Loss-making Oatly has booked a hefty impairment cost associated to final 12 months’s resolution to not proceed with the development of three manufacturing vegetation.

The branded oat-drinks maker for retail and foodservice set out a plan early final 12 months below earlier CEO Toni Peterson to achieve profitability in fiscal 2024 below an “asset gentle technique”.

New chief Jean-Christophe Flatin, who moved from president of the Sweden-headquartered enterprise in June, stated within the outcomes commentary at the moment (15 February) for the 2023 monetary 12 months that Oatly’s focus for the brand new season is on its “prime precedence of driving towards worthwhile development”.

Nevertheless, the choice to desert plans for added websites in Peterborough, within the UK, one other within the US metropolis of Fort Value and a 3rd in China, has come at a value.

Within the fourth quarter to 31 December, Nasdaq-listed Oatly booked a non-cash impairment cost of $172.6m and “different prices” of $29m, “associated to discontinued development of sure manufacturing amenities”.

These prices had been booked inside working and earnings bills, which rose to $204.3m from $41.1m within the prior 12 months.

“The corporate might incur further prices not at present contemplated resulting from occasions related to the discontinuation of development at these amenities,” in accordance with Oatly’s outcomes commentary.

Income for the quarter rose 4.6% on a reported foundation to $204.1m, with volumes up 2% and worth/combine a constructive 0.5%.

Oatly’s gross margin climbed 750 foundation factors to 23.4% however the firm booked losses in different elements of the P&L.

EBITDA losses widened for the quarter to $228m, from $111.2m a 12 months earlier, though the adjusted EBITDA loss shrank to $19.2m from $60.4m.

Losses earlier than tax additionally widened, to $293.1m from a $121.9m loss.

“It was a pivotal 12 months the place we executed a big re-calibration of your entire organisation to stabilise our enterprise and guarantee we’re correctly positioned for long-term success,” Flatin stated.

“As we enter 2024, our monetary steerage requires strong top-line development, whereas delivering vital revenue enchancment as we concentrate on our prime precedence of driving towards worthwhile development.”

It was the same image for the total 12 months 2023 outcomes. Reported income rose 8.5% to $783.4m, with volumes up 3.1% and worth/combine 5.6%.

The EBITDA loss widened to $405.2m versus the $347.4m in fiscal 2022, and in adjusted phrases losses narrowed to $157.5m from $267.9m.

Losses earlier than tax remained within the pink at $408.2m, in comparison with a $397.3m loss.

Oatly’s shares had been down nearly 15% at $1.15 on the Nasdaq alternate as of three:53pm UK BST at the moment.

Not a number of topside was painted into the gross sales development outlook for fiscal 2024, with Oatly pointing to gross sales income development of 5% to 10%.

Adjusted EBITDA steerage was extra constructive, albeit nonetheless in unfavorable territory, with the corporate outlining losses within the vary of $35 to $60m.

By way of free money movement, Oatly stated it booked a $234.7m “outflow” for the 12 months to 31 December, in comparison with an “outflow” of $475.1m within the earlier 12 months.

“The development in free money movement was pushed each by decreased internet money flows utilized in working actions and decrease capital expenditures,” it stated.

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