Holidays 'challenging' for SodaStream

Last updated 10:17 14/01/2014

Relevant offers

World

Mob smashes Walmart store 'to see how much damage they could cause' Greece needs extra €50 billion to stay afloat, IMF warns New Bubble Wrap loses its pop Martha Stewart's US$2 billion loss of empire Man killed by robot at Volkswagen plant in Germany Greeks flee financial crisis, head for Australia Greece 'blackmailed' over bailout, PM Alexis Tsipras claims IKEA Australia plans online push, changes instore In Germany v Greece, Angela Merkel is winning Thousands of Greeks rally for 'yes' vote to creditors' terms

SodaStream International is cutting its forecast for the 2013 financial year, hurt in part by a tough US holiday season and increased product costs.

The Israeli company's stock slid almost 16 per cent in Monday premarket trading.

SodaStream makes beverage carbonation systems that allow consumers to turn tap water into sparkling water and carbonated soft drinks.

Besides selling the machines, it also makes money by selling gas refills and flavours for it.

The company now anticipates full-year net income of about US$41.5 million ($49.9 million) on revenue of approximately US$562m.

Its prior outlook was for net income of US$54m on revenue of about US$567m.

Analysts, on average, expect revenue of US$564.3m, according to a FactSet survey.

Chief executive Daniel Birnbaum said in a statement that the holiday season was "challenging" in the US and that its fourth-quarter performance was disappointing.

The executive said the company's gross margin was pressured by lower sell-in prices, higher product costs, a product mix shift and unfavorable foreign currency exchange rates.

Shares of SodaStream dropped US$7.89, or 15.8 per cent, to US$42 about an hour before the market open.

Ad Feedback

- AP

Special offers

Featured Promotions

Sponsored Content