This Ammunition Company Released Sales Data That's Exploding

Photo by Jay Rembert on Unsplash

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The U.S. ammunition industry is big business. Led by the likes of Winchester Ammunition,owned by Olin Corporation(OLN), and Federal  Premium— owned by Vista Outdoor Inc VSTO — U.S. manufacturers made about $18 billion last year, according to a report by IBIS World. In fact, the pandemic has accelerated sales. The National Instant Criminal Background Check System (NICS) saw a record 3.7 million applications in March of 2020 as lockdowns began to take effect.

In this competitive market, manufacturers must differentiate themselves with innovative intellectual property, shrewd business practices, or, ideally, both. Ammo Inc. POWW POWWP believes it is doing just that.

Headquartered in Scottsdale, Arizona, the company “designs and manufactures products for a variety of aptitudes, including law enforcement, military, sport shooting and self-defense.” It was founded in 2016 “with a vision to change, innovate, and bring technology to invigorate the complacent munitions industry.”

Since that time, Ammo’s sales have seen on-target growth. From 2018 to 2022, Ammo experienced an average year-over-year sales growth of 400%. The company expects an adjusted EBITDA of $80 million for 2022.

The company produces the patented Streak Visual Ammunition. Designed for military,

Sport shooting and training. The ammunition illuminates the trajectory of the projectile without using an incendiary, which can be used at ranges, allowing the trace to only be visible by the shooter and others in a 30-degree window, behind the shooter.

Critical acquisitions have also contributed to Ammo’s figures. The company purchased Gunbroker.com, The leading online marketplace for the legal sale of firearms, ammunition, and accessories. With over six million registered users and 50,000 new customers on a monthly basis, the website adds a major direct to the consumer revenue stream for the company. Ammo acquired Gunbroker for $50 million in cash and $50 million in assumed debt and approximately 20,000,000 shares of stock. Its 2020 EBITDA was $40 million.

The company currently manufactures brass casings and ammunition in a 50,000 square foot facility in Manitowoc, Wisconsin, with a capacity of 450 million rounds a year. A new 165,000-square-foot facility is currently under construction, expected to be completed in the summer of 2022 with capacity approaching 1 billion rounds annually, to keep up with the demand.

The company is focused on designing and manufacturing high-end, superior-quality ammo. Ammo targets a 30% margin on its products versus the reported 10% to 20% industry average.

If you’re interested in learning more about the company, check out https://ammoinc.com/.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.