Fizzy Pop Stock Soars After Israeli Company Announces Wal-Mart Entry

Israel’s SodaStream International Ltd. stock shot up 21 percent overnight to $35.39 on news of an 84 percent first-quarter profit and an announcement that its popular home-brewed soda products will be on Wal-Mart shelves later this month. In heavy trading that shattered records for SodaStream, nearly 13 million shares traded hands overnight.

Revenue doubled in Asia, rose 50 percent in Europe and climbed 93 percent in the Americas.

Nearly 3,000 American Wal-Marts will stock the SodaStream products.

SodaStream’s fizzy drink machines allow consumers to instantly make fresh, fizzy soda pop and sparkling water on their kitchen counters from ordinary tap water.

SodaStream, at Airport City, Israel, said on Wednesday that it earned 48 cents per share, or $10.1 million, for the initial 2012 quarter. This compares to $5.5 million for the previous year. The company saw a 50 percent increase in revenue to $87.9 million.

SodaStream is projecting a $41 million net income for 2012. It set prior forecasts at $39 million. Various analysts are targeting $40 million. The new revenue prediction is at $384 million, which is up from $370 million.

As for sales, SodaStream sold 15 percent more soda starter kits and carbonation devices. Refills for the machines jumped 29 percent, while the sales of assorted flavorings rose 52 percent.

SodaStream CEO Daniel Birnbaum said the company will stock Wal-Mart with the jet model soda maker, bottles, 30 different flavor packets and CO2 carbonators. A swap-out program will also be available for pop lovers to exchange empty carbon bottles for refills.

The company has also entered a partnership with Kraft Foods Inc. to produce flavors for Country Time and Crystal Light. That’s expected to start rolling later this month.

Birnbaum said in a press release that the company is committed to financial discipline in order to power greater earnings.

SodaStream will lay out the company’s global strategy at the Citi Global Consumer Conference on May 23 at the New York Palace Hotel.

Filed Under: BusinessFeaturedJewish business News

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Menachem Greenfield About the Author: Menachem was previously a feature article writer for the Milwaukee Journal. He currently runs a small publishing business in Michigan focusing on books and magazines for the tourist industry. He is looking forward to writing for Jewocity and connecting with its readers. More about Menachem

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