ISRAEL/US: SodaStream sees sales rise, but profits struggle in Q2
- H1 net profits slump by 55.8% to US$11.0m
- Sales in six months to end of June increase by 3.7% to $126.2m
- Operating profits in half-year drop by 52% to $13.59m
- Q2 net profits fall by 28% to $9.2m
- Sales in three months to end of June lift by 6.6% to $141.2m
- Operating profits on second quarter decrease by 23.4% to $11.2m
SodaStream reported its half-year results today
SodaStream has seen its sales in the second quarter rise, but profits continued to struggle in the year so far.
Net profits in the three months to the end of June were down by 28%, which coupled with an 85% drop in Q1, meant that half-year net profits decreased by 56%. Sales in the three-month period were up, however, by 6.6%.
Although the Americas region reported a 13.7% fall in Q2 sales, Western Europe, Asia Pacific and Central & Eastern Europe, Middle East & Africa all reported double-digit sales increases. Central & Eastern Europe, Middle East & Africa saw sales soar by 71% to $10.4m.
"In the US, soda maker volumes remained under pressure as we struggled to drive consumer demand and retailers worked through excess inventory carried over from the holiday season,"said CEO Daniel Birnbaum. "We are lowering our US soda maker sales projections for the back half of the year while we reposition our brand behind health & wellness and refine our product line and marketing message to better promote this important consumer benefit."
Looking ahead, SodaStream said it expects full-year sales to come in around 5% up on the year prior, with net profits expected to be down by 5% in 2014.
Shares in SodaStream were today trading up 9.84% at US$32.70.
To read the company's official statement, click here.
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