SodaStream Profit, Sales Fall Below Expectations

SodaStream International Ltd. reported on Wednesday a second-quarter net profit that fell to $960,000, or 5 cents a share, from $9.2 million, or 43 cents a share, in the same period a year ago. Excluding non-recurring items, such as restructuring-related charges, adjusted earnings per share came to 17 cents, below the FactSet consensus of 31 cents. Revenue fell to $99.8 million from $141.2 million, below the FactSet consensus of $106.3 million, with sales in all geographic regions and in all product categories declining. Changes in currency rates reduced revenue by $16.9 million. Gross margin declined to 50.3% from 50.5%. "As we previously discussed, the first half of 2015 would be a challenging period due to implementation of our global restructuring and growth plan combined with changes in foreign currency exchange rates," said Chief Executive Daniel Birnbaum. The stock, which lost 3.3% in light premarket trade, has dropped 14% year to date through Tuesday, while the S&P 500 has gained 1.7%.