What Everyone Else Missed in the SodaStream International Ltd. Earnings Report

SodaStream (NASDAQ: SODA  ) seems to have a knack for confusing the Street, and its latest release was no different. The company recently reported its fourth-quarter and full-year results, with shares initially selling off after hours and marginally rising by market close. In the following video, the Fool's Blake Bos looks at those earnings and breaks out the details that are the most important for shareholders.

Breaking down the numbers
Revenue was up 26.4% in the fourth quarter compared with last year, and up 29% for the full year to $562 million. Company profits were less than stellar, as earnings before interest, taxes, depreciation, and amortization were down 45% in the fourth quarter compared with last year and up 13% for the full year to $62.2 million. SodaStream expects 2014 revenues to increase by 15%.

Last year started off with a bang for SodaStream, but as the fourth-quarter results show, the year ended with a dull thud. While the company was able to grow its revenue, a challenging holiday season forced the company to decide to either pursue profitably or to aggressively grow its installed base. The company chose the latter, repackaging 600,000 SodaStreams for promotions and biting the profitability bullet. 

Please be a better 2014
After such a manic 2013 for shareholders, one can only hope 2014 will be a more rewarding year. The coming year will be anything but boring for SodaStream, and there are several areas investors need to keep an eye on. In the following video below, Blake covers all of these areas, which include problems in Japan, new product reveals in March, Chinese expansion, new factories, and more.

If you have any questions or comments, leave a comment below or message Blake via social media.  

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Comments from our Foolish Readers

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  • Report this Comment On March 02, 2014, at 2:10 AM, pac1investor wrote:

    Very very long on SODASTREAM---currently way way undervalued given its trajectory for further growth, and its market reaches worldwide. Current market cap is sure insult to its billions-$-worth.

  • Report this Comment On March 02, 2014, at 8:29 AM, entheogenius wrote:

    I bought a sodastream hack and hooked it to an 18 lb Co2 tank that only costs $25 to fill. That equals 19.8 of their refill canisters at $15 each!

  • Report this Comment On March 03, 2014, at 8:31 PM, Risky88 wrote:

    I think instead of changing all those products around. Should have just ate it and sole the regular starter pack at 40 bucks ( would have destroyed the margins) but sold the megapack at regular 80$. I as a shareholder have no problem with the company taking a loss on the product if it means big future returns.

    I know you didn't mention this at all but

    If you go out and look at Pepsi's latest conference call transcript. They specifically state they will be getting into home carbonation industry and GMCR is a player they may partner with, but that they are looking very much so at a much different product that is proven in the market.

    Love the input as always

    Keep it up like a BOSS!

  • Report this Comment On March 04, 2014, at 11:11 AM, TMFBos wrote:

    @Risky88

    Thanks for the Pepsi info, just read the transcript. Sounds like they're waiting to see which technology gets the most market traction before the hop on board. Should be an exciting once the GMCR machine gets out. I'm super curious to see if they launch it at the IHA show in two weeks.

    Cheers,

    Blake

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