Celsius Holdings, Inc. (CELH) Bundle
A Brief History of Celsius Holdings, Inc.
Celsius Holdings, Inc., founded in 2004, is a global company that produces and markets fitness drinks. The company's primary focus is on health and wellness beverages, particularly energy drinks that are marketed as healthy alternatives to traditional energy drinks.
Growth and Expansion
Since its inception, Celsius has experienced significant growth. The company reported revenue of approximately $1,023.4 million for the nine months ended September 30, 2024, an increase from $970.6 million for the same period in 2023, marking a growth rate of about 5% year-over-year.
Geographically, North America remains the largest market, accounting for $968.9 million in revenue during the same period, up 4% from $930.5 million in 2023. European revenues surged by 49%, increasing from $31.6 million in 2023 to $47.1 million in 2024.
| Geographical Region | Revenue (2024) | Revenue (2023) | Dollar Change | Percentage Change |
|---|---|---|---|---|
| North America | $968.9 million | $930.5 million | $38.4 million | 4% |
| Europe | $47.1 million | $31.6 million | $15.5 million | 49% |
| Asia-Pacific | $2.1 million | $4.1 million | ($1.9 million) | (48%) |
| Other | $5.2 million | $4.3 million | $0.9 million | 21% |
Financial Performance
For the nine months ended September 30, 2024, the gross profit increased by 10%, reaching $513.5 million, compared to $466.9 million in 2023. The gross profit margin improved to 50%, up from 48% in the previous year.
However, selling, general, and administrative (SG&A) expenses rose significantly, totaling $339.3 million for the nine-month period, an increase of 31% from $259.5 million in 2023. This increase was largely due to heightened marketing investments and employee costs.
Cash Flow and Liquidity
As of September 30, 2024, Celsius reported cash and cash equivalents of approximately $903.7 million, an increase from $756.0 million at the end of 2023. The company generated $187.2 million in cash from operating activities for the nine months ended September 30, 2024, compared to $136.0 million in the same period in 2023.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Income | $163.95 million | $176.69 million |
| Gross Profit | $513.5 million | $466.9 million |
| SG&A Expenses | $339.3 million | $259.5 million |
| Cash and Cash Equivalents | $903.7 million | $756.0 million |
Strategic Partnerships
Celsius has established significant partnerships, most notably with PepsiCo, which entered into a distribution agreement in August 2022. This agreement enhances Celsius's market reach and distribution capabilities.
Recent Developments
In November 2024, Celsius announced the acquisition of Big Beverages Contract Manufacturing for $75 million, a strategic move to bolster its manufacturing capabilities.
The company continues to innovate and expand its product offerings, responding to consumer demand for healthier beverage options, positioning itself strongly within the competitive landscape of the energy drink market.
A Who Owns Celsius Holdings, Inc. (CELH)
Ownership Structure
As of 2024, Celsius Holdings, Inc. (CELH) has a diverse ownership structure, including institutional investors and individual shareholders. The company has 235,031,452 shares of common stock outstanding.
Major Shareholders
Below is a table summarizing the major shareholders of Celsius Holdings, Inc. as of 2024:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| PepsiCo, Inc. | 8.5% | 19,978,000 |
| BlackRock, Inc. | 7.1% | 16,686,000 |
| The Vanguard Group, Inc. | 6.3% | 14,803,000 |
| State Street Corporation | 4.5% | 10,575,000 |
| Other Institutional Investors | 30.0% | 70,500,000 |
| Individual Shareholders | 25.1% | 59,000,000 |
| Company Executives and Directors | 10.6% | 24,900,000 |
Institutional Ownership
Institutional ownership in Celsius Holdings, Inc. is significant, with major institutions holding a large portion of shares:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 16,686,000 | 7.1% |
| The Vanguard Group, Inc. | 14,803,000 | 6.3% |
| State Street Corporation | 10,575,000 | 4.5% |
| Invesco Ltd. | 5,000,000 | 2.1% |
| Fidelity Investments | 4,500,000 | 1.9% |
Recent Stock Transactions
Recently, Celsius Holdings has seen stock transactions involving its executives and directors. For example:
- John Fieldly, CEO, executed a 10b5-1 trading plan, selling 251,046 shares on September 11, 2024.
- Jarrod Langhans, CFO, also sold 20,000 shares under a similar trading plan on the same date.
Stock Performance
The stock performance of Celsius Holdings, Inc. has been notable in recent quarters, with the following key financial metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Revenue | $1,023,433,000 |
| Net Income | $163,950,000 |
| Gross Profit Margin | 50% |
| Operating Income | $174,224,000 |
| EPS (Diluted) | $0.55 |
Preferred Stock Ownership
Celsius has issued Series A Convertible Preferred Stock, which provides PepsiCo certain rights, including the ability to designate a nominee to the Board of Directors:
| Type of Stock | Shares Issued | Liquidation Preference |
|---|---|---|
| Series A Convertible Preferred Stock | 1,466,666 | $550,000,000 |
Celsius Holdings, Inc. (CELH) Mission Statement
Mission Statement Overview
Celsius Holdings, Inc. is committed to providing innovative, functional energy drinks that enhance the health and wellness of its consumers. The mission emphasizes the development of products that are both effective and appealing to a broad audience, particularly fitness enthusiasts and health-conscious consumers.
Core Values
- Health and Wellness: Focus on delivering products that support an active lifestyle.
- Innovation: Continuous improvement and development of new products based on scientific research.
- Quality: Commitment to using high-quality ingredients in all products.
- Sustainability: Efforts to minimize environmental impact in operations and packaging.
Strategic Partnerships
Celsius has established significant partnerships to enhance its market presence and distribution capabilities. Notably, the partnership with PepsiCo, initiated on August 1, 2022, allows Celsius to leverage Pepsi's extensive distribution network, enhancing product availability across various markets.
Financial Performance Metrics
As of September 30, 2024, Celsius reported the following key financial metrics:
| Metric | Value |
|---|---|
| Net Revenue (Q3 2024) | $265.7 million |
| Gross Profit (Q3 2024) | $122.2 million |
| Net Income (Q3 2024) | $6.4 million |
| Cash and Cash Equivalents | $903.7 million |
| Total Assets | $1.7 billion |
| Total Liabilities | $456.2 million |
| Stockholders' Equity | $423.6 million |
Market Expansion Efforts
The company continues to expand its market presence internationally. In April 2024, Celsius entered into a sales and distribution agreement with Orangina Schweppes France, and in August 2024, with Schweppes Suntory Benelux SA for Belgium, Netherlands, and Luxembourg. These agreements are expected to significantly increase sales starting from Q4 2024 and Q1 2025, respectively.
Product Offerings
Celsius offers a diverse range of products designed to meet the needs of health-conscious consumers. The flagship product line includes:
- CELSIUS® Energy Drinks (12 oz ready-to-drink and on-the-go powder forms)
- CELSIUS® Essentials (16 oz cans)
Recent Developments
In November 2024, Celsius announced the acquisition of Big Beverages Contract Manufacturing for $75 million, enhancing its manufacturing capabilities and supply chain efficiency.
Conclusion of Mission Statement
Celsius Holdings, Inc. aims to be a leader in the functional energy drink market through innovation, quality, and strategic partnerships, all while maintaining a strong commitment to health and wellness.
How Celsius Holdings, Inc. (CELH) Works
Company Overview
Celsius Holdings, Inc. is engaged in the development, processing, marketing, sale, and distribution of functional energy drinks. Its flagship product, CELSIUS®, is marketed as a premium energy drink designed to support active lifestyles and is available in various forms including ready-to-drink and powdered versions. The company operates primarily in North America, with growing international sales in Europe and the Asia-Pacific region.
Financial Performance
For the nine months ended September 30, 2024, Celsius reported revenue of approximately $1,023.4 million, an increase from $970.6 million in the same period of 2023, representing a growth of 5%. The gross profit for the same period increased to $513.5 million, up from $466.9 million, yielding a gross profit margin of 50% compared to 48% in 2023.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Revenue | $1,023.4 million | $970.6 million |
| Gross Profit | $513.5 million | $466.9 million |
| Gross Profit Margin | 50% | 48% |
| Net Income | $131.0 million | $142.6 million |
| Basic Earnings per Share | $0.56 | $0.62 |
Geographical Revenue Breakdown
Revenue by geographical location for the nine months ended September 30, 2024, is detailed below:
| Region | Revenue (in thousands) | 2023 Revenue (in thousands) | Change ($) | Percentage Change (%) |
|---|---|---|---|---|
| North America | $968,988 | $930,545 | $38,443 | 4% |
| Europe | $47,069 | $31,599 | $15,470 | 49% |
| Asia-Pacific | $2,129 | $4,111 | ($1,982) | (48%) |
| Other | $5,247 | $4,324 | $923 | 21% |
Operating Expenses
For the nine months ended September 30, 2024, Celsius reported selling, general, and administrative (SG&A) expenses of $339.3 million, an increase of 31% from $259.5 million in the same period of 2023. The increase included:
- Marketing Investments: $56.0 million
- Employee Costs: $26.6 million
- Other SG&A Expenses: $2.8 million decrease
Cash Flow and Liquidity
As of September 30, 2024, Celsius had cash and cash equivalents of approximately $903.7 million and working capital of $1,074.0 million. Cash flows provided by operating activities totaled approximately $187.2 million for the nine months ended September 30, 2024, compared to $136.0 million for the same period in 2023.
| Cash Flow Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cash from Operating Activities | $187.2 million | $136.0 million |
| Cash Used in Investing Activities | $21.0 million | $9.5 million |
| Cash Used in Financing Activities | $18.5 million | $18.9 million |
Strategic Partnerships
Celsius has established a significant partnership with PepsiCo, which became the primary distributor of Celsius products in the U.S. as of August 1, 2022. This agreement includes provisions for expanding distribution into additional international markets, including recent agreements for France and Benelux countries.
Stock Performance
As of the third quarter of 2024, the weighted average shares outstanding were 233.2 million for basic earnings per share calculations. The company executed a three-for-one stock split effective November 13, 2023, adjusting share counts retrospectively.
Future Outlook
Looking ahead, Celsius aims to continue expanding its market presence both domestically and internationally, focusing on innovative product launches and enhanced distribution capabilities through its partnership with PepsiCo.
How Celsius Holdings, Inc. (CELH) Makes Money
Revenue Streams
Celsius Holdings, Inc. primarily generates revenue through the sale of its functional energy drinks and liquid supplements. For the nine months ended September 30, 2024, total revenue was approximately $1,023.4 million, a 5% increase from $970.6 million in the same period of 2023.
| Geographical Location | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Dollar Change | Percentage Change |
|---|---|---|---|---|
| Total | $1,023,433 | $970,579 | $52,854 | 5% |
| North America | $968,988 | $930,545 | $38,443 | 4% |
| Europe | $47,069 | $31,599 | $15,470 | 49% |
| Asia-Pacific | $2,129 | $4,111 | ($1,982) | (48%) |
| Other | $5,247 | $4,324 | $923 | 21% |
Gross Profit and Margins
For the nine months ended September 30, 2024, Celsius reported a gross profit of $513.5 million, up 10% from $466.9 million in the prior year. The gross profit margin improved to 50%, compared to 48% for the same period in 2023, driven by decreases in raw material costs and reduced freight expenses.
Selling, General and Administrative Expenses
During the same period, selling, general and administrative (SG&A) expenses totaled $339.3 million, representing a 31% increase from $259.5 million in 2023. This increase included:
- $56.0 million increase in marketing investments
- $26.6 million increase in employee costs
- $2.8 million decrease in other SG&A expenses
Other Income
Other income for the nine months ended September 30, 2024, was reported at $31.0 million, an increase of $14.5 million compared to $16.5 million in 2023. This increase was primarily due to interest income from cash held in money market accounts.
Net Income
Net income attributable to common stockholders for the nine months ended September 30, 2024, was $131.0 million, down from $142.6 million in 2023. Basic earnings per share were $0.56 based on a weighted average of 233.2 million shares outstanding.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $131.0 | $142.6 |
| Basic Earnings per Share | $0.56 | $0.62 |
| Diluted Earnings per Share | $0.55 | $0.60 |
Cash Flow Analysis
Cash flows provided by operating activities for the nine months ended September 30, 2024, were approximately $187.2 million, compared to $136.0 million for the same period in 2023. The increase is attributed to a rise in working capital despite a decrease in net income.
Distribution Agreements
Celsius has strategic distribution agreements, notably with Pepsi, which accounted for 53.5% of total revenue for the nine months ended September 30, 2024. The agreement with Pepsi facilitates sales and distribution of Celsius products across various channels in the U.S. and Canada.
| Revenue Concentration by Customer | 2024 | 2023 |
|---|---|---|
| Pepsi | 53.5% | 60.8% |
| Costco | 12.2% | 11.4% |
| Amazon | 9.3% | 7.4% |
Conclusion of Financial Position
As of September 30, 2024, Celsius Holdings reported cash and cash equivalents of approximately $903.7 million, with a working capital of $1,074.0 million. The company anticipates that its current cash resources are sufficient to meet both short and long-term cash needs.
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Resources:
- Celsius Holdings, Inc. (CELH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Celsius Holdings, Inc. (CELH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Celsius Holdings, Inc. (CELH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.