Watered down results at SodaStream after shift in strategy
- SodaStream (NASDAQ:SODA) reports sales in the Americas region fell 49% Y/Y to $37.2M during Q4.
- Sales in Western Europe were 7% lower at $66.9M.
- The company's transition to sparking water was a large factor in the year-over-year compares.
- Product unit growth: Sparkling water maker/starter kits -34% to 1.02M; CO2 refills +17% to 914K; Flavors -38% to 6.05M.
- SodaStream's gross margin rate improved to 800 bps to 50.4% due to the shift in mix toward sparkling water.
- Sales and marketing spend ratio +40 bps to 33.9%.
- The company ended the quarter with a cash position of $46.9M and bank debt of $43.9M (+183% Y/Y).
- SODA +4.5% premarket to $19.74.
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