AIRPORT CITY, Israel,
Aug. 1, 2018 /PRNewswire/
-- SodaStream International Ltd. (NASDAQ: SODA), the leading
manufacturer of home beverage carbonation systems, announced today
its results for the quarterly period ended June 30, 2018.
For the quarter ended June 30,
2018:
- Revenue increased 31.3% to $171.5
million, compared to $130.6
million in the second quarter of 2017
- Operating income increased 89.1% to $31.8 million, compared to $16.8 million in the second quarter of 2017
- Net income increased 81.7% to $26.1
million, compared to $14.4
million in the second quarter of 2017
- Diluted earnings per share (EPS) increased 77.9% to
$1.14 compared to $0.64 in the second quarter of 2017
"We are extremely pleased to be reporting the most successful
quarter in our Company's history," commented Daniel Birnbaum, Chief Executive Officer of
SodaStream. "The product, distribution and marketing initiatives we
are executing across our global portfolio of markets continue to
propel our business to new heights and strengthen our foundation
for future growth. Most notably, sales of sparkling water maker
units increased 22% to over 1 million in the second quarter and
sales of gas refill units grew 17% to an all-time record 9.7
million. These results underscore the progress we are making
towards our primary strategic objectives of expanding household
penetration and increasing usage of our home carbonation system. I
believe we are now positioned better than ever to drive continued
growth and increased shareholder value over the long-term,
especially as SodaStream is a great alternative to single-use
plastic bottles which are being revealed as a hazard not only to
the environment but also to human health".
Second Quarter 2018
Geographical Revenue
Breakdown
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2018
|
|
|
Increase
(decrease)
|
|
|
Increase
(decrease)
|
|
|
|
In millions
USD
|
|
|
%
|
|
Western
Europe
|
|
$
|
81.6
|
|
|
$
|
108.4
|
|
|
$
|
26.8
|
|
|
|
32.9
|
%
|
The
Americas
|
|
|
28.1
|
|
|
|
38.4
|
|
|
|
10.3
|
|
|
|
36.4
|
%
|
Asia-Pacific
|
|
|
13.0
|
|
|
|
17.7
|
|
|
|
4.7
|
|
|
|
36.1
|
%
|
Central & Eastern
Europe, Middle East, Africa
|
|
|
7.9
|
|
|
|
7.0
|
|
|
|
(0.9)
|
|
|
|
(11.6)
|
%
|
Total
|
|
$
|
130.6
|
|
|
$
|
171.5
|
|
|
$
|
40.9
|
|
|
|
31.3
|
%
|
Product Segment
Revenue Breakdown
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2018
|
|
|
Increase
|
|
|
Increase
|
|
|
|
In millions
USD
|
|
|
%
|
|
Sparkling Water Maker
Starter Kits
|
|
$
|
46.9
|
|
|
$
|
64.9
|
|
|
$
|
18.0
|
|
|
|
38.3
|
%
|
Consumables
|
|
|
81.7
|
|
|
|
102.8
|
|
|
|
21.1
|
|
|
|
25.8
|
%
|
Other
|
|
|
2.0
|
|
|
|
3.8
|
|
|
|
1.8
|
|
|
|
87.0
|
%
|
Total
|
|
$
|
130.6
|
|
|
$
|
171.5
|
|
|
$
|
40.9
|
|
|
|
31.3
|
%
|
Product Segment Unit
Breakdown
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2018
|
|
|
Increase
|
|
|
Increase
|
|
|
|
|
In
thousands
|
|
|
%
|
|
Sparkling Water Maker
Starter Kits
|
|
|
859
|
|
|
|
1,047
|
|
|
|
188
|
|
|
|
21.9
|
%
|
|
CO2
Refills
|
|
|
8,282
|
|
|
|
9,674
|
|
|
|
1,392
|
|
|
|
16.8
|
%
|
|
Flavors
|
|
|
5,340
|
|
|
|
5,785
|
|
|
|
445
|
|
|
|
8.3
|
%
|
|
Revenue increased $40.9 million,
or 31.3%, to $171.5 million compared
to $130.6 million in the same period
in 2017 driven by growth in most of the Company's geographic
regions, primarily Germany,
France, Canada and the U.S. Changes in foreign
currency exchange rates ("FX") positively impacted revenue by
approximately $8.0 million, mainly
driven by the strengthening of the Euro/U.S. Dollar exchange rate
compared to the same period last year.
Gross margin increased 620 basis points to 59.3% compared to
53.1% for the same period in 2017. Gross margin was positively
impacted by leveraging fixed infrastructure costs on higher
revenue, the additional gross margin associated with the new French
distribution model and the positive FX impact. The net FX impact on
gross profit was approximately $7.0
million.
Sales and marketing expenses were $52.4
million, or 30.6% of revenue, compared to $40.9 million, or 31.3% of revenue, in the same
period in 2017. Advertising and promotion expenses increased by
$6.2 million to $27.2 million, or 15.9% of revenue, compared to
$21.0 million, or 16.0% of revenue,
in the same period in 2017. Sales team, distribution and logistics
expenses were $25.2 million, or 14.7%
of revenue, compared to $19.9
million, or 15.2% of revenue, in the same period in
2017.
General and administrative expenses increased $5.8 million to $17.4
million, or 10.2% of revenue, compared to $11.6 million, or 8.9% of revenue, in the same
period in 2017. The increase was mainly due to higher share-based
payment expenses and additional expenses associated with the new
French distribution model.
Operating income increased 89.1% to $31.8
million, or 18.5% of revenue, compared to $16.8 million, or 12.9% of revenue, in the same
period in 2017. The net positive FX impact on operating income was
approximately $5.0 million.
Net financial expense was $1.1
million compared to $0.6
million in the same period in 2017. Tax expense was
$4.5 million with an effective tax
rate of 14.8%, compared to $1.8
million with an effective tax rate of 11.1% in the same
period in 2017.
Net income was $26.1 million, or
$1.14 per diluted share, based on
23.0 million weighted shares outstanding, compared to net income of
$14.4 million, or $0.64 per diluted share, based on 22.5 million
weighted shares outstanding in the same period in 2017.
Balance Sheet
At June 30, 2018, the Company had
cash and financial investments totaling $171.7 million compared to $155.2 million at December
31, 2017.
Cash flow from operations less investing activities was
$24.4 million compared to
$10.8 million in the same period in
2017.
Working capital increased 21.7% to $161.0
million compared to $132.3
million at December 31, 2017.
Inventories increased 30.5% to $126.7
million compared to $97.1
million at December 31,
2017.
Six months 2018
Geographical Revenue
Breakdown
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2018
|
|
|
Increase
(decrease)
|
|
|
Increase
(decrease)
|
|
|
|
In millions
USD
|
|
|
%
|
|
Western
Europe
|
|
$
|
151.6
|
|
|
$
|
193.7
|
|
|
$
|
42.1
|
|
|
|
27.8
|
%
|
The
Americas
|
|
|
53.7
|
|
|
|
73.9
|
|
|
|
20.2
|
|
|
|
37.6
|
%
|
Asia-Pacific
|
|
|
25.2
|
|
|
|
33.3
|
|
|
|
8.1
|
|
|
|
32.3
|
%
|
Central & Eastern
Europe, Middle East, Africa
|
|
|
15.4
|
|
|
|
14.2
|
|
|
|
(1.2)
|
|
|
|
(8.2)
|
%
|
Total
|
|
$
|
245.9
|
|
|
$
|
315.1
|
|
|
$
|
69.2
|
|
|
|
28.1
|
%
|
Product Segment
Revenue Breakdown
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2018
|
|
|
Increase
|
|
|
Increase
|
|
|
|
In millions
USD
|
|
|
%
|
|
Sparkling Water Maker
Starter Kits
|
|
$
|
87.5
|
|
|
$
|
114.9
|
|
|
$
|
27.4
|
|
|
|
31.3
|
%
|
Consumables
|
|
|
153.7
|
|
|
|
194.5
|
|
|
|
40.8
|
|
|
|
26.6
|
%
|
Other
|
|
|
4.7
|
|
|
|
5.7
|
|
|
|
1.0
|
|
|
|
21.1
|
%
|
Total
|
|
$
|
245.9
|
|
|
$
|
315.1
|
|
|
$
|
69.2
|
|
|
|
28.1
|
%
|
Product Segment Unit
Breakdown
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
June 30,
2018
|
|
|
Increase
|
|
|
Increase
|
|
|
|
|
In
thousands
|
|
|
%
|
|
Sparkling Water Maker
Starter Kits
|
|
|
1,629
|
|
|
|
1,805
|
|
|
|
176
|
|
|
|
10.8
|
%
|
|
CO2
Refills
|
|
|
15,884
|
|
|
|
17,946
|
|
|
|
2,062
|
|
|
|
13.0
|
%
|
|
Flavors
|
|
|
10,543
|
|
|
|
11,217
|
|
|
|
674
|
|
|
|
6.4
|
%
|
|
Revenue increased 28.1% to $315.1
million from $245.9 million in
the same period in 2017 driven by growth in most of the Company's
geographic regions, primarily Germany, U.S., France and Canada. Changes in FX positively impacted
revenue by approximately $20.0
million, mainly driven by the strengthening of the Euro/U.S.
Dollar exchange rate.
Gross margin increased 450 basis points to 57.4% compared to
52.9% in the same period in 2017. Gross margin was positively
impacted by leveraging fixed infrastructure costs on higher
revenue, the positive FX impact and changes in product mix,
partially offset by an adverse impact on cost of revenue from the
strengthening of the Israeli shekel against the U.S. Dollar. The
net FX impact on gross profit was approximately $15.0 million.
Sales and marketing expenses were $95.8
million, or 30.4% of revenue, compared to $75.7 million, or 30.8% of revenue, in the same
period in 2017. The increase in sales and marketing expenses was
mainly due to higher advertising and promotion expenses.
Advertising and promotion expenses increased by $10.4 million to $47.7
million, or 15.1% of revenue, compared to $37.3 million, or 15.2% of revenue, in the same
period in 2017. Sales team, distribution and logistics expenses
were $48.1 million, or 15.3% of
revenue, compared to $38.4 million
and 15.6% of revenue, in the same period in 2017.
General and administrative expenses were $32.0 million, or 10.2% of revenue, compared to
$21.7 million, or 8.8% of revenue in
2017. The increase was mainly due to higher share-based payment
expenses, additional expenses associated with the new French
distribution model and the impact from FX.
Operating income increased 62.6% to $53.1
million, or 16.9% of revenue, compared to $32.7 million, or 13.3% of revenue in the same
period in 2017. The net positive FX impact on operating income was
approximately $8.0 million.
Net financial expense was $1.6
million compared to net financial income of $0.4 million in the same period in 2017. Tax
expense was $6.8 million, reflecting
an effective tax rate of 13.3%, compared to $4.0 million, or an effective tax rate of 12.0%,
in the same period in 2017.
Net income was $44.7 million, or
$1.94 per diluted share, based on
23.0 million weighted shares outstanding, compared to net income of
$29.1 million, or $1.3 per diluted share, based on 22.5 million
weighted shares outstanding in the same period in 2017.
Guidance
For 2018, the Company currently expects full year revenue to
increase approximately 23% over 2017 revenue, up from its previous
guidance of approximately 15%.
Operating income for 2018 is now expected to increase
approximately 44% over 2017 operating income, compared to its
previous guidance of approximately 15%.
Diluted earnings per share is now expected to increase
approximately 31% over 2017, compared to its previous guidance of
an approximate 8% increase.
This guidance now assumes an increase in share-based payment
expense of approximately $13.0
million over 2017, up from previous guidance of
approximately $12.0 million. This
guidance is based on assumed average exchange rates of 1.17 Euro/U.S. Dollar and 3.60 U.S. Dollar/Israeli Shekel.
Conference Call and Management Commentary
A supplemental slide presentation has been furnished as part of
today's report of a foreign private issuer on a Form 6-K and will
be posted on the Company's website at
http://sodastream.investorroom.com.
The Company has scheduled a conference call for 8:30 AM Eastern Standard Time (U.S. time) today
(Wednesday, August 1, 2018) to review
the Company's financial results. The conference call will be
broadcast over the Internet as a "live" listen only Webcast. To
listen, please go to: http://sodastream.investorroom.com. Listeners
are urged to login approximately 20 minutes before the conference
call is scheduled to begin in order to register, as well as
download and install any necessary audio software. An archive of
the Webcast will be available for 30 days after the call.
About SodaStream International
SodaStream is the #1 sparkling water brand in volume in the
world and the leading manufacturer and distributor of Sparkling
Water Makers. We enable consumers to easily transform ordinary tap
water into sparkling water and flavored sparkling water in seconds.
By making ordinary water fun and exciting to drink, SodaStream
helps consumers drink more water. Sparkling Water Makers offer a
highly differentiated and innovative solution to consumers of
bottled and canned carbonated soft drinks. Our products promote
health and wellness, are environmentally friendly, cost effective,
customizable and fun to use. Our products are available at more
than 80,000 individual retail stores across 45 countries. To learn
more about how SodaStream makes water exciting and follow
SodaStream on Facebook, Twitter, Pinterest, Instagram and YouTube,
visit http://www.sodastream.com.
Non-IFRS Financial Measures
This press release contains Adjusted EBITDA which is a non-IFRS
measure. Adjusted EBITDA represents earnings before interest, other
components of financial expense (income), income tax, depreciation
and amortization.
We believe that Adjusted EBITDA, as described above, should be
considered in evaluating the Company's operations. This measure
facilitates operating performance comparisons from period to period
and company to company by backing out potential differences caused
by variations in capital structures (affecting financial expenses
(income), net), tax positions (such as the impact on periods or
companies of changes in effective tax rates) and the age and
depreciation charges and amortization of fixed and intangible
assets, respectively (affecting relative depreciation and
amortization expense, respectively).
Non-IFRS measures should be considered in addition to results
prepared in accordance with IFRS and should not be considered a
substitute for the IFRS results. Adjusted EBITDA, as presented in
this press release, may not be comparable to similarly titled
measures reported by other companies due to differences in the way
that these measures are calculated. A reconciliation of Adjusted
EBITDA to Net income, the most closely comparable IFRS measure, is
included at the end of this press release.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements include information about possible or
assumed future results of our business and financial condition, as
well as the results of operations, liquidity, plans and objectives.
In some cases, you can identify forward-looking statements by
terminology such as "believe," "may," "estimate," "continue,"
"anticipate," "intend," "should," "plan," "expect," "predict,"
"potential," or the negative of these terms or other similar
expressions: such statements are based on management's current
beliefs and expectations and involve a number of known and unknown
risks and uncertainties that could cause our future results,
performance or achievements to differ significantly from the
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause or
contribute to such differences include risks relating to: our
ability to maintain or expand sales in our target markets,
including the United States; our
ability to maintain or continue to develop our presence in retail
networks; our ability to develop and implement production and
operating infrastructure to effectively support our growth; the
success of our marketing campaigns and media spending in terms of
increased sales or increased product and brand name awareness; our
ability to maintain our customer base in markets where we have an
established presence; the risks associated with our reliance on
exclusive arrangements for the distribution of our beverage
carbonation systems and consumables in each of the markets in which
we use third-party distributors; our ability to compete effectively
with other companies which currently offer, or may offer in the
future, competing products; our ability to maintain margins due to
decline in product selling price and/or rising costs; potential
product liability claims if any component of our beverage
carbonation systems is misused; our ability to protect our
intellectual property rights; our being found to have a dominant
position in certain markets which may place limits on our ability
to operate; risks associated with our being a multinational
corporation, including fluctuations in currency exchange rates; our
potential exposure to greater than anticipated tax liabilities; our
products being subject to extensive governmental regulation in the
markets in which we operate; adverse conditions in the global
economy which could negatively impact our customers' demand for our
products; and other factors discussed under the heading "Risk
Factors" in the Annual Report on the Form 20-F for the year
ended December 31, 2017 and other
documents filed with or furnished to the Securities and Exchange
Commission. These forward-looking statements are made only as
of the date hereof, and the company undertakes no obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.
Investor Contact:
Brendon
Frey
ICR
Phone: + 1 203-682-8200
brendon.frey@icrinc.com
Consolidated
Statements of Operations
|
In thousands
(other than per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
|
|
|
For the three months
ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Revenue
|
|
$
|
245,929
|
|
|
$
|
315,130
|
|
|
$
|
130,637
|
|
|
$
|
171,485
|
|
Cost of
revenue
|
|
|
115,793
|
|
|
|
134,235
|
|
|
|
61,218
|
|
|
|
69,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
130,136
|
|
|
|
180,895
|
|
|
|
69,419
|
|
|
|
101,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
75,677
|
|
|
|
95,756
|
|
|
|
40,855
|
|
|
|
52,426
|
|
General and
administrative
|
|
|
21,652
|
|
|
|
32,034
|
|
|
|
11,617
|
|
|
|
17,426
|
|
Other expenses,
net
|
|
|
142
|
|
|
|
-
|
|
|
|
142
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
97,471
|
|
|
|
127,790
|
|
|
|
52,614
|
|
|
|
69,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
32,665
|
|
|
|
53,105
|
|
|
|
16,805
|
|
|
|
31,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expense
(income), net
|
|
|
(408)
|
|
|
|
1,594
|
|
|
|
645
|
|
|
|
1,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax
|
|
|
33,073
|
|
|
|
51,511
|
|
|
|
16,160
|
|
|
|
30,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
3,969
|
|
|
|
6,833
|
|
|
|
1,790
|
|
|
|
4,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
|
29,104
|
|
|
|
44,678
|
|
|
|
14,370
|
|
|
|
26,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.34
|
|
|
$
|
1.99
|
|
|
$
|
0.66
|
|
|
$
|
1.15
|
|
Diluted
|
|
$
|
1.30
|
|
|
$
|
1.94
|
|
|
$
|
0.64
|
|
|
$
|
1.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
21,673
|
|
|
|
22,506
|
|
|
|
21,794
|
|
|
|
22,644
|
|
Diluted
|
|
|
22,464
|
|
|
|
23,012
|
|
|
|
22,502
|
|
|
|
22,980
|
|
|
|
Consolidated
Balance Sheets as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
|
(Audited)
|
|
|
(Unaudited)
|
|
|
|
(In
thousands)
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
85,168
|
|
|
$
|
96,707
|
|
Financial
investments
|
|
|
70,000
|
|
|
|
74,995
|
|
Inventories
|
|
|
97,088
|
|
|
|
126,678
|
|
Trade receivables
,net
|
|
|
124,352
|
|
|
|
135,379
|
|
Other
receivables
|
|
|
19,250
|
|
|
|
20,263
|
|
Derivative financial
instruments
|
|
|
404
|
|
|
|
1,532
|
|
Total current
assets
|
|
|
396,262
|
|
|
|
455,554
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
171,543
|
|
|
|
171,703
|
|
Intangible
assets
|
|
|
38,365
|
|
|
|
45,997
|
|
Deferred tax
assets
|
|
|
6,435
|
|
|
|
9,758
|
|
Other
receivables
|
|
|
4,260
|
|
|
|
4,244
|
|
Total non-current
assets
|
|
|
220,603
|
|
|
|
231,702
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
616,865
|
|
|
|
687,256
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
|
215
|
|
|
|
-
|
|
Trade
payables
|
|
|
61,215
|
|
|
|
70,973
|
|
Income tax
payable
|
|
|
14,350
|
|
|
|
18,026
|
|
Provisions
|
|
|
2,602
|
|
|
|
2,925
|
|
Other current
liabilities
|
|
|
30,461
|
|
|
|
30,949
|
|
Total current
liabilities
|
|
|
108,843
|
|
|
|
122,873
|
|
|
|
|
|
|
|
|
|
|
Employee
benefits
|
|
|
2,403
|
|
|
|
2,788
|
|
Other non-current
liabilities
|
|
|
164
|
|
|
|
165
|
|
Deferred tax
liabilities
|
|
|
4,279
|
|
|
|
5,303
|
|
Total non-current
liabilities
|
|
|
6,846
|
|
|
|
8,256
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
115,689
|
|
|
|
131,129
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
3,599
|
|
|
|
3,700
|
|
Share
premium
|
|
|
234,406
|
|
|
|
248,937
|
|
Translation
reserve
|
|
|
(10,738)
|
|
|
|
(15,097)
|
|
Retained
earnings
|
|
|
273,909
|
|
|
|
318,587
|
|
Total shareholders'
equity
|
|
|
501,176
|
|
|
|
556,127
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
616,865
|
|
|
$
|
687,256
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
|
|
|
For the three months
ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
$
|
29,104
|
|
|
$
|
44,678
|
|
|
$
|
14,370
|
|
|
$
|
26,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
8,327
|
|
|
|
10,488
|
|
|
|
4,933
|
|
|
|
5,065
|
|
Amortization of
intangible assets
|
|
|
1,536
|
|
|
|
2,013
|
|
|
|
754
|
|
|
|
1,133
|
|
Change in fair value
of derivative financial instruments and
financial investments
|
|
|
(330)
|
|
|
|
533
|
|
|
|
1,076
|
|
|
|
(1,072)
|
|
Other expenses,
net
|
|
|
142
|
|
|
|
-
|
|
|
|
142
|
|
|
|
-
|
|
Share based
payment
|
|
|
1,594
|
|
|
|
6,608
|
|
|
|
1,137
|
|
|
|
4,405
|
|
Interest income,
net
|
|
|
(161)
|
|
|
|
(141)
|
|
|
|
(108)
|
|
|
|
(83)
|
|
Income tax
expense
|
|
|
3,969
|
|
|
|
6,833
|
|
|
|
1,790
|
|
|
|
4,542
|
|
|
|
|
44,181
|
|
|
|
71,012
|
|
|
|
24,094
|
|
|
|
40,100
|
|
Increase in
inventories
|
|
|
(6,997)
|
|
|
|
(18,580)
|
|
|
|
(3,533)
|
|
|
|
(10,890)
|
|
Increase in trade and
other receivables
|
|
|
(3,765)
|
|
|
|
(9,044)
|
|
|
|
(15,517)
|
|
|
|
(5,329)
|
|
Increase in trade
payables and other liabilities
|
|
|
12,244
|
|
|
|
7,195
|
|
|
|
6,907
|
|
|
|
9,700
|
|
Increase (decrease) in
employee benefits
|
|
|
192
|
|
|
|
35
|
|
|
|
111
|
|
|
|
(78)
|
|
Increase in
provisions
|
|
|
576
|
|
|
|
323
|
|
|
|
559
|
|
|
|
201
|
|
|
|
|
46,431
|
|
|
|
50,941
|
|
|
|
12,621
|
|
|
|
33,704
|
|
Interest
paid
|
|
|
(67)
|
|
|
|
(105)
|
|
|
|
(39)
|
|
|
|
(59)
|
|
Income tax
received
|
|
|
115
|
|
|
|
22
|
|
|
|
15
|
|
|
|
2
|
|
Income tax
paid
|
|
|
(2,438)
|
|
|
|
(6,107)
|
|
|
|
(88)
|
|
|
|
(2,513)
|
|
Net cash from operating
activities
|
|
|
44,041
|
|
|
|
44,751
|
|
|
|
12,509
|
|
|
|
31,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
received
|
|
|
228
|
|
|
|
247
|
|
|
|
147
|
|
|
|
143
|
|
Investment in bank
deposits
|
|
|
(7,000)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Investment in financial
investments
|
|
|
-
|
|
|
|
(5,000)
|
|
|
|
-
|
|
|
|
-
|
|
Proceeds from
investment grants
|
|
|
3,903
|
|
|
|
-
|
|
|
|
1,177
|
|
|
|
-
|
|
Proceeds from sale of
property, plant and equipment
|
|
|
1,563
|
|
|
|
222
|
|
|
|
1,563
|
|
|
|
185
|
|
Proceeds from (payment
for) derivative financial instruments, net
|
|
|
1,379
|
|
|
|
(1,871)
|
|
|
|
581
|
|
|
|
(735)
|
|
Acquisition of
subsidiary, net of cash acquired
|
|
|
-
|
|
|
|
(20,828)
|
|
|
|
-
|
|
|
|
1,050
|
|
Acquisition of
property, plant and equipment
|
|
|
(9,885)
|
|
|
|
(11,140)
|
|
|
|
(4,670)
|
|
|
|
(6,334)
|
|
Acquisition of
intangible assets
|
|
|
(1,095)
|
|
|
|
(1,747)
|
|
|
|
(504)
|
|
|
|
(1,041)
|
|
Net cash used in
investing activities
|
|
|
(10,907)
|
|
|
|
(40,117)
|
|
|
|
(1,706)
|
|
|
|
(6,732)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of employee share options
|
|
|
9,749
|
|
|
|
8,024
|
|
|
|
2,223
|
|
|
|
347
|
|
Net cash from financing
activities
|
|
|
9,749
|
|
|
|
8,024
|
|
|
|
2,223
|
|
|
|
347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
|
42,883
|
|
|
|
12,658
|
|
|
|
13,026
|
|
|
|
24,749
|
|
Cash and cash
equivalents at the beginning of the period
|
|
|
50,250
|
|
|
|
85,168
|
|
|
|
80,403
|
|
|
|
73,518
|
|
Effect of exchange
rates fluctuations on cash and cash equivalents
|
|
|
1,398
|
|
|
|
(1,119)
|
|
|
|
1,102
|
|
|
|
(1,560)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
$
|
94,531
|
|
|
$
|
96,707
|
|
|
$
|
94,531
|
|
|
$
|
96,707
|
|
The following tables present the Company's revenue,
by
region and product type for the periods presented, as
well as such revenue
by region and product type as a
percentage of total revenue:
|
|
Six months
ended
|
|
|
Three months
ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
Revenue (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western
Europe
|
|
$
|
151,579
|
|
|
$
|
193,715
|
|
|
$
|
81,556
|
|
|
$
|
108,399
|
|
The
Americas
|
|
|
53,680
|
|
|
|
73,876
|
|
|
|
28,113
|
|
|
|
38,343
|
|
Asia-Pacific
|
|
|
25,191
|
|
|
|
33,331
|
|
|
|
13,018
|
|
|
|
17,714
|
|
Central & Eastern
Europe, Middle East & Africa
|
|
|
15,479
|
|
|
|
14,208
|
|
|
|
7,950
|
|
|
|
7,029
|
|
Total
|
|
$
|
245,929
|
|
|
$
|
315,130
|
|
|
$
|
130,637
|
|
|
$
|
171,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
Three months
ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
As a percentage of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Western
Europe
|
|
|
61.7
|
%
|
|
|
61.5
|
%
|
|
|
62.4
|
%
|
|
|
63.2
|
%
|
The
Americas
|
|
|
21.8
|
%
|
|
|
23.4
|
%
|
|
|
21.5
|
%
|
|
|
22.4
|
%
|
Asia-Pacific
|
|
|
10.2
|
%
|
|
|
10.6
|
%
|
|
|
10.0
|
%
|
|
|
10.3
|
%
|
Central & Eastern
Europe, Middle East & Africa
|
|
|
6.3
|
%
|
|
|
4.5
|
%
|
|
|
6.1
|
%
|
|
|
4.1
|
%
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
Three months
ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
Revenue (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sparkling Water Maker
starter kits (including
exchange cylinders)
|
|
$
|
87,499
|
|
|
$
|
114,874
|
|
|
$
|
46,908
|
|
|
$
|
64,895
|
|
Consumables
|
|
|
153,684
|
|
|
|
194,508
|
|
|
|
81,715
|
|
|
|
102,825
|
|
Other
|
|
|
4,746
|
|
|
|
5,748
|
|
|
|
2,014
|
|
|
|
3,765
|
|
Total
|
|
$
|
245,929
|
|
|
$
|
315,130
|
|
|
$
|
130,637
|
|
|
$
|
171,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
Three months
ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
|
As a percentage of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sparkling Water Maker
starter kits (including
exchange cylinders)
|
|
|
35.6
|
%
|
|
|
36.5
|
%
|
|
|
35.9
|
%
|
|
|
37.8
|
%
|
Consumables
|
|
|
62.5
|
%
|
|
|
61.7
|
%
|
|
|
62.6
|
%
|
|
|
60.0
|
%
|
Other
|
|
|
1.9
|
%
|
|
|
1.8
|
%
|
|
|
1.5
|
%
|
|
|
2.2
|
%
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net income to Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
|
Three months
ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
|
(Unaudited)
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
29,104
|
|
|
$
|
44,678
|
|
|
$
|
14,370
|
|
|
$
|
26,110
|
|
|
Interest income,
net
|
|
|
(161)
|
|
|
|
(141)
|
|
|
|
(108)
|
|
|
|
(83)
|
|
|
Other components of
financial expense (income), net
|
|
|
(247)
|
|
|
|
1,735
|
|
|
|
753
|
|
|
|
1,213
|
|
|
Income tax
expense
|
|
|
3,969
|
|
|
|
6,833
|
|
|
|
1,790
|
|
|
|
4,542
|
|
|
Depreciation and
amortization
|
|
|
9,863
|
|
|
|
12,501
|
|
|
|
5,687
|
|
|
|
6,198
|
|
|
Adjusted
EBITDA
|
|
$
|
42,528
|
|
|
$
|
65,606
|
|
|
$
|
22,492
|
|
|
$
|
37,980
|
|
|
*The Company's presentation of Adjusted EBITDA is the same as
its previous presentation of EBITDA except that the Company has
broken out separately the element of "Financial expense (income),
net" that is attributable to interest and other components of
financial expense (income), net.
View original content with
multimedia:http://www.prnewswire.com/news-releases/sodastream-reports-second-quarter-fiscal-2018-results-300689992.html
SOURCE SodaStream International Ltd.