Sodastream up 333% since TASE listing

Daniel Birnbaum Photo: Eyal Yitzhar
Daniel Birnbaum Photo: Eyal Yitzhar

The Israeli carbonation systems manufacturer has an all-time high $1.7 billion market cap.

The share price of Sodastream International Ltd. (Nasdaq: SODA; TASE: SODA) jumped 3.3% on Nasdaq last Friday, closing at $78.70, an all-time high, reflecting a $1.7 billion market cap. The share's previous high of $77.70 was posted in August 2011, but the share price later took a downturn, and only two years ago, this price seemed to investors like a distant dream.

Sodastream's share price plummeted to a low of only $12 in February 2016, reflecting a market cap of only $255 million. This low point was reached shortly after the company was first listed for trading on the Tel Aviv Stock Exchange (TASE), in addition to Nasdaq. Sodastream held its Nasdaq IPO in 2010 at a company value of $367 million, after money.

A big year for Sodastream

Sodastream, managed by CEO Daniel Birnbaum, produces and markets home systems for preparing carbonated water. Three years ago, following a loss of confidence by shareholders and a steep fall in the company's share price, the company decided to change its concept by branding itself not as a replacement for sweetened carbonated drinks, such as Coca Cola, but as a leader in the carbonated water market.

"The consumer doesn't want to drink these sweetened beverages, and is switching to flavored water or flavored carbonated water," Birnbaum said at the time. It appears that the company's revised concept is proving itself. 2017 was a good year for Sodastream, both in financial results and the return on its share. As in the past, Sodastream took aim at the market leaders and campaigned against them (its presenter, actress Scarlet Johansson, said in the company's commercial, "Sorry, Coke and Pepsi"). Birnbaum aimed high again last year, After publishing the company's second quarter results, he said that Sodastream was selling "about three times as much as carbonated water brands S.Pellegrino and Perrier, which belong to global concern Nestles" - about 460 million liters in the quarter.

Sodastream has yet to publish its financial statements for the fourth quarter of 2017. In the first quarters of 2017, the company reported 12% growth in revenue to $386 million. Net profit totaled $48.9 million, up 69.5%. The company projected 13% growth to $538 million in revenue in 2017 as a whole and 40% growth to $2.90 in net profit per share.

Published by Globes [online], Israel Business News - - on January 28, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Daniel Birnbaum Photo: Eyal Yitzhar
Daniel Birnbaum Photo: Eyal Yitzhar
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