Amid rising interest in ESG investing and socially-conscious consumers, oat milk maker Oatly (OTLY) is the latest IPO to cash in on the better-for-you boom.
Oatly produces a portfolio of plant-based dairy alternatives including milks, ice cream, yogurt, cooking creams, spreads, and on-the-go drinks. The company boasts the #1 brand of oat dairy alternative in its home country of Sweden, as well as the US, the UK, and Germany. Plant-based dairy alternatives represent an $18 billion market globally, though Oatly believes that in the long term its products can compete in the nearly $600 billion global dairy industry.
Backed by Verlinvest, China Resources, and Blackstone, Oatly has raised over $500 million to fuel its recent growth, and cites an expansion within China as one of its largest near term opportunities.
Oatly grew revenue to $421 million in 2020, an increase of 107% as plant-based alternatives gained traction with health- and environmentally-conscious consumers. Growth came down to 66% in the 1Q21, while investments in sales and marketing (including its quirky Super Bowl commercial) caused EBITDA loss to widen to -$23 million, a -16% margin.
Over the last few years, the IPO market has seen a variety of plant-based and ESG-focused food and beverage companies come public.
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