Carbonated-drink manufacturer Sodastream International Ltd. (Nasdaq: SODA) has said that the closure of its West Bank factory at Mishor Adumim east of Jerusalem is moving ahead faster than planned. Sodastream has repeatedly stressed that the closure is not related to political pressure from the BDS movement but due to a company reorganization dictated by economic considerations.
In announcing the company's first quarter results, Sodastream CEO Daniel Birbaum said, "Last week we completed the transfer of our last assembly lines from Mishor Adumim to Lehavim and we no longer produce sparkling water makers in Mishor Adumin. We will complete the transition of equipment and exit Mishor Adumim entirely during the third quarter, ahead of schedule."
"The transformation of our manufacturing base and operating structure is creating a more efficient organization. We are accelerating the consolidation of our production activities into our new state-of-the-art plant in Lehavim. During April, we shut down our Alon Tavor facility and commenced plastic injection in Lehavim."
Sodastream reported revenue of $91.3 million in the first quarter of 2015, down from $118.2 million in the corresponding quarter of 2014. After adjustment on a constant currency basis revenue was $104.8 million. Adjusted net profit was $8.4 million ($0.40 per share) compared with $1.8 million ($0.08 per share) in the first quarter 2014.
Birbaum said, "The first quarter marked the start of a transitional period as we embarked on our global brand and product repositioning around health and wellness. We've made good progress preparing for the launch of a completely new portfolio of great tasting, better for you sparkling water flavors later this year that we believe will resonate strongly with our consumer audience."
He concluded, "As our restructuring and growth plan unfolds and gains traction, and we move past the challenging foreign currency exchange rate changes, we believe SodaStream will be well positioned to drive sustainable sales gains and greater earnings power in the years ahead."
Published by Globes [online], Israel business news - www.globes-online.com - on May 7, 2015
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