And now it is my pleasure to the turn the call over to the Chief Executive Officer of SodaStream, Daniel Birnbaum.Daniel Birnbaum Thank you for joining us today. We are very pleased to share with you our second quarter results. During this quarter we saw strong top line growth from both soda makers and consumables reinforcing the validity of our business model and our potential to achieve mass market appeal. To start, sales increased 49% to $103 million representing the highest quarterly revenue in company history, marking the first time we crossed the $100 million. The revenue increase was driven by growth across all regions, highlighted by triple digit growth in both the Americas and Asia-Pacific and double-digits growth in Western Europe. In terms of product segments, both soda maker and consumable revenues increased 49% with soda maker unit sales of 764,000 and all time record highs for gas refills and favors of 4.2 million and 7.2 million units, respectively. Within the Americas, the U.S. had a fantastic quarter. Sell-in and sell-through of soda makers and consumables were strong fueled by both new and existing distribution channels and increase marketing investment. Soda maker unit sales in the U.S. were up 63% from a year ago, which is acceleration from recent quarters aided by the pipeline filled to Wal-Mart in May. More importantly this sell-in was followed by strong sell-through in Wal-Mart. We win this similar sell-through results of soda makers with other key retailers, driven in part by a heavier A&P spend than included a run of TV and radio leading into Fathers Day. The consumables side of our business experienced strong growth in the U.S. with unit sales of CO2 refills and flavors up 93% and 148%, respectively. Demand for our flavors including core flavors such as diet cola and energy continues to grow along with our user base. At the same time the launch of our Country Time and Crystal Light cobranded flavors has exceed expectations, which along with the recent expansion of our partnership with Kraft to include Kool-Aid gives us added confidence in the incremental revenue potential of co-branding relationships.
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. Read the rest of this transcript for free on seekingalpha.com