Ammo Inc. isn’t a new player in the ammunition market, but they’re also not one of the bigger names. They’re also relatively new as a publicly-traded company. Luckily, they’re an ammo company at a time when there’s an ammunition shortage.
But, running a company is hard. No matter how much demand for a product there is, if you can’t make a profit, you’re not going to stick around long, and there are a lot of ways a company can trip up and fail to make a profit.
Ammo, Inc., an ammunition maker that recently broke ground on a new factory, announced its first profitable quarter since going public four years ago, as expands its new role as an online gun seller.
The company, based in Scottsdale, Arizona, announced that net sales surged more than 300% in the quarter, compared to last year, to $44.5 million. But Ammo Inc. executives, in an earnings call with investors, attributed 70% of the profit to its recently acquired online firearms marketplace, GunBroker.com.
Ammo, Inc. Chief Executive Officer Fred Wagenhals followed through on his promise, stated earlier this year, that the company would stop losing money and start making a profit in its first quarter for fiscal year 2022, ended June 30, 2021. The company said its quarterly net income was $9.5 million, compared to the year-ago loss of $3.1 million.
Ammo, Inc. said that sales were driven by “strong growth” in ammunition sales, which rose to $28.4 million in the first quarter compared to $6.4 million in the year-ago quarter. But the company attributed the lion’s share of profit to its acquisition of GunBroker.com, an online firearms retailer, on April 30, 2021.
The company said that Gunbroker.com “added over $12 million of high-margin marketplace revenue” during the quarter.
That certainly didn’t hurt, to be sure.
Honestly, if a company was losing money for years selling ammunition, this is definitely the right time to turn things around. People are desperate for ammunition and aren’t as picky as they might have been in the past. It’s a good time to be in the ammo business.
I’ll be honest, if I had the money, I’d start producing ammunition as well. It’s a good time to break into the business. Plus, insiders tell us that this isn’t likely to change in the near future, which means it’s a good time to carve out your own niche.
Ammo Inc’s acquisition of Gunbroker certainly won’t hurt the bottom line, that’s for sure. The demand for guns was high due to the pandemic and last summer’s rioting and will remain high for the next few years. After all, whenever you have a gun-grabber in the White House, what can you expect.
After all, Obama wanted to take the guns but knew he didn’t have the support to do it and he helped sell millions of guns. Biden is actually trying to get them. He’ll sell even more.
That means a lot of people hopping on Gunbroker to see if they can scout any deals. That’s a win for the online gun seller and their parent company.
Ultimately, it’s a win for all of us.