Israel based Sodastream International Ltd. (Nasdaq: SODA) home-Carbonated-drink manufacturer CEO, Daniel Birbaum said In the company’s first quarter results announcing, “Last week we completed the transfer of our last assembly lines from Mishor Adumim to Lehavim and we no longer produce sparkling water makers in Mishor Adumin. We will complete the transition of equipment and exit Mishor Adumim entirely during the third quarter, ahead of schedule.”
Sodastream has repeatedly stressed that the closure is not related to political pressure from the BDS movement, but due to a company reorganization dictated by economic considerations.
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“The transformation of our manufacturing base and operating structure is creating a more efficient organization. We are accelerating the consolidation of our production activities into our new state-of-the-art plant in Lehavim. During April, we shut down our Alon Tavor facility and commenced plastic injection in Lehavim.”
SodaStream first-quarter revenue fell 30% due to both lower demand for its sparkling waters and the negative effect of the strong dollar.
Its earnings, however, surged past Wall Street expectations thanks to the company’s cost-cutting program.
Daniel Birnbaum said the first quarter was “the start of a transitional period” as SodaStream launched new sparkling-water flavors.
Sales fell across all regions in the quarter, down 34% in the Americas and 45% in EMEA. They decreased 13% in Western Europe, and 25% in the Asia Pacific region.
In all, SodaStream posted a profit of $6 million, or 29 cents a share, compared with a year-earlier profit of $1.8 million, or eight cents a share. Excluding restructuring costs and other items, earnings were 40 cents a share, up from eight cents a share a year earlier.
Revenue fell to $90.3 million from $118 million in the year-earlier period.
Analysts had expected per-share earnings of three cents on revenue of $101 million, according to Thomson Reuters.
Sales-and-marketing expenses dropped to $32.5 million from $46.2 million amid lower advertising and promotion costs.
Shares of Sodastream have declined about 5% this year through Tuesday’s close.
A launch of a new line of sparkling water flavors is planned for later this year.
