Swedish group Oatly, specializing in plant-based dairy alternatives, has announced the launch of a strategic review of its operations in China, which could lead to a spinoff of the Greater China division. The goal, the company explained, is to "accelerate growth and maximize business value," although no specific timeline for completing the review is provided.
The decision comes after the halt, last February, of plans for a second factory in the country, deemed unnecessary following the commissioning of the Ma'anshan plant in 2021. Revenue from the Greater China division fell to $114,9 million in 2024, compared to $124,7 million in 2023, but increased 2025% in the first half of 12,5.
At the group level, Oatly closed the first half of 2025 with revenue of $405,9 million (+1,1%) and a net loss of $68,3 million, an improvement compared to -$76,2 million in the same period of 2024. The negative EBITDA margin fell from -$42,2 million to -$17,2 million.
Despite signs of recovery in Europe and Asia, the company has revised its revenue growth forecast downwards, now estimating a range between 0% and +1%, versus the previously indicated +2-4%. This is due to a less favorable macroeconomic environment in China and a weaker-than-expected performance in North America (-8,7% in the first half of the year). Adjusted EBITDA for the full year is expected to remain positive, between €5 million and €15 million.
CEO Jean-Christophe Flatin highlighted the progress made in terms of cost efficiency and profitability, highlighting the “executive discipline” of the growth strategy, especially in the Europe & International segment (+4,6% in half-year revenues).
