Celsius Holdings (NASDAQ: CELH) reported its fourth-quarter financial results, showing revenue of $332.2 million, exceeding analyst expectations of $327.97 million. Despite this, the company saw total revenue decline by 4% compared to the same period last year, with North American revenue down 6% but international sales rising significantly by 39% year-over-year.
The reported earnings for this period were 14 cents per share, also surpassing forecasts which had anticipated earnings of 11 cents per share. This achievement indicates strong operational efforts amid challenging market conditions.
According to Jarrod Langhans, CFO of Celsius Holdings, “We are pleased to announce the acquisition of Alani Nu, which offers strong financial benefits.” This acquisition, valued at $1.8 billion, is expected to be cash EPS accretive within the first year, showcasing Celsius’s commitment to enhancing its market presence.
While Alaska revenue experienced some declines, international revenues saw notable growth. Specifically, the company reported $20.3 million from international sales, riding on expansions in established markets. These metrics highlight the company's strategy of pursuing growth through both domestic offerings and international expansion.
The retail performance of Celsius reflects resilience, with retail sales figures indicating a 22% increase year-over-year. The company has strengthened its position with an impressive market share growth of 160 basis points, elevting it to 11.8% overall.
Celsius's gross profit margin also showed improvement, rising to 50.2%, up from 48.0% in the previous year. This 220 basis point increase is attributed to lower costs associated with outbound freight and materials.
Chairman and CEO John Fieldly stated, “Our record $1.36 billion full-year 2024 revenue reflects solid performance underscored by consumers’ continued preference for our great-tasting, functional products.” This is demonstrative of how consumer trends favor functional beverages, positioning Celsius well for future growth.
Despite these successes, the fourth-quarter results do come with some sobering metrics. While the earnings per share for the year were $0.45, down from $0.77 the previous year, the company incurred net losses attributed to higher selling, general, and administrative expenses, which increased 73% due to legal expenses from litigation and restructuring costs.
Moving forward, Celsius is optimistic about its operational strategies and the upcoming acquisition of Alani Nutrition. This deal is likely to create synergies between the two brands, each boasting unique strengths and consumer followings. Fieldly noted, “Together, we expect to broaden the availability of both brands’ functional products, fulfilling more consumers' wellness goals.”
Investors are coinciding with this positive outlook, illustrated by shares rising 21.3% following the earnings announcement, trading at $30.95 at the time of the report. This spike signals investor confidence buoyed by projected growth and strategic initiatives.
The company plans to elaborate on its fourth-quarter performance and the Alani Nu acquisition during its upcoming earnings webcast, scheduled for 6 p.m. ET today, February 20, 2025. Investors and analysts will have the opportunity to gain insights directly from company leadership.
Celsius Holdings continues to navigate the challenges of the beverage sector with innovative solutions and strategic acquisitions aimed at future growth. The overall market response and quarterly performance demonstrate the effectiveness of their initiatives amid fluctuative conditions, leaving investors and consumers eager for what's next on the horizon.