Ooni is the largest and the oldest company in the popular consumer pizza oven space. Despite that, they’ve experienced the same challenges as the rest of the outdoor cooking sector.
Ooni’s financials were recently filed for 2023, and they took quite a hit on revenue for the year. They impressively maintained flat revenue from 2021 to 2022, but it fell off by 24% in 2023 to $194 million. Below is a three-year look at their summary income statement with a currency conversion of 1.23 USD to 1 GBP.
They’ve seen gross margin improvement every year for the business, but it’s hard to overcome some a large loss of revenue. That translated to an operating loss of $7.3 million on the year.
Despite the hit on revenue, there was some positive movement for the company financially that they can build on. The biggest thing is they sold down their inventory from $69 million in 2022 to $34.4 million in 2023.
They effectively used the cash from the decrease in working capital to pay down debt. At the end of 2022 they had about $35.2 million in bank debt, and they ended 2023 with just $2.8 million.
That debt is the in the form of a credit revolver, which was renewed in February 2024. Interestingly enough, Ooni used to have debt with Silicon Valley Bank, which famously collapsed. Luckily, HSBC bought their debt and Ooni didn’t seem to run into any major hiccups from it.
Ooni had been rapidly growing until the crash of the outdoor cooking market. Their 2023 brought some stability to their business.
Despite the decline in revenues and the uncertainty of the geopolitical backdrop, 2023 has been a year of relative operational stability for the group, in comparison to the tumultuous period of growth since 2019. Manufacturing timelines, transit times and global sea freight rates returned to pre-pandemic levels. Our headcount only grew by 8% from the start to the end of 2023, compared to 44% in 2022 and 191% in 2021.
Ooni’s 2023 Strategic Report
In 2024, Ooni released some new innovation with their Koda 2 Max pizza oven. It’s a large, 24″ oven with all their latest connected tech, and even two zone cooking. That’s a segment of the market that they hadn’t tapped yet. Between their new products and their better inventory position, it should help their results for 2024.