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Weber Grills plans to launch a new line this year that redefines propane grilling, CEO Chris Scherzinger told CNBC on Thursday ahead of the company’s public listing.
On “Squawk on the Street,” Scherzinger said the internet-connected line will be able to measure propane levels, alert users when the tank is low and “refuel you.”
“You can now have a whole new business model for Weber subscriptions, consumer engagement between grilling experiences, all kinds of new ways to take that category,” Scherzinger said, adding that the company was planning to unveil the new one. “game changer” in about three months.
Weber shares, which trade under the ticker symbol “WEBR” on the New York Stock Exchange, were up more than 16% on Thursday morning. Weber’s debut comes about a week after rival grill maker Traeger raised $ 424 million on its IPO.
Weber raised about $ 250 million when it went public on Thursday, selling about 17.9 million shares at $ 14 apiece, according to a company statement. That’s less than half of the amount he intended to raise last month, when he announced his intention to sell 46.88 million shares for between $ 15 and $ 17 each, raising up to 797 million dollars for a valuation of about 5 billion dollars.
“We don’t really focus on the day-to-day or the bumps and noise. We focus on the long term,” said Scherzinger, when asked about the reduced IPO. “What we’re doing is investing in growth, and the investors we’ve spoken to are very excited about our lead going forward.”
Weber sells gas, electric and charcoal grills. Based in Illinois, it operates in 78 countries around the world and has 4,710 business partners around the world. In the six months ending March 31, Weber reported revenue of $ 963.3 million, up 62% from the same window a year earlier. Net income also jumped 213% year-over-year to $ 73.8 million during that six-month period.
Scherzinger said the company’s direct-to-consumer and e-commerce initiatives now represent more than 20% of the company’s business and generated more than 65 million visitors to its website last year. Since 2018, Weber’s direct-to-consumer sales business has seen a compound annual revenue growth rate of 47%, according to its filings with the SEC.
“By a wide margin, we have an average lead of three times over the No.2 player in each country, and in each country he’s a different No.2,” Scherzinger said. “This has resulted in 70 years of double-digit sales growth, and we look forward to a very long track for a $ 49 billion market ahead of us.”
– Reuters contributed to this report.
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