ISRAEL: SodaStream ad push drives strong FY performance

By | 21 February 2013

  • FY net profits up by 60% to US$43.9m
  • Net sales in 2012 rise by 51% to $436m
  • FY operating profits jump by 59%, hitting US$45.5m
SodaStream launched an US$18m ad campaign last year

SodaStream launched an US$18m ad campaign last year

SodaStream has posted a big jump in full-year profits and sales as an increased marketing spend ahead of the holiday season led to a record final quarter.

Net profits rose by 60% to US$43.9m in the 12 months to the end of December, the Israeli company said yesterday (20 February). Net sales were up by 55% to $133m over the same period while operating profits increased by 48% to $7.9m.

Fourth-quarter numbers were just as positive. Net profits increased by 42% to $7.5m in the three months and net sales jumped by 55% to $133m. Operating profits rose by 48% to $7.9m.

SodaStream CEO Daniel Birnbaum praised the strong finish to a “record year”, with the company exceeding 1m soda maker sales in a quarter for the first time. “Our efforts throughout 2012 to increase global awareness of our brand and category and expand our retail presence culminated in a very successful holiday season,” Birnbaum said

In November, the company launched an $18m marketing push across its 45 markets. The campaign followed the launch of The Source soda maker.

Sales and marketing expenses for the fourth quarter totalled $52.8m, or 39.7% of sales, compared to $36.4m, or 42.5% of sales, for the comparable period in the prior year, SodaStream said.

Looking ahead, Birnbaum said that SodaStream's ongoing marketing campaign, which included a Super Bowl ad, coupled with its new soda maker “all set the stage for continued growth in 2013 and beyond”.

Despite the healthy results, SodaStream shares dropped yesterday, losing about 6% in value by the end of the day.

To read the company's official statement, click here.

For just-drinks' coverage of SodaStream's results conference call, click here.

Expert analysis

MarketWatch Drinks - February 2012

Datamonitor's Drinks MarketWatch provides monthly insight into the key developments in the drinks industry, including the latest news, analysis, and opinion from Europe, North America, South and Central America, and Asia Pacific.

Sectors: Company results, Soft drinks

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ISRAEL: SodaStream ad push drives strong FY performance

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