SodaStream Lowers Fiscal 2013 Forecast

Monday, 13 Jan 2014 10:25 AM

 

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SodaStream International is cutting its fiscal 2013 forecast, hurt in part by a tough U.S. holiday season and increased product costs.

The Israeli company's stock slid almost 16 percent 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 flavors for it.

The company now anticipates full-year net income of about $41.5 million on revenue of approximately $562 million. Its prior outlook was for net income of $54 million on revenue of about $567 million.

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

CEO Daniel Birnbaum said in a statement that the holiday season was "challenging" in the U.S. 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 International Ltd. dropped $7.89, or 15.8 percent, to $42 about an hour before the market open.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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