AIRPORT CITY, Israel, May 18, 2011 /PRNewswire/ -- SodaStream International Ltd. (NASDAQ: SODA), a leading manufacturer of home beverage carbonation systems, announced today its results for the three month period ended March 31, 2011.
(Logo: http://photos.prnewswire.com/prnh/20100903/NY58941LOGO-b)
Our results for the first quarter of 2011, as compared to the first quarter of 2010, were as follows:
- Revenues increased 50% to Euro 45.1 million
- Americas revenues increased 153% to Euro 10.2 million
- Adjusted diluted earnings per share was Euro 0.27 or $0.38*
- Soda maker unit sales increased 99% to 592,000
- Consumable sales increased 34% to Euro 22.6 million
- Americas soda maker unit sales increased 271%
- Americas consumable sales increased 216%
"We experienced strong growth in each of our geographic regions in the first quarter of 2011, led by the Americas where sales were up 153%," commented Daniel Birnbaum, Chief Executive Officer of SodaStream. "After a very successful holiday season in the U.S., we continued to see strong demand for our soda makers as well as strong sell-through of our consumables. These trends are positive indicators that our U.S. strategy to build brand awareness and consumer adoption is succeeding. In addition, we continue to extend our reach into new and established markets around the world. Our heightened outlook for the year reflects our optimism as we pursue global growth opportunities through 2011 and beyond."
Results for the Three Months Ended March 31, 2011:
Total revenues for the first quarter of 2011 were Euro 45.1 million, $64.0 million as per a convenience translation*, an increase of 50% compared to Euro 30.2 million reported in the first quarter of 2010. Revenues increased in each geographical region, with revenues for Western Europe and the Americas increasing 23% and 153%, respectively, compared to the first quarter of 2010. (See table with geographic breakdown below)
During the first quarter of 2011, unit sales of soda makers increased 99% to 592,000, sales of CO2 refills increased 21% to 2.7 million, and flavor unit sales increased 26% to 3.9 million.
Gross margin for the first quarter of 2011 was 53.5%, compared to 53.9% in the comparable period in 2010. The slight decrease was mainly due to the growing portion of soda maker starter kit sales in the revenue mix, as part of management's strategy to increase market penetration.
Sales and marketing expenses for the first quarter of 2011 totaled Euro 13.2 million compared to Euro 9.8 million for the comparable period last year. The increase is primarily due to investments in the Company's sales and distribution platform and an increase in marketing spend to capitalize on new distribution opportunities, mainly in the United States. As a percentage of revenues, sales and marketing expenses decreased 320 basis points to 29.3% for the first quarter of 2011 compared to 32.5% for the first quarter of 2010.
General and administrative expenses for the first quarter of 2011 were Euro 5.8 million, compared to Euro 3.9 million in the comparable period of last year. General and administrative expenses for the three months ended March 31, 2011 include Euro 1.1 million of non-cash share-based compensation expense (the "Share-Based Compensation") while general and administrative expenses for the three months ended March 31, 2010 include Euro 43,000 of non-cash share-based compensation expense and Euro 114,000 related to a previous management fee that was cancelled effective as of November 2010.
Adjusted general and administrative expenses exclude the Shared-Based Compensation as well as the discontinued management fees. Such adjusted general and administrative expenses were Euro 4.7 million or 10.5% of revenues for the first quarter 2011, and Euro 3.7 million or 12.3% of revenues for the comparable period of 2010.
Net income for the three months ended March 31, 2011 was Euro 4.2 million, or 22 Euro cents, $0.31 per the convenience translation, per fully diluted share based on 19.6 million weighted average shares, compared to net income of Euro 2.0 million, or 16 Euro cents per fully diluted share based on 13.4 million weighted average shares, in the comparable period in 2010. Excluding the Shared-Based Compensation and the discontinued management fees, adjusted net income (as defined below) for the first quarter of 2011 was Euro 5.3 million, or 27 Euro cents, $0.38 per the convenience translation per fully diluted share, compared to adjusted net income of Euro 2.2 million, or 17 Euro cents per fully diluted share in the first quarter of 2010.
Adjusted EBITDA for the first quarter of 2011 totaled Euro 6.8 million, compared to Euro 3.2 million for the comparable period in 2010. Adjusted EBITDA margin was 15.0% for the first quarter of 2011 as compared to 10.7% for the comparable period in 2010.
Cash flow used in operating activities during the first quarter of 2011 was Euro 2.1 million, compared to Euro 4.7 million during the comparable quarter of 2010. The increase in operating cash flow was mainly due to an increase in net income for the period, while continuing investing in working capital, particularly with respect to inventory in the Americas and Western Europe, to support the Company's growth.
* As of March 31, 2011, the Euro to U.S. Dollar exchange rate was: Euro 1.00 equaled $1.4183.
Balance Sheet
As of March 31, 2011, cash and cash equivalents decreased to Euro 42.5 million from cash and cash equivalents of Euro 52.9 million as of December 31, 2010. The decrease is primarily attributable to the Euro 6.5 million repayment of debt during the first quarter of 2011. As of March 31, 2011, loans and borrowings totaled Euro 266,000, compared to Euro 6.8 million as of December 31, 2010. Working capital as of March 31, 2011 was Euro 33.4 million, an increase of approximately 23%, compared to Euro 27.2 million as of December 31, 2010, primarily due to an increase in inventory reflecting demand and revenues' growth and decrease in trade payables. On April 19th, 2011 we closed our secondary offering. The Company sold 1.2 million shares at $43.50 per share and raised approximately $49.6 million or Euro 34.5 million.
Guidance
Based on first quarter results and current projections for the remainder of the year, the Company is raising its outlook. The Company now expects 2011 revenue to increase by approximately 30% as compared with 2010 revenue of Euro 160.7 million, up from its previous expectation of 25%. The Company now expects net income to increase by approximately 60% as compared with its net income of Euro 9.7 million reported in 2010, up from its previous expectation of 40%. This guidance includes a share-based payment expense of approximately Euro 3.7 million in 2011. On an adjusted basis, excluding the share-based payment expense, fiscal 2011 net income is expected to be approximately Euro 19 million.
Conference Call
The Company has scheduled a conference call for 8:30 AM Eastern Daylight Time (United States) today (Wednesday, May 18, 2011) to review the Company's financial results. The conference call will be broadcast over the Internet as a "live" listen only Webcast.
To listen, please go to: http://sodastream.investorroom.com. Listeners are urged to login approximately 20 minutes before the conference call is scheduled to begin in order to register, as well as download and install any necessary audio software. An archive of the Webcast will be available for 30 days after the call.
About SodaStream International
SodaStream manufactures home beverage carbonation systems, which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. Soda makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness, and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles. Our products are available at more than 40,000 retail stores in 41 countries around the world. For more information on SodaStream, please visit the Company's website: www.sodastream.com.
Non-IFRS Financial Measures
This press release contains certain non-IFRS measures, including Adjusted net income ("Adjusted net income"), Adjusted Earnings Before Interest, Income Tax, Depreciation and Amortization ("Adjusted EBITDA"), and Adjusted diluted earnings per share (“Adjusted diluted EPS”).
Adjusted net income represents net income calculated in accordance with IFRS as adjusted for the impact of the Share-Based Compensation and for the impact of the discontinued management fees. Adjusted EBITDA represents earnings before interest, income tax, depreciation and amortization, and further eliminates the effect of the Share-Based Compensation and of the discontinued management fees. Adjusted diluted EPS represents earnings per share calculated in accordance with IFRS as adjusted for the impact of the Share-Based Compensation and for the impact of the discontinued management fees.
The Company believes that the Adjusted net income, Adjusted EBITDA and Adjusted diluted EPS, which excludes the Share-Based Compensation and the discontinued management fees, should be considered in evaluating the Company's operations since they provide a clearer indication of the Company's operating results going forward.
These measures should be considered in addition to results prepared in accordance with IFRS, but should not be considered a substitute for the IFRS results. The non-IFRS measures included in this press release have been reconciled to the IFRS results in the tables below.
Forward Looking Statements
This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on management's current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to expand into our target markets, including the United States; our ability to continue to develop or maintain our presence in retail networks; our ability to develop and implement production and operating infrastructure to effectively support our growth; the success of our marketing campaigns and media spending in terms of increased sales or increased product and brand name awareness; our ability to maintain our customer base in markets where we have an established presence; the risks associated with our reliance on exclusive arrangements for the distribution of our home beverage carbonation systems and consumables in each of the markets in which we use third-party distributors; our ability to compete effectively with other companies which currently offer, or may offer in the future, competing products; potential product liability claims if any component of our home beverage carbonation systems is misused; our ability to protect our intellectual property rights; our being found to have a dominant position in certain markets which may place limits on our ability operate; risks associated with our being subject to fluctuations in currency exchange rates; our potential exposure to greater than anticipated tax liabilities; our products being subject to extensive governmental regulation in the markets in which we operate; adverse conditions in the global economy which could negatively impact our customers' demand for our products; and other factors detailed in documents we file from time to time with the United States Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Company Contact:
Yonah Lloyd
Executive Director, Corporate Development and Communication
SodaStream International Ltd.
Phone: +972-3-976-2462
[email protected]
Investor Contacts (US):
Brendon Frey / Joe Teklits
ICR
Phone: + 1 203-682-8200
[email protected] / [email protected]
Consolidated Balance Sheets as of In thousands |
||||
Convenience |
||||
translation into |
||||
U.S. Dollar |
||||
December 31 |
March 31 |
March 31 |
||
2010 |
2011 |
2011 |
||
(Audited) |
(Unaudited) |
(Unaudited) |
||
Assets |
||||
Cash and cash equivalents |
euro 52,900 |
euro 42,528 |
$ 60,317 |
|
Inventories |
38,523 |
41,243 |
58,495 |
|
Trade and other receivables |
38,809 |
35,331 |
50,110 |
|
Derivative financial instruments |
836 |
267 |
379 |
|
Assets classified as available-for-sale |
629 |
602 |
854 |
|
Total current assets |
131,697 |
119,971 |
170,155 |
|
Property, plant and equipment |
21,548 |
22,504 |
31,917 |
|
Intangible assets |
13,405 |
13,437 |
19,058 |
|
Deferred tax assets |
1,248 |
1,239 |
1,757 |
|
Other receivables |
167 |
138 |
196 |
|
Total non-current assets |
36,368 |
37,318 |
52,928 |
|
Total assets |
euro 168,065 |
euro 157,289 |
$ 223,083 |
|
Liabilities |
||||
Loans and borrowings |
euro 6,753 |
euro 266 |
$ 377 |
|
Derivative financial instruments |
406 |
201 |
285 |
|
Trade payables |
30,425 |
25,171 |
35,700 |
|
Income tax payable |
6,376 |
6,819 |
9,671 |
|
Provisions |
515 |
515 |
730 |
|
Other current liabilities |
13,911 |
11,301 |
16,028 |
|
Total current liabilities |
58,386 |
44,273 |
62,791 |
|
Employee benefits |
768 |
759 |
1,076 |
|
Provisions |
379 |
367 |
521 |
|
Deferred tax liabilities |
410 |
394 |
559 |
|
Total non-current liabilities |
1,557 |
1,520 |
2,156 |
|
Total liabilities |
59,943 |
45,793 |
64,947 |
|
Shareholders' equity |
||||
Share capital |
2,286 |
2,288 |
3,245 |
|
Share premium |
91,870 |
92,955 |
131,838 |
|
Translation reserve |
(53) |
(1,997) |
(2,831) |
|
Retained earnings |
14,019 |
18,250 |
25,884 |
|
Total shareholders' equity |
108,122 |
111,496 |
158,136 |
|
Total liabilities and shareholders' equity |
euro 168,065 |
euro 157,289 |
$ 223,083 |
|
Consolidated Statements of Operations In thousands (net income per share amounts in units) |
||||
Convenience |
||||
Translation |
||||
into |
||||
U.S. Dollars |
||||
For the three |
For the three |
For the three |
||
months ended |
months ended |
months ended |
||
March 31 |
March 31 |
March 31 |
||
2010 |
2011 |
2011 |
||
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
Revenues |
euro 30,159 |
euro 45,099 |
$ 63,964 |
|
Cost of revenues |
13,894 |
20,978 |
29,753 |
|
Gross profit |
16,265 |
24,121 |
34,211 |
|
Operating expenses |
||||
Sales and marketing |
9,793 |
13,211 |
18,737 |
|
General and administrative |
3,880 |
5,791 |
8,213 |
|
Other income, net |
(23) |
(32) |
(45) |
|
Total operating expenses |
13,650 |
18,970 |
26,905 |
|
Operating income |
2,615 |
5,151 |
7,306 |
|
Interest expense (income), net |
294 |
(140) |
(199) |
|
Other financial expense (income), net |
(4) |
280 |
398 |
|
Total financial expenses, net |
290 |
140 |
199 |
|
Income before income tax |
2,325 |
5,011 |
7,107 |
|
Income tax |
284 |
780 |
1,106 |
|
Net income for the period |
euro 2,041 |
euro 4,231 |
$ 6,001 |
|
Net income per share |
||||
Basic |
euro 0.33 |
euro 0.23 |
$ 0.33 |
|
Diluted |
euro 0.16 |
euro 0.22 |
$ 0.31 |
|
Weighted average number of shares |
||||
Basic |
6,259 |
18,457 |
18,457 |
|
Diluted |
13,423 |
19,579 |
19,579 |
|
Consolidated Statements of Cash Flows In thousands |
||||
Convenience |
||||
Translation |
||||
into |
||||
U.S. Dollars |
||||
For the three |
For the three |
For the three |
||
months ended |
months ended |
months ended |
||
March 31 |
March 31 |
March 31 |
||
2010 |
2011 |
2011 |
||
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
Cash flows from operating activities |
||||
Net income for the period |
euro 2,041 |
euro 4,231 |
$ 6,001 |
|
Adjustments: |
||||
Amortization of intangible assets |
14 |
37 |
52 |
|
Change in fair value of derivative financial instruments |
(224) |
328 |
465 |
|
Depreciation of property, plant and equipment |
424 |
822 |
1,166 |
|
Gain on sales of property, plant and equipment |
(4) |
- |
- |
|
Share based payment |
43 |
1,057 |
1,499 |
|
Interest expense (income), net |
294 |
(140) |
(199) |
|
Income tax expense |
284 |
780 |
1,106 |
|
2,872 |
7,115 |
10,090 |
||
Increase in inventories |
(5,129) |
(3,653) |
(5,181) |
|
Decrease (increase) in trade and other receivables |
(5,221) |
2,656 |
3,767 |
|
Increase (decrease) in trade payables |
2,454 |
(5,142) |
(7,293) |
|
Increase in employee benefits |
(16) |
(7) |
(10) |
|
Increase (decrease) in provisions and other current liabilities |
2,139 |
(2,464) |
(3,494) |
|
(2,901) |
(1,495) |
(2,121) |
||
Interest paid |
(204) |
(86) |
(122) |
|
Income tax paid |
(1,591) |
(479) |
(679) |
|
Net cash used in operating activities |
(4,696) |
(2,060) |
(2,922) |
|
Cash flows from investing activities |
||||
Interest received |
7 |
226 |
321 |
|
Proceeds from sale of property, plant and equipment |
63 |
- |
- |
|
Proceeds from derivative financial instruments, net |
- |
36 |
51 |
|
Acquisition of property, plant and equipment |
(735) |
(1,940) |
(2,752) |
|
Acquisition of intangible assets |
(106) |
(122) |
(173) |
|
Net cash used in investing activities |
(771) |
(1,800) |
(2,553) |
|
Cash flows from financing activities |
||||
Proceeds from exercise of employee share options |
- |
28 |
40 |
|
Receipts of long-term loans and borrowings |
3,936 |
- |
- |
|
Repayments of long-term loans and borrowings |
(846) |
- |
- |
|
Repayment of shareholders' loans |
(144) |
- |
- |
|
Change in short-term debt |
6,389 |
(6,459) |
(9,161) |
|
Net cash from (used in) financing activities |
9,335 |
(6,431) |
(9,121) |
|
Net increase (decrease) in cash and cash equivalents |
3,868 |
(10,291) |
(14,596) |
|
Cash and cash equivalents at the beginning of the period |
4,185 |
52,900 |
75,028 |
|
Effect of exchange rates fluctuations on cash and cash equivalents |
122 |
(81) |
(115) |
|
Cash and cash equivalents at the end of the period |
euro 8,175 |
euro 42,528 |
$ 60,317 |
|
Information about revenue in reportable segments In thousands |
||||||
Central and |
||||||
Eastern Europe, |
||||||
Middle East and |
||||||
Western Europe |
Africa |
The Americas |
Asia-Pacific |
Total |
||
Three months ended |
||||||
March 31, 2011 (Unaudited) |
euro 23,520 |
7,703 |
10,220 |
3,656 |
euro 45,099 |
|
March 31, 2010 (Unaudited) |
euro 19,182 |
4,533 |
4,045 |
2,399 |
euro 30,159 |
|
Reported (IFRS) to Adjusted (non-IFRS) Reconciliation of Consolidated Statements of Operations In thousands (net income per share amounts in units) Three months ended March 31 |
||||||||||
Convenience |
||||||||||
Translation into |
||||||||||
U.S. Dollars |
||||||||||
2010 |
2011 |
2011 |
||||||||
Reported |
Management |
Share based |
Reported |
Management |
Share based |
|||||
(Unadjusted) |
fee(*) |
payment |
Adjusted |
(Unadjusted) |
fee(*) |
payment |
Adjusted |
Adjusted |
||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
Revenues |
euro 30,159 |
euro |
euro |
euro 30,159 |
euro 45,099 |
euro |
euro |
euro 45,099 |
$ 63,964 |
|
Cost of revenues |
13,894 |
13,894 |
20,978 |
20,978 |
29,753 |
|||||
Gross profit |
16,265 |
16,265 |
24,121 |
24,121 |
34,211 |
|||||
Operating expenses |
||||||||||
Sales and marketing |
9,793 |
9,793 |
13,211 |
13,211 |
18,737 |
|||||
General and |
||||||||||
administrative |
3,880 |
(114) |
(43) |
3,723 |
5,791 |
- |
(1,057) |
4,734 |
6,714 |
|
Other income, net |
(23) |
(23) |
(32) |
(32) |
(45) |
|||||
Total operating |
||||||||||
expenses |
13,650 |
(114) |
(43) |
13,493 |
18,970 |
- |
(1,057) |
17,913 |
25,406 |
|
Operating income |
2,615 |
114 |
43 |
2,772 |
5,151 |
- |
1,057 |
6,208 |
8,805 |
|
Interest expense |
||||||||||
(income), net |
294 |
294 |
(140) |
(140) |
(199) |
|||||
Other financial |
||||||||||
expense (income), |
||||||||||
net |
(4) |
(4) |
280 |
280 |
398 |
|||||
Total financial |
||||||||||
expenses, net |
290 |
290 |
140 |
140 |
199 |
|||||
Income before |
||||||||||
income tax |
2,325 |
114 |
43 |
2,482 |
5,011 |
- |
1,057 |
6,068 |
8,606 |
|
Income tax |
284 |
284 |
780 |
780 |
1,106 |
|||||
Net income for the |
||||||||||
period |
euro 2,041 |
euro 114 |
euro 43 |
euro 2,198 |
euro 4,231 |
euro - |
euro 1,057 |
euro 5,288 |
$ 7,500 |
|
Net income per |
||||||||||
share |
||||||||||
Basic |
euro 0.33 |
euro 0.35 |
euro 0.23 |
euro 0.29 |
$ 0.41 |
|||||
Diluted |
euro 0.16 |
euro 0.17 |
euro 0.22 |
euro 0.27 |
$ 0.38 |
|||||
Weighted average |
||||||||||
number of shares |
||||||||||
Basic |
6,259 |
6,259 |
18,457 |
18,457 |
18,457 |
|||||
Diluted |
13,423 |
13,423 |
19,579 |
19,579 |
19,579 |
|||||
(*) Fortissimo Capital was entitled to receive management fee from the Company. The aforementioned entitlement was terminated as of the closing of the IPO (November 8, 2010). |
||||||||||
EBITDA and Adjusted EBITDA In thousands |
||||||
Three months ended March 31 |
||||||
2010 |
2011 |
2011 |
||||
Convenience translation into |
||||||
U.S. Dollars |
||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
||||||
Net income |
euro 2,041 |
euro 4,231 |
$ 6,001 |
|||
Interest expense (income), net |
294 |
(140) |
(199) |
|||
Income tax |
284 |
780 |
1,106 |
|||
Depreciation and amortization |
438 |
859 |
1,218 |
|||
EBITDA |
euro 3,057 |
euro 5,730 |
$ 8,126 |
|||
Management fee |
114 |
- |
- |
|||
Share based payment |
43 |
1,057 |
1,499 |
|||
Adjusted EBITDA |
euro 3,214 |
euro 6,787 |
$ 9,625 |
|||
The following tables present the Company's revenues, by product type for the periods presented, as well as such revenues by product type as a percentage of total revenues: |
||||||
Three months ended March 31 |
||||||
2010 |
2011 |
|||||
(Unaudited) |
(Unaudited) |
|||||
Revenues |
||||||
(in thousands) |
||||||
Soda maker starter kits |
euro 11,480 |
euro 21,282 |
||||
Consumables |
16,882 |
22,649 |
||||
Other |
1,797 |
1,168 |
||||
Total |
euro 30,159 |
euro 45,099 |
||||
Three months ended March 31 |
|||||
2010 |
2011 |
||||
(Unaudited) |
(Unaudited) |
||||
Revenues |
|||||
As a percentage of revenues |
|||||
Soda maker starter kits |
38.1% |
47.2% |
|||
Consumables |
56.0% |
50.2% |
|||
Other |
5.9% |
2.6% |
|||
Total |
100% |
100% |
|||
SOURCE SodaStream International Ltd.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article