SodaStream released its second quarter earnings report before opening bell this morning, posting earnings of 37 cents per share on $119.2 million in revenue. Analysts had been expecting earnings of 21 cents per share on $101.7 million in sales. In last year’s second quarter, the beverage machine maker posted earnings of 17 cents per share on $101.7 million in revenue.
SodaStream’s sparkling water business grows
Adjusted EBITDA soared 73% to $15.4 million, against last year’s $8.9 million. Net income skyrocketed 120.8% to $7.8 million, versus the year-ago quarter’s $3.5 million.
Michael Mauboussin: Here’s what active managers can do
SodaStream said greater consumer demand for sparkling water makers and consumables, especially in Canada, Japan, Germany, South Korea and France, drove the higher results. The company’s gross margin improved to 50.7% from last year’s 50.3%, mostly due to optimization of production at the plant in Lehavim, although this was partially offset by a mix shift toward sparkling water makers.
Revenue from Sparkling Water starter kits amounted to $39 million, while Consumables revenue was $78 million.
SodaStream repositions itself
“Our work repositioning the SodaStream brand around sparkling water and effectively communicating the compelling benefits of our home carbonation system helped drive double digit revenue growth in each of our four geographic regions,” SodaStream CEO Daniel Birnbaum said in a statement. Importantly, we advanced our position as the world’s largest sparkling water brand with an all-time-record high quarter of 7.5 million gas refills. Our performance also included a sharp acceleration in sparkling water maker sales as our marketing programs aimed at increasing household penetration are resonating with consumers.”
Sales in Western Europe grew 14% to $74.4 million, while sales in the Americas increased 12% to $26 million. Asia-Pacific sales surged 44% to $13 million, and sales in Central & Eastern Europe, the Middle East, and Africa grew 32% to $5.8 million.
Shares of SodaStream soared in premarket trading this morning, climbing by as much as 13.26% to $27.50 after the second quarter results were released.