Grill brand Weber is in search of a new CEO, shares fall

After Weber abruptly announced that CEO Chris Scherzinger is leaving amid declining demand for its goods in shops and online, shares of the company fell more than 20% in premarket trade on Monday.

In order to facilitate a permanent CEO search, the company nominated Alan Matula, its chief technology officer, as temporary CEO, effective immediately.

Matula has been the Chief Technology Officer at Weber since March of this year, heading the company's R&D organization, IoT and digital efforts, as well as its worldwide IT department. He has been the Chief Information Officer at Weber since 2015. He previously worked at Weber as the company's chief information officer.

Preliminary figures for the three months that ended on June 30 were also released by the business, with net sales estimated to be between $525 million and $530 million. Slower retail sales in shops and online stores in all major areas, according to Weber, has negatively impacted company performance. In addition, it suffered from ongoing currency devaluations.

Weber's board, according to Kelly Rainko, a non-executive chair, is acting swiftly to better position the company to handle historical macroeconomic issues, such as inflation and supply chain challenges that are affecting consumer confidence, spending habits, and profitability.

“Weber is the clear global category leader, and our promise of quality and innovation lives at the center of everything we do. We remain committed to delivering the very best outdoor cooking experiences to our customers around the world. The Board thanks Chris for his contributions to Weber over the past four years, Rainko said.”

The business claimed that its management thinks the slower retail traffic is the cause of heightened consumer pressure from factors like growing inflation, supply chain limitations, gasoline expenses, and geopolitical unpredictability.

The challenges are anticipated to last through Weber's fiscal fourth quarter, the company added.

Weber's adjusted EBITDA is expected to be marginally profitable, which is much less than the internal budget for the previously provided adjusted EBITDA estimate for fiscal year 2022. In addition, the company anticipates a net loss for the quarter ending June 30, 2022. Large deflationary pressures within the quarter, marketing initiatives to promote retail sale through, lower profit countries and product mixes, and also massive increases in shipping costs all had a direct effect on profitability.

In addition, Weber disclosed that it is working on various of financial transformation projects, some of which may involve staff reductions, lower COGS and SG&A costs, and tighter control over its global inventory and working capital positions.

The company is retracting its fiscal year 2022 Net Sales and Adjusted EBITDA forecast due to the uncertainties caused by the previously mentioned market circumstances.

Additionally, the Weber Board of Directors has postponed the quarterly cash dividend and is dedicated to collaborating with financial partners to continue adhering to the credit facility conditions.

The Illinois-based firm with headquarters in Palatine announced that it is thinking about layoffs and other cost-cutting measures, such as limiting its inventories.

More information will be provided, according to Weber, when it releases its financial third-quarter results on August 15.

About WEBER INC.

Weber is a global leading grill brand, with headquarters' Palatine, Illinois. Weber offers a wide array of cutting edge products f or those who enjoy outdoor cooking, including charcoal, gas, pellet, electric, and smokers. These products also include a variety of accessories. To hasten the advancement of the Weber Connect® technology and digital offerings, the company purchased June Life Inc. in 2021, a maker of smart appliances and technologies. A subsidiary called 1952 Ventures was also recently established by Weber.