Trader looks at market graph 311 (R).
(photo credit: REUTERS/Tony Gentile)
Home carbonated-beverages systems maker SodaStream International
Ltd. lost one-third of its value last week despite a rebound on Friday.
The share price rose 5.1 percent on Friday to $47.89, giving a market cap of
$880 million, down from its peak value of $1.4 billion last month.
fall in market cap came despite a strong financial report for the second quarter
and higher full-year guidance.
SodaStream published its financial report
for the second quarter on Thursday.
Revenue rose 38% to 53.3 million
euros from 38.5 million euros. Revenue in the Americas rose 136%, and revenue in
Western Europe rose 22%. Revenue from soda makers rose 36%, and
consumables revenue rose 54%. Sales of flavor units nearly doubled to 6.1
million euros, and sales of CO2 canisters rose 34% to 3.2 million
euros. Net profit more than doubled to 5.1 million euros for the second
quarter, from 2.1 euros million for the corresponding quarter last
year. Adjusted net profit rose to 6.1 million euros from 2.3 million
euros, beating the analysts’ consensus.
SodaStream raised its full year
guidance for 2011 to 30% revenue growth from 160.7 million euros in 2010 and 60%
growth in net profit from 9.7 million euros last year.
Cash flow from
operations rose to 1.6 million euros for the second quarter from 1.3 million
euros for the corresponding quarter. The company had 74.8 million euros in cash
and cash equivalents at the end of June, up from 52.9 million euros at the end
of 2010, mainly due to the 33.1 million euros raised in the secondary offering
SodaStream’s future depends on sales of disposable products: the
CO2 canisters for the carbonated beverage systems. Sales of the canisters
accounted for 55% of total revenue in the second quarter, up from 50% in the
The second factor is sales in the US, which the
company describes as strong. The company sells through 7,000 retail
outlets owned by 16 chains, and the number is expected to grow. Sales in
the Americas rose to 21.9% of total revenue in the first half from 12.9% in the
first half of last year. But the penetration remained flat at 21.4%, so the
potential is still high. The US has 110 million households that consume an
average of 118 liters of soda a year.
SodaStream sold an average of four
CO2 canisters and eight flavor-concentrate canisters per US consumer in the
second quarter, compared with three CO2 canisters and four flavor- concentrate
canisters per European consumer.
Eighty-two percent of US buyers of the
company’s systems last year became active users, buying the CO2 canisters, and
71% bought the flavor-concentrate canisters.