LOD: SodaStream International Ltd. said its third-quarter profit sank 76% and revenue fell below analysts’ expectations, as the company was hurt by currency headwinds and continues to work through a restructuring.
Chief Executive Daniel Birnbaum said results were similar to a year ago’s on a constant-currency basis and that the company’s growth plan is gaining traction.
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.
“Third-quarter CO2 refills increased 10% to an all-time record 7 million, a great indication that our global user base is increasing consumption,” he said. “We believe usage rates will continue to grow as existing and new consumers embrace our repositioning as a healthy water brand.”
SodaStream reported a profit of $2.2 million, or 11 cents a share, down from $9.5 million, or 45 cents, a year earlier. Adjusted earnings were 22 cents. Revenue dropped 12% to $110 million.
Analysts polled by Thomson Reuters had forecast adjusted earnings of 21 cents on $112 million in revenue.
Restructuring costs in the latest period were $2 million. The company didn’t report any restructuring costs in the year-earlier period.
