"Retailers are rebalancing their inventories, and it's not related to SodaStream," said CEO Daniel Birnbaum during a conference call. "There is that retail adjustment, and it is material."
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By region, sales increased 29 percent and 43 percent year over year in the Americas and Western Europe, respectively. In Asia-Pacific, revenue declined 21 percent due to business struggles in Japan.
"We're disappointed that our Japanese distributor is not properly supporting the brand with marketing investments and retail expansion," said Birnbaum. "We remain optimistic about the potential for SodaStream in Japan and we're evaluating the best options for this business going forward."
TheStreet Ratings team rates SodaStream International as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:
"We rate SodaStream International a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."