Holidays 'challenging' for SodaStream

Last updated 10:17 14/01/2014

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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.

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- AP

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