The soaring popularity of air fryers has powered the European arm of appliance giant SharkNinja to record-breaking revenues, smashing through the billion-pound barrier for the first time.
Record Revenues Amidst Consumer Shift
SharkNinja Europe, the UK-based subsidiary of the US manufacturer, posted a staggering turnover of £1.2 billion in 2024. This represents a massive 43% increase compared to the previous year, a surge directly attributed to British consumers' fervent appetite for the company's latest air fryer models.
The company's board highlighted that the year's focus was on aggressive growth, achieved by launching new product categories and pushing into fresh geographical markets. This expansion necessitated the opening of new warehouses to streamline the supply chain and manage a broader range of products.
Profitability Pressures Despite Sales Surge
Despite the stratospheric sales figures, the company's profitability faced significant headwinds. Pre-tax profit for the year plummeted by 71% to £23.5 million. SharkNinja pointed to its costly expansion into new regions where the brand is less established and products typically carry lower sales prices as a primary reason for the squeeze on margins.
The directors, however, stated they considered the improvement in both sales and gross profit to be a satisfactory result given the strategic investments being made.
Contrasting Fortunes in the Kitchen Appliance Market
SharkNinja's stellar performance stands in stark contrast to the challenges faced by other established players in the kitchen appliance sector. In a clear sign of changing consumer habits, Panasonic UK reported a 10% decline in turnover from its microwave division, which fell to £44.8 million.
Panasonic cited a weak European consumer market, burdened by rising costs and ongoing inflationary pressures. These economic challenges, combined with lower income expectations and reduced consumer willingness to spend, significantly dampened demand for its products.
SharkNinja's roots trace back to its founding in Montreal, Canada in 1994, with a relocation of its headquarters to Massachusetts, USA, in 2003. It initially focused on steam cleaners and vacuum cleaners before successfully diversifying into kitchen appliances like blenders and coffee machines.
The company established its UK operations in 2013 and went public on the Nasdaq in 2023. Its shares have skyrocketed by more than 300% since the IPO. Recent quarterly results show a 14.8% surge in sales to $4.3 billion (£3.2 billion) for the nine months leading to the end of September.
CEO Mark Barrocas expressed confidence in the company's future, stating: "With our proven innovation engine, expanding global footprint, and unwavering focus on solving consumer problems with 5-star products, we believe that we are well-positioned to continue delivering sustainable, profitable growth and long-term value creation for our stakeholders."
