Sam Boughedda

Investing.com — Oatly Group’s (NASDAQ:)Stock price dropped 18% Monday following the release of third-quarter earnings. The company also reported missing revenue consensus, reporting supply chain disruptions and its third-quarter results.

On revenue of $171.06million, the vegan and plant-based milk business reported a 7 cent loss per share. The polled analysts by Investing.comA per-share loss was anticipated at 9 cents for revenue $185.89 millions.

For the year ahead, revenue is expected to surpass $635 million. That’s below the consensus estimate of $694.1 Million.

Oatly informed investors as well that they are investigating an issue at one of their production facilities. This could result in lost inventory sales across the EMEA.

The effects of Covid-19 have also been felt in this region.

Oatly stated that EMEA is building supply to satisfy consumer demand. However, the rate at which we expect to grow revenue in existing and new retailers, and open new markets, is slower than expected as we operate in a dynamic COVID environment.

It is believed that the issue “is primarily timing related” and it anticipates having an “increased market share at retail in the first quarter of 2022 due to our high velocities, current supply levels, and strong sales.

Toni Petersson (Oatly CEO) stated: “Global consumer demand continues to be strong for our products as we increase production and expand our operations. This strong third-quarter revenue growth reflects broad-based, cross-geography growth.

However, Petersson revealed another challenge the company is facing, again arising from Covid-19 — supply chain issues from the Delta variant-related restrictions and temporary foodservice closures in Asia, which has hit its revenues by around $3 million..