SodaStream Earnings Up 129%
SodaStream’s Q1 earnings included improving operating trends with revenue of $115.3 million, up more than 14 percent from the previous year and earnings per share up by 129 percent. The company’s net income was $14.7 million, up nearly 142 percent from last year.
The improved financials were driven by sales momentum in each geographic market as well as cost cutting with new product launches that spurred improved profitability.
“Our first quarter performance represents a very good start to 2017,” said CEO Daniel Birnbaum said in a press release. “Sales grew double digits in each of our four geographic regions as investments in marketing fueled strong demand for sparkling water makers.”
SodaStream sold 34 percent more starter kits and an increased average price drove revenue from the machines up 37 percent. The launch of the higher-margin Fizzi machine drove gross profit margin up 2 percent to account for nearly 53 percent of sales. The company sold 12 percent more carbon dioxide canisters and pushed the base of active users up to 7.6 million. Companywide, revenue improved by 12 percent in the United States and Europe and by 28 percent in the Asia/Pacific region.
Q1 results point to the turnaround plan Birnbaum instituted is working, and the goal is to continue to boost demand through improved products and better retailing access heading into the 2017 holiday season.