With a market cap of $1.4 billion SodaStream (NASDAQ: SODA ) is much smaller than other players in the industry, but the company has a disruptive business model and is delivering outstanding financial performance.
The company is revolutionizing the carbonated drinks industry by allowing consumers to make their own carbonated beverages at home with a variety of different flavors. This provides many advantages over traditional soda consumption: more flexibility, lower costs, better environmental implications, and much healthier choices.
Consumers are embracing the product. SodaStream delivered an annual increase of 38.4% annually in sales and 55.9% in earnings per share over the last five years. Last quarter was above analyst's expectations too as the company reported a 28.5% increase in revenue during the quarter, and earnings per share grew at an even faster 33.3%.
Performance was strong across the board. Soda maker unit sales increased 18% in the quarter, carbonator refills grew 30%, and flavor sales were 25% higher versus the same quarter in the previous year. The Americas segment, where companies like Coke, Pepsi and Monster are facing difficulties, showed a whopping increase of 55% in revenue.
SodaStream is the disruptive player in the industry, considering its relatively small size, innovative business model and outstanding financial performance; this is a good alternative for investors looking to position themselves in a company with exceptional growth prospects in the business.