It's kind of funny but this Grilling is like Pelaton-- Pandemic made people cook more.....
Financial results
Weber has a long track record of consistent revenue growth, generating a compound annual growth rate (CAGR) of 10%, going all the way back to 1980.
Spurred on by the lockdowns resulting from the pandemic, many people turned to outdoor grilling in lieu of going to restaurants. For the 2020 fiscal year (ended Sept. 30, 2020), revenue grew 18% to $1.53 billion, while net income jumped 77% to $89 million.
The growth spurt has continued this year. For the six months ended March 31, revenue surged 62% year over year to $963 million, while net income more than tripled to $74 million.
Is Weber a buy?
It's important to note that while Weber has a long track record, it's not without risk. Prior to the pandemic, sales growth had reversed course. In fiscal 2019, sales of $1.3 billion slipped 3% year over year, while net income slumped 56%. While Weber's growth has been nothing short of phenomenal over the past 18 months, it could potentially come to a screeching halt as the economy begins to open back up. The current growth surge will also make for difficult comps in the upcoming quarters.
Additionally, Weber will have a dual-class share structure that will keep control of the company away from investors and firmly in the hands of BDT Capital Partners, which will control more than 70% of the voting rights of the company.
