Currency Fluctuation Blamed For Dip In SodaStream Q3 Revenue

Third quarter revenue at SodaStream was down 13%, but company officials pinned the decrease mainly on recent currency fluctuations.

For the three-month period ending Sept. 30, company-wide revenue was $110 million, down from revenue of $125.9 million in the comparable quarter the previous year.

Revenue on a constant currency basis was $126 million, according to the company.

Adjusted net income for the quarter was $9.7 million, down from net income of $13.7 million in the same quarter the prior year.

Sales in the company’s Americas division were $26.2 million, down 11% from the comparable quarter the previous year. Western Europe remains the company’s largest division in terms of revenue with sales totaling $74.6 million, a decrease of 8% from the prior year.

“Our operating results were similar to the year ago period on a constant currency basis as the growth plan we announced a year ago continues to gain traction,” said Daniel Birnbaum, SodaStream’s CEO. “Our recent performance included a number of highlights that underscore the strength of our brand and business model.”

Noting that CO2 refills during the quarter increased 10%, Birnbaum feels this is an indicator that the company’s global base is increasing consumption.  

“We believe usage rates will continue to grow as existing and new consumers embrace our repositioning as a healthy ‘water brand’ provided by our enhanced better-for-you product portfolio, which we recently launched in the U.S. and other select countries,” he said.

Looking ahead to 2016, Birnbaum said the acceleration of production at the company’s new state-of-the-art plant in Lehavim, Israel, and the continued launch of its new Waters line positions the company to deliver improved results in the coming year.