Q1 2026 Oatly Group AB Earnings Call

April 29, 2026

Operator: In a listen-only mode. Later, you'll have the opportunity to ask questions during the question and answer session. To ask a question, please press star one on the telephone keypad. Please note that today's call is being recorded, and I'll be standing by should you need any assistance. It is now my pleasure to turn the meeting over to Blake Mueller. Please go ahead, sir.

Speaker #1: Listen-only mode. Later you'll have the opportunity to ask questions during the question-and-answer session. To ask a question, please press star 1 on the telephone keypad.

Speaker #1: Please note that today's call is being recorded and I'll be standing by should you need any assistance. It is now my pleasure to turn the meeting over to Blake Mueller.

Speaker #1: Please go ahead, sir.

Speaker #2: Good morning, and thank you for joining us today. On today's call are our Chief Executive Officer, Jean-Christophe Flatin, our Global President and Chief Operating Officer, Danielle Ordonez, and our Chief Financial Officer, Marie-Jose David.

Blake Mueller: Good morning, thank you for joining us today. On today's call are our Chief Executive Officer, Jean-Christophe Flatin, our Global President and Chief Operating Officer, Daniel Ordonez, and our Chief Financial Officer, Marie-Jose David. Please review the cautionary statement regarding forward-looking statements and other disclaimers on slide 3, which are integrated into this presentation and includes the Q&A that follows. Please refer to the documents we have filed with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Also, on today's call, management will refer to certain non-IFRS financial measures, including Adjusted EBITDA, Constant Currency Revenue, and Free Cash Flow. Please refer to today's release for a reconciliation of non-IFRS financial measures to the most comparable measures prepared in accordance with IFRS.

[Company Representative] (Oatly): Good morning, thank you for joining us today. On today's call are our Chief Executive Officer, Jean-Christophe Flatin, our Global President and Chief Operating Officer, Daniel Ordonez, and our Chief Financial Officer, Marie-Jose David. Please review the cautionary statement regarding forward-looking statements and other disclaimers on slide 3, which are integrated into this presentation and includes the Q&A that follows. Please refer to the documents we have filed with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Also, on today's call, management will refer to certain non-IFRS financial measures, including Adjusted EBITDA, Constant Currency Revenue, and Free Cash Flow. Please refer to today's release for a reconciliation of non-IFRS financial measures to the most comparable measures prepared in accordance with IFRS.

Speaker #2: Please review the cautionary statement regarding forward-looking statements and other disclaimers on slide 3, which are integrated into this presentation and includes the Q&A that follows.

Speaker #2: Please refer to the documents we have filed with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

Speaker #2: Also, on today's call, management will refer to certain non-IFRS financial measures, including adjusted EBITDA, constant currency revenue, and free cash flow. Please refer to today's release for a reconciliation of non-IFRS financial measures to the most comparable measures prepared in accordance with IFRS.

Speaker #2: In addition, Oatly has posted a supplemental presentation on its website like to turn the call over to Jean-Christophe.

Blake Mueller: In addition, Oatly has posted a supplemental presentation on its website for reference. I'd now like to turn the call over to Jean-Christophe.

[Company Representative] (Oatly): In addition, Oatly has posted a supplemental presentation on its website for reference. I'd now like to turn the call over to Jean-Christophe.

Speaker #3: Thank you, Blake, and good morning, everyone. Slide 5 has the key messages I want you to take away. First, we have delivered a solid performance in quarter 1.

Jean-Christophe Flatin: Thank you, Blake, and good morning, everyone. Slide 5 has the key messages I want you to take away. First, we have delivered a solid performance in Q1, both on top line and bottom line. This continues to build our confidence in our journey to accelerate profitable growth. Second, we continue to see clear signs that our growth playbook is working. It's already driving real impact in Europe and International, as well as increasingly so in North America. We are therefore focusing on executing against this playbook more broadly in order to continue to drive further incremental demand. Finally, we are reaffirming our 2026 guidance in a context where the impact of the conflict in the Middle East is already visible in our costs from March onwards and brings further uncertainty for the rest of the year. Turning to Slide 6.

Speaker #3: Both on top line and bottom line. This continues to build our confidence in our journey to accelerate profitable growth. Second, we continue to see clear signs that our growth playbook is working.

Speaker #3: It's already driving real impact in Europe and international, as well as increasingly so in North America. We are therefore focusing on executing against this playbook more broadly in order to continue to drive further incremental demand.

Speaker #3: And finally, we are reaffirming our 2026 guidance in a context where the impact of the conflict in the Middle East is already visible in our costs from March onwards, and brings further uncertainty for the rest of the year.

Speaker #3: Turning to slide 6. Here, you can see our solid quarter 1 scorecard on our most important KPIs. Our revenue grew by 15.6% and 8.1% in constant currency.

Jean-Christophe Flatin: Here you can see our solid Q1 scorecard on our most important KPIs. Our revenue grew by 15.6% and 8.1% in constant currency. Our gross margin reached 33.4%, which represents an improvement of 188 basis points as compared to last year, while our Adjusted EBITDA reached SEK +5 million, which represents 2.2% of our net sales and an improvement of SEK 8.7 million versus last year. This combined improved performance on top line and bottom line confirms that we remain focused on driving growth and impact in a disciplined and profitable way. We believe that this is a winning recipe for our company. Finally, our Free Cash Flow in the quarter was SEK -11.7 million, which is an SEK 8.8 million improvement versus last year.

Speaker #3: Our gross margin reached 33.4%, which represents an improvement of 188 basis points as compared to last year, while our adjusted BDA reached positive 5 million, which represents 2.2% of our net sales, and an improvement of 8.7 million versus last year.

Speaker #3: This combined improved performance on top line and bottom line confirms that we remain focused on driving growth and impact in a disciplined and profitable way.

Speaker #3: We believe that this is a winning recipe for our company. Finally, our free cash flow in the quarter was a negative 11.7 million. Which is an 8.8 million improvement versus last year.

Speaker #3: Our business plan remains fully funded and bringing the company to structurally positive free cash flow is important to us. We fully intend to drive the business to that milestone not just from improvements in the P&L, but also from pulling on all available levers including working capital.

Jean-Christophe Flatin: Our business plan remains fully funded, and bringing the company to structurally positive Free Cash Flow is important to us. We fully intend to drive the business to that milestone, not just from improvements in the P&L, but also from pulling on all available levers, including working capital. Slide 7 confirms our focus areas for 2026. As Daniel will outline, we are seeing very positive traction on our refreshed growth playbook, and we will be doubling down on its execution. While we do not have a detailed update for you today, in 2026, we plan on completing the strategic review of the Greater China segment. We continue to evaluate a range of options, including a potential carve-out, with the goal of accelerating growth and maximizing the value of the business. We will update the market on our progress as necessary.

Speaker #3: Slide 7 confirms our focus areas for 2026. As Danielle will outline, we are seeing very positive traction on our refresh growth playbook and we will be doubling down on its execution.

Speaker #3: While we do not have a detailed update for you today, in 2026 we plan on completing the strategic review of the Greater China segment.

Speaker #3: We continue to evaluate a range of options including a potential carve-out with the goal of accelerating growth and maximizing the value of the business.

Speaker #3: We will update the market on our progress as necessary. Finally, we are navigating the context of uncertainty and volatility created by the conflict in the Middle East, with the clear objective to minimize as much as possible its impact on our performance.

Jean-Christophe Flatin: Finally, we are navigating the context of uncertainty and volatility created by the conflict in the Middle East with the clear objective to minimize as much as possible its impact on our performance. We are permanently adapting our end-to-end supply chain choices to ensure we could serve consumers and customers. When it comes to the global cost impact, they are so far mostly fuel prices related, either directly in logistics or indirectly, like in packaging. We are mobilizing our culture of efficiency and frugality in order to mitigate those and continue to adapt with agility to this pretty unpredictable context. In this context, slide eight reaffirms our guidance. In 2026, we expect the continued rollout of our refreshed growth playbook to drive an acceleration in our profitable growth. Specifically, we expect to drive Constant Currency Revenue growth of 3% to 5%.

Speaker #3: We are permanently adapting our end-to-end supply chain choices to ensure we could serve consumers and customers. When it comes to the global cost impact, there are so far mostly fuel, prices-related, either directly, in logistics, or indirectly, like in packaging.

Speaker #3: We are mobilizing our culture of efficiency and frugality in order to mitigate those, and continue to adapt with agility to this pretty unpredictable context.

Speaker #3: In this context, slide 8 reaffirms our guidance. In 2026, we expect the continued rollout of our refresh growth playbook to drive an acceleration in our profitable growth.

Speaker #3: Specifically, we expect to drive constant currency revenue growth of 3 to 5 percent, and with what we know today about our ability to mitigate the cost impact of the Middle East conflict, we expect to deliver adjusted BDA towards the low end of the range of 25 to 35 million.

Jean-Christophe Flatin: With what we know today about our ability to mitigate the cost impact of the Middle East conflict, we expect to deliver Adjusted EBITDA towards the low end of the range of SEK 25 to 35 million. With that, dear Daniel, over to you.

Speaker #1: The art district in LA. Slide 13 shows selected examples of the type of outsource communications we do. In this case, in the street of Warsaw, in Poland.

Speaker #3: With that, dear Danielle, over to you.

Speaker #2: Thank you, JC. And good morning, everyone. I will start my discussion on slide 10. Over the past two years, we have methodically deployed this new playbook.

Daniel Ordonez: Thank you, JC. Good morning, everyone. I will start my discussion on slide 10. Over the past 2 years, we have methodically deployed this new playbook with the objective to attack barriers to consumption, drive relevance, and increase availability. We are confident it is working as we see continued positive results in Europe and increasingly so in North America as we will discuss today. Staying true to what makes Oatly Oatly, this playbook change is founded on the strategic choice to be relevant to a much broader population. A decision not just to aim at growing consumption within our historical consumer base, the lactose intolerant and the environmentally conscious, but to also expand our target market to the upcoming younger generations to drive true incremental consumption growth. That means we're focusing on our strength within beverages.

Daniel Ordoñez: Thank you, JC. Good morning, everyone. I will start my discussion on slide 10. Over the past 2 years, we have methodically deployed this new playbook with the objective to attack barriers to consumption, drive relevance, and increase availability. We are confident it is working as we see continued positive results in Europe and increasingly so in North America as we will discuss today. Staying true to what makes Oatly Oatly, this playbook change is founded on the strategic choice to be relevant to a much broader population. A decision not just to aim at growing consumption within our historical consumer base, the lactose intolerant and the environmentally conscious, but to also expand our target market to the upcoming younger generations to drive true incremental consumption growth. That means we're focusing on our strength within beverages.

Speaker #1: So, Oatly, the new Oatly is Essence. Slide 14 shows you another example of the sort of culture-creating experiences we do. In this case, a collaboration with Avabad, one of the most talked-about indie fashion brands at the Fashion Week Milan some weeks ago.

Speaker #2: With the objective to attack barriers to consumption, drive relevance, and increase availability. We are confident it is working, as we see continued positive results in Europe and increasingly so in North America as we will discuss today.

Speaker #1: Well, guest models could enjoy Oatly's signature drinks live. The social media impact of this collaboration spread across Europe and North America at the very same time.

Speaker #2: Staying true to what makes Oatly Oatly, this playbook change is founded on the strategic choice to be relevant to a much broader population. A decision not just to aim at growing consumption within our historical consumer base, the lactose intolerant and the environmentally conscious, but to also expand our target market to the upcoming younger generations to drive true incremental consumption growth.

Speaker #1: As a true global event. On slide 15, you can see the latest and greatest of social media presence, where most of our brand investment is being deployed.

Speaker #1: Both with brand-generated, but also user-generated content by our brand ambassadors. Finally, on slide 16, we demonstrate how the new strategy is helping us to make shelves more exciting and relevant.

Speaker #2: That means we're focusing on our strength within beverages, this is taste, and health, instead of trying to mimic dairy in all its forms. In this exciting space, the room for penetration growth is enormous, and it is precisely where our strengths and assets are rooted.

Speaker #1: Occupying where more space than before. But not only for Oatly. But also for the category. As customers start sensing a new momentum, I am particularly excited to see the first in-store executions of the new strategy in Canada.

Daniel Ordonez: This is taste and health instead of trying to mimic dairy in all its forms. In this exciting space, the room for penetration growth is enormous, and it is precisely where our strengths and assets are rooted. As you heard us say, an alternative to dairy no more, but an experience canvas for the beverages market, working with customers to re-renovate their menus and shelves to be more relevant, more provocative, and more on trend with today's consumer. Taste and health define a clear high ground for the new generations, in particular for this category. We have also adapted how we communicate to them. They are digital natives, we have migrated from analog-heavy individual advertising to a more relevant, integrated, and digital-first approach, always blended with iconic culture making life events. As we say, we're doubling down on the playbook.

Daniel Ordoñez: This is taste and health instead of trying to mimic dairy in all its forms. In this exciting space, the room for penetration growth is enormous, and it is precisely where our strengths and assets are rooted. As you heard us say, an alternative to dairy no more, but an experience canvas for the beverages market, working with customers to re-renovate their menus and shelves to be more relevant, more provocative, and more on trend with today's consumer. Taste and health define a clear high ground for the new generations, in particular for this category. We have also adapted how we communicate to them. They are digital natives, we have migrated from analog-heavy individual advertising to a more relevant, integrated, and digital-first approach, always blended with iconic culture making life events. As we say, we're doubling down on the playbook.

Speaker #2: As you heard us say, an alternative to dairy no more, but an experienced canvas for the beverages market, working with customers to renovate their menus and shelves to be more relevant, more provocative, and more on trend with today's consumer.

Speaker #2: Taste and health define a clear high ground for the new generations, in particular for this category. But we have also adapted how we communicate to them.

Speaker #2: Their digital natives and we have migrated from analog-heavy individual advertising to a more relevant, integrated, and digital-first approach always blended with iconic culture-making live events.

Speaker #2: So as we say, we're doubling down on the playbook, let me show you some examples of what we mean by that and in which specific areas we do invest.

Daniel Ordonez: Let me show you some examples of what we mean by that and in which specific areas we do invest. On slide 11, you see how we're doubling down on our taste leadership in beverages. Our iconic Barista product remains our top-selling item and continues to grow very fast. The flavor Baristas, such as the caramel, vanilla, and popcorn flavors, keep showing healthy, growing velocities proven to be a hit with consumers. As anticipated last time, we have launched in the last few days, additional flavors in selected markets such as churros or coconut. We're expanding the Matcha range with the addition of a strawberry flavor, which is the most popular combination in food service. This will enable customers to create an even wider range of drinks.

Daniel Ordoñez: Let me show you some examples of what we mean by that and in which specific areas we do invest. On slide 11, you see how we're doubling down on our taste leadership in beverages. Our iconic Barista product remains our top-selling item and continues to grow very fast. The flavor Baristas, such as the caramel, vanilla, and popcorn flavors, keep showing healthy, growing velocities proven to be a hit with consumers. As anticipated last time, we have launched in the last few days, additional flavors in selected markets such as churros or coconut. We're expanding the Matcha range with the addition of a strawberry flavor, which is the most popular combination in food service. This will enable customers to create an even wider range of drinks.

Speaker #2: On slide 11, you see how we're doubling down on our taste leadership in beverages. Our iconic barista product remains our top-selling item and continues to grow very fast.

Speaker #2: And the flavor baristas such as the caramel, vanilla, and popcorn flavors keep showing healthy, growing velocities, proven to be a hit with consumers. As anticipated last time, we have launched in the last few days additional flavors in selected markets such as churros, or coconut, and we're expanding the matcha range with the addition of a strawberry flavor, which is the most popular combination in food service.

Speaker #2: This will enable customers to create an even wider range of drinks. I am particularly excited to say that our cold-form barista has already reached the menu of many of our top customers.

Daniel Ordonez: I am particularly excited to say that our Cold Foam Barista has already reached the menu of many of our top customers. It can be added on top of any beverage, hot or cold. Plant-based cold foam options weren't widely available in the market this far. This is a breakthrough product that delights consumers and elevates the experience for our food service customers. Taste is a new platform for Oatly and for the category. This is not just random innovation. Slide 12 shows the foundation of our unique and differentiated model. We have over 60 beverage market developers around the world who spend over 1,500 hours a week with our out-of-home customers, deploying our lookbooks and designing recipes to make our customer menus more on trend and therefore more relevant to their customers. We are doubling down.

Daniel Ordoñez: I am particularly excited to say that our Cold Foam Barista has already reached the menu of many of our top customers. It can be added on top of any beverage, hot or cold. Plant-based cold foam options weren't widely available in the market this far. This is a breakthrough product that delights consumers and elevates the experience for our food service customers. Taste is a new platform for Oatly and for the category. This is not just random innovation. Slide 12 shows the foundation of our unique and differentiated model. We have over 60 beverage market developers around the world who spend over 1,500 hours a week with our out-of-home customers, deploying our lookbooks and designing recipes to make our customer menus more on trend and therefore more relevant to their customers. We are doubling down.

Speaker #2: It can be added on top of any beverage, hot or cold. See, plant-based cold-form options weren't widely available in the market this far. So this is a breakthrough product that delights consumers and elevates the experience for a food service customers.

Speaker #2: See, taste is a new platform for Oatly, and for the category. This is not just random innovation. Slide 12 shows the foundation of our unique and differentiated model.

Speaker #2: We have over 60 beverage market developers around the world who spend over 1,500 hours a week with our out-of-home customers, deploying our lookbooks, and designing recipes to make our customer menus more on trends and therefore more relevant to their customers.

Speaker #2: We are doubling down. We continue to steadily increase coverage across this space, considering every different customer type, and adapting our route to market accordingly.

Daniel Ordonez: We continue to steadily increase coverage across this space, considering every different customer type and adapting our route to market accordingly. As you can see on this slide, I am particularly proud to see how we are sophisticating our service package to be relevant on and offline and deploying a tailored neighborhood attack approach with our already famous Oat Week concept, like you see in the Barcelona example here. Finally, I am very excited to see how this is working in the US, having experienced it myself in the streets of Brooklyn and the Lower East Side in Manhattan, or Venice and the Art District in LA. Slide 13 shows you selected examples of the types of outdoors communications we do, in this case, in the streets of Warsaw in Poland. Oatly, but the new Oatly in its essence.

Daniel Ordoñez: We continue to steadily increase coverage across this space, considering every different customer type and adapting our route to market accordingly. As you can see on this slide, I am particularly proud to see how we are sophisticating our service package to be relevant on and offline and deploying a tailored neighborhood attack approach with our already famous Oat Week concept, like you see in the Barcelona example here. Finally, I am very excited to see how this is working in the US, having experienced it myself in the streets of Brooklyn and the Lower East Side in Manhattan, or Venice and the Art District in LA. Slide 13 shows you selected examples of the types of outdoors communications we do, in this case, in the streets of Warsaw in Poland. Oatly, but the new Oatly in its essence.

Speaker #2: As you can see on this slide, I am particularly proud to see how we are sophisticating our service package to be relevant, on and offline, and deploying a tailored neighborhood attack approach with our already famous Oat Week concept.

Speaker #2: Like you see in the Barcelona example here. Finally, I am very excited to see how this is working in the US. Having experienced it myself in the streets of Brooklyn and the Lower East Side in Manhattan, or Venice and the Art District in LA.

Speaker #2: Slide 13 shows you selected examples of the types of outdoors communications we do. In this case, in the streets of Warsaw, in Poland. So Oatly, but the new Oatly in its essence.

Speaker #2: Slide 14 shows you another example of the sort of culture-creating experiences we do. In this case, a collaboration with ABBA, one of the most talked-about indie fashion brands, at the Fashion Week Milan some weeks ago.

Daniel Ordonez: Slide 14 shows you another example of the sort of culture creating experiences we do. In this case, a collaboration with AVAVAV, one of the most talked about indie fashion brands at the Fashion Week Milan some weeks ago. While guests and models could enjoy Oatly signature drinks live, the social media impact of this collaboration spread across Europe and North America at the very same time as a true global event. On slide 15, you can see the latest and greatest of our social media presence, where most of our brand investment is being deployed, both with brand generated but also user-generated content by our brand ambassadors. Finally, on slide 16, we demonstrate how the new strategy is helping us to make shelves more exciting and relevant, occupying way more space than before. Not only for Oatly, but also for the category, as customers start sensing a new momentum.

Daniel Ordoñez: Slide 14 shows you another example of the sort of culture creating experiences we do. In this case, a collaboration with AVAVAV, one of the most talked about indie fashion brands at the Fashion Week Milan some weeks ago. While guests and models could enjoy Oatly signature drinks live, the social media impact of this collaboration spread across Europe and North America at the very same time as a true global event. On slide 15, you can see the latest and greatest of our social media presence, where most of our brand investment is being deployed, both with brand generated but also user-generated content by our brand ambassadors. Finally, on slide 16, we demonstrate how the new strategy is helping us to make shelves more exciting and relevant, occupying way more space than before. Not only for Oatly, but also for the category, as customers start sensing a new momentum.

Speaker #2: Well, guests and models could enjoy Oatly's signature drinks live, the social media impact of this collaboration spread across Europe and North America, at the very same time.

Speaker #2: As a true global event. On slide 15, you can see the latest and greatest of our social media presence, where most of our brand investment is being deployed.

Speaker #2: Both with brand-generated, but also user-generated content by our brand ambassadors. Finally, on slide 16, we demonstrate how the new strategy is helping us to make shelves more exciting and relevant, occupying where more space than before.

Speaker #2: But not only for Oatly. But also for the category, as customers start sensing a new momentum. I am particularly excited to see the first in-store executions of the new strategy in Canada.

Daniel Ordonez: I am particularly excited to see the first in-store executions of the new strategy in Canada. Our team there are doing a phenomenal job anticipating what we're capable of doing in North America. When we look at the growth trajectory on slide 17, we see accelerating growth, which gives us additional confidence that the strategy is working. Europe and international keeps on strengthening with another quarter at 14.5% growth in Constant Currency. That's a stellar performance and a very healthy mix of growth in both the established and in the new markets. I am very pleased to say that at the back of strong performance across all channels, the North America segment has seen growth in the quarter of 12.3%, excluding the segment's largest food service customer, or 3.8 total net growth when you click through to slide 18.

Daniel Ordoñez: I am particularly excited to see the first in-store executions of the new strategy in Canada. Our team there are doing a phenomenal job anticipating what we're capable of doing in North America. When we look at the growth trajectory on slide 17, we see accelerating growth, which gives us additional confidence that the strategy is working. Europe and international keeps on strengthening with another quarter at 14.5% growth in Constant Currency. That's a stellar performance and a very healthy mix of growth in both the established and in the new markets. I am very pleased to say that at the back of strong performance across all channels, the North America segment has seen growth in the quarter of 12.3%, excluding the segment's largest food service customer, or 3.8 total net growth when you click through to slide 18.

Speaker #2: Our team there are doing a phenomenal job, anticipating what we're capable of doing in North America. When we look at the growth trajectory on slide 17, we see accelerating growth, which gives us additional confidence that the strategy is working.

[Company Representative] (Oatly Group): Venice and the Art District in LA. Slide 13 shows you selected examples of the types of outdoors communications we do. In this case, in the streets of Warsaw in Poland. Oatly, but the new Oatly in its essence. Slide 14 shows you another example of the sort of culture-creating experiences we do. In this case, a collaboration with Avavav, one of the most talked about indie fashion brands at the Milan Fashion Week some weeks ago. While guests and models could enjoy Oatly signature drinks live, the social media impact of this collaboration spread across Europe and North America at the very same time as a true global event. On slide 15, you can see the latest and greatest of our social media presence, where most of our brand investment is being deployed, both with brand generated but also user-generated content by our brand ambassadors.

Daniel Ordonez: Venice and the Art District in LA. Slide 13 shows you selected examples of the types of outdoors communications we do. In this case, in the streets of Warsaw in Poland. Oatly, but the new Oatly in its essence. Slide 14 shows you another example of the sort of culture-creating experiences we do. In this case, a collaboration with Avavav, one of the most talked about Indie fashion brands at the Milan Fashion Week some weeks ago. While guests and models could enjoy Oatly signature drinks live, the social media impact of this collaboration spread across Europe and North America at the very same time as a true global event. On slide 15, you can see the latest and greatest of our social media presence, where most of our brand investment is being deployed, both with brand generated but also user-generated content by our brand ambassadors.

Speaker #2: Europe and international keeps on strengthening with another quarter at 14.5% growth in constant currency, that's a stellar performance, and a very healthy mix of growth in both the established and in the new markets.

Speaker #2: I am very pleased to say that, at the back of strong performance across all channels, the North America segment has seen growth in the quarter of 12.3% excluding the segments largest food service customer, or 3.8% total net growth when you click through to slide 18.

Speaker #2: So step by step, we're bringing this segment into its growth path, following the European model footsteps. As we said, we expect it will take longer than in Europe, because of the time lag in retail.

Daniel Ordonez: Step by step, we're bringing this segment into its growth path following the European model footsteps. As we said, we expect it will take longer than in Europe because of the time lag in retail. We're mildly optimistic that we're reaching a tipping point in this segment. Moving forward, we will continue to focus on the controllables and the deployment of the growth playbook. Slide 19 shows that we continue to consistently outperform our competition in the tracked channel data more than ever before. We continue to expand our retail market share in every single European market that we measure, whether it is an established or an expansion market.

Daniel Ordoñez: Step by step, we're bringing this segment into its growth path following the European model footsteps. As we said, we expect it will take longer than in Europe because of the time lag in retail. We're mildly optimistic that we're reaching a tipping point in this segment. Moving forward, we will continue to focus on the controllables and the deployment of the growth playbook. Slide 19 shows that we continue to consistently outperform our competition in the tracked channel data more than ever before. We continue to expand our retail market share in every single European market that we measure, whether it is an established or an expansion market.

[Company Representative] (Oatly Group): Finally, on slide 16, we demonstrate how the new strategy is helping us to make shelves more exciting and relevant, occupying way more space than before, but not only for Oatly, but also for the category as customers start sensing a new momentum. I am particularly excited to see the first in-store executions of the new strategy in Canada. Our team there are doing a phenomenal job anticipating what we're capable of doing in North America. When we look at the growth trajectory on slide 17, we see accelerating growth, which gives us additional confidence that the strategy is working. Europe and international keeps on strengthening with another quarter at 14.5% growth in constant currency. That's a stellar performance and a very healthy mix of growth in both the established and in the new markets.

Daniel Ordonez: Finally, on slide 16, we demonstrate how the new strategy is helping us to make shelves more exciting and relevant, occupying way more space than before, but not only for Oatly, but also for the category as customers start sensing a new momentum. I am particularly excited to see the first in-store executions of the new strategy in Canada. Our team there are doing a phenomenal job anticipating what we're capable of doing in North America. When we look at the growth trajectory on slide 17, we see accelerating growth, which gives us additional confidence that the strategy is working. Europe and International keeps on strengthening with another quarter at 14.5% growth in constant currency. That's a stellar performance and a very healthy mix of growth in both the established and in the new markets.

Speaker #2: But we're mildly optimistic that we're reaching a tipping point in this segment. Moving forward, we will continue to focus on the controllables, and the deployment of the growth playbook.

Speaker #2: Slide 19 shows that we continue to consistently outperform our competition in the tracked channel data. More than ever before. We continue to expand our retail market share in every single European market that we measure, whether it is an established or an expansion market.

Speaker #2: And in the US, as we continue to lab last year's portfolio's delistings, our drinks portfolio consolidated the growth trajectory we started in the fourth quarter, at the back of sustained strong velocities, and strong distribution gains in the core portfolio, showing record highest TDPs and ACV.

Daniel Ordonez: In the US, as we continue to lap last year's portfolio delistings, our drinks portfolio consolidated the growth trajectory we started in the Q4 at the back of sustained strong velocities and strong distribution gains in the core portfolio, showing record highest TDPs and ACV. Slide 20 shows that when we look at the European markets in aggregate, since the implementation of the new playbook last year, oats keeps gaining momentum, showing its decisive role in driving the overall category upwards, despite most other crops that continue to lose traction. Slide 21 shows two important dynamics that prove the core objective of the new strategy: generate incremental consumption from new, younger consumers. First, switching analysis in the core European market shows the ability of the new portfolio to drive incremental sales.

Daniel Ordoñez: In the US, as we continue to lap last year's portfolio delistings, our drinks portfolio consolidated the growth trajectory we started in the Q4 at the back of sustained strong velocities and strong distribution gains in the core portfolio, showing record highest TDPs and ACV. Slide 20 shows that when we look at the European markets in aggregate, since the implementation of the new playbook last year, oats keeps gaining momentum, showing its decisive role in driving the overall category upwards, despite most other crops that continue to lose traction. Slide 21 shows two important dynamics that prove the core objective of the new strategy: generate incremental consumption from new, younger consumers. First, switching analysis in the core European market shows the ability of the new portfolio to drive incremental sales.

[Company Representative] (Oatly Group): I am very pleased to say that at the back of strong performance across all channels, the North America segment has seen growth in the quarter of 12.3%, excluding the segment's largest food service customer, or 3.8% total net growth when you click through to slide 18. Step by step, we're bringing this segment into its growth path following the European model footsteps. As we said, we expect it will take longer than in Europe because of the time lag in retail, but we're mildly optimistic that we're reaching a tipping point in this segment. Moving forward, we will continue to focus on the controllables and the deployment of the growth playbook. Slide 19 shows that we continue to consistently outperform our competition in the tracked channel data more than ever before.

Daniel Ordonez: I am very pleased to say that at the back of strong performance across all channels, the North America segment has seen growth in the quarter of 12.3%, excluding the segment's largest food service customer, or 3.8% total net growth when you click through to slide 18. Step by step, we're bringing this segment into its growth path following the European model footsteps. As we said, we expect it will take longer than in Europe because of the time lag in retail, but we're mildly optimistic that we're reaching a tipping point in this segment. Moving forward, we will continue to focus on the controllables and the deployment of the growth playbook. Slide 19 shows that we continue to consistently outperform our competition in the tracked channel data more than ever before.

When we look at the gross trajectory on slide 17, we see accelerating growth, which gives us additional confidence that the strategy is working. Europe and International PIPs are strengthening, with another quarter at 14.5% growth in constant currency. That's a stellar performance and a very healthy mix of growth in most established, and in the new market.

Speaker #2: Slide 20 shows that when we look at the European markets in aggregate, since they implementation of the new playbook last year, Oats keeps gaining momentum.

Speaker #2: Showing its decisive role in driving the overall category upwards, despite most other crops that continue to lose traction. Slide 21 shows two important dynamics that prove the core objective of the new strategy.

I am very pleased to say that at the back of strong performance across all channels, the North America segment has seen growth in the quarter of 12.3%. Excluding the second largest Food, Service customer or 3.8 total net growth, when you click through to slide 18,

Speaker #2: Generate incremental consumption from new, younger consumers. First, switching analysis in the core European market shows the ability of the new portfolio to drive incremental sales.

So, step by step, we bring in this segment into its growth fast, following the European model, Foods.

Speaker #2: Second, as we dig into the data, we see that consumers that are coming into the category via the new portfolio tend to be younger consumers, which we find very encouraging.

Daniel Ordonez: Second, as we dig into the data, we see that consumers that are coming into the category via the new portfolio tend to be younger consumers, which we find very encouraging. As we move into slide 22, many of you might be thinking, How fast can we replicate this in the US? Well, first things first, controlling the controllables, we have progressively taken this segment into positive growth and profit. Out of home continues to grow steadily. 12.4% growth outside the largest customer and at the back of the identical model we've implemented in Europe, enamoring the new coffee and beverages space with Oatly's magic. Having signed a partnership with Onyx, recently named one of the most notable coffee specialty brands in the world, is a concrete sign of what's happening in the US.

Daniel Ordoñez: Second, as we dig into the data, we see that consumers that are coming into the category via the new portfolio tend to be younger consumers, which we find very encouraging. As we move into slide 22, many of you might be thinking, How fast can we replicate this in the US? Well, first things first, controlling the controllables, we have progressively taken this segment into positive growth and profit. Out of home continues to grow steadily. 12.4% growth outside the largest customer and at the back of the identical model we've implemented in Europe, enamoring the new coffee and beverages space with Oatly's magic. Having signed a partnership with Onyx, recently named one of the most notable coffee specialty brands in the world, is a concrete sign of what's happening in the US.

As we said, we expect it will take longer than Europe because of the time, like, in retail, but we're mostly optimistic that we're reaching, a Tipping Point in segments, moving forward, we will continue to focus on the controllables and the deployment of the growth Playbook.

Speaker #2: As we move into slide 22, many of you might be thinking, how fast can we replicate this in the US? Well, first things first, controlling the controllables, we have progressively taken this segment into positive growth and profit.

[Company Representative] (Oatly Group): We continue to expand our retail market share in every single European market that we measure, whether it is an established or an expansion market. In the US, as we continue to lap last year's portfolio's delistings, our drinks portfolio consolidated the growth trajectory we started in Q4 at the back of sustained strong velocities and strong distribution gains in the core portfolio, showing record highest TDPs and ACV. Slide 20 shows that when we look at the European markets in aggregate, since the implementation of the new playbook last year, Oatly keeps gaining momentum, showing its decisive role in driving the overall category upwards despite most other crops that continue to lose traction. Slide 21 shows two important dynamics that prove the core objective of the new strategy. Generate incremental consumption from new, younger consumers.

Daniel Ordonez: We continue to expand our retail market share in every single European market that we measure, whether it is an established or an expansion market. In the US, as we continue to lap last year's portfolio's delistings, our drinks portfolio consolidated the growth trajectory we started in Q4 at the back of sustained strong velocities and strong distribution gains in the core portfolio, showing record highest TDPs and ACV. Slide 20 shows that when we look at the European markets in aggregate, since the implementation of the new playbook last year, Oatly keeps gaining momentum, showing its decisive role in driving the overall category upwards despite most other crops that continue to lose traction. Slide 21 shows two important dynamics that prove the core objective of the new strategy. Generate incremental consumption from new, younger consumers.

Line, 19 shows that we continue to consistently outperform. Our competition in the tracked, Channel data more than ever before.

Speaker #2: Out-of-home continues to grow steadily. 12.4% growth outside the largest customer, and at the back of the identical model we've implemented in Europe. Enamoring the new coffee and beverages space with Oatly's magic.

Speaker #2: Having signed a partnership with Onyx recently named one of the most notable coffee specialty brands in the world, is a concrete sign of what's happening in the US.

We continue to expand our retail market share in every single European market that we measure whether it is an established, an expansion market. And in the us as we continue to lab last year's portfolio listings, our dreams portfolio Consolidated, the growth trajectory. We started in the fourth quarter at the back of sustained, strong velocities and strong distribution gains in the portfolio, showing Record, highest tdps and AC

Speaker #2: Excluding that large customer, this channel represents over 25% of this segment, and we expect it to continue to grow by increasing coverage and by driving more customer diversification.

Daniel Ordonez: Excluding that large customer, this channel represents over 25% of this segment, and we expect it to continue to grow by increasing coverage and by driving more customer diversification. In retail, our core beverages portfolio now represents over 95% of the channel's revenue. We continue to gain strong distribution points within this portfolio, taking the measured retail channel to 10.5% growth in the quarter and to the record highest market share, breaking the 30% for the first time. To this, we should add the 150% growth in clubs with opportunities to continue to expand velocities and regions. The outlook is good. While category softness in the measured retail channel continues, we expect that will start changing the moment we're able to list the new portfolio.

Daniel Ordoñez: Excluding that large customer, this channel represents over 25% of this segment, and we expect it to continue to grow by increasing coverage and by driving more customer diversification. In retail, our core beverages portfolio now represents over 95% of the channel's revenue. We continue to gain strong distribution points within this portfolio, taking the measured retail channel to 10.5% growth in the quarter and to the record highest market share, breaking the 30% for the first time. To this, we should add the 150% growth in clubs with opportunities to continue to expand velocities and regions. The outlook is good. While category softness in the measured retail channel continues, we expect that will start changing the moment we're able to list the new portfolio.

Speaker #2: In retail, our core beverages portfolio now represents over 95% of the channel's revenue. We continue to gain strong distribution points within this portfolio, taking the measured retail channel to 10.5% growth in the quarter, and to the record highest market share, breaking the 30% for the first time.

520 shows that when we look at the European markets in aggregate since the implementation of the new playbook last year, both keeps gaining momentum showing this this massive role in driving the overall category upwards, despite most other crops that continue to lose structure

[Company Representative] (Oatly Group): First, switching analysis in the core European market shows the ability of the new portfolio to drive incremental sales. Second, as we dig into the data, we see that consumers that are coming into the category via the new portfolio tend to be younger consumers, which we find very encouraging. As we move into slide 22, many of you might be thinking, How fast can we replicate this in the US? Well, first things first, controlling the controllables, we have progressively taken this segment into positive growth and profit. Out of home continues to grow steadily. 12.4% growth outside the largest customer and at the back of the identical model we've implemented in Europe, enamoring the new coffee and beverages space with Oatly's magic.

Daniel Ordonez: First, switching analysis in the core European market shows the ability of the new portfolio to drive incremental sales. Second, as we dig into the data, we see that consumers that are coming into the category via the new portfolio tend to be younger consumers, which we find very encouraging. As we move into slide 22, many of you might be thinking, How fast can we replicate this in the US? Well, first things first, controlling the controllables, we have progressively taken this segment into positive growth and profit. Out of home continues to grow steadily. 12.4% growth outside the largest customer and at the back of the identical model we've implemented in Europe, enamoring the new coffee and beverages space with Oatly's magic.

521 shows 2 important dynamics that prove the core of the new strategy generate incremental consumption from you you younger consumers.

Speaker #2: To this, we should add the 150% growth in clubs, with opportunities to continue to expand velocities and regions. So the outlook is good. So while category softness in the measured retail channel continues, we expect that will start changing the moment we're able to list the new portfolio.

First sweeping analysis is a core European market. Show the ability of the new portfolio to drive incremental sales second. As we dig into the data, we see that consumers that are coming into the category, via a new portfolio tend to younger consumers, which we find very encouraging.

As we move into slate 22, mens view might be thinking, how fast can we replicate this in the US?

Speaker #2: And I'm happy to say that early customer conversations for the upcoming reviews seem promising. Now that we have discussed the past, I want to give you a preview of our future plans as you see on slide 23.

Daniel Ordonez: I'm happy to say that early customer conversations for the upcoming reviews seem promising. Now that we have discussed the past, I want to give you a preview of our future plans as you see on slide 23. This is simply a confirmation of the last discussion. You should not expect any significant change, but a relentless consolidation of the new playbook execution. First, we will be decisively leveraging our fiber credentials by campaigning about the fiber content of our product. Many global health authorities estimate that people have a fiber deficiency of about 10 grams per day. As a company that is rooted in science, our visionary founders have historically advocated for the benefits of fiber in people's diets.

Daniel Ordoñez: I'm happy to say that early customer conversations for the upcoming reviews seem promising. Now that we have discussed the past, I want to give you a preview of our future plans as you see on slide 23. This is simply a confirmation of the last discussion. You should not expect any significant change, but a relentless consolidation of the new playbook execution. First, we will be decisively leveraging our fiber credentials by campaigning about the fiber content of our product. Many global health authorities estimate that people have a fiber deficiency of about 10 grams per day. As a company that is rooted in science, our visionary founders have historically advocated for the benefits of fiber in people's diets.

Well, first things first, controlling the controllables we have progressively taking the second into positive growth and profit.

Speaker #2: And this is simply a confirmation of the last discussion. You should not expect any significant change but a relentless consolidation of the new playbook execution.

[Company Representative] (Oatly Group): Having signed a partnership with Onyx, recently named one of the most notable coffee specialty brands in the world, is a concrete sign of what's happening in the US. Excluding that large customer, this channel represents over 25% of this segment, and we expect it to continue to grow by increasing coverage and by driving more customer diversification. In retail, our core beverages portfolio now represents over 95% of the channel's revenue. We continue to gain strong distribution points within this portfolio, taking the measured retail channel to 10.5% growth in the quarter and to the record highest market share, breaking the 30% for the first time. To this, we should add the 150% growth in clubs with opportunities to continue to expand velocities and regions. The outlook is good.

Daniel Ordonez: Having signed a partnership with Onyx, recently named one of the most notable coffee specialty brands in the world, is a concrete sign of what's happening in the US. Excluding that large customer, this channel represents over 25% of this segment, and we expect it to continue to grow by increasing coverage and by driving more customer diversification. In retail, our core beverages portfolio now represents over 95% of the channel's revenue. We continue to gain strong distribution points within this portfolio, taking the measured retail channel to 10.5% growth in the quarter and to the record highest market share, breaking the 30% for the first time. To this, we should add the 150% growth in clubs with opportunities to continue to expand velocities and regions. The outlook is good.

and every space with all this magic,

Speaker #2: First, we will be decisively leveraging our fiber credentials like campaigning about the fiber content of our product. Many global health authorities estimate that people have a fiber deficiency of about 10 grams per day.

Inside the partnership with Onyx, recently named one of the most notable coffee specialist brands in the world, is a concrete sign of what's happening in the US.

Speaker #2: As a company that is rooted in science, our visionary founders have historically advocated for the benefits of fiber in people's diets. So what you see here is just the first step.

Excluding the large customer, this channel represents over 25% of the segment, and we expect it to continue to grow by increasing coverage and by driving more customer diversification.

In detail, our Co beverages portfolio now represents over 95% of the channel's revenue.

Daniel Ordonez: What you see here is just the first step, and you should expect to see more from us in the near future. Second, step by step, we are working to accelerate the introduction of the new portfolio in the US retail during the upcoming range reviews. While we expect the new listings to start taking place at the back of this year, we also expect that the full rollout will move well into next year. On slide 24, I will refer to the progress we're making in China. Consistent with previous discussions, the general context and the price pressure in the food service business continues. At the same time, I am pleased to report that the strong development of the retail channel accelerated, doubling in Q1 year on year and representing already close to a third of the segment's revenue.

Daniel Ordoñez: What you see here is just the first step, and you should expect to see more from us in the near future. Second, step by step, we are working to accelerate the introduction of the new portfolio in the US retail during the upcoming range reviews. While we expect the new listings to start taking place at the back of this year, we also expect that the full rollout will move well into next year. On slide 24, I will refer to the progress we're making in China. Consistent with previous discussions, the general context and the price pressure in the food service business continues. At the same time, I am pleased to report that the strong development of the retail channel accelerated, doubling in Q1 year on year and representing already close to a third of the segment's revenue.

Speaker #2: And you should expect to see more from us in the near future. Second, step by step, we're working to accelerate the introduction of the new portfolio in the US retail during the upcoming range reviews.

We continue to gain strong distribution points within this portfolio, taking the measured reached channel to 10.5% growth in the quarter to the record. Highest market share, breaking the 30% for the first time.

Speaker #2: While we expect the new listings to start taking place at the back of this year, we also expect that the full rollout will move well into next year.

[Company Representative] (Oatly Group): While category softness in the measured retail channel continues, we expect that will start changing the moment we're able to list the new portfolio. I'm happy to say that early customer conversations for the upcoming reviews seem promising. Now that we have discussed the past, I want to give you a preview of our future plans, as you see on slide 23. This is simply a confirmation of the last discussion. You should not expect any significant change, but a relentless consolidation of the new playbook execution. First, we will be decisively leveraging our fiber credentials by campaigning about the fiber content of our product. Many global health authorities estimate that people have a fiber deficiency of about 10 grams per day. As a company that is rooted in science, our visionary founders have historically advocated for the benefits of fiber in people's diets.

Please. We should add the 150% growth in clubs with opportunities to continue to expand velocities and regions. So the Outlook is good.

Daniel Ordonez: While category softness in the measured retail channel continues, we expect that will start changing the moment we're able to list the new portfolio. I'm happy to say that early customer conversations for the upcoming reviews seem promising. Now that we have discussed the past, I want to give you a preview of our future plans, as you see on slide 23. This is simply a confirmation of the last discussion. You should not expect any significant change, but a relentless consolidation of the new playbook execution. First, we will be decisively leveraging our fiber credentials by campaigning about the fiber content of our product. Many global health authorities estimate that people have a fiber deficiency of about 10 grams per day. As a company that is rooted in science, our visionary founders have historically advocated for the benefits of fiber in people's diets.

Speaker #2: On slide 24, I will refer to the progress we're making in China. Consistent with previous discussions, the general context and the price pressure in the food service business continues.

Speaker #2: At the same time, I am pleased to report that the strong development of the retail channel accelerated, doubling in quarter one year on year, and representing already close to a third of the segment's revenue.

So, while category softness in measured retail China continues, we expect that that will start changing the moment we're able to list the new portfolio. I'm happy to say that early customer conversations for the upcoming reviews seem promising.

Now that we have discussed the past, I want to give you a preview of our future plans, as you see on slide 23.

Speaker #2: Finally, as JC mentioned, we intend to complete the strategic review during this year. To finish this business update, I would like us to step back and pay attention to the trajectory of the key business metrics of the year since JC and I joined the business, taking quarter one as a reference to make the comparison like-for-like with today's results disclosure.

Daniel Ordonez: Finally, as JC mentioned, we intend to complete the strategic review during this year. To finish this business update, I would like us to step back and pay attention to the trajectory of the key business metrics over the years since JC and I joined the business, taking Q1 as a reference to make the comparison like for like with today's results disclosure. Here, you can see how the growth evolution is yielding a direct positive effect in cost absorption and muscle building margin. This has allowed us to continue to reinvest in growth while steadily reducing SG&A. In so doing, building a more resilient business able to better navigate one-off effects like the volatile context we described during the introduction. Way further to go, but we're confident we're making significant decisive steps in the right direction. With that, I will now turn the call over to Marie-Jose.

Daniel Ordoñez: Finally, as JC mentioned, we intend to complete the strategic review during this year. To finish this business update, I would like us to step back and pay attention to the trajectory of the key business metrics over the years since JC and I joined the business, taking Q1 as a reference to make the comparison like for like with today's results disclosure. Here, you can see how the growth evolution is yielding a direct positive effect in cost absorption and muscle building margin. This has allowed us to continue to reinvest in growth while steadily reducing SG&A. In so doing, building a more resilient business able to better navigate one-off effects like the volatile context we described during the introduction. Way further to go, but we're confident we're making significant decisive steps in the right direction. With that, I will now turn the call over to Marie-Jose.

And this is simply a confirmation of the last discussion. You should not expect any significant change, but a Relentless consolidation of the new playbook execution.

Speaker #2: Here, you can see how the growth evolution is yielding a direct positive effect in cost absorption and muscle-building margin. This has allowed us to continue to reinvest in growth while steadily reducing SG&A.

[Company Representative] (Oatly Group): What you see here is just the first step, and you should expect to see more from us in the near future. Second, step by step, we are working to accelerate the introduction of the new portfolio in the US retail during the upcoming range reviews. While we expect the new listings to start taking place at the back of this year, we also expect that the full rollout will move well into next year. On slide 24, I will refer to the progress we're making in China. Consistent with previous discussions, the general context and the price pressure in the food service business continues. At the same time, I am pleased to report that the strong development of the retail channel accelerated, doubling in Q1 year on year and representing already close to a third of the segment's revenue.

Daniel Ordonez: What you see here is just the first step, and you should expect to see more from us in the near future. Second, step-by-step, we are working to accelerate the introduction of the new portfolio in the US retail during the upcoming range reviews. While we expect the new listings to start taking place at the back of this year, we also expect that the full rollout will move well into next year. On slide 24, I will refer to the progress we're making in China. Consistent with previous discussions, the general context and the price pressure in the food service business continues. At the same time, I am pleased to report that the strong development of the retail channel accelerated, doubling in Q1 year on year and representing already close to a third of the segment's revenue.

Speaker #2: And in so doing, building a more resilient business able to better navigate one-off effects like the volatile context we described during the introduction. Way further to go.

First, we will be decisively leveraging our fiber credentials, like containing about the fiber content of our product. Many global health authorities estimate that people have a fiber deficiency of about 10 grams per day. As a company that is rooted in science, our visionary founders have historically advocated for the benefits of fiber in people's diets. So what you see here is just the first step, and you should expect to see more from us in the near future.

Speaker #2: But we're confident we're making significant decisive steps in the right direction. With that, I will now turn the call over to Marie-Josée MJ. Thank you, Daniel.

Daniel Ordonez: MJ.

Daniel Ordoñez: MJ.

Marie-Jose David: Thank you, Daniel, and good morning, everyone. Slide 27 highlights our ability to execute globally with continued strength in the European and International segments, and increasingly so in North America. As an illustration, this quarter marked our first period of positive volume growth in North America since Q4 2024, an encouraging signal to our growth playbook is working. In Q1, we grew revenue 15.6% and 8.1% on a constant currency basis. Gross margin was 33.4%, which is an increase of 188 basis points compared to last year's Q1. This was a result of efficiencies across the organization including facility optimization, volume absorption, and ongoing productivity improvements, in addition to a strong mix in Europe and International. Adjusted EBITDA was SEK +5 million in the quarter, which is SEK 8.7 million higher than last year's Q1.

Marie-José David: Thank you, Daniel, and good morning, everyone. Slide 27 highlights our ability to execute globally with continued strength in the European and International segments, and increasingly so in North America. As an illustration, this quarter marked our first period of positive volume growth in North America since Q4 2024, an encouraging signal to our growth playbook is working. In Q1, we grew revenue 15.6% and 8.1% on a constant currency basis. Gross margin was 33.4%, which is an increase of 188 basis points compared to last year's Q1. This was a result of efficiencies across the organization including facility optimization, volume absorption, and ongoing productivity improvements, in addition to a strong mix in Europe and International. Adjusted EBITDA was SEK +5 million in the quarter, which is SEK 8.7 million higher than last year's Q1.

Second, step by step, we are working to accelerate the introduction of the new portfolio in the US retail, during the upcoming range reviews. We expect the new listings to start taking place at the back end of this year. We also expect that the full rollout will move well into next year.

Speaker #2: And good morning, everyone. Slide 27 highlights our ability to execute globally with continued strength in the European and international segment, and increasingly so in North America.

On site 24, I will refer to the progress we're making in China, consistent with previous discussions. The general context and the price pressure in the food service business continues.

Speaker #2: As an illustration, this quarter marked our first period of positive volume growth in North America since Q4 2024. An encouraging signal to our growth playbook is working.

[Company Representative] (Oatly Group): Finally, as JC mentioned, we intend to complete the strategic review during this year. To finish this business update, I would like us to step back and pay attention to the trajectory of the key business metrics over the years since JC and I joined the business, taking Q1 as a reference to make the comparison like for like with today's results disclosure. Here you can see how the growth evolution is yielding a direct positive effect in cost absorption and muscle building margin. This has allowed us to continue to reinvest in growth while steadily reducing SG&A. In so doing, building a more resilient business able to better navigate one-off effects like the volatile context we described during the introduction. Way further to go, but we're confident we're making significant decisive steps in the right direction. With that, I will now turn the call over to Marie-Jose.

Daniel Ordonez: Finally, as JC mentioned, we intend to complete the strategic review during this year. To finish this business update, I would like us to step back and pay attention to the trajectory of the key business metrics over the years since JC and I joined the business, taking Q1 as a reference to make the comparison like for like with today's results disclosure. Here you can see how the growth evolution is yielding a direct positive effect in cost absorption and muscle building margin. This has allowed us to continue to reinvest in growth while steadily reducing SG&A. In so doing, building a more resilient business able to better navigate one-off effects like the volatile context we described during the introduction. Way further to go, but we're confident we're making significant decisive steps in the right direction. With that, I will now turn the call over to Marie-Jose.

At the same time I am pleased to report that a strong development of the retail Channel accelerated doubling in quarter 1 year and year and representing already close to a third of the segments Revenue.

Speaker #2: In Q1, we grew revenue 15.6% and 8.1% on a constant currency basis. Gross margin was 33.4%, which is an increase of 188 basis points compared to last year's Q1.

Finally, as G mentioned, we intend to complete the strategic review during this year.

Speaker #2: This was a result of efficiencies across the organization, including facility optimization, volume absorption, and ongoing productivity improvements in addition to a strong mix in Europe and international.

To finish this business update, I would like us to step back and pay attention to the trajectory of the key business metrics of the year since Jason. And I joined the business taking quarter 1 as a reference to make the comparison like for like with today's results disclosure.

Speaker #2: Adjusted EBITDA was a positive 5 million in the quarter, which is 8.7 million higher than last year's Q1. The significant increase in adjusted EBITDA was a result of strong top-line growth and gross margin expansion.

Here you can see how the growth Evolution yielded. A direct positive effect in cost absorption and muscle building margin. This has allowed us to continue to reinvest in growth while steadily reducing GNA

Marie-Jose David: The significant increase in Adjusted EBITDA was a result of strong top-line growth and gross margin expansion. I will now provide more detail about our financial performance. Slide 28 shows the bridging items of our revenue growth. In the quarter, volume grew 5.6%. Price mix increased by 2.5%. Foreign exchange was a 7.5% tailwind compared to 4.8% last quarter. The increase in revenue comes from the execution of our growth playbook, which includes increased consumer relevance through new flavors and formats. Moving into slide 29 and the year-over-year gross margin bridge, which shows the 188 basis point year-over-year improvement.

Marie-José David: The significant increase in Adjusted EBITDA was a result of strong top-line growth and gross margin expansion. I will now provide more detail about our financial performance. Slide 28 shows the bridging items of our revenue growth. In the quarter, volume grew 5.6%. Price mix increased by 2.5%. Foreign exchange was a 7.5% tailwind compared to 4.8% last quarter. The increase in revenue comes from the execution of our growth playbook, which includes increased consumer relevance through new flavors and formats. Moving into slide 29 and the year-over-year gross margin bridge, which shows the 188 basis point year-over-year improvement.

And in so doing building a more resilient business able to better navigate 1 of effects. Like the volatile context, we described during the introduction

Speaker #2: I will now provide more detail about our financial performance. Slide 28 shows the bridging items of our revenue growth. In the quarter, volume grew 5.6%, price mix increased by 2.5%, foreign exchange was a 7.5% tailwind compared to 4.8% last quarter.

[Company Representative] (Oatly Group): MJ.

Daniel Ordonez: Marie-Jose.

[Company Representative] (Oatly Group): Thank you, Daniel, and good morning, everyone. Slide 27 highlights our ability to execute globally with continued strength in the European and international segments and increasingly so in North America. As an illustration, this quarter marked our first period of positive volume growth in North America since Q4 2024, an encouraging signal to our growth playbook is working. In Q1, we grew revenue 15.6% and 8.1% on a constant currency basis. Gross margin was 33.4%, which is an increase of 188 basis points compared to last year's Q1. This was a result of efficiencies across the organization, including facility optimization, volume absorption, and ongoing productivity improvements, in addition to a strong mix in Europe and international. Adjusted EBITDA was +SEK 5 million in the quarter, which is SEK 8.7 million higher than last year's Q1.

Marie-Jose David: Thank you, Daniel, and good morning, everyone. Slide 27 highlights our ability to execute globally with continued strength in the European and International segments and increasingly so in North America. As an illustration, this quarter marked our first period of positive volume growth in North America since Q4 2024, an encouraging signal to our growth playbook is working. In Q1, we grew revenue 15.6% and 8.1% on a constant currency basis. Gross margin was 33.4%, which is an increase of 188 basis points compared to last year's Q1. This was a result of efficiencies across the organization, including facility optimization, volume absorption, and ongoing productivity improvements, in addition to a strong mix in Europe and International. Adjusted EBITDA was +SEK 5 million in the quarter, which is SEK 8.7 million higher than last year's Q1.

Way further to go, but we're confident we're making significant, decisive steps in the right direction with that. I will now turn the call over to me, MJ.

Thank you, Danielle and good morning, everyone.

Like 27 highlights our ability to execute globally with continuous France, in the European and international segment and increasingly so in North America.

Speaker #2: The increase in revenue comes from the execution of our growth playbook, which includes increased consumer relevance through new flavors and formats. Moving into slide 29 and the year-over-year gross margin bridge, which shows the 188 basis points year-over-year improvement.

an illustration, the quarter, Mark our first period of positive volume growth in North America, since Q4 2024,

And encouraging signals to our growth. Playbook is working.

In q1, we grew revenue 15.6% and 8.1% on a constant currency basis.

Speaker #2: This improvement is explained by 110 basis points from fixed cost absorption and supply chain efficiencies, 110 basis points from product and channel mix, 40 basis points from foreign exchange currency tailwinds, partially offset by a negative impact of inflation for 80 basis points.

Marie-Jose David: This improvement is explained by 110 basis points from fixed cost absorption and supply chain efficiencies, 110 basis points from product and channel, and channel mix, 40 basis points from foreign exchange currency tailwinds, partially offset by a negative impact of inflation for 80 basis points. Slide 30 shows the Q1 year-over-year improvement in our Adjusted EBITDA. The SEK 8.7 million improvement was driven by a SEK 14 million increase in gross profit, partially offset by a SEK 5.3 million increase in SG&A and other. In SG&A, our ongoing cost savings actions in areas such as indirect procurement were more than offset by SEK 7.2 million year-over-year FX headwinds, as well as customer distribution costs, mostly linked to higher volume sold. As a volume-driven business, our cost structure scales with growth, and we remain focused on delivering profitable growth over time.

Marie-José David: This improvement is explained by 110 basis points from fixed cost absorption and supply chain efficiencies, 110 basis points from product and channel, and channel mix, 40 basis points from foreign exchange currency tailwinds, partially offset by a negative impact of inflation for 80 basis points. Slide 30 shows the Q1 year-over-year improvement in our Adjusted EBITDA. The SEK 8.7 million improvement was driven by a SEK 14 million increase in gross profit, partially offset by a SEK 5.3 million increase in SG&A and other. In SG&A, our ongoing cost savings actions in areas such as indirect procurement were more than offset by SEK 7.2 million year-over-year FX headwinds, as well as customer distribution costs, mostly linked to higher volume sold. As a volume-driven business, our cost structure scales with growth, and we remain focused on delivering profitable growth over time.

Performing was 53.4%, which is an increase of 188 basis point compared to last year, q1.

Will you absorption and ongoing productivity Improvement in addition to a strong mix in Europe and International?

Speaker #2: Slide 30 shows the Q1 year-over-year improvement in our adjusted EBITDA. The 8.7 million improvement was driven by a 14 million increase in gross profit partially offset by a 5.3 million increase in SG&A and over.

[Company Representative] (Oatly Group): The significant increase in adjusted EBITDA was a result of strong top-line growth and gross margin expansion. I will now provide more detail about our financial performance. Slide 28 shows the bridging items of our revenue growth. In the Q, volume grew 5.6%, price mix increased by 2.5%. FX was a 7.5% tailwind compared to 4.8% last Q. The increase in revenue comes from the execution of our growth playbook, which includes increased consumer relevance through new flavors and formats. Moving into slide 29 and the year-over-year gross margin bridge, which shows the 188 basis point year-over-year improvement.

Marie-Jose David: The significant increase in adjusted EBITDA was a result of strong top-line growth and gross margin expansion. I will now provide more detail about our financial performance. Slide 28 shows the bridging items of our revenue growth. In the Q, volume grew 5.6%, price mix increased by 2.5%. FX was a 7.5% tailwind compared to 4.8% last Q. The increase in revenue comes from the execution of our growth playbook, which includes increased consumer relevance through new flavors and formats. Moving into slide 29 and the year-over-year gross margin bridge, which shows the 188 basis point year-over-year improvement.

I just said 88 was a positive 5 million in the quarter, which is 8.7 million higher than last year's q1.

The significant increase in adjusted DBDA was a result of strong topline growth and gross margin expansion.

Speaker #2: In SG&A, our ongoing cost savings actions in areas such as indirect procurement were more than offset by 7.2 million year-over-year effects headwinds as well as customer distribution costs mostly linked to higher volume sold.

I will now provide more detail about our financial performance.

Like bringing items of our Revenue growth.

Speaker #2: As the volume-driven business, our cost structure scales with growth, and we remain focused on delivering profitable growth over time. Slide 31 shows segment-level detail.

In the quarter, volume roof, 5.6% price mix increased by 2.5%.

For an exchange, it was 7.5% compared to 4.8% last quarter.

Marie-Jose David: Slide 31 shows segment-level detail. Europe and International grew net sales by 14.5% in constant currency, which is another proof that the growth playbook is working. This helped drive a SEK 16 million increase in the segment Adjusted EBITDA versus Q1 2025. North America's revenue grew 3.8% in the quarter. The segment Adjusted EBITDA decreased by SEK 0.5 million to SEK 0.7 million, driven by higher COGS, explained by an increase in freight and warehousing costs. Greater China constant currency revenue declined by 6.4% in the quarter. The decline was explained by strong competition in the out-of-home channel and partially offset by growth in retail. The segment reported -SEK 0.8 million in Adjusted EBITDA.

Marie-José David: Slide 31 shows segment-level detail. Europe and International grew net sales by 14.5% in constant currency, which is another proof that the growth playbook is working. This helped drive a SEK 16 million increase in the segment Adjusted EBITDA versus Q1 2025. North America's revenue grew 3.8% in the quarter. The segment Adjusted EBITDA decreased by SEK 0.5 million to SEK 0.7 million, driven by higher COGS, explained by an increase in freight and warehousing costs. Greater China constant currency revenue declined by 6.4% in the quarter. The decline was explained by strong competition in the out-of-home channel and partially offset by growth in retail. The segment reported -SEK 0.8 million in Adjusted EBITDA.

Speaker #2: Europe and international grew net sales by 14.5% in constant currency, which is another proof that the growth playbook is working. This helped drive a 16 million increase in the segment adjusted EBITDA versus first quarter of 2025.

The increase in Revenue comes from the execution of our growth Playbook which includes increased consumer relevance for new flavors and formats.

Moving into.

[Company Representative] (Oatly Group): This improvement is explained by 110 basis points from fixed cost absorption and supply chain efficiencies, 110 basis points from product and channel, and channel mix, 40 basis points from foreign exchange currency tailwinds, partially offset by a negative impact of inflation for 80 basis points. Slide 30 shows the Q1 year-over-year improvement in our adjusted EBITDA. The SEK 8.7 million improvement was driven by a SEK 14 million increase in gross profit, partially offset by a SEK 5.3 million increase in SG&A and other. In SG&A, our ongoing cost savings actions in areas such as indirect procurement were more than offset by SEK 7.2 million year-over-year FX headwinds, as well as customer distribution costs, mostly linked to higher volume sold.

Marie-Jose David: This improvement is explained by 110 basis points from fixed cost absorption and supply chain efficiencies, 110 basis points from product and channel, and channel mix, 40 basis points from foreign exchange currency tailwinds, partially offset by a negative impact of inflation for 80 basis points. Slide 30 shows the Q1 year-over-year improvement in our adjusted EBITDA. The SEK 8.7 million improvement was driven by a SEK 14 million increase in gross profit, partially offset by a SEK 5.3 million increase in SG&A and other. In SG&A, our ongoing cost savings actions in areas such as indirect procurement were more than offset by SEK 7.2 million year-over-year FX headwinds, as well as customer distribution costs, mostly linked to higher volume sold.

29 and the year-over-year growth more in Bridge, which shows the 1888 Business Point here over the year Improvement.

This Improvement.

Explained by 110 basis points from 6.

Speaker #2: North America's revenue grew 3.8% in the quarter. The segment adjusted EBITDA decreased by 0.5 million to 0.7 million, driven by higher costs of goods sold explained by an increase in freight and warehousing costs.

Upfront from and superior efficiencies.

110 days this point from product and mix.

40 this point from foreign exchange currency, tell with partially offset by a negative impact of intention for 8. With this point,

Speaker #2: Greater China constant currency revenue declined by 6.4% in the quarter. The decline was explained by strong competition in the out-of-home channel and partially offset by growth in retail.

Lighter T. Draws the q1 year of the improvement in our adjusted evb.

The 8.7 million Improvement.

Was present by 40 million increase in gross profit.

Speaker #2: The segment reported negative 0.8 million in adjusted EBITDA. Despite these challenges, our team continues to work together to navigate the macroeconomic headwinds in the region while managing the ongoing strategic review.

Or offset by a 5.3 million increase in sgna and over.

Marie-Jose David: Despite these challenges, our team continues to work together to navigate the macroeconomic headwinds in the region while managing the ongoing strategic review. In the quarter, Corporate declined by SEK 4.5 million, mostly as a result of FX headwinds and timing of global branding and advertising expenses. These expenses were partially offset by the ongoing efforts to improve efficiency of spend. Turning to our Cash Flow on slide 32. First, I want to remind everyone that our business plan remains fully funded. We are focused on bringing the company to structurally positive Free Cash Flow. For the quarter, Free Cash Flow was a net outflow of SEK 11.7 million, which is SEK 8.8 million better than last year.

Marie-José David: Despite these challenges, our team continues to work together to navigate the macroeconomic headwinds in the region while managing the ongoing strategic review. In the quarter, Corporate declined by SEK 4.5 million, mostly as a result of FX headwinds and timing of global branding and advertising expenses. These expenses were partially offset by the ongoing efforts to improve efficiency of spend. Turning to our Cash Flow on slide 32. First, I want to remind everyone that our business plan remains fully funded. We are focused on bringing the company to structurally positive Free Cash Flow. For the quarter, Free Cash Flow was a net outflow of SEK 11.7 million, which is SEK 8.8 million better than last year.

Speaker #2: In the quarter, corporate decline by 4.5 million, mostly as a result of effects headwinds and timing of global branding and advertising expenses. These expenses were partially offset by the ongoing efforts to increase efficiency of spend.

[Company Representative] (Oatly Group): As a volume-driven business, our cost structure scales with growth, and we remain focused on delivering profitable growth over time. Slide 31 shows segment level detail. Europe and International grew net sales by 14.5% in constant currency, which is another proof that the growth playbook is working. This helped drive a SEK 60 million increase in the segment adjusted EBITDA versus Q1 2025. North America's revenue grew 3.8% in the quarter. The segment adjusted EBITDA decreased by SEK 0.5 million to SEK 0.7 million, driven by higher costs of goods sold, explained by an increase in freight and warehousing costs. Greater China constant currency revenue declined by 6.4% in the quarter. The decline was explained by strong competition in the out-of-home channel and partially offset by growth in retail.

Marie-Jose David: As a volume-driven business, our cost structure scales with growth, and we remain focused on delivering profitable growth over time. Slide 31 shows segment level detail. Europe and International grew net sales by 14.5% in constant currency, which is another proof that the growth playbook is working. This helped drive a SEK 60 million increase in the segment adjusted EBITDA versus Q1 2025. North America's revenue grew 3.8% in the quarter. The segment adjusted EBITDA decreased by SEK 0.5 million to SEK 0.7 million, driven by higher costs of goods sold, explained by an increase in freight and warehousing costs. Greater China constant currency revenue declined by 6.4% in the quarter. The decline was explained by strong competition in the out-of-home channel and partially offset by growth in retail.

In FNA, our ongoing cost savings actions in areas such as in our programs were more than offset by $7.2 million year-over-year FX headwinds, as well as customer distribution costs, mostly linked to higher volume sold.

As the volume driven business, our core structure scales with growth and we remain focused on delivering profitable growth for time.

Like 41 shows 7.

Level details.

Speaker #2: Turning to our cash flow on slide 32. First, I want to remind everyone that our business plan remains fully funded and we are focused on bringing the company to structurally positive free cash flow.

Europe and International grew by 14.5% in constant currency, which is another proof that the growth playbook is working.

Speaker #2: For the quarter, free cash flow was a net outflow of 11.7 million which is 8.8 million better than last year. It is worth highlighting that the free cash flow in the quarter includes annual bonus payments, which would not occur again this year, as well as 3.5 million payments linked to the exit from our production facility in Singapore, which will finish on first quarter of 2027.

This has drive a 16 million increase in the segment adjusted versus first quarter of 2025.

North America's revenue grew 3.8% in the quarter.

Marie-Jose David: It is worth highlighting that the free cash flow in the quarter includes annual bonus payments, which would not occur again this year, as well as SEK 3.5 million payments linked to the exit from our production facility in Singapore, which will finish on Q1 2027. I continue to see good progress throughout the company on all levers of cash flow, and I believe we still have room for improvement. While we do not anticipate to deliver positive free cash flow for the full year 2026, we do expect that the biggest drivers of our improvement will come from higher Adjusted EBITDA and working capital improvements. We will continue to maintain discipline in our investment choices. Turning to our 2026 outlook on slide 33. As Jean-Christophe mentioned at the top of the call, we are reaffirming our outlook for 2026.

Marie-José David: It is worth highlighting that the free cash flow in the quarter includes annual bonus payments, which would not occur again this year, as well as SEK 3.5 million payments linked to the exit from our production facility in Singapore, which will finish on Q1 2027. I continue to see good progress throughout the company on all levers of cash flow, and I believe we still have room for improvement. While we do not anticipate to deliver positive free cash flow for the full year 2026, we do expect that the biggest drivers of our improvement will come from higher Adjusted EBITDA and working capital improvements. We will continue to maintain discipline in our investment choices. Turning to our 2026 outlook on slide 33. As Jean-Christophe mentioned at the top of the call, we are reaffirming our outlook for 2026.

The segment, adjusted a decrease by 0.5 million to 0.7 million driven by higher cost of goods, sold explained by increasing Freight and warehousing cost.

Greater China, constant currency revenue declined by 6.4% in the quarter.

Speaker #2: I continue to see good progress throughout the company on all levels of cash flow, and I believe we still have room for improvement. While we do not anticipate to deliver positive free cash flow for the full year 2026, we do expect that the biggest drivers of our improvement will come from higher adjusted EBITDA and working capital improvements.

[Company Representative] (Oatly Group): The segment reported SEK -0.8 million in adjusted EBITDA. Despite these challenges, our team continues to work together to navigate the macroeconomic headwinds in the region while managing the ongoing strategic review. In the quarter, corporate declined by SEK 4.5 million, mostly as a result of FX headwinds and timing of global branding and advertising expenses. These expenses were partially offset by the ongoing efforts to increase efficiency of spend. Turning to our cash flow on slide 32. I want to remind everyone that our business plan remains fully funded, and we are focused on bringing the company to structurally positive free cash flow. For the quarter, free cash flow was a net outflow of SEK 11.7 million, which is SEK 8.8 million better than last year.

Marie-Jose David: The segment reported SEK -0.8 million in adjusted EBITDA. Despite these challenges, our team continues to work together to navigate the macroeconomic headwinds in the region while managing the ongoing strategic review. In the quarter, corporate declined by SEK 4.5 million, mostly as a result of FX headwinds and timing of global branding and advertising expenses. These expenses were partially offset by the ongoing efforts to increase efficiency of spend. Turning to our cash flow on slide 32. I want to remind everyone that our business plan remains fully funded, and we are focused on bringing the company to structurally positive free cash flow. For the quarter, free cash flow was a net outflow of SEK 11.7 million, which is SEK 8.8 million better than last year.

The decline was explained by some competition in the out of home Channel and partially offset by growth in retail.

The segment reported negative zero with 8 million in adjustability.

Despite these challenges, our team continues to work together to navigate the macroeconomic headings in the region, by managing the ongoing strategic review.

Speaker #2: We will continue to maintain discipline in our investment choices. Turning to our 2026 outlook on slide 33. As Jean-Christophe mentioned at the top of the call, we are reaffirming our outlook for 2026.

In the quarter, correct decline by $4.5 million, mostly as a result of FX headwinds and timing of global branding and advertising expenses.

Speaker #2: We expect constant currency revenue growth in the range of 3 to 5 percent based on recent effects rates and assuming no change for the rest of the year, we estimate effects to add approximately 100 to 200 basis points to full year net sales growth.

Marie-Jose David: We expect Constant Currency Revenue growth in the range of 3% to 5%. Based on recent FX rates and assuming no change for the rest of the year, we estimate FX to add approximately 100 to 200 basis points to full-year net sales growth. On Adjusted EBITDA, as we navigate the impacts of the Middle East conflict, we now expect to deliver towards the low end of the range of SEK 25 to 35 million. As we stand today, we anticipate Q2 to be lower than our Q1, with visible negative impact from the Middle East conflict combined with a strong brand investment season. As we move through the year, we expect performance to improve meaningfully in the H2.

Marie-José David: We expect Constant Currency Revenue growth in the range of 3% to 5%. Based on recent FX rates and assuming no change for the rest of the year, we estimate FX to add approximately 100 to 200 basis points to full-year net sales growth. On Adjusted EBITDA, as we navigate the impacts of the Middle East conflict, we now expect to deliver towards the low end of the range of SEK 25 to 35 million. As we stand today, we anticipate Q2 to be lower than our Q1, with visible negative impact from the Middle East conflict combined with a strong brand investment season. As we move through the year, we expect performance to improve meaningfully in the H2.

These expenses were partially offset by the ongoing efforts to increase efficiency of stunts.

turning to our cash flow on flight, 322

First, I want to remind everyone that our business plan remains fully funded and we are focused on bringing the company's structurally. Positive cash flow

Speaker #2: On adjusted EBITDA, as we navigate the impacts of the Middle East conflict, we now expect to deliver towards the low end of the range of 25 to 35 million.

[Company Representative] (Oatly Group): It is worth highlighting that the free cash flow in the quarter includes annual bonus payments, which would not occur again this year, as well as SEK 3.5 million payments linked to the exit from our production facility in Singapore, which will finish on Q1 2027. I continue to see good progress throughout the company on all levels of cash flow, and I believe we still have room for improvement. While we do not anticipate to deliver positive free cash flow for the full year 2026, we do expect that the biggest drivers of our improvement will come from higher adjusted EBITDA and working capital improvements. We will continue to maintain discipline in our investment choices. Turning to our 2026 outlook on slide 33. As Jean-Christophe mentioned at the top of the call, we are reaffirming our outlook for 2026.

Marie-Jose David: It is worth highlighting that the free cash flow in the quarter includes annual bonus payments, which would not occur again this year, as well as SEK 3.5 million payments linked to the exit from our production facility in Singapore, which will finish on Q1 2027. I continue to see good progress throughout the company on all levels of cash flow, and I believe we still have room for improvement. While we do not anticipate to deliver positive free cash flow for the full year 2026, we do expect that the biggest drivers of our improvement will come from higher adjusted EBITDA and working capital improvements. We will continue to maintain discipline in our investment choices. Turning to our 2026 outlook on slide 33. As Jean-Christophe mentioned at the top of the call, we are reaffirming our outlook for 2026.

For the quarter free, cash flow was a net outflow of 11.7 million, which is 8.8 million better than last year.

Speaker #2: As we stand today, we anticipate Q2 to be lower than our first quarter, with visible negative impact from the Middle East conflict combined with a strong brand investment season.

Speaker #2: As we move through the year, we expect performance to improve, meaningfully in the back half. This is supported both by a normalization of near-term volatility and by the continued rollout of our growth playbook.

It is worth highlighting that free cash flow in the quarter, include annual bonus payments, which would not occur again this year, as well as 3.5 million payments link to the exit from our production facility in Singapore, which will finish on first quarter of 2027.

Marie-Jose David: This is supported both by a normalization of near-term volatility and by the continued rollout of our growth playbook, where investments in selling, branding, and distribution, which are front half weighted, are building benefits over time. As a reminder, this is of course only based on what we know today. Importantly, we do not currently view any change in the underlying health of the business. The fundamentals remain strong, and we are continuing to execute against our growth playbook while remaining agile in our ability to adapt when necessary. Lastly, our guidance for CapEx remains unchanged, which we expect to be in the range of SEK 20 to 30 million for the full year. This concludes our prepared remarks. Operator, we are now prepared to take questions.

Marie-José David: This is supported both by a normalization of near-term volatility and by the continued rollout of our growth playbook, where investments in selling, branding, and distribution, which are front half weighted, are building benefits over time. As a reminder, this is of course only based on what we know today. Importantly, we do not currently view any change in the underlying health of the business. The fundamentals remain strong, and we are continuing to execute against our growth playbook while remaining agile in our ability to adapt when necessary. Lastly, our guidance for CapEx remains unchanged, which we expect to be in the range of SEK 20 to 30 million for the full year. This concludes our prepared remarks. Operator, we are now prepared to take questions.

I continue to see good progress throughout the company on all levels of cash flow and I believe we still have room for improvement.

Speaker #2: Where investments in selling, branding, and distribution which are front-half weighted are building benefits over time. As a reminder, this is, of course, only based on what we know today.

Participate to deliver policy for cash flow for the fear 2026. We do expect that the biggest drivers of our Improvement will come from higher adjustability and working Capital Improvements.

Speaker #2: Importantly, we do not currently view any change in the underlying health of the business. The fundamentals remain strong, and we are continuing to execute against our growth playbook while remaining agile in our ability to adapt when necessary.

We will continue to maintain discipline in our investment choices.

Learning to our 2026 outlook on, slide 33.

[Company Representative] (Oatly Group): We expect constant currency revenue growth in the range of 3% to 5%. Based on recent FX rates and assuming no change for the rest of the year, we estimate FX to add approximately 100 to 200 basis points to full-year net sales growth. On adjusted EBITDA, as we navigate the impacts of the Middle East conflict, we now expect to deliver towards the low end of the range of SEK 25 to 35 million. As we stand today, we anticipate Q2 to be lower than our Q1, with visible negative impact from the Middle East conflict, combined with a strong brand investment season. As we move through the year, we expect performance to improve meaningfully in H2.

Marie-Jose David: We expect constant currency revenue growth in the range of 3% to 5%. Based on recent FX rates and assuming no change for the rest of the year, we estimate FX to add approximately 100 to 200 basis points to full-year net sales growth. On adjusted EBITDA, as we navigate the impacts of the Middle East conflict, we now expect to deliver towards the low end of the range of SEK 25 to 35 million. As we stand today, we anticipate Q2 to be lower than our Q1, with visible negative impact from the Middle East conflict, combined with a strong brand investment season. As we move through the year, we expect performance to improve meaningfully in H2.

And Jean Kristoff mentioned, at the top of the ball we are reaffirming our outlook for 2026.

Speaker #2: Lastly, our guidance for CapEx remains unchanged. Which we expect to be in the range of 20 to 30 million for the full year. This concludes our prepared remarks.

We expect constant currency revenue growth in the range of 3% to 5%.

Based on a recent affect rate and assuming no change for the rest of the year. We estimate effect to add approximately 100 to 200 days Point full year on the test book.

Speaker #2: Operator, we are now prepared to take questions.

Speaker #1: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. To leave the queue at any time, please press star two.

Operator: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. To leave the queue at any time, please press star two. Once again, that is star one to ask a question. We will pause for just a moment to allow everyone the chance to queue. Thank you. Our first question will come from John Baumgartner with Mizuho. Your line is open.

On adjusted EBITDA, as we navigate the impacts of the nearest conflict, we now try to deliver towards the low end of the range of $25 to $45 million.

Speaker #1: Once again, that is star one. To ask a question, we will pause for just a moment. To allow everyone the chance to queue. Thank you.

As we start today we anticipate you to to be lower than our first quarter. We visible negative impact from the Middle East conflict, combined with the 2 brand investment season.

Speaker #1: Our first question will come from John Baumgartner with Mizuho. Your line is open.

[Company Representative] (Oatly Group): This is supported both by a normalization of near-term volatility and by the continued rollout of our growth playbook, where investments in selling, branding, and distribution, which are H1 weighted, are building benefits over time. As a reminder, this is of course only based on what we know today. Importantly, we do not currently view any change in the underlying health of the business. The fundamentals remain strong, and we are continuing to execute against our growth playbook while remaining agile in our ability to adapt when necessary. Lastly, our guidance for CapEx remains unchanged, which we expect to be in the range of SEK 20 to 30 million for the full year. This concludes our prepared remarks. Operator, we are now prepared to take questions.

Marie-Jose David: This is supported both by a normalization of near-term volatility and by the continued rollout of our growth playbook, where investments in selling, branding, and distribution, which are H1 weighted, are building benefits over time. As a reminder, this is of course only based on what we know today. Importantly, we do not currently view any change in the underlying health of the business. The fundamentals remain strong, and we are continuing to execute against our growth playbook while remaining agile in our ability to adapt when necessary. Lastly, our guidance for CapEx remains unchanged, which we expect to be in the range of SEK 20 to 30 million for the full year. This concludes our prepared remarks. Operator, we are now prepared to take questions.

Speaker #3: Good morning. Thanks for the question. Maybe.

John Baumgartner: Good morning. Thanks for the question.

Speaker #4: Good morning, John.

Marie-Jose David: Good morning, John.

Marie-José David: Good morning, John.

John Baumgartner: First off. Good morning. Maybe first off for MJ, I'm wondering if you can touch a bit on Europe, the EBITDA delivery there in Q1. How much of that strength was driven by maybe beneficial timing shifts from reinvestment as opposed to delivery that's more structural and more sustainable in nature from operating leverage or product mix?

Speaker #3: Good morning. Maybe first off for MJ, I'm wondering if you can touch a bit on Europe, the EBITDA delivery there in Q1. How much of that strength was driven by maybe beneficial timing shifts from reinvestment as opposed to delivery that's more structural and more sustainable in nature from operating leverage or product mix?

As we move through the year, we expect the performance to improve meaningfully in the back half. This is supported both by a normalization of near-term volatility and by the continuous roll-out of our growth table.

Where investments in selling, branding, and distribution, which are front-half weighted, are building benefits over time?

As a reminder, this is of course.

Only based on what we know today.

Speaker #5: Yeah. So thank you for a question, John. The way to look at Q1, to be clear, and I'm sure you recall prior conversations where we always explain our phasing between first half and second half.

Marie-Jose David: Yeah. Thank you for that question, John. The way to look at Q1, to be clear, and I'm sure you recall prior conversations where we always explain our phasing between H1 and H2. That's point number one. As we continue as well, if I go below just the branding investment, there is as well investment when it comes to the business and the way that we operate for our initiatives. If you have to think about the full year, Q1 is weighted more when it comes to investment, branding, selling expenses. Initiatives, when it comes to SG&A, will go more through the year. Did I answer to your question, John?

Marie-José David: Yeah. Thank you for that question, John. The way to look at Q1, to be clear, and I'm sure you recall prior conversations where we always explain our phasing between H1 and H2. That's point number one. As we continue as well, if I go below just the branding investment, there is as well investment when it comes to the business and the way that we operate for our initiatives. If you have to think about the full year, Q1 is weighted more when it comes to investment, branding, selling expenses. Initiatives, when it comes to SG&A, will go more through the year. Did I answer to your question, John?

Importantly, we do not currently view any change in the underlying health of the business.

Speaker #5: So if you look at how we invest, which was your question, we usually wait more on first half than second half. That's point number one.

The fundamental elements strong and we are continuing to execute against our growth table while remaining agile in our ability to adapt when necessary.

Lastly, our guidance for PEX remains unchanged.

Speaker #5: As we continue as well, if I go below just the branding investment, there is as well investment when it comes to the business and the way that we operate for our initiatives.

Which we expect to be in the range of 20 to 40 million for the free year. This concludes, our prepared remarks operator. We are now prepared to take questions.

Speaker #5: So if you have to think about the full year, Q1 is weighted more when it comes to investment, branding, selling expenses, initiatives when it comes to S&A will go more through the year.

Thank you, if you'd like to ask a question, please press star 1 on your telephone keypad to leave the Queue at any time. Please press star 2.

Speaker #5: Did I answer your question, John?

Once again, that is star 1 to ask a question. We will pause for just a moment to allow everyone the chance to hear.

Speaker #3: Yes. Perfect. Thank you. And then Danielle, your follow-up, the prepared comments noted that the brand communications were emphasizing taste and health. I'm curious how you think about the health component.

John Baumgartner: Yes. Perfect. Thank you. Then, Daniel, you know, follow-up, the prepared comments noted that the brand communications are emphasizing taste and health. I'm curious how you think about the health component. If plant-based no longer needs to be positioned as an alternative to cow's milk due to the category can stand on its own, well, that overlaps now with non-plant beverages trying to differentiate by including the prebiotics and fiber that's already core to oats. The trends seem to be coming to oats overall. It's obviously early days, but how expansive do you think these health efforts can be? Does it open additional opportunities in products like yogurt? Is it possible to leverage health organizations for product claims? Just how do you think about communicating or scaling the health benefits going forward?

Thank you. Our first question will come from a giant bomb partner with mizuho? Your line is open.

John Baumgartner: Good morning. Thanks for the question. Good morning, John. Good morning. Maybe first off for MJ, I'm wondering if you can touch a bit on Europe, the EBITDA delivery there in Q1. How much of that strength was driven by maybe beneficial timing shifts from reinvestment as opposed to delivery that's more structural and more sustainable in nature from operating leverage or product mix?

John Baumgartner: Good morning. Thanks for the question.

Good morning. Thanks for the question.

Speaker #3: If plant-based no longer needs to be positioned as an alternative to cow's milk due to the category can stand on its own, will that overlap now non-plant beverages trying to differentiate by including the prebiotics and fiber that's already core to oats?

Daniel Ordonez: Good morning, John.

John Baumgartner: Good morning. Maybe first off for Marie-Jose, I'm wondering if you can touch a bit on Europe, the EBITDA delivery there in Q1. How much of that strength was driven by maybe beneficial timing shifts from reinvestment as opposed to delivery that's more structural and more sustainable in nature from operating leverage or product mix?

Um, maybe good morning.

Speaker #3: So the trends seem to be coming to oats overall. It's obviously early days, but how expansive do you think these health efforts can be?

Speaker #3: Does it open additional opportunities and products like yogurt? Is it possible to leverage health organizations for product claims? Just how do you think about communicating or scaling the health benefits going forward?

Good morning. Um, first off for MJ, I'm wondering if you can touch a bit on Europe, the delivery their q1. How much that strength was driven by maybe beneficial time shifts reinvestment as opposed to delivery that's more structural and more sustainable in nature from operating leverage or products.

[Company Representative] (Oatly Group): Yeah. Thank you for the question, John. The way to look at Q1, to be clear, and I'm sure you recall prior conversations where we always explain our phasing between H1 and H2.

Marie-Jose David: Yeah. Thank you for the question, John. The way to look at Q1, to be clear, and I'm sure you recall prior conversations where we always explain our phasing between H1 and H2.

[Company Representative] (Oatly Group): If you look at how we invest, which was your question, we usually wait more on H1 than H2. That's point number one. As we continue as well, if I go below just the running investment, there is as well investment when it comes to the business and the way that we operate for our initiatives. If you have to think about the full year, Q1 is weighted more when it comes to investment, branding, selling expenses. Initiatives, when it comes to SG&A, will go more for the year. Did I answer to your question, John?

Speaker #4: Very good. So I could notice three questions in one, John. And I would love to take a double click on MJ's answer as well to give you comfort about how we're building EBITDA in Europe.

Marie-Jose David: If you look at how we invest, which was your question, we usually wait more on H1 than H2. That's point number one. As we continue as well, if I go below just the running investment, there is as well investment when it comes to the business and the way that we operate for our initiatives. If you have to think about the full year, Q1 is weighted more when it comes to investment, branding, selling expenses. Initiatives, when it comes to SG&A, will go more for the year. Did I answer to your question, John?

Daniel Ordonez: Very good. I could notice three questions in one, John, I would love to take a double-click on MJ's answer as well to give you comfort about how we're building EBITDA in Europe. Listen, three things to unpack there. First, as far as Oatly is concerned, we don't see a shift in terms of communication focus. Taste and health have been, you know, part of the brand's voice and vision from the very beginning, at least since the 2012 inception of the contemporary brand vision, right? That's absolutely number one. Number two, there is no either/or when it comes to the focus on target market, right?

Daniel Ordoñez: Very good. I could notice three questions in one, John, I would love to take a double-click on MJ's answer as well to give you comfort about how we're building EBITDA in Europe. Listen, three things to unpack there. First, as far as Oatly is concerned, we don't see a shift in terms of communication focus. Taste and health have been, you know, part of the brand's voice and vision from the very beginning, at least since the 2012 inception of the contemporary brand vision, right? That's absolutely number one. Number two, there is no either/or when it comes to the focus on target market, right?

Speaker #4: Listen, three things to unpack there. First, as far as Oatly is concerned, we don't see a shift in terms of communication focus. Taste and health have been part of the brand's voice and vision from the very beginning at least since the 2012 inception of the contemporary brand vision, right?

Yeah, so thank you for the question. The way to look at the q1 to be clear and I'm sure you recall prior conversation where we always explain our fading between first half and second half. So if you look at how we impact, which was your question, we usually, uh, wait more on first half than second half. That's my number 1, as we continue as well. If I go below, just the running investment, there is as well investment when it comes to the business and the way that we operate for our initiatives. So if you have to think about the 3 year q1 is weighted more. When it comes to Investments, branding selling expenses initiative, is 1 of them to FTA will go more through the, through the year.

Speaker #4: So that's absolutely number one. Number two, there is no either/or when it comes to the focus on target market, right? It is true, however, as we have said for many quarters to date, that there was a bit of a limitation when it comes to lactose intolerant target audience and environmentally conscious.

John Baumgartner: Yes. Perfect. Thank you. Daniel, you know, follow-up, the prepared comments noted that the brand communications are emphasizing taste and health. I'm curious how you think about the health component. If plant-based no longer need to be positioned as an alternative to cow's milk due to the category can stand on its own, will that overlaps now non-plant beverages trying to differentiate by including the prebiotics and fiber that's already core to oats? The trends seem to be coming to oats overall. It's obviously early days, but how expansive do you think these health efforts can be? Does it open additional opportunities in products like yogurt? Is it possible to leverage health organizations for product claims? Just how do you think about communicating or scaling the health benefits going forward?

Did I answer your question, John?

Daniel Ordonez: It is true, however, as we have said for many quarters to date, that there was a bit of a limitation when it comes to lactose intolerant target audience and environmentally conscious. You would say the epitome of the alternative to cow's dairy milk target audience. When we look at the young generations, both Gen Z and Alphas, we see that they look at this with a much broader perspective. It's not that being an alternative to milk, to cow's dairy is irrelevant, it's that they look at taste and health combined as the primary area of attraction to or appeal to consumption, right? Of course, with a double click on sustainability, if you want, or being an alternative to dairy. When it comes to health, we do see momentum.

Daniel Ordoñez: It is true, however, as we have said for many quarters to date, that there was a bit of a limitation when it comes to lactose intolerant target audience and environmentally conscious. You would say the epitome of the alternative to cow's dairy milk target audience. When we look at the young generations, both Gen Z and Alphas, we see that they look at this with a much broader perspective. It's not that being an alternative to milk, to cow's dairy is irrelevant, it's that they look at taste and health combined as the primary area of attraction to or appeal to consumption, right? Of course, with a double click on sustainability, if you want, or being an alternative to dairy. When it comes to health, we do see momentum.

Speaker #4: You would say the epitome of the alternative to cow's dairy milk target audience when we look at the young generations, both Gen Z and Alphas, we see that they look at these with a much broader perspective.

Speaker #4: It's not that being an alternative to milk to cow's dairy is irrelevant. It's that they look and taste and health combined as the primary area of attraction to or appeal to consumption, right?

Communicating or scamming the health benefits going forward.

[Company Representative] (Oatly Group): Very good. I could notice three questions in one, John, and I would love to take a double click on MJ's answer as well to give you comfort about how we're building EBITDA in Europe. Listen, three things to unpack there. First, as far as Oatly is concerned, we don't see a shift in terms of communication focus. Taste and health have been, you know, part of the brand's voice and vision from the very beginning, at least since the 2012 inception of the contemporary brand vision, right? That's absolutely number one. Number two, there is no either/or when it comes to the focus on target markets, right?

Daniel Ordonez: Very good. I could notice three questions in one, John, and I would love to take a double click on Marie-Jose's answer as well to give you comfort about how we're building EBITDA in Europe. Listen, three things to unpack there. First, as far as Oatly is concerned, we don't see a shift in terms of communication focus. Taste and health have been, you know, part of the brand's voice and vision from the very beginning, at least since the 2012 inception of the contemporary brand vision, right? That's absolutely number one. Number two, there is no either/or when it comes to the focus on target markets, right?

Speaker #4: And of course, with a double click on sustainability, if you want, or being an alternative to dairy. And then when it comes to health, we do see momentum.

Speaker #4: We discussed with you in this discussions before there is a significant momentum growing in both sides of the Atlantic when it comes to fibers, prebiotics, gut health.

Daniel Ordonez: We discussed with you in these discussions before. There is a significant momentum growing in both sides of the Atlantic when it comes to fibers, prebiotics, heart, gut health, and we really welcome that with open arms. There is an incrementality on that, definitely yes. There is also an incrementality when it comes to the whole combination of taste and health. Mind you, when you see the results that we have just posted, both in the US and in Europe, you see the new consumers coming into the category. That is not just taste, but it's both taste and health combined, John. Yes to that, but the incrementality will not only come from health, but from taste and health combined.

Daniel Ordoñez: We discussed with you in these discussions before. There is a significant momentum growing in both sides of the Atlantic when it comes to fibers, prebiotics, heart, gut health, and we really welcome that with open arms. There is an incrementality on that, definitely yes. There is also an incrementality when it comes to the whole combination of taste and health. Mind you, when you see the results that we have just posted, both in the US and in Europe, you see the new consumers coming into the category. That is not just taste, but it's both taste and health combined, John. Yes to that, but the incrementality will not only come from health, but from taste and health combined.

Speaker #4: And we're really, really welcome that with open arms. So there is an incrementality on that, definitely yes. But there is also an incrementality when it comes to the whole combination of taste and health.

Speaker #4: Mind you, when you see the results that we have just posted, both in the US and in Europe, you see the new consumers coming into the category.

[Company Representative] (Oatly Group): It is true, however, as we have said for many quarters to date, that there was a bit of a limitation when it comes to lactose intolerant target audience and environmentally conscious. You would say the epitome of the alternative to cow's dairy milk target audience. When we look at the young generations, both Gen Z and Alphas, we see that they look at this with a much broader perspective. It's not that being an alternative to milk, to cow's dairy is irrelevant, it's that they look in taste and health combined as the primary area of attraction, or appeal, to consumption, right? Of course, with a double click on sustainability, if you want or, being an alternative to dairy. Then when it comes to health, we do see momentum.

Daniel Ordonez: It is true, however, as we have said for many quarters to date, that there was a bit of a limitation when it comes to lactose intolerant target audience and environmentally conscious. You would say the epitome of the alternative to cow's dairy milk target audience. When we look at the young generations, both Gen Z and Alphas, we see that they look at this with a much broader perspective. It's not that being an alternative to milk, to cow's dairy is irrelevant, it's that they look in taste and health combined as the primary area of attraction, or appeal, to consumption, right? Of course, with a double click on sustainability, if you want or, being an alternative to dairy. Then when it comes to health, we do see momentum.

Speaker #4: And that is not just taste, but it's both taste and health combined, John. So yes to that. But the incrementality will not only come from health, but from taste and health combined.

Speaker #3: Great. Thank you.

John Baumgartner: Great. Thank you.

Very good. Uh, so I could notice 3 questions in 1 John. Uh, and I would love to take a double click on MJ's answer as well. To give you a a comfort about how we building a e in Europe is a 3 3 things to unpack there. Uh, first, um, as far as Olli is concerned, we don't see a shift in terms of communication Focus, takes and health has been, you know, part of the Brand's voice and vision from the very beginning at least since the 2012 Inception of the of the Contemporary brand Vision, right? Um, but that's that's absolutely number 1, uh, number 2, there is no either or when it comes to the focus on target market, right? Is true. However, as we have said, for many quarters to date, that there was a bit of a limitation when it comes to lactose, intolerance and target audience, and environmentally conscious, you, you would say the epitome of the alternative to Calgary milk target audience.

Speaker #4: Thank you, John.

Daniel Ordonez: Thank you, John.

Daniel Ordoñez: Thank you, John.

Speaker #1: Thank you, John. Our next question will come from Max Dunport with BNP, your line is open.

Operator: Thank you. Our next question will come from Max Gunport with BNP. Your line is open.

Speaker #6: Hey. Thanks for the question. And it's nice to see the continuum in Europe and the improved growth in North America. Along those lines, with the growth playbook clearly working and gaining traction, I was hoping to get an updated view of how you think about the long-term top-line growth for both your North America business and your Europe and international business.

Max Gunport: Hey, thanks for the question, and it is nice to see the continued momentum in Europe and the improved growth in North America. Along those lines, with the growth playbook clearly working and gaining traction, I was hoping to get an updated view of how you think about the long-term top-line growth for both your North America business and your Europe and international business.

Max Gumport: Hey, thanks for the question, and it is nice to see the continued momentum in Europe and the improved growth in North America. Along those lines, with the growth playbook clearly working and gaining traction, I was hoping to get an updated view of how you think about the long-term top-line growth for both your North America business and your Europe and international business.

When we look at the Young Generations, both gen Z and Alphas, we see that they look at this with a much broader perspective. It's not that being an alternative to milk to cows. Very is is irrelevant is that they look and taste and Health Combined as the primary area of attraction or to our appeal? Uh, to consumption, right? And of course, with the double click on, on sustainability if you want or, or I don't be

[Company Representative] (Oatly Group): We discussed with you in these discussions before. There is a significant momentum growing in both sides of the Atlantic when it comes to fibers, prebiotics, gut health, and we really welcome that with open arms. There is an incrementality on that, definitely yes. There is also an incrementality when it comes to the whole combination of taste and health. Mind you, when you see the results that we have just posted, both in the US and in Europe, you see the new consumers coming into the category, and that is not just taste, but it is both taste and health combined, John. Yes to that, but the incrementality will not only come from health, but from taste and health combined.

Daniel Ordonez: We discussed with you in these discussions before. There is a significant momentum growing in both sides of the Atlantic when it comes to fibers, prebiotics, gut health, and we really welcome that with open arms. There is an incrementality on that, definitely yes. There is also an incrementality when it comes to the whole combination of taste and health. Mind you, when you see the results that we have just posted, both in the US and in Europe, you see the new consumers coming into the category, and that is not just taste, but it is both taste and health combined, John. Yes to that, but the incrementality will not only come from health, but from taste and health combined.

Speaker #7: Thank you, Max.

Daniel Ordonez: Thank you, Max. Thank you, Max. Is that you have a second question you want to double-click on that one?

Daniel Ordoñez: Thank you, Max. Thank you, Max. Is that you have a second question you want to double-click on that one?

Speaker #4: Thank you, Max. Is that you have a second question? You want to double click on that one?

Max Gunport: I will have a second, but let's start with that one.

Speaker #6: I will have a second, but let's start with that one.

Max Gumport: I will have a second, but let's start with that one.

Speaker #4: Very good. Thank you. Just checking. Listen, let me unpack that to you so first on Europe, we do see the momentum continues to build, right?

Daniel Ordonez: Very good. Thank you. Just checking. Listen, let me unpack that to you. You saw first in Europe, we do see the momentum continues to build, right? Before going into the outlook, allow me 1 minute to focus on the now. We have just posted, as you saw, 2 consecutive quarters on the mid-teens, and we're clearly generating new incremental demand. The important thing here is that we see growth consolidating at Oatly. It's doubling the growth of oat milk and almost tripling the growth of plant-based milk. You see that is a platform that makes us look into the future with different pair of eyes.

Daniel Ordoñez: Very good. Thank you. Just checking. Listen, let me unpack that to you. You saw first in Europe, we do see the momentum continues to build, right? Before going into the outlook, allow me 1 minute to focus on the now. We have just posted, as you saw, 2 consecutive quarters on the mid-teens, and we're clearly generating new incremental demand. The important thing here is that we see growth consolidating at Oatly. It's doubling the growth of oat milk and almost tripling the growth of plant-based milk. You see that is a platform that makes us look into the future with different pair of eyes.

Speaker #4: So before going into the outlook, allow me one minute to focus on the now. We have just posted, as you saw, two consecutive quarters on the mid-teens.

Speaker #4: And we're clearly generating new incremental demand. So the important thing here is that we see growth consolidating at Oatly. It's doubling the growth of oat milk and almost tripling the growth of plant-based milk.

John Baumgartner: Great. Thank you.

An alternative to Dairy and then and then when it comes to health, uh, we do, see momentum, we discuss with you in this discussions before there is a a significant momentum growing in both side of the Atlantic when it comes to uh, fibers prebiotics have got health and and we really, really welcome that with open arms. So there is an incrementality on that definitely. Yes, but there is also an incrementality. When it comes to the whole combination of taste and health. Uh, mind you, when you see the results that we have just posted both in the US and in Europe. Um, you see the new consumers coming into the category and that is not just taste, but it's both taste and Health Combined John. So, yes to that. But the mentality will not only come from Health, but from taste and Health Combined.

Speaker #4: And you see that is a platform that makes us look into the future with different pair of eyes. This combined is giving us a sustained growth momentum in plant-based milk of mid-single digits, which is strong compared to where we were a couple of years ago.

Thank you.

[Company Representative] (Oatly Group): Thank you, John.

Daniel Ordonez: Thank you, John.

Operator: Thank you. Our next question will come from Max Gunther with BNP. Your line is open.

Thank you, John.

Daniel Ordonez: This combined is giving us a sustained growth momentum in plant-based milk of mid-single digits, which is strong compared to where we were a couple of years ago. That sets you already for a trend. Going into the future, the first thing we look is that this very important data point, which the growth comes from younger generations of consumers entering the category. We now have abundant evidence that that is the case. Definitely looking into the future, we look at the 70% of penetration headroom we have in front of us. That's why we believe the opportunity is enormous. In terms of where we see the growth coming from, number one, a much stronger portfolio, which is fully focused on beverages.

Daniel Ordoñez: This combined is giving us a sustained growth momentum in plant-based milk of mid-single digits, which is strong compared to where we were a couple of years ago. That sets you already for a trend. Going into the future, the first thing we look is that this very important data point, which the growth comes from younger generations of consumers entering the category. We now have abundant evidence that that is the case. Definitely looking into the future, we look at the 70% of penetration headroom we have in front of us. That's why we believe the opportunity is enormous. In terms of where we see the growth coming from, number one, a much stronger portfolio, which is fully focused on beverages.

Our next question will come from Max Zenport with BNP. Your line is open.

Max Gunther: Hey, thanks for the question, and it's nice to see the continued momentum in Europe and the improved growth in North America. Along those lines, with the growth playbook clearly working and gaining traction, I was hoping to get an updated view of how you think about the long-term top line growth for both your North America business and your Europe and international business.

Max Gumport: Hey, thanks for the question, and it's nice to see the continued momentum in Europe and the improved growth in North America. Along those lines, with the growth playbook clearly working and gaining traction, I was hoping to get an updated view of how you think about the long-term top line growth for both your North America business and your Europe and International business.

Thank you for the question.

It's nice to see.

Speaker #4: So that sets you already for a trend. Going into the future, the first thing we look is that this very, very important data point.

Speaker #4: Which the growth comes from younger generations of consumers entering the category. We now have abundant evidence that that is the case. So then definitely looking into the future, we look at this 70%, 70% of penetration headroom we have in the front of us.

America along those lines with the growth Playbook clearly working in getting traction. I was hoping to get a better view of how you think about the long-term. Topline growth of both of your North America business and your European international business.

[Company Representative] (Oatly Group): Thank you, Max. Thank you, Max. Is that you have a second question you want to double click on that one?

Daniel Ordonez: Thank you, Max. Thank you, Max. Is that you have a second question you want to double click on that one?

Thank you Mark. Thank you Max. Is that um is that you have a second question? You want to double click on that 1?

Speaker #4: And that's why we believe the opportunity is enormous. In terms of where we see the growth coming from, number one, a much stronger portfolio, which is fully focused on beverages.

Max Gunther: I will have a second, let's start with that one.

Max Gumport: I will have a second, let's start with that one.

[Company Representative] (Oatly Group): Very good. Thank you. Just checking. Listen, let me unpack that to you. You saw first on Europe, we do see the momentum continues to build, right? Before going into the outlook, allow me 1 minute to focus on the now. We have just posted, as you saw, 2 consecutive quarters on the big teens, and we're clearly generating new incremental demands. The important thing here is that we see growth consolidating at Oatly. It's doubling the growth of oat milk and almost tripling the growth of plant-based milk. You see that is a platform that makes us look into the future with different pair of eyes.

Daniel Ordonez: Very good. Thank you. Just checking. Listen, let me unpack that to you. You saw first on Europe, we do see the momentum continues to build, right? Before going into the outlook, allow me 1 minute to focus on the now. We have just posted, as you saw, 2 consecutive quarters on the big teens, and we're clearly generating new incremental demands. The important thing here is that we see growth consolidating at Oatly. It's doubling the growth of oat milk and almost tripling the growth of plant-based milk. You see that is a platform that makes us look into the future with different pair of eyes.

Speaker #4: And in a way, I'm using this request from you to come back to something that John was asking before: we will remain for the foreseeable future focused on drinks.

Daniel Ordonez: In a way, I'm using this question from you to come back to something that John was asking before. We will remain for the foreseeable future focused on drinks because it is where we have our assets, where we have our strength, where we have our superiority, and where we are winning. There is a lot of opportunity. The other thing, to give you a lever for Europe, Max, is the new markets, what we call the expansion markets or the international markets.

Daniel Ordoñez: In a way, I'm using this question from you to come back to something that John was asking before. We will remain for the foreseeable future focused on drinks because it is where we have our assets, where we have our strength, where we have our superiority, and where we are winning. There is a lot of opportunity. The other thing, to give you a lever for Europe, Max, is the new markets, what we call the expansion markets or the international markets.

Uh, I will have a site that that started that 1. Very good. Thank you. Just checking, listen. Um, Let me let me unpack that to you. Uh, you saw first on Europe, we do see the momentum continued to build, right? So, before going into the Outlook, allow me, 1 minute to focus on the now.

Speaker #4: Because it's where we have our assets, where we have our strengths, where we have our superiority, y, and where we're winning. And there's a lot of opportunity.

Speaker #4: And the other thing to give you a lever for Europe, Max, is the new markets. What we call the expansion markets of the international markets.

Speaker #4: Whether it's France or Poland or Mexico in this segment, you're talking about markets that are large, large in its potential, and are building really critical mass.

Daniel Ordonez: Whether it's France or Poland or Mexico in this segment, you're talking about markets that are large in its potential and are building really critical mass. The two of them combined, a new portfolio and channel expansion in the established markets and the expansion in the new markets gives you a real sweet spot for us to think a second revolution for plant-based drinkers in Europe. If I now move the attention to North America, in the now, we are very encouraged by how things are developing in the US. First, what we see happening in coffee and food service, we're spending a lot of time with the teams there, and I'm very encouraged to report the progress that you see. For us, this is why this is important, because it's the best marker for category momentum.

Daniel Ordoñez: Whether it's France or Poland or Mexico in this segment, you're talking about markets that are large in its potential and are building really critical mass. The two of them combined, a new portfolio and channel expansion in the established markets and the expansion in the new markets gives you a real sweet spot for us to think a second revolution for plant-based drinkers in Europe. If I now move the attention to North America, in the now, we are very encouraged by how things are developing in the US. First, what we see happening in coffee and food service, we're spending a lot of time with the teams there, and I'm very encouraged to report the progress that you see. For us, this is why this is important, because it's the best marker for category momentum.

[Company Representative] (Oatly Group): These combined is giving us a sustained growth momentum in plant-based milk of mid-single digits, which is strong compared to where we were a couple of years ago. That sets you already for a trend. Going into the future, the first thing we look is that this very important data point, which the growth comes from younger generations of consumers entering the category. We now have abundant evidence that that is the case. Definitely looking into the future, we look at the 70% of penetration headroom we have in front of us. That's why we believe the opportunity is enormous. In terms of where we see the growth coming from, number 1, a much stronger portfolio which is fully focused on beverages.

Um, we have to solve this. You saw two consecutive quarters on the 18th. I will clearly—generating new incremental demand. So, uh, the important thing here is that we see growth consolidating; at most, it's doubling the growth of oatmeal and almost tripling the growth of plant-based milk. You see that it is a platform that makes us look into the future with a different pair of eyes.

Daniel Ordonez: These combined is giving us a sustained growth momentum in plant-based milk of mid-single digits, which is strong compared to where we were a couple of years ago. That sets you already for a trend. Going into the future, the first thing we look is that this very important data point, which the growth comes from younger generations of consumers entering the category. We now have abundant evidence that that is the case. Definitely looking into the future, we look at the 70% of penetration headroom we have in front of us. That's why we believe the opportunity is enormous. In terms of where we see the growth coming from, number 1, a much stronger portfolio which is fully focused on beverages.

Speaker #4: So the two of them combined: a new portfolio and channel expansion in the established markets and the expansion in the new markets gives you a real, real sweet spot for us to think on the second revolution for plant-based drinkers in Europe.

Speaker #4: If I now move the attention to North America, in the now, I am very encouraged. We are very encouraged by how things are developing in the US.

Speaker #4: First, what we see happening in coffee and food service, we're spending a lot of time with the teams there. And I'm very encouraged to report the progress that you see.

Speaker #4: For us, this is why this is important, because it's the best marker for category momentum. This channel is where habits are created. And excluding the largest customer, this channel represents already over one quarter of the segment's revenue.

Daniel Ordonez: This channel is where habits are created. Excluding the largest customer, this channel represents already over one quarter of the segment's revenue and have been growing in double digits for some quarters now. When we look ahead, we only see opportunities, Max. Finally, just to round up on the US on North America, the category remains soft, but there is a very significant but in traditional retail only. It is strengthening. If you have checked the latest scanning data, the more Oatly gains traction, the more the category strengthens. Now we're winning, we're outperforming market and competitors with crossing the line of 30% share in oat milk for the first time. As the outlook for North America, I would say controlling the controllables.

Daniel Ordoñez: This channel is where habits are created. Excluding the largest customer, this channel represents already over one quarter of the segment's revenue and have been growing in double digits for some quarters now. When we look ahead, we only see opportunities, Max. Finally, just to round up on the US on North America, the category remains soft, but there is a very significant but in traditional retail only. It is strengthening. If you have checked the latest scanning data, the more Oatly gains traction, the more the category strengthens. Now we're winning, we're outperforming market and competitors with crossing the line of 30% share in oat milk for the first time. As the outlook for North America, I would say controlling the controllables.

[Company Representative] (Oatly Group): In a way, I'm using this re-question from you to come back to something that John was asking before. We will remain for the foreseeable future, focused on drinks, because it's where we have our assets, where we have our strength, where we have our superiority, and where we're winning. There's a whole lot of opportunity. The other thing where to give you a lever for Europe, Max, is the new markets, what we call the expansion markets or the international markets. Whether it's France or Poland or Mexico in this segment, you're talking about markets that are large in its potential and are building really critical mass.

Daniel Ordonez: In a way, I'm using this re-question from you to come back to something that John was asking before. We will remain for the foreseeable future, focused on drinks, because it's where we have our assets, where we have our strength, where we have our superiority, and where we're winning. There's a whole lot of opportunity. The other thing where to give you a lever for Europe, Max, is the new markets, what we call the expansion markets or the International markets. Whether it's France or Poland or Mexico in this segment, you're talking about markets that are large in its potential and are building really critical mass.

Speaker #4: And have been growing in double digits for some quarters now. So when we look ahead, we only see opportunities, Max. And finally, just to round up on the US, on North America, the category remains soft, but there is a very significant but in traditional retail only.

And that's why we leave the opportunity is enormous in terms of where we see the the growth coming from number 1 a much stronger portfolio which is fully focused on Beverages and in a way I'm using this real question from you to come back to something that John was asking before, we will remain for the foreseeable future focus on drinks.

Speaker #4: And it is strengthening. If you have checked the latest scanning data, the more Oatly gained traction, the more the category strengthens. And now we're winning we're outperforming market and competitors with crossing the line of 30% share in oat milk for the first time.

[Company Representative] (Oatly Group): The two of them combined, a new portfolio and channel expansion in the established market and the expansion in the new markets gives you a real sweet spot for us to think on a second revolution for plant-based drinkers in Europe. If I now move the attention to North America, in the now, I am very encouraged. We are very encouraged by how things are developing in the US. First, what we see happening in coffee and food service, we're spending a lot of time with the teams there, and I'm very encouraged to report the progress that you see. For us, this is why this is important, because it's the best marker for category momentum. This channel is where habits are created.

Daniel Ordonez: The two of them combined, a new portfolio and channel expansion in the established market and the expansion in the new markets gives you a real sweet spot for us to think on a second revolution for plant-based drinkers in Europe. If I now move the attention to North America, in the now, I am very encouraged. We are very encouraged by how things are developing in the US. First, what we see happening in coffee and food service, we're spending a lot of time with the teams there, and I'm very encouraged to report the progress that you see. For us, this is why this is important, because it's the best marker for category momentum. This channel is where habits are created.

Speaker #4: So as the outlook for North America, I would say controlling the controllables, and at the top of the controllables, we put the category development.

Daniel Ordonez: At the top of the controllables, we put the category development. Now we do put the category development. For that, you will see two things. First, more visible brand investment, step by step, of course, because you know how we manage, how rigorous we are about our financial equation. Secondly, a step change in the US traditional retail adopting the kind of portfolio you see in Europe. I have to underline step by step, you will see some this year, but the progress will go well into 2027. Hopefully, that gives you a full picture, Max.

Daniel Ordoñez: At the top of the controllables, we put the category development. Now we do put the category development. For that, you will see two things. First, more visible brand investment, step by step, of course, because you know how we manage, how rigorous we are about our financial equation. Secondly, a step change in the US traditional retail adopting the kind of portfolio you see in Europe. I have to underline step by step, you will see some this year, but the progress will go well into 2027. Hopefully, that gives you a full picture, Max.

Speaker #4: Now we do put the category development. And for that, you will see two things. First, more visible brand investment. Step by step, of course, because you know how we manage how rigorous we are about our financial equation.

This is where we have our assets, where we have our strengths, where we have our superiority and we are winning. And there's a lot of opportunity and the other thing where to give you a lever for Europe, Max is a new market, we call the expansion markets, the international markets, whether it's France or Poland or Mexico in these segments, you're talking about markets that are large large large in its potential and are building really critical mass. So uh the 2 of them combined, a new portfolio and China expansion in the established market and the expansion in the new markets gives you a real real sweet spot for us to think on the the second revolution for plant-based drinkers in Europe.

um, if I now move the attention uh, to North America,

Speaker #4: And secondly, a step change in the US traditional retail adopting the kind of portfolio you see in Europe. And I have to underline step by step, you will see some this year, but the progress will go well into 2027.

Speaker #4: Hopefully, that gives you a full picture.

[Company Representative] (Oatly Group): Excluding the largest customer, this channel represents already over one quarter of the segment's revenue and have been growing in double digits for some quarters now. When we look ahead, we only see opportunities, Max. Finally, just to round up on the US, on North America, the category remains soft, but there is a very significant but in traditional retail only. It is strengthening. If you have checked the latest scanning data, the more Oatly gains traction, the more the category strengthens. Now we're winning, we're outperforming market and competitors with crossing the line of 30% share in oat milk for the first time. As the outlook for North America, I would say controlling the controllables. At the top of the controllables, we put the category development.

Daniel Ordonez: Excluding the largest customer, this channel represents already over one quarter of the segment's revenue and have been growing in double digits for some quarters now. When we look ahead, we only see opportunities, Max. Finally, just to round up on the US, on North America, the category remains soft, but there is a very significant but in traditional retail only. It is strengthening. If you have checked the latest scanning data, the more Oatly gains traction, the more the category strengthens. Now we're winning, we're outperforming market and competitors with crossing the line of 30% share in oat milk for the first time. As the outlook for North America, I would say controlling the controllables. At the top of the controllables, we put the category development.

Speaker #6: Yes, that's great. And I can leave it there, actually. Thanks very much for the color. I'll pass it on.

Max Gunport: Yes, that's great. I can leave it there actually. Thanks very much for the color. I'll pass it on.

Max Gumport: Yes, that's great. I can leave it there actually. Thanks very much for the color. I'll pass it on.

In the now, I am very encouraged. We are very encouraged by how things are developing in the US first. Um, what we see happening in coffee and food service. We're spending a lot of time with the teams there, and I'm very encouraged to report the progress that you see for us. This is why this is important, because it's the best marker for category momentum. This channel is where habits are created, and, and excluding the largest—

Speaker #4: Thank you, Max.

Daniel Ordonez: Thank you, Max.

Daniel Ordoñez: Thank you, Max.

Speaker #1: Thank you. Our next question comes from Tom Palmer with JPMorgan, your line is open.

Operator: Thank you. Our next question comes from Thomas Palmer with JP Morgan. Your line is open.

Customer additional represents already over one quarter of the segment revenue and has been growing in double digits for some quarters now. So when we look ahead, we only see opportunities, Max.

Speaker #8: Hey, it's Elsa on for Tom. So you now expect EBITDA to be at the low end of the full-year range, just given some cost headwinds related to the Middle East conflict.

[Analyst] (JP Morgan): Hey, it's Elsa on for Tom. You now expect EBITDA to be at the low end of the full-year range, just given some cost headwinds related to the Middle East conflict. Can you walk us through how those cost headwinds have impacted results in Q1? What impact do you expect to see going forward, including any levers you potentially have to offset those costs as we move throughout the year?

[Analyst] (JPMorgan): Hey, it's Elsa on for Tom. You now expect EBITDA to be at the low end of the full-year range, just given some cost headwinds related to the Middle East conflict. Can you walk us through how those cost headwinds have impacted results in Q1? What impact do you expect to see going forward, including any levers you potentially have to offset those costs as we move throughout the year?

Speaker #8: Can you walk us through how those cost headwinds have impacted results in the first quarter? And what impact do you expect to see going forward, including any levers you potentially have to offset those costs as we move throughout the year?

Speaker #7: Thank you, Elsa. Jean-Christophe, I'll take this one and it's a very important topic as you can imagine. So I'll take the time to unpack that.

Jean-Christophe Flatin: Thank you, Elsa. Jean-Christophe, I'll take this one, and it's a very important topic, as you can imagine. I'll take the time to unpack that. Starting by the key statement that to date, we don't see an impact on demand because of Middle East conflict. This is why I'm only answering on cost and EBITDA. Quickly, if we step back, what's the context of this guidance? Remember, everything we discuss today is only with what we know today. We continue to face daily unpredictability and volatility. We really need to mobilize our agility to react and adapt. Now going to the heart of your question. When you look at the COGS, what do we see? On one hand, some of our COGS benefit from the fact that we are hedging on a number of energy contracts in our Europe factories.

Speaker #7: Starting by the key statement that to date, we don't see an impact on demand because of Middle East conflict. This is why I'm only answering on cost and EBITDA.

[Company Representative] (Oatly Group): We do put the category development. For that, you will see two things. First, more visible brand investment, step by step, of course, because you know how we manage, how rigorous we are about our financial equation. Secondly, a step change in the US traditional retail adopting the kind of portfolio you see in Europe. I have to underline step by step, you will see some this year, but the progress will go well into 2027. Hopefully, that gives you a full picture, Max.

Daniel Ordonez: We do put the category development. For that, you will see two things. First, more visible brand investment, step by step, of course, because you know how we manage, how rigorous we are about our financial equation. Secondly, a step change in the US traditional retail adopting the kind of portfolio you see in Europe. I have to underline step by step, you will see some this year, but the progress will go well into 2027. Hopefully, that gives you a full picture, Max.

Speaker #7: So quickly, if we step back, what's the context of this guidance? Remember, everything we discussed today is only with what we know today. We continue to face daily unpredictability and volatility.

Speaker #7: And we really need to mobilize our agility to react and adapt. So now going to the heart of your question, when you look at the COGS, what do we see?

Speaker #7: On one hand, some of our COGS are benefit from the fact that we have hedging on a number of energy contracts in our Europe factories.

And uh, and finally, just to round up on the US on on on, on North America, the category remains soft, but there is a very significant but in traditional retail only and it is strengthening. If you have checked latest scanning data, the more all the game structure, the more categories strengthens and now we winning uh, we're outperforming Market competitors with crossing the line of 30% sharing of milk for the first time. So as the outlook for North America I would say controlling the controllables and at the top of the controllables, we put, um, we put the category development. Now, we do put the category development and for that you will see 2 things first, more visible brand investment step by step. Of course because, you know, how we manage, how vigorous we are about our financial equation and secondly, a step change in the US. Traditional retail adopting, the kind of portfolio. You see in Europe and I have to underline step by step. You will see some this year but the progress will go well into 2027.

hopefully, that gives you a full picture, uh, Max

Max Gunther: Yes, that's great. I can leave it there, actually. Thanks very much for the color. I'll pass it on.

Max Gumport: Yes, that's great. I can leave it there, actually. Thanks very much for the color. I'll pass it on.

Speaker #7: We have a number of advanced contracts on raw materials. And we have some structural advantages which are related to choices we have made, like we have a pellet boiler in our Landskrona factory.

Jean-Christophe Flatin: We have a number of advanced contracts on raw materials, and we have some structural advantages which are related to choices we have made. Like, we have a pellet boiler in our Landskrona factory. We have an electric truck fleet in our Europe and international freight to warehouse network. All of that is helping us. However, on the other hand, the Middle East conflict has brought impacts into our P&L from the months of March onwards, and these costs are specifically fuel price related. The biggest one, shipping and logistic cost, both in E&I, Europe and International, as well as North America. The second noticeable one is packaging cost worldwide.

[Company Representative] (Oatly Group): Thank you, Max.

Daniel Ordonez: Thank you, Max.

Is that great and I can I can leave it there actually. Thanks very much for the call pass on.

Thank you, Max.

Operator: Thank you. Our next question comes from Thomas Palmer with JP Morgan. Your line is open.

[Analyst] (JP Morgan): Hey, it's Elsa on for Tom. You now expect EBITDA to be at the low end of the full year range, just given some cost headwinds related to the Middle East conflict. Can you walk us through how those cost headwinds have impacted results in Q1 and what impact do you expect to see going forward, including any levers you potentially have to offset those costs as we move throughout the year?

Thank you. Our next question comes from Tom Palmer with JP Morgan. Tom, your line is open.

Speaker #7: We have an electric truck fleet in our Europe and international freight to warehouse network. All of that is helping us. However, on the other hand, the Middle East conflict, as brought impacts into our P&L from the months of March, onwards, and this costs are specifically fuel price related.

[Company Representative] (Oatly Group): Thank you, Elsa. Jean-Christophe. I'll take this one. It's a very important topic, as you can imagine, I'll take the time to unpack that. Starting by the key statement that to date, we don't see an impact on demand because of Middle East conflict. This is why I'm only answering on cost and EBITDA. Quickly, if we step back, what's the context of this guidance? Remember, everything we discuss today is only with what we know today. We continue to face daily unpredictability and volatility. We really need to mobilize our agility to react and adapt. Now going to the heart of your question, when you look at the COGS, what do we see? On one hand, some of our COGS benefit from the fact that we have hedging on a number of e-energy contracts in our Europe factories.

Jean-Christophe Flatin: Thank you, Elsa. Jean-Christophe. I'll take this one. It's a very important topic, as you can imagine, I'll take the time to unpack that. Starting by the key statement that to date, we don't see an impact on demand because of Middle East conflict. This is why I'm only answering on cost and EBITDA. Quickly, if we step back, what's the context of this guidance? Remember, everything we discuss today is only with what we know today. We continue to face daily unpredictability and volatility. We really need to mobilize our agility to react and adapt. Now going to the heart of your question, when you look at the COGS, what do we see? On one hand, some of our COGS benefit from the fact that we have hedging on a number of e-energy contracts in our Europe factories.

Hey, it's Elsa on for Tom. Um, you now expect EA to be at the low end of the full year. Range given some cost headwind related to the Middle East conflict. Can you walk us through how those costs, headwinds have impacted results in the first order, and what impact do you expect to see going forward, including any, levers? You potentially have to offset those costs as we move through the year.

Speaker #7: The biggest one: shipping and logistic costs. Both in E&I, Europe and international, as well as North America, the second noticeable one is packaging costs.

Speaker #7: Worldwide. So when we do the net of the advantages we have and the new costs we see from the conflict, the net of the two is showing a total COGS and logistic net increase.

Jean-Christophe Flatin: When we do the net of the advantages we have and the new cost we see from the conflict, the net of the two is showing a total COGS and logistic net increase, which is already visible in March P&L and that we now expect to be fully at play in Q2 and honestly, too early to be much more precise than that for what could come after Q2. When we are to review the full-year outlook for this conversation beyond the normal course of business, it means we have to evaluate both the potential full-year cost impact of the conflict on one hand, and our ability to mitigate that on the other hand. Having done that, we now expect to deliver adjusted EBITDA towards the low end of the range of SEK 25 to 35.

Speaker #7: Which is already visible in March P&L, and that we now expect to be fully at play in quarter two. And honestly, too early to be much more precise than that for what could come after quarter two.

Thank you, I'll take this 1. It's a very important to because you're getting so I take the time to unpack that, uh, starting by the key statement that to date, we don't see an impact on demand because of this confict. It is why I'm I'm only answering on the cost and a bit that so quickly, if we step back, what's the context of this guidance? Remember, everything we discussed today is only is what we know today. We continue to fight daily unpredictability and volatility and we really need to mobilize our agility to react and adapt. So,

Speaker #7: Which is why when we are to review the full-year outlook for this conversation, beyond the normal course of business, it means we have to evaluate both the potential full-year cost impact of the conflict on one hand, and our ability to mitigate that on the other hand.

Now going to the heart of your question. When you look at the cogs. What do we see on the other hand?

[Company Representative] (Oatly Group): We have a number of advanced contracts on raw materials, and we have some structural advantages which are related to choices we have made. Like, we have a pellet boiler in our Landskrona factory. We have an electric truck fleet in our Europe and international freight to warehouse network. All of that is helping us. However, on the other hand, the Middle East conflict has brought impacts into our P&L from the months of March onwards, and these costs are specifically fuel price related. The biggest one, shipping and logistic cost, both in E&I, Europe and International, as well as North America. The second noticeable one is packaging cost worldwide.

Jean-Christophe Flatin: We have a number of advanced contracts on raw materials, and we have some structural advantages which are related to choices we have made. Like, we have a pellet boiler in our Landskrona factory. We have an electric truck fleet in our Europe and International freight to warehouse network. All of that is helping us. However, on the other hand, the Middle East conflict has brought impacts into our P&L from the months of March onwards, and these costs are specifically fuel price related. The biggest one, shipping and logistic cost, both in E&I, Europe and International, as well as North America. The second noticeable one is packaging cost worldwide.

Speaker #7: And having done that, we now expect to deliver adjusted EBITDA towards the low end of the range of 25 to 35.

Speaker #8: I think I'll pass it on.

[Analyst] (JP Morgan): Thanks. I'll pass it on.

[Analyst] (JPMorgan): Thanks. I'll pass it on.

Speaker #7: Thank you, Elsa.

Jean-Christophe Flatin: Thank you, Elsa.

Factory. We have an electric truck Fleet in our European International Freight to Warehouse Network. All that is helping us.

Speaker #1: Thank you. Again, as a reminder, that is STAR 1. If you would like to ask a question, our next question will come from Samu Willemsen with Nordea Markets, your line is open.

Operator: Thank you. Again, as a reminder, that is star one if you would like to ask a question. Our next question will come from Samu Welinson with Nordea Markets. Your line is open.

Speaker #9: Hi, and thank you very much for taking my question. And thanks for the presentation. A few questions from my side could start with North America.

Samu Welinson: Hi, and thank you very much for taking my question, and thanks for the presentation. A few questions from my side could start with North America. You mentioned that North American EBITDA was pressured by warehousing and transportation. I was just wondering that, is there a timeline or any measures in place to structurally fix this distribution economics? Do you project that it requires any additional CapEx?

Samu Wilhelmsson: Hi, and thank you very much for taking my question, and thanks for the presentation. A few questions from my side could start with North America. You mentioned that North American EBITDA was pressured by warehousing and transportation. I was just wondering that, is there a timeline or any measures in place to structurally fix this distribution economics? Do you project that it requires any additional CapEx?

However, on the other hand me, this conflict has brought impacts into our pnl from the month of March onward and discuss our specifically fuel price related.

Speaker #9: You mentioned that North American EBITDA was measured by warehousing and transportation. So I was just wondering that is there a timeline or any measures in place to structurally fix this distribution economics?

[Company Representative] (Oatly Group): When we do the net of the advantages we have and the new cost we see from the conflict, the net of the two is showing a total COGS and logistic net increase, which is already visible in March P&L and that we now expect to be fully at play in Q2. Honestly, too early to be much more precise than that for what could come after Q2. Which is why when we are to review the full year outlook for this conversation beyond the normal course of business, it means we have to evaluate both the potential full year cost impact of the conflict on one hand, and our ability to mitigate that on the other hand. Having done that, we now expect to deliver adjusted EBITDA towards the low end of the range of SEK 25 to 35.

Jean-Christophe Flatin: When we do the net of the advantages we have and the new cost we see from the conflict, the net of the two is showing a total COGS and logistic net increase, which is already visible in March P&L and that we now expect to be fully at play in Q2. Honestly, too early to be much more precise than that for what could come after Q2. Which is why when we are to review the full year outlook for this conversation beyond the normal course of business, it means we have to evaluate both the potential full year cost impact of the conflict on one hand, and our ability to mitigate that on the other hand. Having done that, we now expect to deliver adjusted EBITDA towards the low end of the range of SEK 25 to 35.

Speaker #9: And do you project that it requires any additional CapEx?

Daniel Ordonez: Hi, Samu. Would you like to add to your list, or is that the only one? You suggested you have more questions.

Daniel Ordoñez: Hi, Samu. Would you like to add to your list, or is that the only one? You suggested you have more questions.

Speaker #7: Hi, Samu. Would you like to add to your list, or is that the only you suggested you have more questions?

Samu Welinson: Yes, there are a few related to the cash flow. I can take them combined if we can go.

Speaker #9: Yes, there are a few related to the cash flow, so I can take them combined.

Samu Wilhelmsson: Yes, there are a few related to the cash flow. I can take them combined if we can go.

Daniel Ordonez: All right. No, I'll take that from a business operation standpoint. I mean, listen, warehouse and transport, there are two ways to discuss that, is the ongoing business as usual. We're dealing with that, and this is part of both the reports you have seen on Q1 and how we expect for the outlook of the market. There is, of course, there is progress, but it has to do with the business as usual. Nothing to highlight, to be honest with you. Then, of course, we're dealing with some of the consequences of the context that JC was just describing. All of that is blended on the guidance.

Daniel Ordoñez: All right. No, I'll take that from a business operation standpoint. I mean, listen, warehouse and transport, there are two ways to discuss that, is the ongoing business as usual. We're dealing with that, and this is part of both the reports you have seen on Q1 and how we expect for the outlook of the market. There is, of course, there is progress, but it has to do with the business as usual. Nothing to highlight, to be honest with you. Then, of course, we're dealing with some of the consequences of the context that JC was just describing. All of that is blended on the guidance.

Speaker #7: All right. No, I'll take that from a business operations standpoint. I mean, listen, warehouse and transport, there are two ways to discuss that. It's the ongoing business as usual.

Speaker #7: We're dealing with that. And this is part of both the reports you have seen on quarter one. the market, there is, of course, there is progress, but it has to do with the business as usual.

The biggest 1 shipping and logistic cost. Both in ini European International as well as North America. The second noticeable 1 is packaging, cost worldwide. So when we do the net of the advantages, we have and the new cost we see from the conflict, the net of the 2 is showing the total cost and logistic Nets increase which is already given marginal and that. We now expect to be fully at play in quart 2 and honestly too early to be much more precise than that for what could come after a quarter of 2, which is why when we are to review the full year outlook for this conversation, beyond the normal course of business, it means we have to evaluate both the potential fully your cost impact of the conflict.

on 1 hand and our ability to

having done that.

Speaker #7: Nothing to highlight, to be honest with you. And then, of course, we're dealing with some of the consequences of the context that JC was just describing.

Now expect to deliver a Dusty Delta. So what the low end of the range of 25 to 35

[Analyst] (JP Morgan): I think I'll pass it on.

[Company Representative] (Oatly Group): Thank you, Elsa.

Jean-Christophe Flatin: Thank you, Elsa.

Speaker #7: All of that is blended on the guidance. So there is nothing structural and to be concerned about when it comes to the actual business operation in North America to highlight in this earnest call.

Operator: Thank you again. As a reminder, that is star one if you would like to ask a question. Our next question will come from Samu Wilhelmsson with Nordea Markets. Your line is open.

Daniel Ordonez: There is nothing structural and, you know, to be concerned about when it comes to the actual business operation in North America to highlight in this earnings call.

Daniel Ordoñez: There is nothing structural and, you know, to be concerned about when it comes to the actual business operation in North America to highlight in this earnings call.

Thank you again as a reminder that is star 1. If you would like to ask a question. Our next question will come from Samu wellson with nordea markets. Your line is open.

Samu Wilhelmsson: Hi, thank you very much for taking my question, and thanks for your presentation. A few questions from my side. Could start with North America. You mentioned that North American EBITDA was pressured by warehousing and transportation. I was just wondering that is there a timeline or any measures in place to structurally fix this distribution economics? Do you project that it requires any additional CapEx?

Speaker #7: And to the double kick of your question, Samu, there is no specific CapEx required or considered to deal with that.

Jean-Christophe Flatin: To the double-click of your question, Samu, there is no specific CapEx required or considered to deal with that.

Speaker #9: All right. Got it. Thank you. Then on the free cash flow, first of all, maybe thinking that how should we think about the created China strategic reviews impact on free cash flow?

Samu Welinson: All right. Got it. Thank you. On the free cash flow, first of all, maybe like thinking that how should we think about the Greater China strategic review's impact on free cash flow? Obviously, you can't comment any investment proceeds, but maybe from a point of view of your structuring cash costs and from potential working capital release. Is there anything relating to those that you would be willing to elaborate further? On the follow-up, have you tracked that what kind of revenue gross margin improvement levels you would need to get to a structure of free cash flow? Now, of course, you know, excluding the effect of Greater China from that.

Samu Wilhelmsson: All right. Got it. Thank you. On the free cash flow, first of all, maybe like thinking that how should we think about the Greater China strategic review's impact on free cash flow? Obviously, you can't comment any investment proceeds, but maybe from a point of view of your structuring cash costs and from potential working capital release. Is there anything relating to those that you would be willing to elaborate further? On the follow-up, have you tracked that what kind of revenue gross margin improvement levels you would need to get to a structure of free cash flow? Now, of course, you know, excluding the effect of Greater China from that.

Speaker #9: Obviously, you can't comment on investment proceeds, but maybe from a point of view of your structuring cash costs and from potential working capital release, is there anything relating to those that you would be willing to elaborate further?

Hi, thank you very much for taking my question. Thanks for patient. A few questions from my side could start with uh, with North America. Uh, you mentioned that North American ebda was pushed by warehouse and transportation. So I was just wondering that is there a timeline or a measures in place at the structural effect, this distribution economics and uh do you project that requires any additional capex?

[Company Representative] (Oatly Group): Hi, Samu. Would you like to add to your list, or is that the only? You suggest that you have more questions.

Daniel Ordonez: Hi, Samu. Would you like to add to your list, or is that the only? You suggest that you have more questions.

Uh, hi, would you like that to your story? Is that the only you suggested you have more questions.

Samu Wilhelmsson: Yes, there are a few related to the cash flow, so I can take them combined if we can go.

Speaker #9: And then on the follow-up, have you tracked that what kind of revenue or gross margin improvement levels you would need to get to a structural free cash flow?

[Company Representative] (Oatly Group): All right. No, I'll take that from a business operation standpoint. I mean, listen, warehouse and transport, there are two ways to discuss that, is the ongoing business as usual. We're dealing with that, this is part of both the reports you have seen on Q1 and how we expect for the outlook of the market. There is, of course there is progress, it has to do with the business as usual. Nothing to highlight, to be honest with you. Of course, we're dealing with some of the consequences of the context that JC was just describing. All of that is blended on the guidance.

Daniel Ordonez: All right. No, I'll take that from a business operation standpoint. I mean, listen, warehouse and transport, there are two ways to discuss that, is the ongoing business as usual. We're dealing with that, this is part of both the reports you have seen on Q1 and how we expect for the outlook of the market. There is, of course there is progress, it has to do with the business as usual. Nothing to highlight, to be honest with you. Of course, we're dealing with some of the consequences of the context that JC was just describing. All of that is blended on the guidance.

Speaker #9: And of course, excluding the effect of created China from that.

Speaker #7: Thank you, Samuel. I start with the context of your question, which is the strategic review. And here, as you know, our answer, our messaging is exactly the same as the last quarters.

Jean-Christophe Flatin: Thank you, Samu. I start with the context of your question, which is the strategic review. Here, as you know, our answer, our messaging is exactly the same as the last quarters. We continue to evaluate a range of options, including a potential carve-out, with the very clear objective to accelerate growth and maximize value. As we work on that, we remain committed to our team, customers, and suppliers. It's a great opportunity for us, I think, to pay tribute to our great China team, who has remained focused on the business and continue to fight every day as we execute the ongoing strategic review. A shout-out to them at this occasion. MJ, I think you want to double-click on the specifics.

Speaker #7: We continue to evaluate the range of options, including a potential carve-out. With the very clear objective to accelerate growth and maximize value. As we work on that, we remain committed to our team, customers, and suppliers.

Uh yes there are. There are a few, the cash flows. I can take them combined. All right. No, I I'll take that from my business operations standpoint. I mean listen um warehouse and transport there are 2 ways to to discuss that is the ongoing business as usual, we're dealing with that. And this is part of both the reports you have seen in order 1 and how we expect of the Outlook of the market. There is, um, of course, there is progress, but it has to do with the, with the business as usual, nothing to highlight, to be honest with you. Um, and then, of course, we're dealing with some of the consequences of the, um, context that Jason.

[Company Representative] (Oatly Group): There is nothing structural and, you know, to be concerned about when it comes to the actual business operation in North America to highlight in the, in this, scope.

Daniel Ordonez: There is nothing structural and, you know, to be concerned about when it comes to the actual business operation in North America to highlight in the, in this, scope.

Speaker #7: And it's a great opportunity for us, I think, to pay tribute to our great China team who has remained focused on the business and continue to fight every day as we execute the ongoing strategic review.

[Company Representative] (Oatly Group): To the double-click of your question, Samu, there is no specific CapEx required or considered to deal with that.

Jean-Christophe Flatin: To the double-click of your question, Samu, there is no specific CapEx required or considered to deal with that.

Speaker #7: So a shout-out to them at this occasion. MJ, I think you want to double-click on the specifics.

Marie-Jose David: Yeah. The, the only specific, Samu, is on the allocation. We do not allocate any corporate cost to any individual segment. Just keep that in mind as well.

Marie-José David: Yeah. The, the only specific, Samu, is on the allocation. We do not allocate any corporate cost to any individual segment. Just keep that in mind as well.

Speaker #4: Yeah. The only specific, Samu, is on the allocation. We do not allocate any corporate costs to any individual segment. So just keep that in mind.

See what's just describing all of that is Blended on the guidance. So there's nothing structural and um you know to to to be concerned out when it comes to the actual business operation in North America to to highlight in, in this scope and to, the double click of your question, Sue, there is no specific capex required, or considered uh, to deal with that.

Samu Wilhelmsson: All right. Got it. Thank you. On the free cash flow, first of all, maybe like thinking that how should we think about the Greater China strategic review's impact on free cash flow? Obviously, you can't comment any investment proceeds, maybe from a point of view of your structuring cash costs and from potential working capital release, is there anything relating to those that you would be willing to elaborate further? On the follow-up, have you tracked at what kind of revenue gross margin improvement levels you would need to get to a structure of free cash flow? Of course, you know, excluding the effect of Greater China from that.

Speaker #4: As well.

Speaker #7: Thank you, MJ.

Jean-Christophe Flatin: Thank you, MJ.

Speaker #9: All right. Thank you. Then perhaps last question. Follow-up with previous analysts regarding the guidance. You mentioned some rationale behind the guidance and what you have done there.

Samu Welinson: All right. Thank you. Perhaps last question, follow up with previous analysts regarding the guidance. You mentioned some rationale behind the guidance of what you have done there. What kind of uncertainties you would see around the guidance, given that if the situation continue as planned, does that, you know, support your ongoing guidance? What would need to happen in order you to go back to the table or revise your guidance assumptions?

Samu Wilhelmsson: All right. Thank you. Perhaps last question, follow up with previous analysts regarding the guidance. You mentioned some rationale behind the guidance of what you have done there. What kind of uncertainties you would see around the guidance, given that if the situation continue as planned, does that, you know, support your ongoing guidance? What would need to happen in order you to go back to the table or revise your guidance assumptions?

Speaker #9: But what kind of uncertainties you would see around the guidance, given that if the situation continues as planned, does that support your ongoing guidance or what would need to happen in order for you to go back to the table or revise your guidance assumptions?

All right, got it. Thank you. Then on the free cash flow. First of all, maybe like thinking that how should we think about credit Dynasty reviews impact on free cash flow? Obviously you can comment any proceeds but maybe from a point of view of your structuring cash costs and from potential working capital release is there anything related to those that you would be willing to do a brake further and then on on on on the follow-up, have you tracked that what kind of Revenue or gross margin levels? You would need to get the structure of free cash flow and of course you know excluding the effect of credit kind of from that.

[Company Representative] (Oatly Group): Thank you, Samu. I'll start with the context of your question, which is the strategic review. Here, as you know, our answer, our messaging is exactly the same as the last quarters. We continue to evaluate a range of options, including a potential carve-out, with the vaguely objective to accelerate growth and maximize value. As we work on that, we remain committed to our team, customers, and suppliers. It's a great opportunity for us, I think, to pay tribute to our great China team, who has remained focused on the business and continue to fight every day as we execute the ongoing strategic review. A shout-out to them at this occasion. MJ, I think you want to double-click on the specifics.

Jean-Christophe Flatin: Thank you, Samu. I'll start with the context of your question, which is the strategic review. Here, as you know, our answer, our messaging is exactly the same as the last quarters. We continue to evaluate a range of options, including a potential carve-out, with the vaguely objective to accelerate growth and maximize value. As we work on that, we remain committed to our team, customers, and suppliers. It's a great opportunity for us, I think, to pay tribute to our great China team, who has remained focused on the business and continue to fight every day as we execute the ongoing strategic review. A shout-out to them at this occasion. Marie-Jose, I think you want to double-click on the specifics.

Speaker #7: Thank you, Samu. Perhaps let me first repeat. To date, we are not seeing a demand impact on the Middle East conflict. So the question so far with what we know today, the question, the answer to your question is only on costs and therefore EBITDA.

Jean-Christophe Flatin: Thank you, Samu. Perhaps let me first repeat. To date, we are not seeing a demand impact on the Middle East conflict. The question so far with what we know today, the answer to your question is only on costs and therefore, EBITDA. When it comes to that, I think honestly, I cannot predict the unpredictable, or be any certain on the uncertainty. I think we flagged to you, like a lot of industries, most of the cost impacts are fuel, so oil leading to fuel and then fuel leading to a few categories. These are the areas we are currently and constantly looking at and monitoring. If there is one space we need to continue to pay attention daily to see what could happen, this is that.

Speaker #7: And when it comes to that, I think honestly, I cannot predict the unpredictable or be any certain on the uncertainty. I think we flagged to you, like a lot of industries, most of the cost impact are fuel.

Speaker #7: So oil, leading to fuel, and then fuel, leading to a few categories. These are the areas we are currently and constantly looking at and monitoring.

Thank you, Samuel. I start with the context of your question, which is the strategy can you. And here as you know, our answer, our messaging is exactly the same as the last quarters we continue to evaluate the range of options, including a potential car out with the vehicle objective flexible and maximize value. As we work on that, we remain complete to our team customers and suppliers. And I it's a good opportunity for us. I think to pay tribute for Great China team was the main focus on the business.

Speaker #7: So if there is one space we need to continue to pay attention daily to see what could happen, this is that.

[Analyst] (JP Morgan): Yeah. The, the only specific, Samu, is on the allocation. We do not allocate any corporate cost to any individual segment. Just keep that in mind as well.

Marie-Jose David: Yeah. The, the only specific, Samu, is on the allocation. We do not allocate any corporate cost to any individual segment. Just keep that in mind as well.

Speaker #9: All right. Appreciate it for the answers. No further questions from my side. Thank you.

Samu Welinson: All right. I appreciate it for the answers. No further questions from my side. Thank you.

Samu Wilhelmsson: All right. I appreciate it for the answers. No further questions from my side. Thank you.

[Company Representative] (Oatly Group): Thank you, MJ.

Daniel Ordonez: Thank you, Marie-Jose.

Speaker #7: Thank you, Samu. Thank you, Samu.

Daniel Ordonez: Thank you, Samu.

Daniel Ordoñez: Thank you, Samu.

Jean-Christophe Flatin: Thank you, Samu.

Want to double-check the specifics. Yeah. The the only specific anime is on the allocation, we do not allocate any corporate to any individual segments so just keep that in mind as well. Thank you.

Samu Wilhelmsson: All right. Thank you. Perhaps last question, follow up with previous analyst regarding the guidance. You mentioned some rationale behind the guidance of what you have done there. What kind of uncertainties you would see around the guidance, given that if the situation continue as planned, does that, you know, support your ongoing guidance? What would need to happen in order you to go back to the table or revise your guidance assumptions?

Operator: Thank you. We'll take our last question from Andrew Lazar from Barclays. Your line is open.

Speaker #1: Thank you. We'll take our last question from Andrew Lazar, from Barclays. Your line is open.

Speaker #10: Great. Thank you. You mentioned that so far you've not seen any impact on demand from the Middle East conflict. Organic sales were up 8% in the first quarter.

Andrew Lazar: Great. Thank you. You mentioned that so far you've not seen any impact on demand from the Middle East conflict. Organic sales were up, you know, 8% in Q1, and you're still looking for 3% to 5% for the full year. I'm curious if there is something sort of discrete that you know of that will cause organic sales growth to decelerate, you know, from here to get into that 3% to 5% range for the full year, or you're just being, I guess, prudent and thoughtful, you know, in case you see some impact on demand going forward.

Speaker #10: And you're still looking for 3 to 5 percent for the full year. So I'm curious if there is something sort of discrete that you know of that will cause organic sales growth to decelerate from here to get into that 3 to 5 range for the full year, or you're just being I guess prudent and thoughtful in case you see some impact on demand going forward.

All right. Thank you then. Perhaps last question, uh, follow up with previous analysts regarding the guidance. Uh, you mentioned, some rationale behind Biden and what you have done their, uh, but what kind of uncertainties you would see around the guidance? Given that data situation, continuous land, that's that, you know, uh, sport ongoing guidance or what would need to happen in order you to go back to the table of advisor, guidance assumptions.

[Company Representative] (Oatly Group): Thank you, Samu. Perhaps let me first repeat. To date, we are not seeing a demand impact on the Middle East conflict. The question so far with what we know today, the answer to your question is only on costs and therefore, EBITDA. When it comes to that, I think honestly, I cannot predict the unpredictable, or be any certain on the uncertainty. I think we flagged to you, like a lot of industries, most of the cost impact are fuel, so oil leading to fuel and then fuel leading to a few categories. These are the areas we are currently and constantly looking at and monitoring. If there is one space we need to continue to pay attention daily to see what could happen, this is that.

Jean-Christophe Flatin: Thank you, Samu. Perhaps let me first repeat. To date, we are not seeing a demand impact on the Middle East conflict. The question so far with what we know today, the answer to your question is only on costs and therefore, EBITDA. When it comes to that, I think honestly, I cannot predict the unpredictable, or be any certain on the uncertainty. I think we flagged to you, like a lot of industries, most of the cost impact are fuel, so oil leading to fuel and then fuel leading to a few categories. These are the areas we are currently and constantly looking at and monitoring. If there is one space we need to continue to pay attention daily to see what could happen, this is that.

Speaker #7: Thank you so much on the whim. I think you just provided me with two great objectives that I will use again. But first, positioning ourselves on guidance is a balancing act.

Jean-Christophe Flatin: Thank you so much, Andrew. I think you just provided me with two great objectives that I will use again. First, you know, positioning ourselves on guidance is a balancing act. Let me unpack that for you. On one hand, as you can imagine, our recent quarter's performance definitely gives us confidence in our sales guidance. We just posted Q1. We grow very good growth in Europe International. We see a return to a positive volume and sales growth in North America. All of that are great signs of progress. It means our growth playbook is working, reinforcing the strategy, and therefore we really focus ourselves on execution, controlling the controllables. That's on one hand. On the other hand, there are three considerations I want you to have in mind.

Speaker #7: So let me unpack that for you. On one hand, as you can imagine, our recent quarter's performance definitely gives us confidence in our sales guidance.

Speaker #7: We just posted Q1. We drove very good growth in Europe international. We see a return to a positive volume and sales growth in North America.

Thank you. So, uh, perhaps, let me first, repeat today. We are not seeing a demand impact on the Middle East conflict. So the the question so far with what we know today. The question, the answer to your question is on the cost and therefore a BDA uh and when it comes to that setting on a year cannot predict the unpredictable uh or or be any certain on the uncertainty. Uh I think we thank to you like a lot of Industry most of the cost feedback of fuel. So oil leading to fuel and then fuel leading to a few categories. These are the areas we are currently and constantly looking at and monitoring. So either is 1 space. We need to continue to potential daily to see what could happen. This is that

Samu Wilhelmsson: All right. Appreciated for the answers. No further questions from my side. Thank you.

Speaker #7: All of that are great signs of progress. It means our growth playbook is working. Reinforcing the strategy and therefore we really focus ourselves on execution, controlling the controllables, that's on one hand.

[Company Representative] (Oatly Group): Thank you, Samu.

Daniel Ordonez: Thank you, Samu.

[Company Representative] (Oatly Group): Thank you, Samu.

Jean-Christophe Flatin: Thank you, Samu.

Alright, I appreciate it for, for your answers, for questions, from my side. Thank you. Thank you so much. Thank you so much.

Speaker #7: On the other hand, there are three considerations I want you to have in mind. First, you know better than anyone one quarter does not make the year.

Operator: Thank you. We'll take our last question from Andrew Lazar from Barclays. Your line is open.

Jean-Christophe Flatin: First, you know better than anyone, one quarter does not make the year. Second, Europe and international sales strongly picked up in the second part of last year, which means we will compare ourselves to a stronger comm base in H2. Finally, as you said, even if to date we don't see a demand impact from the Middle East conflict, we all know how volatile and dynamic the current environment is and remains. Therefore, as you very well highlighted in your second option, we choose to be conservative and maintain our current outlook for the moment. We will of course, continue to monitor the conditions closely and come back to you. I think you used prudent. I totally subscribe to that.

Andrew Lazar: Great. Thank you. You mentioned that so far you've not seen any impact on demand from the Middle East conflict. Organic sales were up, you know, 8% in Q1, and you're still looking for 3% to 5% for the full year. I'm curious if there is something sort of discreet that you know of that will cause organic sales growth to decelerate, you know, from here to get into that 3% to 5% range for the full year, or you're just being, I guess, prudent and thoughtful, you know, in case you see some impact on demand going forward.

Thank you. We'll take our last question from Andrew, Lazar from our Clays. Your line is open.

Speaker #7: Second, Europe on international sales strongly picked up in the second part of last year, which means we will compare ourselves to a stronger home base.

Speaker #7: In H2. And finally, as you said, even if to date we don't see a demand impact from the Middle East conflict, we all know our volatile and dynamic, the current environment is.

Great. Thank you. Um, you mentioned that so far, you've not seen any impact on on demand, from the Middle East conflict. Um, organic sales were up, you know, 8% of the first quarter and you're still looking for 3 to 5 percentage. So I'm curious if if there is something

Speaker #7: And remains. And therefore, as you very well highlighted in your second option, we choose to be conservative and maintain our current outlook for the moment and we will, of course, continue to monitor the conditions closely and come back to you.

[Company Representative] (Oatly Group): Thank you so much, Andrew. I think you just provided me with two great objectives that we'll, I will use again. First, you know, positioning ourself on guidance is a balancing act. Let me unpack that for you. On one hand, as you can imagine, our recent quarter's performance definitely gives us confidence in our sales guidance. We just posted Q1. We got very good growth in Europe International. We see a return to a positive volume and sales growth in North America. All of that are great signs of progress. It means our growth playbook is working, reinforcing the strategy, and therefore we really focus ourself on execution, controlling the controllables. That's on one hand. On the other hand, there are three considerations I want you to have in mind.

Daniel Ordonez: Thank you so much, Andrew. I think you just provided me with two great objectives that we'll, I will use again. First, you know, positioning ourself on guidance is a balancing act. Let me unpack that for you. On one hand, as you can imagine, our recent quarter's performance definitely gives us confidence in our sales guidance. We just posted Q1. We got very good growth in Europe International. We see a return to a positive volume and sales growth in North America. All of that are great signs of progress. It means our growth playbook is working, reinforcing the strategy, and therefore we really focus ourself on execution, controlling the controllables. That's on one hand. On the other hand, there are three considerations I want you to have in mind.

sort of discreet that, you know, of that will cause organic sales growth to decelerate, you know, from here, to get into that 3 to 5 range for the full year, or you're just seeing, I guess prudent in Buffalo, you know, in case you see some impact on demand going forward,

Speaker #7: So I think you use prudent I totally subscribe to that.

Speaker #10: Great. And then one last quick one. You mentioned that EBITDA in Q2 likely below the level that we saw in one Q. This might be getting too prescriptive, but would is your expectation that EBITDA could still be positive in Q2 or based on what you know today, we should be thinking it's potentially even a bit negative year over year?

Andrew Lazar: Right. One last quick one. You mentioned that EBITDA in Q2 likely below the level that we saw in Q1. This might be getting too prescriptive, but is your expectation that EBITDA could still be positive in Q2? Or based on what you know today, we should be thinking it is potentially even a bit negative year over year. Thanks so much.

Speaker #10: Thanks so much.

Speaker #4: Yeah. Hi, Andrew. This is MJ. So what we said is that Q2 will be lower than Q1. And what we've just heard is that we are managing current situation with all levers that we have.

Marie-Jose David: Hi, Andrew. This is MJ. What we said is that Q2 will be lower than Q1. What you just heard is that we are managing current situation with all levers that we have. I'm not going to say more than that. We are definitely confirming our guidance. I think with those three topics, you can take it.

Marie-José David: Hi, Andrew. This is MJ. What we said is that Q2 will be lower than Q1. What you just heard is that we are managing current situation with all levers that we have. I'm not going to say more than that. We are definitely confirming our guidance. I think with those three topics, you can take it.

Thank you so much on and I think you just provided me with 2. Great subjectives that will I will use again. Uh but first Joe positioning of guidance is a balancing act. So let me unpack that for you on 1 hand you can imagine our recent quotes is performed. Definitely give us confidence in our health guidance. We just posted q1. We have a very good. You very good. Both European National. We see a return to a positive volume as it goes in North America. All of us have great signs of progress. It means Our Gospel book is working reinforcing the strategy and therefore, we really

Speaker #4: I'm not going to say more than that. We are definitely confirming our guidance. So I think with those three topics, you can take it.

Focus of the execution.

[Company Representative] (Oatly Group): First, you know better than anyone, one quarter does not make the year. Second, Europe and International sales strongly picked up in the second part of last year, which means we will compare ourselves to a stronger comp base in H2. Finally, as you said, even if to date we don't see a demand impact from the Middle East conflict, we all know how volatile and dynamic the current environment is and remains. Therefore, as you very well highlighted in your second option, we choose to be conservative and maintain our current outlook for the moment, and we will of course continue to monitor the conditions closely and come back to you. I think you used prudent, I totally subscribe to that.

Daniel Ordonez: First, you know better than anyone, one quarter does not make the year. Second, Europe and International sales strongly picked up in the second part of last year, which means we will compare ourselves to a stronger comp base in H2. Finally, as you said, even if to date we don't see a demand impact from the Middle East conflict, we all know how volatile and dynamic the current environment is and remains. Therefore, as you very well highlighted in your second option, we choose to be conservative and maintain our current outlook for the moment, and we will of course continue to monitor the conditions closely and come back to you. I think you used prudent, I totally subscribe to that.

Speaker #10: Yeah. Thank you.

Andrew Lazar: Yep. Thank you.

Speaker #11: Thanks.

Jean-Christophe Flatin: Thanks, Andrew.

Speaker #7: Thank you, Andrew.

Speaker #1: Thank you. That does reach our lot of time for Q&A. I'll now turn the call back over to our presenters for any final or closing remarks.

Andrew Lazar: Thank you.

Operator: Thank you. That does reach our allotted time for Q&A. I'll now turn the call back over to our presenters for any final or closing remarks.

Speaker #11: Thank you very much.

Jean-Christophe Flatin: Thank you very much.

Speaker #7: Thank you, everyone. Thank you for joining. And have a great day.

Blake Mueller: Thank you, everyone. Thank you for joining, and have a great day.

[Company Representative] (Oatly): Thank you, everyone. Thank you for joining, and have a great day.

Speaker #11: Have a good day.

Jean-Christophe Flatin: Have a good day.

Speaker #4: Thank you very much.

Marie-Jose David: Thank you very much.

Marie-José David: Thank you very much.

Jean-Christophe Flatin: Take care. Bye.

Speaker #11: Take care. Bye.

Speaker #7: Thank you.

Andrew Lazar: Thank you.

Daniel Ordoñez: Thank you.

Speaker #4: Bye-bye.

Marie-Jose David: Bye-bye.

Marie-José David: Bye-bye.

Operator: Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Andrew Lazar: Great. One last quick one. You mentioned that EBITDA in Q2 likely below the level that we saw in Q1. This might be getting too prescriptive. Is your expectation that EBITDA could still be positive in Q2 or based on what you know today, we should be thinking it's potentially even a bit negative year-over-year? Thanks so much.

That's on my hand. On the other hand, there are 3, considerations. I want you to have in mind first, you know, better than a 1 1 quarter do not make the year. Second European International sales strongly picked up in the second part of last year, which means we will compare ourselves to a stronger comb base in H2. And finally, as you said, even if to date, we don't the demand impact from the Middle East conflict. We all know how volatile and dynamic. The current environment is and remains. And therefore as you very well highlighted in your second option, we choose to be conservative and maintain our current look for the moment. And we will, of course, continue to monitor the conditions closely and come back with you. So I think you use credit. Uh, I totally subscribe to that, right? And then, 1 last Quick 1. Um, you mentioned, I need uh, in 2 Q uh, likely below the level that we saw in 1 Q. Um this might be getting 2 prescriptions but would um is your expectation give it to could still be

[Company Representative] (Oatly Group): Yeah. Hi, Andrew. This is MJ. what we said is that Q2 will be lower than Q1. what you've just heard is that we are managing current situation with all levers that we have. I'm not going to say more than that. We are definitely confirming our guidance. I think with those three topics, you can take it.

Marie-Jose David: Yeah. Hi, Andrew. This is Marie-Jose. what we said is that Q2 will be lower than Q1. what you've just heard is that we are managing current situation with all levers that we have. I'm not going to say more than that. We are definitely confirming our guidance. I think with those three topics, you can take it.

Positive in 2 Q or, or based on what you know today, we should be thinking it potentially even a bit negative here every year. Thanks so much.

Andrew Lazar: Yeah. Thank you.

Yeah. Hi Andrew. This is MJ. Um, so what we said is that Q2 will be lower than 2 months and what we've just heard is that we are managing current situation with all levels that we have. I'm not going to say more than that. We are definitely confirming our guidance. So I think those 3 topics, you can, uh, you can take it.

[Company Representative] (Oatly Group): Thanks, Andrew.

Daniel Ordonez: Thanks, Andrew.

Thanks, thank you.

[Company Representative] (Oatly Group): Thank you.

Jean-Christophe Flatin: Thank you.

Operator: Thank you. That does reach our allotted time for Q&A. I'll now turn the call back over to our presenters for any final or closing remarks.

[Company Representative] (Oatly Group): Thank you very much.

Daniel Ordonez: Thank you very much.

Thank you. That does reach our limited time Q&A. I'll now turn the call back over to our presenters for any final or closing remarks.

[Company Representative] (Oatly Group): Thank you, everyone. Thank you for joining, and have a great day.

Jean-Christophe Flatin: Thank you, everyone. Thank you for joining, and have a great day.

[Company Representative] (Oatly Group): Have a good day.

Daniel Ordonez: Have a good day.

[Company Representative] (Oatly Group): Thank you very much.

Marie-Jose David: Thank you very much.

[Company Representative] (Oatly Group): Take care. Bye.

Daniel Ordonez: Take care. Bye.

[Company Representative] (Oatly Group): Thank you.

Jean-Christophe Flatin: Thank you.

[Company Representative] (Oatly Group): Bye-bye.

Marie-Jose David: Bye-bye.

Operator: Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Thank you very much. Thank you everyone. Thank you for joining and have a great day. Have a good day. Thank you very much. Bye. Thank you. Bye bye.

Thank you. That brings us to the end of today's meeting. We appreciate your time and participation you may now disconnect

Q1 2026 Oatly Group AB Earnings Call

Request DemoDemo

Oatly Group

Earnings