Weber
Weber, the portable braai/grill company, posted its inaugural quarterly results as a public company after its initial public offering in the beginning of August. For the quarter ended June 30 2021, Weber set a fifth straight year-over-year quarterly sales record.
Fiscal third-quarter revenue rose 19% year-over-year to $669 million - and projected full-year sales to be up between 28% to 29%. Net sales increased 8% in the Americas for the third quarter, to $339 million. EMEA sales jumped 35% to $307 million in the period, and the APAC region saw sales rise 25%, to $23 million from the prior year quarter.
Despite distribution, inbound freight, and commodity cost inflation headwinds, adjusted EBITDA rose 10% to $134 million. Net income decreased 78%, to $18 million, compared to $79 million in the prior year quarter. Adjusted net income decreased 6% year-over-year, to $85 million.
The company had cash and cash equivalents of $146 million and $294 million of available borrowings under its revolving credit facility at the end of the quarter. Net cash provided by operating activities was $289 million for the quarter compared to $333 million in the year ago period, with the decrease driven primarily by normalized inventory levels in 2021 versus low levels in 2020 during the pandemic.
Total debt at the end of the quarter was a hefty $1.24 billion as Weber continued to invest in strategic investments to accelerate growth via increased new product innovation, expanded digital marketing reach, accelerated geographic expansion, and amplified direct-to-consumer initiatives.
Weber CEO Chris Scherzinger is predicting more sales success this fall as gatherings pick up. He said weber is a post-pandemic play because it’s all about people coming back to parking lots outside of stadiums for football tailgates, as well as going camping, or even just getting together with groups at home. For many people, Covid-era flexible work policies, even if it’s in hybrid form with employees spending a few days in the office and a few days working at home, are likely to outlast the pandemic. Sherzinger said this means more grill time at home, on weeknights, versus where we were pre-pandemic.
