New pop star SodaStream
The company behind the home soda carbonator that's been popping up at several stateside retailers in recent months lived up to the hype. Revenue climbed 52%, to $57.1 million, fueled by a 245% top-line surge on this side of the Atlantic.
This has yet to become the scalable model it will eventually become. Net income, after backing out a one-time IPO-related item, merely matched the 52% revenue uptick to $5.4 million -- or $0.42 a share.
SodaStream sold 449,000 systems during the quarter, well ahead of the 285,000 it moved a year earlier. Owners went through 2.6 million of the refillable CO2 carbonators necessary to turn still water into unflavored seltzer, 24% ahead of the refills that SodaStream sold during last year's third quarter.
Don't let the slower pace of the carbonators relative to the actual systems lead you to believe that usage is slowing. It's a fallacy that burned doubters of Green Mountain Coffee Roasters
SodaStream's "blades" are open to debate. Anyone can sell flavored soda syrup, though owners may originally flock to the SodaStream brand. It's hard to imagine Coca-Cola
SodaStream's stiffest challenge is that its product isn't cheaper than generic soda bottles. However, the eco-friendly and health benefits of homemade pop may be just enough to win over consumers at a time when they're open to paying a premium at Whole Foods
We'll see how this battle plays itself out, though Bed Bath & Beyond
Is SodaStream the real deal or a passing craze? Share your thoughts in the comment box below.
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Longtime Fool contributor Rick Munarriz is a fan of diet soft drinks. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.