SodaStream International (SODA) Prelim. Q3 Revs Miss Expectations

SodaStream International (NASDAQ: SODA) announced preliminary results for the third quarter ended September 30, 2014.

On a preliminary basis, based on the information currently available, for the quarter ended September 30, 2014, the Company expects:

• Revenue to be approximately $125.0 million.
• Operating income to be approximately $8.5 million.

*** The Street sees Q3 revs of $154.1 million and EPS of $0.68.

As the Company has not completed the quarter-end close of its third quarter 2014 financial statements, the revenue and operating income expectations presented in this press release are estimated and preliminary, and therefore, subject to quarter-end closing adjustments and may change.

"We are very disappointed in our recent performance," said Daniel Birnbaum, Chief Executive Officer of SodaStream. "Our U.S. business underperformed due to lower than expected demand for our soda makers and flavors which was the primary driver of the overall shortfall in the third quarter. While we were successful over the last few years in establishing a solid base of repeat users in the U.S., we have not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved. The third quarter results are a clear indication that we must alter our course and improve our execution across the board. We have already begun a strategic shift of the SodaStream brand towards health & wellness, primarily in the U.S., where we believe this message will resonate more strongly with consumers. In addition, we are developing a comprehensive growth plan for the Company that will encompass Marketing, Product and Innovation, Distribution, Operations and Organization. We intend to share more specifics around our growth plan when we report third quarter results later this month."

Mr. Birnbaum concluded, "We have a strong balance sheet and are well positioned with ample liquidity to invest in the areas of our business that we believe will fuel profitable growth in the years ahead. Despite our current challenges, we continue to be very confident in our business model and the global prospects for SodaStream. We firmly believe that our actions to shift the brand and improve execution will strengthen our leadership position in the home carbonation category and deliver enhanced shareholder value."

The Company is scheduled to report actual third quarter 2014 results on October 29, 2014.

You May Also Be Interested In

• Nscale targets up to $3B in US IPO as soon as September - Bloomberg
• FTC files amicus brief challenging Amgen's Enbrel patent acquisition
• Sandisk targets mid-to-high teens revenue growth through FY2030