SodaStream Net Rises 19.5 Percent in Q1
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AIRPORT CITY, Israel-First-quarter net income for SodaStream reached $12.1 million, 19.5 percent ahead of its first quarter of last year.
The beverage-products maker beefed up its bottom line thanks to a gain of 33.8 percent in revenue, which totaled $117.6 million, in the quarter, which ended on March 31. SodaStream posted strong increases in sales of its soda-maker starter kits, whose sales rose 28 percent, and in consumables, whose sales were up 37 percent. Regarding its markets, the United States led the way with unit sales gains of 78 percent in soda makers, 101 percent in gas-refill products and 119 percent in syrups.
Gross margin was down 56 basis points to 54.5 percent, due to a higher dependence on manufacturing subcontractors. Operating expenses increased 36.9 percent in dollars and 94 basis points as a percentage of revenue, to 42.9 percent. This was due partly to added expenses as a percentage of revenue for advertising and promotion, which occurred with increased expenses following SodaStream's Super Bowl campaign.
Daniel Birnbaum, SodaStream's CEO, said the company will continue to plow resources into the growth of the U.S. market as the company heads into the summer selling season. "We continue to successfully build our business for the long term through strategic investments in product innovation, demand creation and manufacturing capacity," Birnbaum said.