Oatly cut its sales outlook and announced an improvement plan in Asia as consumers in the region moved away from its drinks post-Covid.

Full-year revenue growth is expected between 7% to 12%, down from 23% to 28% previously. Oatly's Q2 revenue missed analyst estimates.

$OTLY is down -24% today, the most it has ever fallen in a single day since it was listed in May 2021.

Oatly is planning on simplifying their portfolio of products in order to reduce operating costs.

CEO Jean-Christophe Flatin said that consumers behaved differently than they expected post-Covid. Oatly is downsizing corporate functions and overhead in the Americas because of this.

The wrong move: Oatly made significant investments in new products, distribution, and promotions with the assumption that they had traction. They did not.

Oatly will save ~$85 million from the downsizing efforts in 2024, but there will be some new impairment charges such as severance.