SodaStream (SODA) Misses Q2 EPS by 18c

SodaStream (NASDAQ: SODA) reported Q2 EPS of $0.17, $0.18 worse than the analyst estimate of $0.35. Revenue for the quarter came in at $101.7 million versus the consensus estimate of $106.31 million.

CO2 refills reached an all-time quarterly record of 6.9 million.

*Adjusted revenue, Adjusted operating income, Adjusted net income and Adjusted diluted earnings per share are non-IFRS financial measures that eliminate the effect of restructuring costs, which include $2.6 million of pre-tax charges incurred as part of the Company's restructuring and growth plan announced on October 29, 2014. The charges were related to activities associated with discontinued products, which decreased revenue by $1.8 million and increased cost of revenue by $0.3 million. An additional expense of $0.5 million was associated with the transition to the new plant in Southern Israel which increased cost of revenue. Adjusted EBITDA represents earnings before financial income, income tax, depreciation and amortization, and further eliminates the effect of restructuring costs.

"Our second quarter performance was in-line with our expectations. As we previously discussed, the first half of 2015 would be a challenging period due to implementation of our global restructuring and growth plan combined with changes in foreign currency exchange rates. That said, we are proud to have achieved an all-time record of CO2 refills, which is a testimony of our consumers' loyalty and our overall Q2 performance masks the ongoing strength of our business in key markets led by Germany, Switzerland and Austria" said Daniel Birnbaum, Chief Executive Officer of SodaStream. "We are making tremendous progress toward repositioning as a "water brand" behind a health and wellness positioning. Our new portfolio of better-for-you sparkling water flavors is currently rolling out to retailers around the world and we are testing a new marketing campaign "Sparkling Waters – Made by You", including TV in several cities in the United States. At the same time the consolidation of our production activities into our new state-of-the-art plant in Lehavim continues ahead of schedule. We are confident that our new strategic direction supported by a terrific and unique product portfolio and marketing plan, will fuel increased household penetration and user activity and deliver sustainable growth and increased profitability in the years ahead."

For earnings history and earnings-related data on SodaStream (SODA) click here.

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