SodaStream International Ltd. (Nasdaq: SODA) predicts just 3% profit growth in 2014, below the analysts' consensus, after reporting 2013 results that were in line with its profit warning published six weeks ago. The company also expects its revenue growth to slow from 29% in 2013 to 15% in 2014. It forecasts a net profit of $43.3 million on $647.1 million revenue in 2014, compared with the analysts' consensus of $2.35 earnings per share on $657.5 million revenue.
Revenue rose to $562.7 million in 2013 from $436.3 million in 2012. Although GAAP-based net profit fell 4.2% to $42 million ($1.96 in 2013) from $43.9 million in 2012, non-GAAP net profit rose 6% to $53 million ($2.48 per share) from $50 million.
Fourth quarter revenue rose 26.4% to $168.1 million from $132.9 million for the corresponding quarter of 2012. GAAP-based net profit fell to $681,000 ($0.03 per share) for the fourth quarter from $7.5 million for the corresponding quarter, and GAAP-based net profit fell to $3.5 million ($0.16 per share) from $9.4 million
Although cash flow from operations was $20.4 million for the fourth quarter, it was just $4.4 million for the year. It had $40.9 million in cash at the end of 2013, 34% less than a year earlier, which the company attributes to investment in its new plant at Lehavim in the Negev, an increase in working capital, and the its Italian distributor's business.
"While the fourth quarter proved to be more challenging than we expected there were several highlights, along with important lessons from the past year that give us confidence about the future," said SodaStream CEO Daniel Birnbaum. "We have moved quickly to implement measures and controls in order to restore gross margins to historical levels and prevent the issues that impacted fourth quarter profitability from recurring. I'm confident we are on the right path towards achieving our primary goal of increasing household penetration."
Birnbaum noted that SodaStream sold a record 4.4 million soda makers in 2013 and boosted gas refill unit sales 30% to a record 21.5 million, "underscores the high level of consumer interest and activity in home carbonation. Our plan is to capitalize on our first mover advantage and leadership position by accelerating investments in brand building and demand creation in 2014 to capture a greater share of the global carbonated beverage market."
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014