SodaStream International Ltd (SODA): What’s Next?

Secondly, matured markets yield more profits on account of higher proportion of consumables sale. The US is the company’s single largest market, where a quarter of the total 60,000 stores that sell its products are based.

The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) are also looking towards growth

Both the beverage giants have reported their earnings couple of weeks back and both of them have handily beaten analyst expectations.

The Coca-Cola Company (NYSE:KO) earned $0.46 per share on revenue of $11.04 billion. Analysts at Thomson Reuters were expecting $0.45 per share on revenue of $10.94 billion. The company saw higher volumes in Thailand, India, Russia, Mexico and Brazil, which fuelled a 3% growth in global volumes.

The company is currently focusing on growing core brand in emerging countries which still have low penetration of the company’s products. It is also looking for growth in non-carbonated “still beverages” segment to offset the declining soda sales in the US. The US accounts for almost half of the company’s total sales.

PepsiCo, Inc. (NYSE:PEP) earned $0.77 per share on revenue of $12.58 billion against street estimates of $0.71 per share on revenue of $12.53. Like The Coca-Cola Company (NYSE:KO), it also gained mostly from its emerging and developing markets which make up around one third of the total revenue. Globally snack volumes were up 4% and beverage volumes 3%.

The company’s food business provides a good buffer to counter the waning demand for soda in the US. Flagship Pepsi cola has recently lost market share to Coke.

Last words

We look forward to Sodastream International Ltd (NASDAQ:SODA)’s earnings release to find out more about the growth initiatives that are perpetually fueling demand for its products. The company’s journey has just begun. It still holds less than 1% global market share in the carbonated beverages category. This creates a world of possibilities for the company to explore.

Eshna De has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.

The article Looking Forward To SodaStream’s Results originally appeared on Fool.com.

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