Investors can take heart from SodaStream International's first public financial report, released yesterday. Sales revenues for the third quarter were €42.0 million, eclipsing the €27.7 million posted for the parallel period last year. Less than a month after its stock's Wall Street debut, the company share prices have skyrocketed to $41.60 per share by Monday's closing, a 108% climb reflecting a company valuation of $765 million.
In its IPO, the company, which makes machines to carbonate water and make flavored soda drinks in the home, raised $109 million at $20 per share and a market cap of $367 million.
During the quarter SodaStream sold 449,000 soda makers, a 57.4% increase over the 285,000 sold in the third quarter of 2009. Sales also included 2.6 million CO2 refills, 24.0% more than the 2.1 million sold in the parallel quarter last year. The gross margin for the quarter, however, dropped slightly to 56.3% as opposed to 56.9% the year before.
The company's operating expenses were €20.2 million, compared to €12.1 million in the third quarter of the previous year. As a result, the operating income decreased to €3.4 million from €3.6 million in the parallel. The increase in operating expenses, however, included a one-time expense of €1.8 million over the cancellation of a management fee agreement with Fortissimo Capital in connection with the company's IPO.
The bottom line showed net income of €2.1 million, compared to €2.5 million the year before. Excluding the one-time charge for canceling the management fee agreement, adjusted net income was €3.9 million, up 52% from last year's €2.6 million.
"Our financial results in the third quarter demonstrate the growing acceptance of SodaStream products in both existing and new markets," said CEO Daniel Birnbaum. "We saw continued growth in Europe and in Asia Pacific, and in a very short period of time we are seeing positive signs of adoption of our products by consumers and retailers in North America. We are proud that we are presently in more than 4,000 stores throughout the U.S. and 35,000 stores worldwide. Going into the holiday season and beyond, we plan to expand our marketing efforts."
"With respect to product breakdown, sales of soda makers and exchangeable cylinders increased by 87% in the third quarter this year compared with the same quarter in 2009," continued Birnbaum. "Consumable sales also grew more than 40%. We view the increased sales of soda makers as a significant indication of SodaStream's long-term growth potential and the successful execution of our growth strategy to achieve higher household penetration. Over time, this will lead to increased sales of our higher margin consumable products."
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