SodaStream Swings to Profit
February 18 2016 - 9:00AM
Dow Jones News
SodaStream International Ltd. swung to a profit in the final
quarter of the year, and results handily beat expectations as the
company said it started to reap the advantages of its
restructuring.
"During the fourth quarter, we began to witness the benefits of
our efforts to create a stronger, more efficient organization and
capture the market opportunity as consumers rapidly shift from
sugared soft drinks to healthier water-based products," said Chief
Executive Daniel Birnbaum.
Shares in the company, which have edged up 1.9% over the past
three months, rose 6.1% to $14.91 in premarket trading.
SodaStream, which popularized the notion of make-it-at-home
soda, is recasting itself as a sparkling water dispenser after
hiring a two-star Michelin chef to concoct flavors like "raspberry
lychee rose" amid rising competition.
"There is still work ahead of us in order to position the
company for consistent profitable growth, but I am confident that
our recent actions have us heading in the right direction," Mr.
Birnbaum said.
For the quarter ended Dec. 31, SodaStream reported a profit of
$2.8 million, or 13 cents a share, compared with a loss of $8.2
million, or 39 cents, a year earlier. Adjusted per-share earnings
fell to 24 cents from 35 cents.
Revenue dropped 11% to $112.9 million. The company said sales
were roughly flat on a constant-currency basis.
Analysts polled by Thomson Reuters had forecast adjusted
earnings of 17 cents a share on $110 million in revenue.
Restructuring costs in the latest period were $2.2 million.
Gross margin, before the impact of restructuring costs, fell to
48% from 50.4% in the same period a year ago, hurt by foreign
currency exchange rates.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
February 18, 2016 08:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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