Israeli home drinks company Sodastream International Ltd. (Nasdaq: SODA) is finding it difficult to regain its fizz.
The company reported second quarter revenue of $101.7 million, down from $141.2 million in the corresponding quarter 2014 - adjusted revenue on a constant currency basis was $118.6 million. Adjusted operating income was $4.5 million compared with $11.2 million in the second quarter of 2014 - adjusted operating income on a constant currency bases was $9.0 million. Adjusted EBITDA was $8.9 million compared to $14.5 million in the second quarter of 2014.
Net profit was $3.5 million ($0.17 per share) compared with $9.2 million ($0.43 per share) in the second quarter of 2014. However, CO2 refills reached an all-time quarterly record of 6.9 million
Sodastream CEO Daniel Birnbaum said, "Our second quarter performance was in-line with our expectations. As we previously discussed, the first half of 2015 would be a challenging period due to implementation of our global restructuring and growth plan combined with changes in foreign currency exchange rates. That said, we are proud to have achieved an all-time record of CO2 refills, which is a testimony of our consumers' loyalty and our overall Q2 performance masks the ongoing strength of our business in key markets led by Germany, Switzerland and Austria."
He added, "We are making tremendous progress toward repositioning as a "water brand" behind a health and wellness positioning. Our new portfolio of better-for-you sparkling water flavors is currently rolling out to retailers around the world and we are testing a new marketing campaign "Sparkling Waters Made by You", including TV in several cities in the US. At the same time the consolidation of our production activities into our new state-of-the-art plant in Lehavim continues ahead of schedule. We are confident that our new strategic direction supported by a terrific and unique product portfolio and marketing plan, will fuel increased household penetration and user activity and deliver sustainable growth and increased profitability in the years ahead."
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2015
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