"We had a great quarter," said Sodastream International Ltd. (Nasdaq: SODA) CEO Daniel Birnbaum in response to the home carbonated systems maker's financial report for the first quarter of 2011, and the raising of its full-year guidance. Revenue rose 50% to €45.1 million ($64 million) from €30.2 million for the corresponding quarter of 2010.
Net profit rose 107% to €4.2 million (€0.22 per share) for the first quarter from €2 million for the corresponding quarter.
Sodastream raised its full-year guidance to €209 million, 30% more than in 2010, up from its previous forecast of 25% growth. It also expects 60% net profit growth to €15.5 million, up from its previous forecast of 40% growth. It expects adjusted net profit to reach €19 million. "Our heightened outlook for the year reflects our optimism as we pursue global growth opportunities through 2011 and beyond," said Birnbaum.
Sodastream reported sales growth in both Western Europe, up 23%, and in the US, up 153%. Sales in the Asia Pacific region, where the company began sales in Japan in the fourth quarter, totaled €3.7 million. Sales of soda makers rose 99% to 592,000 units, and sales of carbon dioxide refills rose 21% to 2.7 million. Sales of flavor units rose 26% to 3.9 million.
Birnbaum said, "Growth in all business areas was strong, but growth in the US stood out. We're continuing our deployment with strategic retail customers, such as JC Penny and Kohls. We expanded our sales at Macy's to 620 stores. America loves Sodastream."
He added, "We have more markets in the pipeline."
Sodastream had €42.5 million ($60.3 million) in cash at the end of March, and its it subsequently raised $301 million in a secondary offering, the largest ever by an Israeli company in the US, and just five months after its IPO. The company will use the proceeds to build a new plant in Israel, probably at Lehavim in the Negev. The company is also considering acquisitions. Birnbaum said, "We have a strong debt-free balance sheet total of $100 million and we're evaluating acquisition targets."
Sodastream's share price rose 11% at the opening on Nasdaq today to $48.06, giving a market cap of $950 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2011
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