(Bloomberg) -- Oatly Group AB tumbled after the newly public maker of vegan food and drink cut its sales expectation for the year, citing supply-chain snarls and pandemic-related obstacles that are weighing on growth.
Revenue will exceed $635 million in 2021, Oatly said Monday in a statement as it reported third-quarter earnings, a reduction from its prior forecast of above $690 million. Analysts had expected about $694 million, according to the average of estimates compiled by Bloomberg.
Read more: Oatly Group misses Wall Street's sales estimates
Oatly, which went public in May, said it struggled with pandemic restrictions in Asia and challenges to scale up production in the U.S. In the Europe-Middle East-Africa region, “the pace at which we expected to increase revenue in new and existing retailers and to open new markets is slower than we anticipated as we navigate a dynamic Covid operating environment.”
The issues underscore the concerns for plant-based food companies as they try to build upon the recent surge in consumer demand at a time of widespread production challenges for the food industry. Manufacturers are grappling with issues from rising costs to labor shortages.
Oatly's U.S. shares plunged 20% to $9.44 at 9:43 a.m. in New York. The stock is trading well below its $17 IPO price.
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