SodaStream International (SODA) Tops Q1 Earnings, Lifts View
Zacks Investment Research | May 10, 2017 10:05PM ET
SodaStream International Ltd. (NASDAQ:SODA) reported impressive results for the first quarter of 2017, beating the Zacks Consensus Estimate on both the counts.
The company’s adjusted earnings per share of 66 cents surpassed the Zacks Consensus Estimate of 38 cents by 7.37%. Earnings increased a robust 127.6% on a year-over-year basis as well.
Revenues
Total revenue of $115.3 million beat the Zacks Consensus Estimate of $109.8 million by 5%. Sales rose 14.3% year over year on increased demand in each of the company's four geographic regions.
Geographic Breakdown
Sales rose 12% in Western Europe, owing to double-digit growth in Sparkling Water Maker units and gas refill sales across key markets in Western Europe, Germany, France, Nordic, Switzerland, Benelux and Austria.
SodaStream’s revenues from the Americas increased 12% on the back of strong growth in Canada and the U.S. In both the countries, sales were driven by strong sparkling water maker sales.
In the Asia Pacific, revenues increased 38% year over year on strong demand in Japan.
In Central & Eastern Europe, Middle East, Africa (CCEMA), sales rose 15% year over year on solid sales of sparkling water makers and gas refills to Czech distributor.
Inside the Headline Numbers
Gross margin rose 200 basis points (bps) year over year to 52.7% driven by production optimization, leveraging of fixed infrastructure for increased production volume and the introduction of the higher margin "Fizzi" machine.
EBITDA was $20 million, up 62.9% year over year.
Operating income was $15.9 million, up 100.3% year over year, driven by lower operating expenses and gross margin improvement.
Effective tax rate of 12.9% was less than 13.1% recorded in the prior-year quarter.
SodaStream International Ltd. Price, Consensus and EPS Surprise
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