SodaStream Profit Rises Sharply

SodaStream International Ltd. reported better-than-expected results as the countertop-carbonation maker works to recast itself as a sparkling water producer at a time when many consumers are scaling back on sugary soda.

Shares of SodaStream surged 15% to $27.91 in premarket trading. The stock has risen 37% over the past 12 months.

For the quarter ended June 30, the Israeli company said its profit multiplied to $7.8 million, or 37 cents a share, up from $960,000, or 5 cents a share a year earlier. Adjusted per-share earnings increased to 37 cents from 17 cents.

Revenue rose 19% to $119.2 million, driven by increased consumer demand for sparkling water makers and consumables mainly in Germany, Canada, Japan, France and South Korea.

SodaStream beat expectations of analysts polled by Thomson-Reuters, which had forecast 12 cents in per-share earnings on $105.7 million in revenue.

Chief Executive Daniel Birnbaum said the company's work to reposition the SodaStream brand around sparkling water and communication about the benefits of its home carbonation system helped revenue rise in all four if its geographic regions.

In Western Europe, the company's largest segment in revenue, revenue rose 14% to $74.7 million. Sales in the Americas gained 13% in the quarter to $26 million, while sales also increased 44% in Asia Pacific to $13 million, and sales in Central and Eastern Europe, Middle East and Asia jumped 32% to $5.8 million.

The countertop-carbonation maker sold 7.5 million gas refill units and six million flavor units in the quarter. SodaStream sold 637,000 sparkling water maker units in the quarter, up 30%.

Write to Brittney Laryea at [e-mail]

(END) Dow Jones Newswires

August 02, 2016 09:15 ET (13:15 GMT)

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