SodaStream International Ltd. , a manufacturer of home beverage carbonation systems, announced today its results for the three and six month periods ended June 30, 2011.
"We are very pleased with our overall performance, particularly the marked improvement in our bottom line, which demonstrates the earnings power of our business model. These record results were fueled by strong consumer adoption, which is reflected in all-time high sales of our CO2 refills and flavor consumables," stated Daniel Birnbaum, chief executive officer of SodaStream in a prepared statement.
The company experienced a 54 percent increase in consumable sales during the second quarter of 2011 and a 31 percent increase compared to the first quarter this year. Each geographic region reported strong growth, led by the Americas where consumer activity recently outpaced other global regions. Birnbaum continued, "Key indicators of American consumer adoption are very positive, with all measures of unit growth showing significant increases: soda makers up 224 percent, CO2 refills up 184 percent and flavors up 298 percent. We also saw triple digit growth in many of our other newer markets. Going forward, we are well positioned to extend our global footprint into additional households, markets and channels."
Total revenues for the second quarter of 2011 were Euro 53.3 million, $77.4 million as per a convenience translation, an increase of 38 percent compared to Euro 38.5 million reported in the second quarter of 2010. Revenues increased in each geographical region, with revenues for Western Europe and the Americas increasing 22 percent and 136 percent, respectively, compared to the second quarter of 2010.
During the second quarter of 2011, revenues of soda makers increased 36 percent to Euro 22.7 million and revenues of consumables increased 54 percent to Euro 29.8 million. On a unit basis, soda makers increased 37 percent to 634,000, CO(2) refills increased 34 percent to 3.2 million, and flavor units increased 96 percent to 6.1 million.
Gross margin for the second quarter of 2011 was 53 percent, compared to 50.7 percent for the same period in 2010. The increase was mainly due to the consumable sales and production volumes growth, foreign currency exchange impact, and a trade-in promotion during the second quarter of 2010 that negatively impacted gross margins. The positive impact was partially offset by the higher share of sales through distributors and the increase in raw material costs.
Sales and marketing expenses for the second quarter of 2011 totaled Euro 17.3 million compared to Euro 14.2 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 420 basis points to 32.5 percent for the second quarter of 2011 compared to 36.7 percent for the second quarter of 2010.
General and administrative expenses for the second quarter of 2011 were Euro 5.6 million, compared to Euro 3.9 million in the comparable period of last year. General and administrative expenses for the three months ended June 30, 2011 include Euro 1.0 million of non-cash share-based compensation expense (the "Share-Based Compensation Expense") while general and administrative expenses for the three months ended June 30, 2010 include Euro 124,000 of the Share-Based Compensation Expense and Euro 78,000 related to a previous management fee that was cancelled effective as of November 2010.
Net income for the three months ended June 30, 2011 was Euro 5.1 million, or 24 Euro cents, $0.35 per the convenience translation, per fully diluted share based on 20.8 million weighted average shares, compared to net income of Euro 2.1 million, or 17 Euro cents per fully diluted share based on 13.5 million weighted average shares, in the comparable period in 2010. Excluding the Shared-Based Compensation Expense and the discontinued management fees, Adjusted net income (as defined below) for the second quarter of 2011 was Euro 6.1 million, or 29 Euro cents, $0.42 per the convenience translation per fully diluted share, compared to Adjusted net income of Euro 2.3 million, or 18 Euro cents per fully diluted share in the second quarter of 2010.
