Vegan brand Oatly slashes growth forecast amid the ‘challenging operating environment’ created by Ukraine war and Covid

Author: Maria Chiorando

Read Time:   |  6th August 2022

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Oatly had forecast full-year revenues of $880m-$920m in 2022 back in April, but has now adjusted this to $800m-$830m


Vegan milk alternative brand Oatly has slashed its growth expectations and seen its shares fall to a new low amid what it describes as a ‘challenging operating environment’.

According to CEO Toni Petersson, the difficult conditions were partly created by the war in Ukraine and the impact of Covid, as well as ‘inflationary and supply chain pressures’.

He said this macroeconomic uncertainty affecting how quickly it was able to expand into new markets.

“The pace at which we have been able to convert new consumers from dairy to plant-based milk is taking longer than we had hoped and we expect this to continue for the remainder of the year,” Petersson explained.

As a result, the Swedish brand has downgraded its full-year revenues forecast in 2022 from the $880m-$920m predicted in April, to $800m-$830m now.

Oatly shares and revenues

Oatly’s shares were valued at $3.34 as the Nasdaq opened today – a massive decrease from their high of almost $29 in June 2021 after the company went public in May that year.

Meanwhile, despite Oatly’s revenues increasing in the second quarter by 21.8 per cent, its net losses increased.

According to the brand, this could be put down to a number of factors, including increased employee-related costs and burgeoning operating expenses amid its global expansion among others.


Consumer demand

However, despite the lower projections, according to Petersson, the demand globally from consumers is ‘as strong as ever’.

He added: “We have a proven multi-channel strategy that we believe positions us well for long-term growth and profitability.”

While overall forecasts fell, some areas saw growth: EMEA sales rose by five per cent, to $82.5m in the quarter to the end of June. Oatly also saw top-line growth of 25.2 per cent in the Americas and 66.3 per cent in Asia.

Keen to ditch the dairy yourself but not sure where to start? Take a look at our Beginner’s Guide to the Best Dairy-Free Products to Replace Traditional Dairy Items.

Feature image credit: Scott Olson/Getty Images

Written by

Maria Chiorando

Maria is an editor and journalist. Her work has been published by the Huffington Post, the Guardian, TechnoBuffalo, Plant Based News, and Kent on Sunday among other national and regional titles.

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