SodaStream International Ltd. (SODA), which produces home beverage carbonation systems, reported strong third quarter results today. Revenue increased 12.9% to $124.2 million compared with $110.0 million in the third quarter of 2015. Third quarter 2016 revenue was $9 million above the average analyst estimate. The company said that revenue was boosted by increased consumer demand for sparkling water makers and consumables, mainly in Germany, Japan, Australia, the Nordics, the US and Canada.
EBITDA increased 140.6% to $23.3 million compared with $9.7 million adjusted EBITDA in the third quarter of 2015. SodaStream posted a net profit for the third quarter of 2016 of $14.9 million, 217.4% up on the $4.7 million net profit in the third quarter of 2015. Diluted earnings per share increased to $0.69 from $0.22 in the third quarter 2015.
SodaStream's share price rose 22.79% in Tel Aviv today.
In the past year, SodaStream's share price has risen 81%, bringing its market cap to $602 million. In the past two years, the company has mainly focused on carbonated water, and has undergone restructuring, after its sweetened beverages business declined.
SodaStream's management estimates that 2016 revenue will be 12-13% higher than in 2015, which compares with previous guidance of single digit growth. Operating profit is expected to grow by 120%. 2015 revenue was $413 million.
SodaStream CEO Daniel Birnbaum said, "We delivered very strong third quarter results highlighted by double digit revenue growth and record high operating income. Our top-line performance included a 23% increase in sparkling water maker unit sales to 788,000, our highest quarterly figure in nearly two years, underscoring the growing strength of our business. We believe that repositioning the SodaStream brand around sparkling water combined with effective marketing programs is setting the foundation for an acceleration in household penetration in each of our geographic regions.
"During the third quarter, our home carbonation system was used to produce and consume more sparkling water than any other brand worldwide, which resulted in an all-time quarterly record 7.7 million gas refills. Importantly, we are driving growth in a highly profitable manner and generating strong free cash flow following the recent consolidation of our manufacturing, logistics and distribution activities and expense optimization efforts. With significant growth opportunities ahead of us, we are very excited about the future of the business."
Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2016
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