Sodastream International Ltd (NASDAQ:SODA) posted its financial report for the quarter ended December 31, 2017. For Q4 2017, revenue jumped 19.6% to $157.7 million over revenue of $131.8 million in Q4 2016. Operating income came at $25.7 million as against $18.8 million in Q4 2016. Net income grew 63.2% to $25.5 million. For Q4 2016, net income was $15.6 million. Diluted EPS came at $1.13 versus $0.71 in Q4 2016.
Daniel Birnbaum, the CEO of SodaStream, expressed that their fourth quarter performance exhibits a terrific close to a remarkable year for company. Throughout 2017 they successfully executed their growth plan intended at growing household penetration and expanding usage of their home carbonation system which turned into record net income, strong cash generation and mid-teens revenue growth.
These results underline the strength of their product and brand offering and exhibit the power of their business model. The work they have performed supporting their organization, enhancing their processes and systems, and improving their manufacturing capabilities has offered them with a much better foundation to capitalize on the several growth prospects that still are ahead and continue enhancing value for their shareholders.
For Q4 2017, revenue came at $157.7 million versus $131.8 million in the comparable period in 2016 led by growth in most of the firm’s geographic regions, mainly Canada, Australia, Germany and the United States. Changes in FX exchange rates positively impacted revenue by around $8 million, mainly led by the strong momentum of the Euro/U.S. Dollar exchange rate.
Sodastream International reported that gross margin surged 140 basis points to 53.8% as against 52.4% for the comparable period in 2016. The jump showcases continued production optimization, the using of fixed infrastructure costs on enhanced production volume, the launch of sparkling water makers with higher margin, partially offset by an increase inclusion of sparkling water makers in the overall product mix.