SodaStream Reports Q4, 2013 Revenue Gains, Income Declines

SodaStream International Ltd. today reported fourth quarter 2013 revenue of $168.1 million, up a 26.4% from $132.9 million in the fourth quarter 2012. Despite the company’s revenue gains net income declined for the quarter to $0.7 million, compared to $7.5 million in the fourth quarter of 2012.

“While the fourth quarter proved to be more challenging than we expected there were several highlights, along with important lessons from the past year that give us confidence about the future,” said Daniel Birnbaum, CEO of SodaStream. “Our ability to grow revenue 29% to $563 million in 2013, including selling a record 4.4 million soda makers and increasing gas refill unit sales 30% to a record 21.5 million, underscores the high level of consumer interest and activity in home carbonation.  Our plan is to capitalize on our first mover advantage and leadership position by accelerating investments in brand building and demand creation in 2014 to capture a greater share of the global carbonated beverage market.  Importantly, we have moved quickly to implement measures and controls in order to restore gross margins to historical levels and prevent the issues that impacted fourth quarter profitability from recurring.  I’m confident we are on the right path towards achieving our primary goal of increasing household penetration.”

For the full year the company reported revenue increases of 29.0% to $562.7 million from $436.3 million in 2012. Net income decreased 4.2% to $42.0 million compared to $43.9 million in 2012, and Adjusted net income increased 6.0% to $53.0 million compared to $50.0 million in 2012