- SodaStream International Ltd. reported a fourth-quarter revenue increase of 17% to $131.8 million, compared to $112.9 million in the year-ago period, according to the company’s earnings report.
- The company achieved a record operating income after a 206% increase to $18.8 million for the quarter. Its EPS also showed big numbers with an increase of 201% to 71 cents.
- Overall, SodaStream finished 2016 on a high note with cash and bank deposits of $57.3 million and zero bank debt.
The countertop carbonation-machine maker tripled its earnings and had record-setting numbers in sales.
In December alone, the company sold 941,000 more sparking water starter kits than previous months, an increase of 22% from November. The number of CO2 refills grew 10%, though the number of flavor cartridges decreased 6%.
SodaStream has clearly benefited from a rise in health-conscious consumers who are responding to its marketing efforts to reposition the brand as a homemade sparkling water maker instead of simply a homemade soda maker.
Daniel Birnbaum, SodaStream’s chief executive officer, said the company’s strategies to build the brand globally and increase the awareness of its health and wellness benefits have been successful.
“At the same time, we are growing our business in a highly efficient manner following expense optimization efforts and the recent consolidation of our manufacturing, logistics and distribution activities in Israel,” he said. “This has resulted in an all-time record operating and net income year, strong free cash flow and $57 million in cash and deposits with zero financial debt.”
With earnings and growth like this, SodaStream can continue to not only elbow its way into the better-for-you drink market, but take a hard-line stance against bottled water competitors. Just last week, Birnbaum made a public statement denouncing PepsiCo's LIFEWTR launch and Super Bowl commercial.
"I'll say it till I'm blue in the face: the bottled water industry is the biggest marketing scam of all time," the statement says.
In November, SodaStream rejected a cease and desist order from the International Bottled Water Association demanding that the company take down a video campaign titled "Shame or Glory" advocating that consumers cut back on single-serve plastic water bottles and use tap water to make sparkling beverages at home.