Sodastream continues to fizz in Q3

Third quarter revenue rose 39% to 58.3 million and net profit doubled to 8.8 million.

Sodastream International Ltd. (Nasdaq: SODA) today published record revenue for the third quarter of 2011 and raised its guidance. Revenue rose 39% to 58.3 million from 42 million for the corresponding quarter.

Net profit rose to 7.8 million (0.37 per share) for the third quarter from 2.1 million for the corresponding quarter. Adjusted net profit more than doubled to 8.8 million (0.42 per share) from 4.2 million.

On the basis of the third quarter results, Sodastream raised its full-year guidance to 160.7 million, 36% growth over 2010, and 30% above its previous guidance. It predicts a net profit to double from the 2010 figure of 9.7 million, and it raised its adjusted net profit guidance to 24 million from 20 million.

US sales rose 124% to x and Western Europe sales rose 10%. Revenue from soda makers rose 54% to 29.1 million for the third quarter and revenue from consumables rose 26% to 28.4 million. Sale of soda makers rose 60% to 717,000 in the third quarter, and sales of CO2 refills rose 22% to 3.2 million.

Sodastream predicts 50 million revenue for the fourth quarter, 24% more than for the corresponding quarter, and an adjusted net profit of 4.3 million.

Sodastream had 66.4 million in cash and cash equivalents at the end of September, up from 52.9 million at the end of 2010, mostly due to the 33.1 million raised in a secondary offering in April.

Sodastream CEO Daniel Birnbaum attributed the company's record results to exceptional growth in the Americas, where the company sold 267,000 soda makers and expanded its network of retail partners. "We also saw strong year-over-year growth in France, Italy and the UK, markets in which we increased our focus, leading to accelerated demand for our product portfolio. As we approach the holiday season in the US, we will leverage our increased distribution, along with heightened brand awareness, allocating greater resources to penetrate additional households and capitalize on this large market opportunity."

Sodastream's share price rose 10% to $37.40 in early trading on Nasdaq, giving a market cap of over $740 million.

Published by Globes [online], Israel business news - - on November 9, 2011

Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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