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November 18, 2021

Chobani IPO documents show sales up, losses widening

The US dairy – and now dairy-alts – supplier did see sales grow faster than losses in the first nine months of 2021.

Chobani, the US yogurt and oat-milk maker, has formally filed its plans to go public in New York.

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The company, set up in 2005 by CEO Hamdi Ulukaya, did not set out the terms of the share offer, including a prospective IPO price and the proceeds it hoped to raise.

However, Chobani, which is to trade on the Nasdaq under the ticker symbol CHO, said it would use the receipts from the IPO to repay debts. It added: “The principal purposes of this offering are to increase our financial flexibility, create a public market for our Class A common stock, and facilitate our future access to the capital markets.”

In what the company called a “preliminary prospectus”, its recent financial results were set out.

During Chobani’s fiscal year to 26 December, the business generated net sales of US$1.4bn, up 5.2% on a year earlier.

An “adjusted EBITDA” figure of $191m was provided – equating to year-on-year growth of 7.8% – as was a net loss of $58.7m, more than treble that from the year before.

More recently, in the nine months to 25 September, Chobani booked net sales of $1.21bn, which were 13.8% higher than in the corresponding period a year earlier.

The company posted adjusted EBITDA of $142.2m, down 6.2% year-on-year. Chobani’s nine-month net losses were 12.1% higher at $24m amid what the company called “non-recurring and other charges” related to costs linked to the IPO, Covid-19 expenses and an income effect from swap derivatives.

In the prospectus, Chobani outlined to potential investors where it saw the growth opportunities ahead.

“We see significant growth potential for our yogurt products and have unlocked meaningful new whitespace in adjacent categories through our highly-successful recent launches of our oat milk, coffee creamer, ready-to-drink coffee and plant-based probiotic beverage product lines,” it said.

“Since entering the oat-milk market in December 2019, Chobani Oat has grown to 15.1% of total Nielsen reported US market share for the 13 weeks ended October 16, 2021, gaining share more quickly than we did in the yogurt category.”

In a statement, Ulukaya added: “As I think about the next stage of this incredible journey, I am excited to partner with new shareholders who share our mission to provide good food for all while improving our communities. Our goal is lofty but achievable: we will recreate the way food is made and consumed all over the world and be a new model for how a next-generation company should operate responsibly.”

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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