Israeli home beverage carbonation systems manufacturer Sodastream International Ltd. (Nasdaq: SODA) has seen its share price fall 22% since the start of 2015 but yesterday the share price rose 5.3% following publication of its third quarter financial results. Over the past year, the company has been switches its focus to flavored water products due to weakness in the sweetened drinks market.
The company reported revenue was $110.0 million down 12.6% from $125.9 million in the corresponding quarter of 2014. Some of the fall was due to exchange rate fluctuations as well as falls in all the geographical regions that the company operates. In the first nine months of 2015, revenue fell 22.1% to about $300 million.
Sodastream's net profit in the third quarter was $2.2 million down from $9.5 million in the corresponding quarter. Since the start of the year net profit has fallen to $20.5 million, 50% down from the corresponding period of 2014.
Sodastream CEO Daniel Birnbaum said, "Our operating results were similar to the year ago period on a constant currency basis as the growth plan we announced a year ago continues to gain traction. Our recent performance included a number of highlights that underscore the strength of our brand and business model. Third quarter CO2 refills increased 10% to an all-time record 7 million, a great indication that our global user base is increasing consumption. We believe usage rates will continue to grow as existing and new consumers embrace our repositioning as a healthy "water brand" provided by our enhanced better-for-you product portfolio, which we recently launched in the U.S. and other select countries. As we accelerate production in our new, state-of-the-art plant in Lehavim, and continue the launch of our new Waters line and strategic repositioning, we believe we are poised to start delivering improved financial results and greater shareholder value beginning in 2016."
Published by Globes [online], Israel business news - www.globes-online.com - on November 5, 2015
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