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Do we like Oatly?

Makes oat-based milks and other dairy alternatives; Swedish company, headquartered in Malmö, Sweden.

Our score: 6 out of 10. A genuinely plant-based mission and a return to profit, but past greenwashing claims and a state-linked major owner make us cautious. We'd back them with some reservations.

Oatly is a Swedish oat-drink brand that grew into a global name and listed on Nasdaq. It's now run by Jean-Christophe Flatin, a former Mars executive, after Toni Petersson moved to co-chairman.

Ownership is a talking point. The China Project reported that a joint venture between state-owned China Resources and Belgian investor Verlinvest held 55.9% before the IPO. Oatly's own IPO filing said the venture would have significant influence.

Then the drama. Investors led by Kai Jochims sued in 2021 after a short-seller's accusations. They alleged Oatly had over-promoted demand and overstated how green it was. Oatly agreed to pay $9.25m to settle. Separately, a UK ad campaign was banned in 2022 for misleading environmental claims.

Lately it looks better. Oatly reported its first profitable full year in seven years for 2025 and raised its 2026 growth outlook. It's also putting $16m into its Landskrona plant. A China business review could end in a sale. We'd say cautious yes.

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