SodaStream profit plummets

Net profit fell almost 90% to $1.8 million from $12.1 million.

Home carbonated beverages maker SodaStream International Ltd. (Nasdaq: SODA) today reaffirmed its full-year guidance, after reporting flat higher revenue and sharply lower profits for the first quarter of 2014, albeit beating the analysts' forecasts.

Revenue edged up to $118.2 million for the first quarter from $117.6 million for the corresponding quarter of 2013. Net profit fell almost 90% to $1.8 million ($0.08 per share) from $12.1 million. The analysts' consensus was earnings per share of $0.01 on $118 million revenue.

SodaStream reaffirmed its 2014 full-year revenue guidance of 15% growth to $647.1 million revenue in 2013. It also forecasts 3% net profit growth to $43.3 million. The analysts' full-year consensus is earnings per share of $1.92 on $639.3 million revenue.

"Our first quarter results were generally in-line with our expectations and reflect strong growth outside the US offset by the negative impact on soda maker sell-in in the US from the challenging holiday season," said SodaStream CEO Daniel Birnbaum. "Our global base of SodaStream users inclusive of the US remains very active evidenced by strong consumable sales growth, giving us added conviction in the attractiveness of our home carbonation system. We are in the process of adjusting our marketing and selling strategies in order to reaccelerate soda maker demand and further increase household penetration. We are confident that our long history leading the evolution of home carbonation continues to provide us with strong competitive advantages and compelling growth opportunities across the globe."

Published by Globes [online], Israel business news - - on May 14, 2014

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