SodaStream (SODA) Beats On Q1 Earnings & Revenues, Lifts View
Zacks Investment Research | May 02, 2018 09:26PM ET
SodaStream International Ltd. (NASDAQ:SODA) came up with impressive results in the first quarter of 2018, beating the Zacks Consensus Estimate on both the counts. Results benefitted from increased contribution from Americas' and Asia-Pacific businesses, double-digit growth in Germany and positive foreign currency translation.
SodaStream’s adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate of 66 cents by 22.7%. Earnings increased 23.1% year over year on strong revenues, improved efficiencies and solid margin.
Revenues
Total revenues of $143.6 million beat the Zacks Consensus Estimate of $131.9 million by 8.9%. Revenues rose 24.6% year over year, marking the ninth consecutive quarter of double-digit growth.
The impressive top-line results were driven by double-digit increase in revenues across all regions, barring the 4.7% drop in Central & Eastern Europe, Middle East, Africa (CCEMA). The performance was particularly solid in the United States, Germany, Canada and Australia.
Geographical Breakdown
Sales rose 21.8% in Western Europe, which represented 57% of global sales owing to double-digit growth in Germany, positive foreign currency translations, increased household penetration in Holland and solid gas refill sales across the region.
SodaStream’s revenues from the Americas (U.S. and Canada) increased 39%. Sales in Canada were up 44% on growth in sparkling water makers, gas refills and flavors. Revenues increased 33% in the United States.
In the Asia Pacific, revenues increased 28% year over year on strong demand in Australia and Japan. In CCEMA, sales dropped 4.7%.
Product Performance
In terms of product performance, gas refill units grew 8.8% in the first quarter and flavor unit sales rose 4.4% year over year. Sparkling water maker units were down 1.6% owing to the launch of a new distribution model in France.
Margin Improve
Gross margin rose 250 basis points (bps) year over year to 55.2%. Adjusted EBITDA was $30.8 million, up 24.3% year over year. Leveraging of fixed infrastructure on higher revenue, positive FX impact and changes in product mix, led to the upside.
Operating income was $21.3 million, up 34.4% year over year on positive FX impact.
SodaStream International Ltd. Price, Consensus and EPS Surprise
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.