"The fourth quarter results make a wonderful finish to an exceptional year," Sodastream International Ltd. (Nasdaq: SODA; TASE: SODA) CEO Daniel Birnbaum said today upon the publication of the company's results for the fourth quarter of 2017 and the entire years. Sodastream outperformed the forecasts in both revenue and profits, finishing 2017 with over 10% growth in both figures.
The Israeli home carbonated drinks company's positive business momentum also explains the 66% surge in its share price over the past year. The share price reached $78.60, reflecting a market cap of $1.7 billion. Sodastream produces and markets home carbonated water systems.
Sodastream's revenue totaled $158 million in the fourth quarter, 19.6% more than in the fourth quarter of 2016, compared with the $152 million expected by the analysts. The company's revenue for 2017 grew 14.1% to $543 million. Revenue was up in all geographic regions, headed by the Pacific region, where it rose 24.8% to $61.9 million.
The company also derived a $7.6 million benefit from the changes in the exchange rate. . Sales of carbonation systems grew 24.3%, while sales of flavors were down 7.6%. Sodastream has been focusing on the carbonated water market in recent years, while it formerly branded itself as a substitute for sweetened carbonated beverages, such as Coca Cola.
In the bottom line, Sodastream posted a $25.5 million net profit in the fourth quarter, 63.2% more than in the corresponding quarter in the preceding year. For the year, net profit shot up 67.3% to $74.4 million, reflecting $1.13 per share, compared with the $0.80 per share forecast by the analysts. Adjusted EBITDA (excluding profits from interest, taxes, depreciation, and amortization) totaled $104 million in 2017, 36.8% more than in 2016.
Cash flow from current activity totaled $19.5 million in the fourth quarter. The company had $155 million in cash at the end of the quarter.
Birnbaum said, "Sales growth of over 10% in all of our geographic regions in 2017, record profits, and a strong cash flow, in addition to many households joining the millions of families already using our products in 45 countries around the world, are proof of our business model's success."
He added that the company's business was gaining momentum, and that it was adhering to its business strategy. "Our strong organizational structure, improved manufacturing ability, and excellent employees are providing reliable infrastructure for leading Sodastream to new peaks. At the personal level, as an Israeli, I am proud to be part of an organization that not only provides value to its shareholders, but also brings a message of peace and brotherhood between Jews and Arabs, and is leading the environmental revolution in the global beverages market from Israel," he concluded.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 14, 2018
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