Shares of Oatly Group climbed after the company raised its full-year outlook, as it narrowed its loss and logged higher revenue in the second quarter.

The stock rose 16%, to $10.50, in premarket trading Wednesday. Through Tuesday's close, shares have lost nearly one-fifth of their value year to date.

The Swedish oat-milk maker said before the bell that it now expects revenue growth of 8% to 10% this year in constant currency, up from a prior outlook for growth 3% to 5%.

The company continues to expect adjusted earnings before interest, taxes, depreciation and amortization--which strip out exceptional and other one-off items--of between $25 million and $35 million. It also expects capital expenditures in a $20 million to $30 million range.

Oatly's higher revenue outlook came as the company posted a narrowed second-quarter loss of $31.3 million, or 99 cents per American depositary share. That compared with a loss of $55.9 million, or $1.86 per ADS, a year earlier.

Quarterly revenue climbed 15% to $240.1 million, topping the $219.5 million that Wall Street modeled.

Chief Executive Jean-Christophe Flatin said the results reflect demand-led value creation, as well as the execution of Oatly's strategy to improve its mix of channels, customers and products.

"Our growth playbook is outperforming expectations in Europe and gaining traction in North America," he said.

"We continue to make progress reducing our cost structure, and the cost pressures associated with the conflict in the Middle East are tracking according to our expectations."

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

July 22, 2026 08:17 ET (12:17 GMT)

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