Boston, MA 10/07/2014 (wallstreetpr) – Home beverage carbonation systems manufacturer Sodastream International Ltd (NASDAQ:SODA) reported on 7th October that it is not able to win new customers from completion in the U.S market fast enough. The comments were part of the firm’s Q3 2014 preliminary sales numbers release earlier today. The company is scheduled to release its Q3 2014 operational results on 27th October. The sales figures released today were lower than those anticipated by the analyst community.
Investors Flee The Stock
The investors reacted negatively to the disappointing sales figures. The stock came under heavy selling pressure today, resulting in nearly 20 percent drop in its share price in comparison to 6th October closing. In his comments to the press, company Chief Executive Officer Daniel Birnbaum explained that its U.S. business was struggling during the third quarter operations period. While not assigning any reasons for the low demand, the chief executive indicated that the demand for its soda makers in the traditionally strong U.S market was lukewarm.
Net New Customers Missing
The CEO lamented that while Sodastream International Ltd (NASDAQ:SODA) has managed to attract repeat customers to its various soda flavours in U.S, the firm has done a bad job of bringing in net new customers. Looking ahead, he indicated that they would try to win over new customers by highlighting the “health and wellness” aspects of their beverages.
Dip In Sales
For the 3Q, the soda maker anticipates to bring in revenue to the tune of $125 million, which would be significantly lesser than the $144.6 million it had reported during 3Q13. Analysts had anticipated that in 3Q, which co-insides with generally warm conditions across major parts of U.S, revenue would come in at $153.6 million.
Sodastream International Ltd (NASDAQ:SODA) is also looking over its shoulder to track the activities of new competitors in the sector. Keurig Green Mountain is all set to introduce a machine for dispensing cold drinks over the next few months.
