SodaStream FY Profit Falls Short; Scarlett Johansson to be Brand Ambassador
AIRPORT CITY, Israel-Despite achieving record sales, SodaStream's fiscal-year net income is expected to finish below its target, according to Daniel Birnbaum, the company's CEO.
In a preliminary statement on the fiscal year, the company said its net income will total about $41.5 million on revenue of an estimated $562 million. Birnbaum added that SodaStream was "disappointed" in its fourth-quarter performance. "These preliminary results reflect a challenging holiday selling season in the U.S. and several factors, mostly from the second half of the quarter, that negatively impacted our gross margin," he said.
These factors included lower sell-in prices and higher product costs, a shift in product mix versus plan and unfavorable developments in foreign currency rates, Birnbaum said. "While we expect some of these headwinds to continue into the first half of 2014, we are moving quickly to implement the necessary measures to restore margins to historical levels in the coming year," he said.
In a separate statement, SodaStream said actress Scarlett Johansson has become the company's first-ever global brand ambassador. Johansson and SodaStream have entered into a multiyear partnership that will make her the face of a new marketing campaign, whose first advertisements will be seen during the Super Bowl on Feb. 2.