SodaStream Swings to Profit

SodaStream International Ltd. swung to a profit in the final quarter of the year, and results handily beat expectations as the company said it started to reap the advantages of its restructuring.

"During the fourth quarter, we began to witness the benefits of our efforts to create a stronger, more efficient organization and capture the market opportunity as consumers rapidly shift from sugared soft drinks to healthier water-based products," said Chief Executive Daniel Birnbaum.

Shares in the company, which have edged up 1.9% over the past three months, rose 6.1% to $14.91 in premarket trading.

SodaStream, which popularized the notion of make-it-at-home soda, is recasting itself as a sparkling water dispenser after hiring a two-star Michelin chef to concoct flavors like "raspberry lychee rose" amid rising competition.

"There is still work ahead of us in order to position the company for consistent profitable growth, but I am confident that our recent actions have us heading in the right direction," Mr. Birnbaum said.

For the quarter ended Dec. 31, SodaStream reported a profit of $2.8 million, or 13 cents a share, compared with a loss of $8.2 million, or 39 cents, a year earlier. Adjusted per-share earnings fell to 24 cents from 35 cents.

Revenue dropped 11% to $112.9 million. The company said sales were roughly flat on a constant-currency basis.

Analysts polled by Thomson Reuters had forecast adjusted earnings of 17 cents a share on $110 million in revenue.

Restructuring costs in the latest period were $2.2 million.

Gross margin, before the impact of restructuring costs, fell to 48% from 50.4% in the same period a year ago, hurt by foreign currency exchange rates.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

February 18, 2016 08:45 ET (13:45 GMT)

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