{ "docId": "019dd923-622c-750b-8b99-17900a3ad1c6", "docSlug": "4ee8cca82f1a", "documentTitle": "Oatly Group AB (OTLY)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-07-14 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 59, "pageCount": 124, "prevPage": 58, "nextPage": 60, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 12, "notes": "Uses a red flag icon and callout boxes to highlight financial reporting discrepancies.", "elementsJson": [ "headline_text", "callout_box", "bar_chart_stacked", "pie_chart", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-17900a3ad1c6/59", "deckHref": "/decks/019dd923-622c-750b-8b99-17900a3ad1c6", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-17900a3ad1c6.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-17900a3ad1c6#slide-59", "components": [ { "bbox": { "h": 0.15, "w": 0.35, "x": 0.55, "y": 0.48 }, "kind": "callout", "text": "Read the fine print! No where does it say that Oatly's Gross Profit may not be directly comparable to industry peers as a result of a financial decision it has made related to distribution costs.(1)", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "52877b8d-792f-4620-a538-bb5416a662c7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.88, "x": 0.07, "y": 0.17 }, "kind": "callout", "text": "Warning: Setting aside the fact that Oatly discloses that 2018 figures are “estimates” derived from Swedish GAAP accounts that are converted and re-cast into IFRS, it also fails to disclose that its Gross Profit presentation is not comparable to how other companies in its industry present this metric. On the next slide, we will illustrate that Oatly fails to capture shipping costs as a critical expense in COGS. We believe this is a material omission that leaves investors with a potentially misleading view of its financial performance.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6e1211b7-fbc2-418b-a22f-f2217c42d99b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Read the fine print! No where does it say that Oatly's Gross Profit may not be directly comparable to industry peers as a result of a financial decision it has made related to distribution costs.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0397-72dc-a87b-c9443adf1b5c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.45, "x": 0.08, "y": 0.35 }, "kind": "chart", "text": "Revenue and Gross Profit bar charts", "attrs": null, "subkind": "bar-stacked", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9fd57109-e795-4f7c-90ef-85a18626b242", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.45, "x": 0.08, "y": 0.65 }, "kind": "chart", "text": "Sales by Region and Channel pie charts", "attrs": null, "subkind": "pie", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3c87a947-adf5-4c15-aff2-687eb14a2c74", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Gross Profit", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-0397-72dc-a87b-d21791a69476", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.4, "x": 0.55, "y": 0.85 }, "kind": "paragraph", "text": "1) Note: Beyond Meat explicitly tells investors: “we include outbound shipping and handling costs within SG&A expenses. As a result, our gross profit and gross margin may not be comparable to other entities that present all shipping and handling costs as a component of cost of goods sold” Source: 10-K, p. 70", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3ed7e56d-e64f-497b-8073-7a1dadaaaf04", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Beyond Meat explicitly tells investors: \"we include outbound shipping and handling costs within SG&A expenses. As a result, our gross profit and gross margin may not be comparable to other entities that present all shipping and handling costs as a component of cost of goods sold\" — Beyond Meat", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0397-72dc-a87b-cdba8a00edbd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.2, "x": 0.05, "y": 0.95 }, "kind": "source-note", "text": "Source: Oatly F-1 SEC filing", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "21546e76-522d-4b32-88a6-5a862c9bbcf4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.7, "x": 0.28, "y": 0.03 }, "kind": "title", "text": "Oatly's Prominently Displays Gross Profit As A Key Financial Metric.....But Guess What.....", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d39f240b-a466-4745-97e3-19b75e94f077", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "521d312a-7973-4e4e-be92-9f25abc2125b", "evidence": "Highlights material omissions in financial reporting to expose misleading metrics.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }