SodaStream Q4 Net Falls 91 Percent
AIRPORT CITY, Israel-Although sales made a significant gain in the quarter, SodaStream's fourth-quarter net income fell 91 percent to $681,000.
For the fiscal year ending on Dec. 31, net income totaled $42 million, down 4.2 percent from the prior year. The fourth-quarter bottom was hurt by a 1,060 basis-point drop in gross margin, which finished the quarter at 42.4 percent. Selling, general and administrative expenses rose 9.7 percent in dollars, although SG&A did fall 625 basis points as a percentage of sales to 40.9 percent.
Net sales in the quarter gained 26.4 percent to $168.1 million, bringing the top-line total for the year to $562.7 million, up 29 percent. SodaStream reported major increases in sales of soda maker starter kits, consumables and its "other" category in the quarter. For the year, SodaStream CEO Daniel Birnbaum noted that the company sold a record 4.4 million soda makers and increased gas refill unit sales by 30 percent, to a record 21.5 million.
Looking ahead to 2014, Birnbaum said, "Our plan is to capitalize on our first-mover advantage and leadership position by accelerating investments in brand building and demand creation in 2014 to capture a greater share of the global carbonated beverage market." He added that the SodaStream has put into place measures and controls to restore gross margins to historical levels, and "prevent the issues that impacted fourth-quarter profitability from recurring."