental metrics, uncertainty about future mandatory climate change and sustainability related disclosures and requirements, and other risks related to sustainability and corporate social responsibility; litigation, regulatory actions or other legal proceedings including environmental and securities class action lawsuits and settlements; changes to international trade policies and treaties, including but not limited to the imposition of tariffs that could increase prices we pay for inputs, increase the prices paid by our customers for our products, and reduce our profit margins ; sourcing decisions by large customers, global conflict, including the ongoing conflicts in Ukraine and Gaza; changes in our tax rates or exposure to additional tax liabilities or assessments; supply chain delays, including delays in the receipt of product at factories and ports, and an increase in transportation costs; the impact of rising commodity prices, transportation and labor costs on our cost of goods sold; failure by our logistics providers to deliver our products on time, or at all; our ability to successfully execute our cost reduction activities in accordance with our expectations and the impact of such actions on our company; failure to develop and maintain our brand; our ability to introduce new products or successfully improve existing products; failure to retain our senior management or to attract, train and retain employees; cybersecurity incidents or other technology disruptions; risks associated with our operations in the People’s Republic of China; the success of our strategic reset in Asia; failure to protect our intellectual property and other proprietary rights adequately; our ability to successfully remediate previously disclosed material weaknesses or other future control deficiencies, in our internal control over financial reporting; impairments of the value of our assets; potential delisting from Nasdaq; our status as a foreign private issuer; risks related to the significant influence of our largest shareholder, Nativus Company Limited, entities affiliated with China Resources Verlinvest Health Investment Ltd. has over us, including significant influence over decisions that require the approval of shareholders; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 22, 2024 and our other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Oatly disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Non-IFRS Financial Measures
We use EBITDA, Adjusted EBITDA, Constant Currency Revenue as non-IFRS financial measures in assessing our operating performance and Free Cash Flow as a liquidity measure, and each in our financial communications:
“EBITDA” is defined as loss for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income and depreciation and amortization expense.
“Adjusted EBITDA” is defined as loss for the period adjusted to exclude, when applicable, income tax expense, finance expenses, finance income, depreciation and amortization expense, share-based compensation expense, restructuring costs, expenses related to a new product launch issue, costs related to legal settlement, impacts related to discontinued construction of production facilities, impacts related to closure of production facility, costs related to the YYF Transaction, and non-controlling interests.
Adjusted EBITDA should not be considered as an alternative to loss for the period or any other measure of financial performance calculated and presented in accordance with IFRS. There are a number of limitations related to the use of Adjusted EBITDA rather than loss for the period, which is the most directly comparable IFRS measure. Some of these limitations are:
7
Adjusted EBITDA should not be considered in isolation or as a substitute for financial information provided in accordance with IFRS. Below we have provided a reconciliation of EBITDA and Adjusted EBITDA to loss for the period, the most directly comparable financial measure calculated and presented in accordance with IFRS, for the periods presented.
“Constant Currency Revenue” is calculated by translating the current year reported revenue amounts into comparable amounts using the prior year reporting period’s average foreign exchange rates which have been provided by a third party. Constant Currency Revenue is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial performance.
Constant currency revenue is used to provide a framework in assessing how our business and geographic segments performed excluding the effects of foreign currency exchange rate fluctuations and believe this information is useful to investors to facilitate comparisons and better identify trends in our business. Above we have provided a reconciliation of revenue as reported to revenue on a constant currency basis for the periods presented.
“Free Cash Flow” is defined as net cash flows used in operating activities less capital expenditures. We believe Free Cash Flow is a useful supplemental financial measure for us and investors in assessing our ability to pursue business opportunities and investments. Free Cash Flow is not a measure of our liquidity under IFRS and should not be considered as an alternative to net cash flows used in operating activities.
Free Cash Flow is a non-IFRS measure and is not a substitute for IFRS measures in assessing our overall financial liquidity. Because Free Cash Flow is not a measurement determined in accordance with IFRS, and is susceptible to varying calculations, it may not be comparable to other similarly titled measures presented by other companies. Free Cash Flow should not be considered in isolation, or as a substitute for an analysis of our results as reported on our condensed consolidated financial statements appearing elsewhere in this document. Below we have provided a reconciliation of Free Cash Flow to net cash flows used in operating activities for the periods presented.
Contacts
Oatly Group AB
+1 866-704-0391
investors@oatly.com
press.us@oatly.com
8
Financial Statements
Condensed consolidated statement of operations
(Unaudited) |
|
Three months ended December 31, |
|
|
Twelve months ended December 31, |
|
||||||||||
(in thousands of U.S. dollars, except share and per share data) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue |
|
|
214,316 |
|
|
|
204,121 |
|
|
|
823,666 |
|
|
|
783,348 |
|
Cost of goods sold |
|
|
(152,699 |
) |
|
|
(156,343 |
) |
|
|
(587,174 |
) |
|
|
(631,265 |
) |
Gross profit |
|
|
61,617 |
|
|
|
47,778 |
|
|
|
236,492 |
|
|
|
152,083 |
|
Research and development expenses |
|
|
(3,728 |
) |
|
|
(5,328 |
) |
|
|
(30,135 |
) |
|
|
(21,047 |
) |
Selling, general and administrative expenses |
|
|
(81,973 |
) |
|
|
(80,721 |
) |
|
|
(324,719 |
) |
|
|
(373,396 |
) |
Other operating income and (expenses), net |
|
|
(65,619 |
) |
|
|
(204,344 |
) |
|
|
(67,790 |
) |
|
|
(214,652 |
) |
Operating loss |
|
|
(89,703 |
) |
|
|
(242,615 |
) |
|
|
(186,152 |
) |
|
|
(457,012 |
) |
Finance income and (expenses), net |
|
|
(1,149 |
) |
|
|
(50,486 |
) |
|
|
(12,421 |
) |
|
|
48,847 |
|
Loss before tax |
|
|
(90,852 |
) |
|
|
(293,101 |
) |
|
|
(198,573 |
) |
|
|
(408,165 |
) |
Income tax expense |
|
|
(505 |
) |
|
|
(5,674 |
) |
|
|
(3,699 |
) |
|
|
(8,895 |
) |
Loss for the period |
|
|
(91,357 |
) |
|
|
(298,775 |
) |
|
|
(202,272 |
) |
|
|
(417,060 |
) |
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shareholders of the parent |
|
|
(91,206 |
) |
|
|
(298,663 |
) |
|
|
(201,949 |
) |
|
|
(416,874 |
) |
Non-controlling interests |
|
|
(151 |
) |
|
|
(112 |
) |
|
|
(323 |
) |
|
|
(186 |
) |
Loss per share, attributable to shareholders of the parent: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
|
(0.15 |
) |
|
|
(0.50 |
) |
|
|
(0.34 |
) |
|
|
(0.70 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
|
598,226,750 |
|
|
|
594,606,465 |
|
|
|
596,886,163 |
|
|
|
593,600,863 |
|
9
Condensed consolidated statement of financial position
(Unaudited) |
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
(in thousands of U.S. dollars) |
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Non-current assets |
|
|
|
|
|
|
||
Intangible assets |
|
|
116,208 |
|
|
|
130,326 |
|
Property, plant and equipment |
|
|
294,199 |
|
|
|
360,286 |
|
Right-of-use assets |
|
|
45,555 |
|
|
|
88,393 |
|
Other non-current receivables |
|
|
44,331 |
|
|
|
44,378 |
|
Deferred tax assets |
|
|
4,561 |
|
|
|
10,203 |
|
Total non-current assets |
|
|
504,854 |
|
|
|
633,586 |
|
Current assets |
|
|
|
|
|
|
||
Inventories |
|
|
65,602 |
|
|
|
67,882 |
|
Trade receivables |
|
|
103,366 |
|
|
|
112,951 |
|
Current tax assets |
|
|
6,095 |
|
|
|
2,505 |
|
Other current receivables |
|
|
15,738 |
|
|
|
33,820 |
|
Prepaid expenses |
|
|
9,402 |
|
|
|
16,928 |
|
Cash and cash equivalents |
|
|
98,923 |
|
|
|
249,299 |
|
Total current assets |
|
|
299,126 |
|
|
|
483,385 |
|
TOTAL ASSETS |
|
|
803,980 |
|
|
|
1,116,971 |
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
Share capital |
|
|
106 |
|
|
|
105 |
|
Treasury shares |
|
|
(0 |
) |
|
|
(0 |
) |
Other contributed capital |
|
|
1,628,045 |
|
|
|
1,628,045 |
|
Other reserves |
|
|
(274,160 |
) |
|
|
(233,204 |
) |
Accumulated deficit |
|
|
(1,249,303 |
) |
|
|
(1,060,952 |
) |
Equity attributable to shareholders of the parent |
|
|
104,688 |
|
|
|
333,994 |
|
Non-controlling interests |
|
|
1,435 |
|
|
|
1,787 |
|
Total equity |
|
|
106,123 |
|
|
|
335,781 |
|
Liabilities |
|
|
|
|
|
|
||
Non-current liabilities |
|
|
|
|
|
|
||
Lease liabilities |
|
|
31,724 |
|
|
|
72,570 |
|
Liabilities to credit institutions |
|
|
116,216 |
|
|
|
114,249 |
|
Provisions |
|
|
14,857 |
|
|
|
10,716 |
|
Total non-current liabilities |
|
|
162,797 |
|
|
|
197,535 |
|
Current liabilities |
|
|
|
|
|
|
||
Lease liabilities |
|
|
13,359 |
|
|
|
16,432 |
|
Convertible Notes |
|
|
324,395 |
|
|
|
323,528 |
|
Liabilities to credit institutions |
|
|
5,757 |
|
|
|
6,056 |
|
Trade payables |
|
|
60,152 |
|
|
|
64,368 |
|
Current tax liabilities |
|
|
1,476 |
|
|
|
2,732 |
|
Other current liabilities |
|
|
7,998 |
|
|
|
13,873 |
|
Accrued expenses |
|
|
103,719 |
|
|
|
121,338 |
|
Provisions |
|
|
18,204 |
|
|
|
35,328 |
|
Total current liabilities |
|
|
535,060 |
|
|
|
583,655 |
|
Total liabilities |
|
|
697,857 |
|
|
|
781,190 |
|
TOTAL EQUITY AND LIABILITIES |
|
|
803,980 |
|
|
|
1,116,971 |
|
10
Condensed consolidated statement of cash flows
(Unaudited) |
|
For the year ended December 31 |
|
|||||
(in thousands of U.S. dollars) |
|
2024 |
|
|
2023 |
|
||
Operating activities |
|
|
|
|
|
|
||
Net loss |
|
|
(202,272 |
) |
|
|
(417,060 |
) |
Adjustments to reconcile net loss to net cash flows |
|
|
|
|
|
|
||
—Depreciation of property, plant and equipment and right-of-use assets and amortization of intangible assets |
|
|
49,966 |
|
|
|
51,702 |
|
—Impairment of property, plant and equipment and right-of-use assets and intangible assets |
|
|
— |
|
|
|
1,828 |
|
—Impairment (gain)/loss on trade receivables |
|
|
(234 |
) |
|
|
611 |
|
—Write-down of inventories |
|
|
3,095 |
|
|
|
16,981 |
|
—Share-based compensation |
|
|
13,598 |
|
|
|
21,446 |
|
—Movements in provisions |
|
|
(14,414 |
) |
|
|
36,341 |
|
—Finance (income) and expenses, net |
|
|
12,421 |
|
|
|
(48,847 |
) |
—Income tax expense |
|
|
3,699 |
|
|
|
8,895 |
|
—(Gain)/Loss on disposal of property, plant and equipment and intangible assets |
|
|
(307 |
) |
|
|
675 |
|
—Impairment related to discontinued construction of production facilities |
|
|
24,117 |
|
|
|
172,588 |
|
—Impairment related to closure of production facility |
|
|
19,113 |
|
|
|
— |
|
—Other |
|
|
1,441 |
|
|
|
— |
|
Interest received |
|
|
8,285 |
|
|
|
9,630 |
|
Interest paid |
|
|
(24,518 |
) |
|
|
(20,504 |
) |
Income tax paid |
|
|
(3,386 |
) |
|
|
(18,098 |
) |
Changes in working capital: |
|
|
|
|
|
|
||
—(Increase)/decrease in inventories |
|
|
(3,456 |
) |
|
|
30,543 |
|
—Decrease/(increase) in trade receivables, other current receivables, prepaid expenses |
|
|
14,786 |
|
|
|
(2,502 |
) |
—Decrease in trade payables, other current liabilities, accrued expenses |
|
|
(16,362 |
) |
|
|
(9,855 |
) |
Net cash flows used in operating activities |
|
|
(114,428 |
) |
|
|
(165,626 |
) |
Investing activities |
|
|
|
|
|
|
||
Purchase of intangible assets |
|
|
(2,055 |
) |
|
|
(2,950 |
) |
Purchase of property, plant and equipment |
|
|
(39,140 |
) |
|
|
(66,095 |
) |
Investments in financial assets |
|
|
— |
|
|
|
(1,651 |
) |
Proceeds from sale of property, plant and equipment |
|
|
31,201 |
|
|
|
— |
|
Proceeds from sale of assets held for sale |
|
|
— |
|
|
|
43,998 |
|
Other |
|
|
743 |
|
|
|
— |
|
Net cash flows used in investing activities |
|
|
(9,251 |
) |
|
|
(26,698 |
) |
Financing activities |
|
|
|
|
|
|
||
Proceeds from Convertible Notes |
|
|
— |
|
|
|
324,950 |
|
Proceeds from liabilities to credit institutions |
|
|
— |
|
|
|
176,854 |
|
Repayment of liabilities to credit institutions |
|
|
(2,678 |
) |
|
|
(102,848 |
) |
Repayment of lease liabilities |
|
|
(19,645 |
) |
|
|
(11,411 |
) |
Payment of loan transaction costs |
|
|
(4,965 |
) |
|
|
(32,550 |
) |
Cash flows (used in)/from financing activities |
|
|
(27,288 |
) |
|
|
354,995 |
|
Net (decrease)/increase in cash and cash equivalents |
|
|
(150,967 |
) |
|
|
162,671 |
|
Cash and cash equivalents at January 1 |
|
|
249,299 |
|
|
|
82,644 |
|
Exchange rate differences in cash and cash equivalents |
|
|
591 |
|
|
|
3,984 |
|
Cash and cash equivalents at December 31 |
|
|
98,923 |
|
|
|
249,299 |
|
11
Reconciliation of IFRS to Non-IFRS Financial measures
Reconciliation of EBITDA and Adjusted EBITDA to loss for the period
|
|
Three months ended December 31, |
|
|
Twelve months ended December 31, |
|
||||||||||
(Unaudited) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
(in thousands of U.S. dollars) |
|
|
|
|
||||||||||||
Loss for the period |
|
|
(91,357 |
) |
|
|
(298,775 |
) |
|
|
(202,272 |
) |
|
|
(417,060 |
) |
Income tax expense |
|
|
505 |
|
|
|
5,674 |
|
|
|
3,699 |
|
|
|
8,895 |
|
Finance (income) and expenses, net |
|
|
1,149 |
|
|
|
50,486 |
|
|
|
12,421 |
|
|
|
(48,847 |
) |
Depreciation and amortization expense |
|
|
11,932 |
|
|
|
14,618 |
|
|
|
49,966 |
|
|
|
51,874 |
|
EBITDA |
|
|
(77,771 |
) |
|
|
(227,997 |
) |
|
|
(136,186 |
) |
|
|
(405,138 |
) |
Share-based compensation expense |
|
|
3,503 |
|
|
|
4,687 |
|
|
|
13,598 |
|
|
|
21,446 |
|
Restructuring costs(1) |
|
|
3,597 |
|
|
|
2,416 |
|
|
|
8,172 |
|
|
|
14,760 |
|
New product launch issue(2) |
|
|
(567 |
) |
|
|
— |
|
|
|
11,998 |
|
|
|
— |
|
Asset impairment charges and other costs related to discontinued construction of production facilities(3) |
|
|
22,898 |
|
|
|
201,560 |
|
|
|
24,660 |
|
|
|
201,560 |
|
Asset impairment charges and other costs related to closure of production facility(4) |
|
|
42,110 |
|
|
|
— |
|
|
|
42,110 |
|
|
|
— |
|
Costs related to the YYF Transaction(5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
375 |
|
Legal settlement(6) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,250 |
|
Non-controlling interests |
|
|
151 |
|
|
|
112 |
|
|
|
323 |
|
|
|
186 |
|
Adjusted EBITDA |
|
|
(6,079 |
) |
|
|
(19,222 |
) |
|
|
(35,325 |
) |
|
|
(157,561 |
) |
Reconciliation of Free Cash Flow to Net Cash Flows used in Operating Activities
(Unaudited) |
|
Three months ended December 31, |
|
|
Twelve months ended December 31, |
|
||||||||||
(in thousands of U.S. dollars) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net cash flows used in operating activities |
|
|
(10,236 |
) |
|
|
(14,147 |
) |
|
|
(114,428 |
) |
|
|
(165,626 |
) |
Capital expenditures |
|
|
(12,273 |
) |
|
|
(17,062 |
) |
|
|
(41,195 |
) |
|
|
(69,045 |
) |
Free Cash Flow |
|
|
(22,509 |
) |
|
|
(31,209 |
) |
|
|
(155,623 |
) |
|
|
(234,671 |
) |
12