Sodastream drops despite results

SodaStream healthy flavors

Sodastream posted a 26% year-on-year rise in net profit and raised its guidance.

After trending positively for a long period, reaching a peak of almost $100 last week, Sodastream International Ltd. (Nasdaq: SODA) saw its share price drop 8.1% on high volume yesterday after it published its first quarter results. This was despite the fact that the results bettered analysts' estimates, and the company raised its guidance for the year. The share price closed at $86.7, giving the company a market cap of nearly $2 billion. In the past year, its share price has risen 57%.

Sodastream makes and markets systems for home production of carbonated beverages. Its first quarter revenue was $144 million, 24% more than in the corresponding quarter of 2017. Operating profit was $21.3 million, which compares with $15.9 million in the corresponding quarter. Quarterly net profit was up 26% to $18.6 million, or $0.81 per share, well ahead of the consensus analysts' estimate of NIS 0.66.

Sodastream raised its annual guidance, and now sees 15% sales growth over 2017, instead of the previous guidance of 12% growth, to $624 million. Operating profit is expected to grow 28%, excluding stock base compensation.

"We delivered our ninth consecutive quarter of double-digit revenue growth, expanded gross margins by 250 basis points, and posted a significant increase in profitability," said Sodastream CEO Daniel Birnbaum. "These strong year-over-year results were fueled by an acceleration in our Americas' business led by the US and Canada, our 25th consecutive quarter of double-digit growth in Germany, continued meaningful progress in Asia-Pacific and changes in foreign currency exchange rates. The first quarter was also highlighted by the launch of our new distribution model in France, which we are confident will accelerate our household penetration in this large market going forward."

Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

SodaStream healthy flavors
SodaStream healthy flavors
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