Strong Sodastream Q3 results boost share price

Daniel Birnbaum (Photo: Eyal Yitzhar)

The Israeli compny's share price, up 150% over the past year, rose 2% on the TASE today.

Following a 150% surge in its share price over the past year, Sodastream International Ltd. (Nasdaq: SODA; TASE: SODA) today reported good quarterly results showing continued positive momentum in its business. Sodastream, which manufactures and markets home systems for preparing carbonated beverages, has a $1.4 billion market cap.

The company outperformed the analysts' forecasts in the revenue and profit lines. Its revenue totaled $140 million in the third quarter, 12.5% more than in the third quarter of 2016 and 7% more than in the second quarter of this year. Sodastream's revenue grew 12% to $386 million in the first three quarter of 2017.

Sodastream said that its growth extended to all the regions in which it does business, especially Germany, Japan, Canada, Austria, and Australia. Positive exchange rate developments also contributed $4.2 million to the company. Sodastream's revenue from sales of carbonation systems grew 7.5%. The company sold 847,000 systems in the quarter, while its gas refill sales were up 9.3% to 8.4 million units.

Sodastream posted a record $19.8 million profit in the quarter, 32.9% more than in the third quarter of 2016 and 37.5% more than in the preceding quarter. Profit per share reached $0.87, $0.11 higher than the analysts' forecasts. Adjusted EBITDA in the third quarter amounted to $30.4 million, 30.4% more than in the corresponding quarter last year and 35.1% more than in the preceding quarter. Cash flow from current activity reached $31.3 million, and the company had $137 million in cash at the end of the third quarter.

"We achieved record profits in the third quarter as a result of strong growth in most of the company's markets, combined with continual improvement in profit margins," said Sodastream CEO Daniel Birnbaum said. "The sustained increase in the number of gas refills sold each quarter reached an all-time peak of 8.4 million units in the third quarter. This is proof that the company's growth plan and marketing strategy of focusing on the carbonated water market, which we announced three years ago, have succeeded." Birnbaum added that the company was confident that its strategy would continue its momentum into 2018.

Sodastream projects 13% sales growth and 40% growth in net profit per share in 2017 as a whole. The company finished 2016 with $476 million in revenue and a net profit of $2.07 per share, meaning that its guidance reflects $538 million in annual revenue and profit per share of $2.90 for 2017, both ahead of the market forecasts.

Published by Globes [online], Israel Business News - www.globes-online.com - on November 1, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Daniel Birnbaum (Photo: Eyal Yitzhar)
Daniel Birnbaum (Photo: Eyal Yitzhar)
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