AIRPORT CITY, Israel,
Nov. 1, 2017 /PRNewswire/
-- SodaStream International Ltd. (NASDAQ: SODA), the leading
manufacturer of home beverage carbonation systems, announced today
its results for the quarter ended September
30, 2017.
For the quarter ended September 30,
2017:
- Revenue increased approximately 13% to $139.8 million, compared to $124.2 million in the third quarter of 2016
- Net income increased approximately 32% to an all-time record
$19.8 million, compared to
$14.9 million in the third quarter of
2016
- Diluted earnings per share increased to $0.87 compared to $0.69 in the third quarter of 2016
"We achieved record profitability in the third quarter fueled by
broad based growth in many of our markets combined with significant
gross margin expansion," commented Daniel
Birnbaum, Chief Executive Officer of SodaStream. "Our
product, marketing and distribution strategies aimed at building a
global sparkling water franchise continued to gain traction during
the quarter as evidenced by the increase in gas refill units to an
all-time record 8.4 million in the third quarter. This high-water
mark underscores our progress expanding household penetration
through new customer acquisition and better retention of existing
users. As we head into the fourth quarter of 2017 and look out to
next year, we remain confident that we are well positioned to
continue building on the current momentum and further unlock the
power of our business model to return greater value to our
shareholders."
Third Quarter 2017 Financial Review
Geographical Revenue
Breakdown
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
|
Increase
|
|
|
Increase
|
|
|
|
In millions
USD
|
|
|
%
|
|
Western
Europe
|
|
$
|
74.7
|
|
|
$
|
84.8
|
|
|
$
|
10.1
|
|
|
|
13.5
|
%
|
The
Americas
|
|
|
29.8
|
|
|
|
30.2
|
|
|
|
0.4
|
|
|
|
1.2
|
%
|
Asia-Pacific
|
|
|
12.9
|
|
|
|
17.3
|
|
|
|
4.4
|
|
|
|
34.0
|
%
|
Central & Eastern
Europe, Middle East, Africa
|
|
|
6.8
|
|
|
|
7.5
|
|
|
|
0.7
|
|
|
|
10.6
|
%
|
Total
|
|
$
|
124.2
|
|
|
$
|
139.8
|
|
|
$
|
15.6
|
|
|
|
12.5
|
%
|
The following table sets forth each region's contribution to
total revenue for the third quarter of 2016 and 2017 (by
percentage):
Region
|
|
Portion of the
revenue in three months
ended
|
|
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
Western
Europe
|
|
|
60.1
|
%
|
|
|
60.6
|
%
|
The
Americas
|
|
|
24.0
|
%
|
|
|
21.6
|
%
|
Asia-Pacific
|
|
|
10.4
|
%
|
|
|
12.4
|
%
|
Central & Eastern
Europe, Middle East & Africa
|
|
|
5.5
|
%
|
|
|
5.4
|
%
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
Product Segment Unit
Breakdown
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
|
Increase
(decrease)
|
|
|
Increase
(decrease)
|
|
|
|
|
In
thousands
|
|
|
%
|
|
Sparkling Water Maker
Starter Kits
|
|
|
788
|
|
|
|
847
|
|
|
|
59
|
|
|
|
7.5
|
%
|
|
CO2
Refills
|
|
|
7,673
|
|
|
|
8,386
|
|
|
|
713
|
|
|
|
9.3
|
%
|
|
Flavors
|
|
|
5,463
|
|
|
|
5,095
|
|
|
|
(368)
|
|
|
|
(6.7)
|
%
|
|
Revenue increased $15.6 million,
or 12.5%, to $139.8 million compared
to $124.2 million in the same period
in 2016 driven by growth in all of the Company's geographic
regions, highlighted by strong performances in Germany, Japan, Canada, Austria and Australia. Changes in foreign currency
exchange rates ("FX") positively impacted revenue by $4.2 million, mainly driven by the strengthening
of the Euro/U.S. Dollar exchange rate.
Gross margin increased 170 basis points to 53.5% compared to
51.8% for the same period in 2016. The increase reflects continued
production optimization, the leveraging of fixed infrastructure
costs on increased production volume, the introduction of higher
margin sparkling water makers and changes in FX compared to the
same period in 2016, partially offset by a higher portion of
sparkling water makers in the product mix. The positive FX impact
on revenue was mainly offset by an adverse impact of the weakening
of the U.S. Dollar/Israeli Shekel exchange rate compared to the
same period in 2016. The net positive FX impact on gross profit was
$1.4 million.
Sales and marketing expenses were $38.9
million, or 27.8% of revenue, compared to $34.9 million, or 28.1% of revenue, in the same
period in 2016. Advertising and promotion expenses increased by
$1.6 million to $16.8 million, or 12.0% of revenue, compared to
$15.2 million, or 12.2% of revenue,
in the same period in 2016.
General and administrative expenses increased $2.2 million to $13.0
million, or 9.3% of revenue, compared to $10.8 million, or 8.7% of revenue in the same
period in 2016. The increase was mainly due to an increase in
share-based payment expenses.
Operating income increased 24.0% to $23.0
million, or 16.5% of revenue, compared to $18.6 million, or 14.9% of revenue, in the third
quarter of 2016. Changes in FX did not have a material impact on
operating income. The positive FX impact on gross profit compared
to the same period in 2016 was mainly offset by an adverse impact
of the strengthening of the Euro/U.S. Dollar rate on the operating
expenses.
Net financial expense was $0.4
million compared to $0.2
million in the same period in 2016.
Tax expense was $2.8 million with
an effective tax rate of 12.5%, compared to $3.4 million with an effective tax rate of 18.8%
in the same period in 2016.
Net income was $19.8 million, or
$0.87 per diluted share, based on
22.6 million weighted shares outstanding compared to net income of
$14.9 million, or $0.69 per diluted share, based on 21.7 million
weighted shares outstanding in the same period in 2016.
Balance Sheet Review
At September 30, 2017, the Company
had cash and financial investments totaling $136.6 million compared to $57.3 million at December
31, 2016.
Cash flow from operations less investing activities, excluding
financial investments, was $26.3
million compared to $26.1
million in the same period in 2016. During the third quarter
of 2017, the Company invested $20.0
million in short-term investments.
Working capital decreased 1.3% to $123.1
million compared to $124.8
million at December 31, 2016.
Inventories increased 20.0% to $105.6
million compared to $88.0
million at December 31,
2016.
Nine months 2017 Financial Review
Geographical Revenue
Breakdown
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
|
Increase
|
|
|
Increase
|
|
|
|
In Millions
USD
|
|
|
%
|
|
Western
Europe
|
|
$
|
211.7
|
|
|
$
|
236.3
|
|
|
$
|
24.6
|
|
|
|
11.7
|
%
|
The
Americas
|
|
|
78.7
|
|
|
|
83.9
|
|
|
|
5.2
|
|
|
|
6.6
|
%
|
Asia-Pacific
|
|
|
34.7
|
|
|
|
42.5
|
|
|
|
7.8
|
|
|
|
22.3
|
%
|
Central & Eastern
Europe, Middle East, Africa
|
|
|
19.2
|
|
|
|
23.0
|
|
|
|
3.8
|
|
|
|
20.2
|
%
|
Total
|
|
$
|
344.3
|
|
|
$
|
385.7
|
|
|
$
|
41.4
|
|
|
|
12.0
|
%
|
The following table sets forth each region's contribution to
total revenue for the first nine months of 2016 and 2017 (by
percentage):
Region
|
|
Portion of the
revenue in nine months
ended
|
|
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
Western
Europe
|
|
|
61.5
|
%
|
|
|
61.3
|
%
|
The
Americas
|
|
|
22.8
|
%
|
|
|
21.7
|
%
|
Asia-Pacific
|
|
|
10.1
|
%
|
|
|
11.0
|
%
|
Central & Eastern
Europe, Middle East & Africa
|
|
|
5.6
|
%
|
|
|
6.0
|
%
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
Product Segment Unit
Breakdown
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2017
|
|
|
Increase
(decrease)
|
|
|
Increase
(decrease)
|
|
|
|
|
In
thousands
|
|
|
%
|
|
Sparkling Water Maker
Starter Kits
|
|
|
2,000
|
|
|
|
2,476
|
|
|
|
476
|
|
|
|
23.8
|
%
|
|
CO2
Refills
|
|
|
21,995
|
|
|
|
24,270
|
|
|
|
2,275
|
|
|
|
10.3
|
%
|
|
Flavors
|
|
|
16,721
|
|
|
|
15,638
|
|
|
|
(1,083)
|
|
|
|
(6.5)
|
%
|
|
Revenue increased 12.0% to $385.7
million from $344.3 million in
the same period in 2016. The increase was driven by growth in all
geographical regions, highlighted by strong performances in
Germany, Canada, Japan, Australia and Austria. Changes in FX did not have a material
impact on revenue.
Gross margin increased 200 basis points to 53.1% compared to
51.1% in the same period in the prior year. The increase reflects
continued production optimization, the leveraging of fixed
infrastructure costs on increased production volume and the
introduction of higher margin sparkling water makers, partially
offset by a higher portion of sparkling water makers in the product
mix and changes in FX compared to the same period in 2016.
Changes in FX negatively impacted gross profit by $5.1 million, mainly driven by the strengthening
of the Israeli Shekel against the U.S. Dollar compared to the same
period in 2016.
Sales and marketing expenses were $114.5
million, or 29.7% of revenue, compared to $105.6 million, or 30.7% of revenue in the same
period in 2016. The increase in sales and marketing expenses was
mainly due to higher advertising and promotion expenses.
Advertising and promotion expenses increased by $7.2 million to $54.1
million, or 14.0% of revenue, compared to $46.9 million or 13.6% of revenue in same period
in 2016.
General and administrative expenses were $34.6 million, or 9.0% of revenue, compared to
$32.4 million, or 9.4% of revenue in
2016.
Operating income increased 56.2% to $55.7
million, or 14.4% of revenue, compared to $35.6 million, or 10.4% of revenue in the same
period in 2016. Operating income was negatively impacted by
$5.3 million due to changes in
FX.
Net financial expense were immaterial compared to $1.3 million in the same period in 2016.
Tax expense was $6.8 million,
reflecting an effective tax rate of 12.2%, compared to $5.5 million, or an effective tax rate of 16.0%,
in the same period in 2016.
Net income was $48.9 million, or
$2.17 per diluted share, based on
22.5 million weighted shares outstanding, compared to net income of
$28.8 million, or $1.35 per diluted share, based on 21.3 million
weighted shares outstanding in the same period in 2016.
Guidance
Based on third quarter results and current projections for the
remainder of the year, the Company is raising its outlook and now
expects 2017 revenue to increase approximately 13% to $536 million compared to $476.1 million in 2016 and diluted earnings per
share to increase approximately 40% to $2.90 compared to $2.07 in 2016.
This outlook is based on assumed average exchange rates of
1.17 Euro/U.S. Dollar and
3.50 U.S. Dollar/Israeli Shekel in
the fourth quarter of 2017.
Conference Call and Management Commentary
A supplemental slide presentation have been furnished as part of
today's report of a foreign private issuer on a Form 6-K and will
be posted on the Company's website at
http://sodastream.investorroom.com. Beginning with the quarter
ended September 30, 2017, the Company
will not be providing a separate CFO commentary; instead, any
pertinent information will be incorporated into the earnings
release in connection with the announcement of the Company's
results for the relevant quarter.
The Company has scheduled a conference call for 8:30 AM Eastern Standard Time (U.S. time) today
(Wednesday, November 1, 2017) to
review the Company's financial results. The conference call will be
broadcast over the Internet as a "live" listen only Webcast. To
listen, please go to: http://sodastream.investorroom.com. Listeners
are urged to login approximately 20 minutes before the conference
call is scheduled to begin in order to register, as well as
download and install any necessary audio software. An archive of
the Webcast will be available for 30 days after the call.
About SodaStream International
SodaStream is the #1 sparkling water brand in volume in the
world and the leading manufacturer and distributor of Sparkling
Water Makers. We enable consumers to easily transform ordinary tap
water into sparkling water and flavored sparkling water in seconds.
By making ordinary water fun and exciting to drink, SodaStream
helps consumers drink more water. Sparkling Water Makers offer a
highly differentiated and innovative solution to consumers of
bottled and canned carbonated soft drinks. Our products promote
health and wellness, are environmentally friendly, cost effective,
customizable and fun to use. Our products are available at more
than 80,000 individual retail stores across 45 countries. To learn
more about how SodaStream makes water exciting and follow
SodaStream on Facebook, Twitter, Pinterest, Instagram and YouTube,
visit http://www.sodastream.com.
Non-IFRS Financial Measures
This press release contains EBITDA and Adjusted EBITDA, which
are non-IFRS measures.
EBITDA is a non-IFRS measure, which represents earnings before
financial expense (income), income tax, depreciation and
amortization. Adjusted EBITDA is a non-IFRS measure, which is
calculated in the same way as EBITDA, and further eliminates the
effect of impairment of other intangible assets. We believe that
EBITDA and Adjusted EBITDA, as described above, should be
considered in evaluating the Company's operations. Both measures
facilitate operating performance comparisons from period to period
and company to company by backing out potential differences caused
by variations in capital structures (affecting financial expenses
(income), net), tax positions (such as the impact on periods or
companies of changes in effective tax rates) and the age and
depreciation charges and amortization of fixed and intangible
assets, respectively (affecting relative depreciation and
amortization expense, respectively). Adjusted EBITDA is useful to
an investor in evaluating our operating performance because it
excludes unusual costs associated with non-recurring events and
without regard to non-cash items.
Non-IFRS measures should be considered in addition to results
prepared in accordance with IFRS and should not be considered a
substitute for the IFRS results. A reconciliation of EBITDA and
Adjusted EBITDA to Net income, the most closely comparable IFRS
measure, is included at the end of this press release. In addition,
EBITDA and Adjusted EBITDA, as presented in this press release, may
not be comparable to similarly titled measures reported by other
companies due to differences in the way that these measures are
calculated.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements include information about possible or
assumed future results of our business and financial condition, as
well as the results of operations, liquidity, plans and objectives.
In some cases, you can identify forward-looking statements by
terminology such as "believe," "may," "estimate," "continue,"
"anticipate," "intend," "should," "plan," "expect," "predict,"
"potential," or the negative of these terms or other similar
expressions: 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 maintain or expand sales in our target markets,
including the United States; our
ability to maintain or continue to develop 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 and/or 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 discussed under the heading "Risk
Factors" in the Annual Report on the Form 20-F for the year
ended December 31, 2016 and other
documents filed with or furnished to the Securities and Exchange
Commission. 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
|
|
Consolidated
Statements of Operations
|
In thousands
(other than per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
|
For the three months
ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Revenue
|
|
$
|
344,265
|
|
|
$
|
385,712
|
|
|
$
|
124,228
|
|
|
$
|
139,783
|
|
Cost of
revenue
|
|
|
168,285
|
|
|
|
180,728
|
|
|
|
59,889
|
|
|
|
64,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
175,980
|
|
|
|
204,984
|
|
|
|
64,339
|
|
|
|
74,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
105,636
|
|
|
|
114,533
|
|
|
|
34,943
|
|
|
|
38,856
|
|
General and
administrative
|
|
|
32,383
|
|
|
|
34,633
|
|
|
|
10,833
|
|
|
|
12,981
|
|
Other expenses,
net
|
|
|
2,327
|
|
|
|
142
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
140,346
|
|
|
|
149,308
|
|
|
|
45,776
|
|
|
|
51,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
35,634
|
|
|
|
55,676
|
|
|
|
18,563
|
|
|
|
23,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expense,
net
|
|
|
1,314
|
|
|
|
22
|
|
|
|
210
|
|
|
|
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
34,320
|
|
|
|
55,654
|
|
|
|
18,353
|
|
|
|
22,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
5,502
|
|
|
|
6,795
|
|
|
|
3,443
|
|
|
|
2,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
|
28,818
|
|
|
|
48,859
|
|
|
|
14,910
|
|
|
|
19,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.36
|
|
|
$
|
2.25
|
|
|
$
|
0.70
|
|
|
$
|
0.90
|
|
Diluted
|
|
$
|
1.35
|
|
|
$
|
2.17
|
|
|
$
|
0.69
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
21,145
|
|
|
|
21,739
|
|
|
|
21,198
|
|
|
|
21,870
|
|
Diluted
|
|
|
21,297
|
|
|
|
22,542
|
|
|
|
21,701
|
|
|
|
22,581
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2017
|
|
|
|
(Audited)
|
|
|
(Unaudited)
|
|
|
|
(In
thousands)
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
50,250
|
|
|
$
|
116,629
|
|
Financial
investments
|
|
|
7,000
|
|
|
|
19,998
|
|
Inventories
|
|
|
87,986
|
|
|
|
105,616
|
|
Trade receivables
,net
|
|
|
87,430
|
|
|
|
95,017
|
|
Other
receivables
|
|
|
20,613
|
|
|
|
22,708
|
|
Assets classified as
held for sale
|
|
|
1,484
|
|
|
|
-
|
|
Derivative financial
instruments
|
|
|
2,112
|
|
|
|
324
|
|
Total current
assets
|
|
|
256,875
|
|
|
|
360,292
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
164,628
|
|
|
|
165,921
|
|
Intangible
assets
|
|
|
37,582
|
|
|
|
38,496
|
|
Deferred tax
assets
|
|
|
4,154
|
|
|
|
7,020
|
|
Other
receivables
|
|
|
2,688
|
|
|
|
3,846
|
|
Total non-current
assets
|
|
|
209,052
|
|
|
|
215,283
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
465,927
|
|
|
|
575,575
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
|
-
|
|
|
|
751
|
|
Trade
payables
|
|
|
41,643
|
|
|
|
53,962
|
|
Income tax
payable
|
|
|
8,312
|
|
|
|
15,273
|
|
Provisions
|
|
|
2,646
|
|
|
|
2,321
|
|
Other current
liabilities
|
|
|
22,262
|
|
|
|
28,238
|
|
Total current
liabilities
|
|
|
74,863
|
|
|
|
100,545
|
|
|
|
|
|
|
|
|
|
|
Employee
benefits
|
|
|
2,306
|
|
|
|
2,223
|
|
Other non-current
liabilities
|
|
|
73
|
|
|
|
117
|
|
Deferred tax
liabilities
|
|
|
5,166
|
|
|
|
4,983
|
|
Total non-current
liabilities
|
|
|
7,545
|
|
|
|
7,323
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
82,408
|
|
|
|
107,868
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
3,461
|
|
|
|
3,556
|
|
Share
premium
|
|
|
214,609
|
|
|
|
228,721
|
|
Translation
reserve
|
|
|
(34,161)
|
|
|
|
(13,039)
|
|
Retained
earnings
|
|
|
199,610
|
|
|
|
248,469
|
|
Total shareholders'
equity
|
|
|
383,519
|
|
|
|
467,707
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
465,927
|
|
|
$
|
575,575
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
|
For the three months
ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
$
|
28,818
|
|
|
$
|
48,859
|
|
|
$
|
14,910
|
|
|
$
|
19,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
10,926
|
|
|
|
14,998
|
|
|
|
3,930
|
|
|
|
6,671
|
|
Amortization of
intangible assets
|
|
|
2,596
|
|
|
|
2,215
|
|
|
|
775
|
|
|
|
679
|
|
Impairment of other
intangible assets
|
|
|
1,830
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Change in fair value
of derivative financial instruments
|
|
|
626
|
|
|
|
1,447
|
|
|
|
58
|
|
|
|
1,777
|
|
Other expenses,
net
|
|
|
-
|
|
|
|
142
|
|
|
|
-
|
|
|
|
-
|
|
Exchange rate
differences on long-term loans and borrowing
|
|
|
642
|
|
|
|
-
|
|
|
|
243
|
|
|
|
-
|
|
Share based
payment
|
|
|
3,513
|
|
|
|
3,457
|
|
|
|
1,032
|
|
|
|
1,863
|
|
Interest expense
(income), net
|
|
|
369
|
|
|
|
(235)
|
|
|
|
115
|
|
|
|
(74)
|
|
Income tax
expense
|
|
|
5,502
|
|
|
|
6,795
|
|
|
|
3,443
|
|
|
|
2,826
|
|
|
|
|
54,822
|
|
|
|
77,678
|
|
|
|
24,506
|
|
|
|
33,497
|
|
Decrease (increase) in
inventories
|
|
|
11,825
|
|
|
|
(12,408)
|
|
|
|
3,037
|
|
|
|
(5,411)
|
|
Decrease (increase)
trade and other receivables
|
|
|
2,615
|
|
|
|
(4,253)
|
|
|
|
(1,159)
|
|
|
|
(488)
|
|
Increase in trade
payables and other liabilities
|
|
|
1,267
|
|
|
|
17,645
|
|
|
|
3,214
|
|
|
|
4,842
|
|
Increase in employee
benefits
|
|
|
215
|
|
|
|
215
|
|
|
|
39
|
|
|
|
23
|
|
Increase (decrease) in
provisions
|
|
|
494
|
|
|
|
(325)
|
|
|
|
748
|
|
|
|
(342)
|
|
|
|
|
71,238
|
|
|
|
78,552
|
|
|
|
30,385
|
|
|
|
32,121
|
|
Interest
paid
|
|
|
(428)
|
|
|
|
(94)
|
|
|
|
(135)
|
|
|
|
(27)
|
|
Income tax
received
|
|
|
207
|
|
|
|
121
|
|
|
|
162
|
|
|
|
6
|
|
Income tax
paid
|
|
|
(5,225)
|
|
|
|
(3,279)
|
|
|
|
(413)
|
|
|
|
(841)
|
|
Net cash from operating
activities
|
|
|
65,792
|
|
|
|
75,300
|
|
|
|
29,999
|
|
|
|
31,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
received
|
|
|
60
|
|
|
|
328
|
|
|
|
21
|
|
|
|
100
|
|
Investment in financial
Investments, net
|
|
|
(7,000)
|
|
|
|
(13,000)
|
|
|
|
(7,000)
|
|
|
|
(6,000)
|
|
Proceeds from
investment grants
|
|
|
2,828
|
|
|
|
3,903
|
|
|
|
2,828
|
|
|
|
-
|
|
Proceeds from sale of
property, plant and equipment
|
|
|
-
|
|
|
|
1,590
|
|
|
|
-
|
|
|
|
27
|
|
Proceeds from (payment
for) derivative financial instruments, net
|
|
|
(1,043)
|
|
|
|
1,094
|
|
|
|
(168)
|
|
|
|
(285)
|
|
Acquisition of
property, plant and equipment
|
|
|
(21,828)
|
|
|
|
(14,103)
|
|
|
|
(6,049)
|
|
|
|
(4,218)
|
|
Acquisition of
intangible assets
|
|
|
(1,525)
|
|
|
|
(1,631)
|
|
|
|
(561)
|
|
|
|
(536)
|
|
Net cash used in
investing activities
|
|
|
(28,508)
|
|
|
|
(21,819)
|
|
|
|
(10,929)
|
|
|
|
(10,912)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of employee share options
|
|
|
1,918
|
|
|
|
10,750
|
|
|
|
1,199
|
|
|
|
1,001
|
|
Repayments of long-term
loans and borrowings
|
|
|
(17,693)
|
|
|
|
-
|
|
|
|
(7,529)
|
|
|
|
-
|
|
Change in short-term
debt
|
|
|
(2,861)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Net cash from (used in)
financing activities
|
|
|
(18,636)
|
|
|
|
10,750
|
|
|
|
(6,330)
|
|
|
|
1,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
18,648
|
|
|
|
64,231
|
|
|
|
12,740
|
|
|
|
21,348
|
|
Cash and cash
equivalents at the beginning of the period
|
|
|
34,534
|
|
|
|
50,250
|
|
|
|
40,943
|
|
|
|
94,531
|
|
Effect of exchange
rates fluctuations on cash and cash equivalents
|
|
|
675
|
|
|
|
2,148
|
|
|
|
174
|
|
|
|
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
$
|
53,857
|
|
|
$
|
116,629
|
|
|
$
|
53,857
|
|
|
$
|
116,629
|
|
The following
tables present the Company's revenue, by
|
product type for
the periods presented, as well as such revenue
|
by product type as
a percentage of total revenue:
|
|
|
|
Nine months
ended
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
Revenue (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sparkling Water Maker
starter kits (including
exchange cylinders)
|
|
$
|
114,090
|
|
|
$
|
140,791
|
|
|
$
|
45,463
|
|
|
$
|
53,292
|
|
Consumables
|
|
|
223,014
|
|
|
|
238,816
|
|
|
|
76,938
|
|
|
|
85,132
|
|
Other
|
|
|
7,161
|
|
|
|
6,105
|
|
|
|
1,827
|
|
|
|
1,359
|
|
Total
|
|
$
|
344,265
|
|
|
$
|
385,712
|
|
|
$
|
124,228
|
|
|
$
|
139,783
|
|
|
|
Nine months
ended
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
As a percentage of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sparkling Water Maker
starter kits (including
exchange cylinders)
|
|
|
33.1
|
%
|
|
|
36.5
|
%
|
|
|
36.6
|
%
|
|
|
38.1
|
%
|
Consumables
|
|
|
64.8
|
%
|
|
|
61.9
|
%
|
|
|
61.9
|
%
|
|
|
60.9
|
%
|
Other
|
|
|
2.1
|
%
|
|
|
1.6
|
%
|
|
|
1.5
|
%
|
|
|
1.0
|
%
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
Reconciliation of
Net income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
Three months
ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
|
(Unaudited)
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
28,818
|
|
|
$
|
48,859
|
|
|
$
|
14,910
|
|
|
$
|
19,755
|
|
|
Financial expenses,
net
|
|
|
1,314
|
|
|
|
22
|
|
|
|
210
|
|
|
|
430
|
|
|
Income tax
expense
|
|
|
5,502
|
|
|
|
6,795
|
|
|
|
3,443
|
|
|
|
2,826
|
|
|
Depreciation and
amortization
|
|
|
13,522
|
|
|
|
17,213
|
|
|
|
4,705
|
|
|
|
7,350
|
|
|
EBITDA
|
|
$
|
49,156
|
|
|
$
|
72,889
|
|
|
$
|
23,268
|
|
|
$
|
30,361
|
|
|
Impairment of other
intangible assets
|
|
|
1,830
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Adjusted
EBITDA
|
|
$
|
50,986
|
|
|
$
|
72,889
|
|
|
$
|
23,268
|
|
|
$
|
30,361
|
|
|
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multimedia:http://www.prnewswire.com/news-releases/sodastream-reports-third-quarter-fiscal-2017-results-300547212.html
SOURCE SodaStream International Ltd.