AIRPORT CITY, Israel,
Oct. 7, 2014 /PRNewswire/ -- SodaStream International
Ltd. (NASDAQ: SODA), a leading manufacturer of home beverage
carbonation systems, today announced preliminary results for the
third quarter ended September 30,
2014.
On a preliminary basis, based on the information currently
available, for the quarter ended September
30, 2014, the Company expects:
- Revenue to be approximately $125.0
million.
- Operating income to be approximately $8.5 million.
As the Company has not completed the quarter-end close of its
third quarter 2014 financial statements, the revenue
and operating income expectations presented in this press
release are estimated and preliminary, and therefore, subject to
quarter-end closing adjustments and may change.
"We are very disappointed in our recent performance," said
Daniel Birnbaum, Chief Executive
Officer of SodaStream. "Our U.S. business underperformed due to
lower than expected demand for our soda makers and flavors which
was the primary driver of the overall shortfall in the third
quarter. While we were successful over the last few years in
establishing a solid base of repeat users in the U.S., we have not
succeeded in attracting new consumers to our home carbonation
system at the rate we believe should be achieved. The third
quarter results are a clear indication that we must alter our
course and improve our execution across the board. We have already
begun a strategic shift of the SodaStream brand towards health
& wellness, primarily in the U.S., where we believe this
message will resonate more strongly with consumers. In addition, we
are developing a comprehensive growth plan for the Company that
will encompass Marketing, Product and Innovation, Distribution,
Operations and Organization. We intend to share more specifics
around our growth plan when we report third quarter results later
this month."
Mr. Birnbaum concluded, "We have a strong balance sheet and are
well positioned with ample liquidity to invest in the areas of our
business that we believe will fuel profitable growth in the years
ahead. Despite our current challenges, we continue to be very
confident in our business model and the global prospects for
SodaStream. We firmly believe that our actions to shift the brand
and improve execution will strengthen our leadership position in
the home carbonation category and deliver enhanced shareholder
value."
The Company is scheduled to report actual third quarter 2014
results on October 29, 2014.
About SodaStream International
SodaStream manufactures beverage carbonation systems which
enable consumers to easily transform ordinary tap water instantly
into carbonated soft drinks and sparkling water. Soda makers offer
a highly differentiated and innovative solution to consumers of
bottled and canned carbonated soft drinks and sparkling water. Our
products are environmentally friendly, cost effective, promote
health and wellness, and are customizable and fun to use. In
addition, our products offer convenience by eliminating the need to
carry bottles home from the supermarket, to store bottles at home
or to regularly dispose of empty bottles. Our products are
available at more than 60,000 retail stores in 45 countries around
the world. For more information on SodaStream, please visit
the Company's website: www.sodastream.com.
To download SodaStream's investor relations app, which offers
access to SEC documents, press releases, videos, audiocasts and
more, please visit
http://itunes.apple.com/us/app/soda-ir/id524423001?mt=8 for your
iPhone/iPad, or
https://play.google.com/store/apps/details?id=com.theirapp.soda for
your Android mobile device.
Forward Looking Statements
This release contains forward-looking statements, which express
the current beliefs and expectations of management. Such statements
are based on management's current beliefs and expectations and
involve a number of known and unknown risks and uncertainties that
could cause our future results, performance or achievements to
differ significantly from the results, performance or achievements
expressed or implied by such forward-looking statements. Important
factors that could cause or contribute to such differences include
risks relating to: our ability to expand into our target markets,
including the United States; our
ability to continue to develop or maintain our presence in retail
networks; our ability to develop and implement production and
operating infrastructure to effectively support our growth; the
success of our marketing campaigns and media spending in terms of
increased sales or increased product and brand name awareness; our
ability to maintain our customer base in markets where we have an
established presence; the risks associated with our reliance on
exclusive arrangements for the distribution of our beverage
carbonation systems and consumables in each of the markets in which
we use third-party distributors; our ability to compete effectively
with other companies which currently offer, or may offer in the
future, competing products; our ability to maintain margins due to
decline in product selling price andor rising costs; potential
product liability claims if any component of our beverage
carbonation systems is misused; our ability to protect our
intellectual property rights; our being found to have a dominant
position in certain markets which may place limits on our ability
to operate; risks associated with our being a multinational
corporation, including fluctuations in currency exchange rates; our
potential exposure to greater than anticipated tax liabilities; our
products being subject to extensive governmental regulation in the
markets in which we operate; adverse conditions in the global
economy which could negatively impact our customers' demand for our
products; and other factors detailed in documents we file from time
to time with the United States Securities and Exchange
Commission. Forward-looking statements in this release are
made pursuant to the safe harbor provisions contained in the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made only as of the date hereof, and
the company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Contact: Brendon Frey, ICR, Phone: + 1
203-682-8200, brendon.frey@icrinc.com
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SOURCE SodaStream International Ltd.