SodaStream Q3 Net Falls 2.2 Percent; Revenue Up 28.5 Percent
AIRPORT CITY, Israel-Third-quarter net income for SodaStream totaled $16.4 million, down 2.2 percent from the third-quarter net from last year.
Profit in the quarter, which ended on Sept. 30, slipped in spite of a gain in revenue of 28.5 percent, to $144.6 million. SodaStream posted revenue gains of 28.7 percent for its business in the Americas and 43.5 percent in Western Europe. On a product basis, the company's soda-maker starter kits enjoyed a 34 percent boost in revenue, while revenue for its consumables was up 26 percent.
"We continued to execute against our primary objective of expanding our user base in our fastest-growing markets during the third quarter," said Daniel Birnbaum, SodaStream's CEO. "Our progress is being fueled by positive consumer response to our demand-creation efforts and innovative products."
Offsetting these gains, third-quarter operating expenses recorded a hefty increase of 35.3 percent in dollars and 206 basis points as a percentage of sales, to 41.6 percent--reflecting increased expenses for advertising, promotion, higher compensation costs and additional expenses from the company's newly acquired Canadian and Italian distributors. Gross margin slipped nine basis points to 54.1 percent, due to a higher percentage of subcontracted manufacturing and the strengthening of the Israeli shekel.
SodaStream said it now expects full-year 2013 revenue to reach $436.3 million, up 30 percent from 2012 revenue. Net income should experience a 23 percent increase as well, to $43.9 million.