SodaStream has spoken out about its Q3 performance

SodaStream has spoken out about its Q3 performance

The CEO of SodaStream has said he is “very disappointed” with the company’s performance as it warned of a sharp drop in third-quarter sales and profits.

The Israel-headquartered firm revealed in preliminary results today that sales for the three months to the end of September were around US$125m, a 13% drop on the same period last year. Operating profits are expected to come in at US$8.5m, a drop of 53% on last year, the company said.

Shares in the home carbonation system maker took a sharp hit today and are currently trading down by 20% at $21.83.

“We are very disappointed in our recent performance," said Daniel Birnbaum, SodaStream’s CEO. 

"Our US business underperformed due to lower-than-expected demand for our soda makers and flavours, which was the primary driver of the overall shortfall in the third quarter.” 

He added: While we were successful over the last few years in establishing a solid base of repeat users in the US, we have not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved.” 

Birnbaum said the company will announce details of a “growth plan” when it reports third-quarter figures on 29 October.

“Despite our current challenges, we continue to be very confident in our business model and the global prospects for SodaStream,” he said.