AIRPORT CITY, Israel, Nov. 4, 2015 /PRNewswire/ -- SodaStream International Ltd., the leading manufacturer of home beverage carbonation systems, announced today its results for the three and nine month periods ended September 30, 2015.
For the third quarter ended September 30, 2015, on an adjusted basis*
- Revenue was $110.0 million compared to $125.9 million in the third quarter 2014; Revenue on a constant currency basis was$126.0 million
- Adjusted operating income was $5.4 million compared to $8.9 million in the third quarter 2014; Adjusted operating income on a constant currency basis was $10.5 million
- Adjusted EBITDA was $9.7 million compared to $13.7 million in the third quarter 2014; Adjusted EBITDA on a constant currency basis was $14.8 million
- Adjusted net income was $4.7 million compared to $9.5 million in the third quarter 2014
- Adjusted diluted earnings per share were $0.22 compared to $0.45 in the third quarter 2014
- CO2 refills reached an all-time quarterly record of 7.0 million
The decrease in revenue year-over-year was mainly due to changes in foreign currency exchange rates which reduced revenue by$16.0 million. Since the same period a year ago, several foreign currencies have weakened versus the U.S. dollar, including the Euro by 17%, the Australian Dollar by 22% and the Swedish Krona by 18%.
Gross margin for the third quarter 2015 (before the impact of restructuring costs) was 48.4% compared to 51.2% for the same period in 2014. Third quarter 2015 gross margin was negatively impacted by changes in foreign currency exchange rates versus the same period last year, partially offset by higher share of CO2 refills in the product mix.
Sales and marketing expenses for the third quarter 2015 totaled $36.0 million, or 32.8% of revenue, compared to $41.6 million, or 33.1% for the comparable period last year. The decrease was primarily attributable to lower distribution costs driven by lower sales volume. Sales and marketing expenses also decreased versus the same period last year due to changes in foreign currency rates, mainly the weakening of the Euro and the Australian dollar.
General and administrative expenses for the third quarter 2015 were $11.8 million, or 10.7% of revenue, compared to $13.9 million, or 11.1% of revenue in the comparable period of last year. The decrease was mainly due to a decrease in share-based payment expenses.
Operating income (before the impact of restructuring costs) was $5.4 million, or 4.9% of revenue, compared to $8.9 million, or 7.1% of revenue, in the third quarter 2014. The decrease in operating income was driven primarily by negative impact on revenue from changes in foreign currency exchange rates, offset by lower operating expenses, mainly a reduction in sales and marketing expenses.
The net negative impact on operating income from changes in foreign currency exchange rates in comparison with the same period in 2014 was approximately $5.1 million.
Net financial income was $0.1 million compared to net financial income of $1.8 million in the same period in 2014. Financial income in the third quarter 2015 was mainly due to a reduction of liabilities in Israeli Shekels following its devaluation against the U.S. dollar.
Tax expense was $0.8 million with an effective tax rate of 26.0%, compared to $1.2 million with an effective tax rate of 11.5% in the third quarter 2014. The increase in the effective tax rate is due to the geographical allocation of profit before income tax. Full report.
