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SodaStream International's CEO Discusses Q2 2012 Results - Earnings Call Transcript

The strong balanced growth we achieved in the U.S. during the second quarter is evidence we are successfully executing on our dual strategy, penetrating more households to create a larger user base and generating increased activity among existing users.

Western Europe posted solid gains with second quarter revenue up 25% or 17% excluding the benefit from the convergence to direct distribution in the Nordics which occurred in the first quarter of 2012. We continue to experience healthy demand in our established markets led by Germany and the Nordics. The fact that these large established markets are helping drive growth in our oldest region is further validation of our brand and products and underscores the sustainability of our business model.

In newer markets like France and the UK growth is coming from both soda makers and consumables as we’re penetrating more household and generate more user activity much as we are doing in the U.S. We did experience softness in Italy during the second quarter; our distributor who manages a range of products besides SodaStream is experiencing some difficulties.

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