Oatly recorded a 15.2% hike in year-on-year sales during Q2 2026, boosting its yearly forecast as the oat milk leader moves to become a “full-on” beverage company.
Swedish oat milk maker Oatly is building on its recent growth by “setting global beverage trends” and positioning young consumers as a “strong foundation” for multi-year success.
The company posted a global revenue of $240M in Q2 2026, a 15.2% jump compared to the same period last year, with volume sales also up by 11.2%.
Its gross profit expanded by 20.4% to reach $81.4M, while net losses shrank by 44%, totalling $31.3M. Oatly’s adjusted EBITDA for the period (revenue excluding all non-operational and one-time expenses) was a positive $0.4M, compared to a $3.6M loss 12 months ago.
“Our second quarter results reflect the disciplined execution of our strategy, including improvements to the mix of channels, customers, and products. Our growth playbook is outperforming expectations in Europe and gaining traction in North America,” said Oatly CEO Jean Christophe-Flatin.
“These strong returns reinforce our commitment to reinvest in the business, and we are pleased to increase our outlook for revenue growth in 2026,” he noted. Oatly is now anticipating a constant currency revenue increase between 8-10%, up from the earlier forecast of 3-5%.
It comes as the company continues to navigate the “uncertainty and volatility” of the ongoing US-Israel war in Iran, which continues to create cost pressure headwinds that the business has been able to absorb. It’s why the adjusted EBITDA forecast for 2026 remains unchanged at $25-35M.
Oatly outpaces plant-based milk growth, but uncertainty looms over China business
The Europe and International segment remains Oatly’s largest market, with revenue rising by 21% to reach $143.1M in the April-to-June period, fuelled largely by a 17% growth in volume from its barista oat milks. Retail sales made up 77% of sales in this region, with the company outpacing the overall oat milk and plant-based milk categories.
“Because we are confident in our beverage playbook, because we see this momentum, we have decided – despite the Middle East conflict headwinds – to consciously and carefully reinvest behind the growth in Europe and International in order to fuel the success,” COO Daniel Ordoñez told investors in an earnings call.
After returning to growth in North America in the first quarter of the year, the company continued to find success with a near-6% hike in sales, reaching $66.9M. “In retail measured channels, we have reached our near record high market shares in both oat milk and plant-based beverages,” he said.
Oatly is growing faster than both the dairy and plant-based milk segments in North America. However, Ordoñez stated that the macro backdrop “remains challenged by tight household financial conditions and the saturation of protein-fortified products”. “We are conscious and at the same time optimistic about our ability to change this dynamic,” he noted.
“We have made significant progress diversifying our customer base. This will provide greater balance and resiliency for the channel in the future,” he explained. “Momentum from new and existing customers will soon eliminate the headwind from the customer who was previously our largest in [the foodservice] channel.”
The company also enjoyed an 11.6% hike in Greater China, where revenues reached $3.1M in Q2 2026, primarily driven by an increase in the retail channel and partially offset by a decline in foodservice due to higher competition.
Performance in this region has been topsy-turvy for the company, which has been conducting a strategic review here. Set to be completed this year, it could result in Oatly selling its China business.
According to Bloomberg, executives handling its operations in the East Asian country are considering buying out this business, looking to reach a deal as soon as this year. “We continue to evaluate a range of options, including a potential carve-out,” Flatin told investors this week.
Oatly teases fibre focus as it broadens beverage focus
After several years of declining sales, Oatly employed a taste-led strategy to turn its fortunes around. This has entailed partnerships and live events focused on trendy beverages, seasonal recipe ‘lookbooks’ inspired by the fashion industry, a Future of Taste trend report to court Gen Z, and an expansion of its lineup with in-demand flavours.
For instance, Oatly has introduced a matcha latte range and barista oat milks in churros, coconut and popcorn flavours, and became the first company to launch a dedicated non-dairy milk for cold foam.
“Multiple new doors are opening as Oatly pivots to become a full-on beverages company, which is relevant to a much broader population and across multiple new occasions, still anchored on the same brand uniqueness, generational relevance with taste, health, and sustainability at the core,” said Ordoñez.
“Our expanding portfolio of flavours and formats drives differentiation in a beverages market undergoing significant change, as customers are eagerly renovating their menus and shelves to be more relevant in meeting the rising expectations of younger generations,” he added.
Giving a glimpse of the company’s product development process, he explained: “Oatly becomes increasingly relevant to the growing refreshment and mixology movement, significantly expanding the creativity of our foodservice partners. The most promising drinks make it all the way into the retail space for in-home consumption.”
Last year, Oatly suggested that fibre was “coming for protein’s crown”, and began capitalising on the fibermaxxing trend by highlighting its fibre credentials on-pack. In the US, 60% of Gen Zers are interested in fibre-rich food and drink products, and 62% say the same in the UK.
“We are super excited […] on how, in the U.S. and as well in Europe, the search and the uptake for gut health and fibres seems to be significantly increasing,” Ordoñez noted.
“As we are an oat milk company that comes from the good of oats, we see a significant opportunity there,” he added. “We have exciting stuff coming up in the next few months.”
