Record second quarter revenue of $402.0
million, up 23% year over year
Record second quarter gross profit of $209.1
million, up 32% year over year
Second quarter diluted EPS of $0.28, up 65%
year over year
Celsius Holdings, Inc. (Nasdaq: CELH), maker of CELSIUS®, the
premium lifestyle energy drink formulated to power active
lifestyles with ESSENTIAL ENERGY™, today reported record second
quarter 2024 financial results.
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Revenue (in millions) (Graphic: Business
Wire)
Summary Financials
2Q 2024
2Q 2023
Change
1H 2024
1H 2023
Change
(Millions except for percentages and
EPS)
Revenue
$402.0
$325.9
23%
$757.7
$585.8
29%
N. America
$382.4
$310.8
23%
$721.9
$559.4
29%
International
$19.6
$15.1
30%
$35.8
$26.4
36%
Gross Margin
52.0%
48.8%
+320 BPS
51.6%
46.6%
+500 BPS
Net Income
$79.8
$51.5
55%
$157.6
$92.7
70%
Net Income att. to Common
Shareholders
$66.7
$40.8
63%
$131.5
$72.2
82%
Diluted EPS
$0.28
$0.17
65%
$0.55
$0.31
77%
Adjusted EBITDA*
$100.4
$78.1
29%
$188.4
$126.9
48%
John Fieldly, Chairman and CEO of Celsius Holdings, Inc.,
said: “Celsius today reported its best second quarter financial
results ever, delivering records in revenue, gross profit and gross
margin. Celsius continued to lead the energy drink category,
contributing 47 percent of all second-quarter growth, and we
believe that we are well-positioned to capture incremental category
dollar share. Celsius innovation is giving consumers great tasting,
better-for-you energy drink products that are filling a whitespace
and bringing new consumers to an evolving energy drink
category.”
FINANCIAL HIGHLIGHTS FOR THE SECOND QUARTER
OF 2024
Revenue for the second quarter of 2024 increased 23% to $402.0
million compared to $325.9 million for the prior-year period,
driven primarily by the North American business and the company’s
success in sustaining consumer demand growth. Revenue in the
quarter was offset in part by reduction in inventory days on hand
by a large distributor.
Retail sales of Celsius in total U.S. MULOC grew by 36.5% year
over year in the second quarter of 20241 as reported by Circana for
the last-thirteen-week period ended June 30, 2024.
International sales of $19.6 million increased 30% year over
year in the second quarter from $15.1 million, driven by ongoing
velocity improvements and brand awareness.
Gross profit for the second quarter of 2024 increased 32% to
$209.1 million compared to $159.0 million for the prior-year
period. Gross profit as a percentage of revenue was 52.0% for the
three months ended June 30, 2024, up from 48.8% for the prior-year
period, as a result of freight optimization and lower materials
costs.
Diluted earnings per share for the second quarter increased 65%
to $0.28 compared to $0.17 for the prior-year period, driven by
improvements in gross margin and leverage across SG&A.
FINANCIAL HIGHLIGHTS FOR THE FIRST HALF OF
2024
Revenue for the first half of 2024 increased 29% to $757.7
million compared to $585.8 million for the prior-year period.
International sales of $35.8 million increased 36% from $26.4
million for the prior-year period.
Gross profit for the first half of 2024 increased 43% to $391.3
million compared to $272.8 million for the prior-year period. Gross
profit as a percentage of revenue was 51.6% for the six months
ended June 30, 2024, up from 46.6% for the prior-year period.
Diluted earnings per share for the first half of the year
increased 77% to $0.55 compared to $0.31 for the prior-year period,
driven by improvements in gross margin and leverage across
SG&A.
BUSINESS OPERATIONS AND COMPANY
HIGHLIGHTS
Share Growth
Celsius’ energy drink category dollar share in MULOC in the
last-four-week period ended July 14, 2024, was 11%, an increase of
1.4 points compared to the year-ago period2. This share performance
delivered quarter-over-quarter sales growth for Celsius of 11.8%
within the category3.
Celsius gained approximately 35% more retail shelf space,
increasing the average SKUs selling per store to 20 from 15,
according to Circana’s last-four-week read ended July 14, 2024,
compared to the last-four-week period ended Dec. 3, 20234.
Alternative Growth Drivers
Club channel sales for the quarter ended June 30, 2024,
increased 30% to $88.0 million compared to $67.9 million for the
prior-year period.
Celsius sales to Amazon increased 41% year over year to
approximately $39.9 million for the quarter ended June 30,
2024.
Approximately 12.1% of Celsius’ total U.S. sales to PepsiCo in
the second quarter of 2024 was to the food service channel.
Innovation and Marketing
Sales of CELSIUS Essentials continue to exceed the company’s
expectations and have reached 64% ACV and 4.4 average items sold
per store5. CELSIUS Essentials were sold in more than 124,602
stores in the last-four-week period ended July 14, 20246.
Celsius introduced three great tasting and refreshing 12-ounce
flavors during the summer: CELSIUS Sparkling Watermelon Lemonade,
CELSIUS Sparkling Kiwi Strawberry and CELSIUS Sparkling Cherry
Cola. Additionally, three new CELSIUS On The Go powders debuted in
the second quarter: CELSIUS On The Go Peach Vibe, CELSIUS On The Go
Tropical Vibe and CELSIUS On The Go Arctic Vibe.
International Expansion
Celsius began sales in the UK and Ireland in the second quarter
of 2024 through the fitness channel and in select gyms.
Sales in Canada continued to exceed the company’s initial
expectations in the second quarter of 2024, during which we
introduced CELSIUS Sparkling Green Apple Cherry to the Canadian
market.
Sales in Australia, France and New Zealand are expected to begin
in the second half of this year with broadening reach throughout
2025.
Second Quarter 2024 Earnings Webcast
Management will host a webcast at 8 a.m. EDT on Tuesday, Aug. 6,
2024, to discuss the company’s second quarter financial results
with the investment community. Investors are invited to join the
webcast accessible from https://ir.celsiusholdingsinc.com.
Downloadable files, an audio replay and transcript will be made
available on the Celsius Holdings investor relations website.
*The company reports financial results in accordance with
generally accepted accounting principles in the United States
(“GAAP”), but management believes that disclosure of Adjusted
EBITDA, a non-GAAP financial measure that management uses to assess
our performance, may provide users with additional insights into
operating performance. Please see “Use of Non-GAAP Measures” and
reconciliations of this non-GAAP measure to the most directly
comparable GAAP measure, both of which can be found below.
1Circana Total US MULOC L13W ended
6/30/24, RTD Energy
2Circana Total US MULOC L4W ended 7/14/24,
RTD Energy
3Circana Total US MULOC L13W ended
6/30/24, RTD Energy
4Circana Total US MULOC L4W ended 12/3/23
v. L4W ended 7/14/24, RTD Energy
5Circana Total US MULOC L4W ended 7/14/24,
RTD Energy
6Circana Total US MULOC L4W ended 7/14/24,
RTD Energy
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Nasdaq: CELH) is the maker of energy
drink brand CELSIUS®, a lifestyle energy drink born in fitness and
a pioneer in the rapidly growing energy category. For more
information, please visit www.celsiusholdingsinc.com.
Forward-Looking Statements
This press release contains statements that are not historical
facts and are considered forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements contain projections of Celsius
Holdings’ future results of operations or financial position, or
state other forward-looking information. You can identify these
statements by the use of words such as “anticipate,” “believe,”
“could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,”
“would,” “could,” “project,” “plan,” “potential,” “designed,”
“seek,” “target,” and variations of these terms, the negatives of
such terms and similar expressions. You should not rely on
forward-looking statements because Celsius Holdings’ actual results
may differ materially from those indicated by forward-looking
statements as a result of a number of important factors. These
factors include but are not limited to: the strategic investment by
and long term partnership with PepsiCo, Inc.; management’s plans
and objectives for international expansion and future operations
globally; general economic and business conditions; our business
strategy for expanding our presence in our industry; our
expectations of revenue; operating costs and profitability; our
expectations regarding our strategy and investments; our
expectations regarding our business, including market opportunity,
consumer demand and our competitive advantage; anticipated trends
in our financial condition and results of operation; the impact of
competition and technology change; existing and future regulations
affecting our business; the Company’s ability to satisfy, in a
timely manner, all Securities and Exchange Commission (the “SEC”)
required filings and the requirements of Section 404 of the
Sarbanes-Oxley Act of 2002 and the rules and regulations adopted
under that Section; and other risks and uncertainties discussed in
the reports Celsius Holdings has filed previously with the SEC,
such as its Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. Forward-looking statements
speak only as of the date the statements were made. Celsius
Holdings does not undertake any obligation to update
forward-looking information, except to the extent required by
applicable law.
CELSIUS HOLDINGS, INC. -
FINANCIAL TABLES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except par
value)
(Unaudited)
June 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
903,210
$
755,981
Accounts receivable-net
262,920
183,703
Note receivable-current-net
1,166
2,318
Inventories-net
180,669
229,275
Deferred other costs-current
14,124
14,124
Prepaid expenses and other current
assets
22,900
19,503
Total current assets
1,384,989
1,204,904
Property and equipment-net
36,282
24,868
Deferred tax assets
22,727
29,518
Right of use assets-operating leases
1,507
1,957
Right of use assets-finance leases
233
208
Deferred other costs-non-current
241,276
248,338
Intangibles-net
11,491
12,139
Goodwill
13,730
14,173
Other long-term assets
6,653
291
Total Assets
$
1,718,888
$
1,536,396
LIABILITIES, MEZZANINE EQUITY
AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
47,423
$
42,840
Accrued expenses
79,633
62,120
Income taxes payable
5,374
50,424
Accrued promotional allowance
156,479
99,787
Lease liability obligation-operating
leases-current
729
980
Lease liability obligation-finance
leases
61
59
Deferred revenue-current
9,513
9,513
Other current liabilities
13,772
10,890
Total current liabilities
312,984
276,613
Lease liability obligation-operating
leases-non-current
762
955
Lease liability obligation-finance
leases-non-current
228
193
Deferred tax liabilities
2,201
2,880
Deferred revenue-non-current
162,471
167,227
Total Liabilities
478,646
447,868
Commitment and contingencies (Note 15)
Mezzanine Equity:
Series A convertible preferred shares,
$0.001 par value, 5% cumulative dividends; 1,466,666 shares issued
and outstanding at each of June 30, 2024 and December 31, 2023,
aggregate liquidation preference of $550,000 as of June 30, 2024
and December 31, 2023.
824,488
824,488
Stockholders’ Equity:
Common stock, $0.001 par value;
300,000,000 shares authorized, 233,344,377 and 231,787,482 shares
issued and outstanding at June 30, 2024 and December 31, 2023,
respectively.
78
77
Additional paid-in capital
286,173
276,717
Accumulated other comprehensive loss
(2,363
)
(701
)
Retained earnings (accumulated
deficit)
131,866
(12,053
)
Total Stockholders’ Equity
415,754
264,040
Total Liabilities, Mezzanine Equity and
Stockholders’ Equity
$
1,718,888
$
1,536,396
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per
share amounts)
(Unaudited)
For the Three Months Ended
June 30,
For the Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
401,977
$
325,883
$
757,685
$
585,822
Cost of revenue
192,879
166,889
366,380
313,010
Gross profit
209,098
158,994
391,305
272,812
Selling, general and administrative
expenses
114,850
94,181
213,867
163,086
Income from operations
94,248
64,813
177,438
109,726
Other income (expense):
Interest income on note receivable
—
28
28
73
Interest income, net
10,647
5,545
20,259
10,469
Foreign exchange loss
(264
)
(931
)
(633
)
(1,049
)
Total other income
10,383
4,642
19,654
9,493
Net income before provision for income
taxes
104,631
69,455
197,092
119,219
Provision for income taxes
(24,848
)
(17,946
)
(39,498
)
(26,483
)
Net income
$
79,783
$
51,509
$
157,594
$
92,736
Dividends on Series A convertible
preferred stock
(6,838
)
(6,856
)
(13,675
)
(13,637
)
Income allocated to participating
preferred stock
(6,289
)
(3,890
)
(12,417
)
(6,898
)
Net income attributable to common
stockholders
$
66,656
$
40,763
$
131,502
$
72,201
Other comprehensive (loss) income:
Foreign currency translation adjustments,
net of income tax
(308
)
(590
)
(1,662
)
4
Comprehensive income
$
66,348
$
40,173
$
129,840
$
72,205
*Earnings per share:
Basic
$
0.29
$
0.18
$
0.56
$
0.31
Dilutive
$
0.28
$
0.17
$
0.55
$
0.31
*Please refer to Note 3 in the Company’s
Quarterly Report on Form 10-Q for the period ended June 30, 2024,
for Earnings per Share reconciliations.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Reconciliation of GAAP net
income to non-GAAP adjusted EBITDA
Three months ended June
30,
Six months ended June
30,
2024
2023
2024
2023
Net income (GAAP measure)
$
79,783
$
51,509
$
157,594
$
92,736
Add
back/(Deduct):
Net interest income
(10,647
)
(5,573
)
(20,287
)
(10,542
)
Provision for income taxes
24,848
17,946
39,498
26,483
Depreciation and amortization expense
1,418
698
2,648
1,246
Non-GAAP EBITDA
95,402
64,580
179,453
109,923
Stock-based compensation1
4,746
5,735
8,309
11,242
Foreign exchange
264
931
633
1,049
Distributor Termination2
—
(1,007
)
—
(3,241
)
Legal Settlement Costs3
—
7,900
—
7,900
Non-GAAP Adjusted EBITDA
$
100,412
$
78,139
$
188,395
$
126,873
___________________________
1Selling, general and administrative expenses related to employee
non-cash stock-based compensation expense. Stock-based compensation
expense consists of non-cash charges for the estimated fair value
of unvested restricted share unit and stock option awards granted
to employees and directors. The Company believes that the exclusion
provides a more accurate comparison of operating results and is
useful to investors to understand the impact that stock-based
compensation expense has on its operating results.
22023 distributor termination represents
reversals of accrued termination payments. The unused funds
designated for termination expense payments to legacy distributors
were reimbursed to Pepsi for the quarter ended June 30, 2023.
32023 Legal class action settlement
pertained to the McCallion vs Celsius Holdings class action
lawsuit, which we settled during the quarter ended June 30,
2023.
USE OF NON-GAAP MEASURES
Celsius defines Adjusted EBITDA as net income before net
interest income, income tax expense (benefit), and depreciation and
amortization expense, further adjusted by excluding stock-based
compensation expense, foreign exchange gains or losses, distributor
termination fees, legal settlement costs and certain impairment
charges. Adjusted EBITDA is a non-GAAP financial measure.
Celsius uses Adjusted EBITDA for operational and financial
decision-making and believes these measures are useful in
evaluating its performance because they eliminate certain items
that management does not consider indicators of Celsius’ operating
performance. Adjusted EBITDA may also be used by many of Celsius’
investors, securities analysts, and other interested parties in
evaluating its operational and financial performance across
reporting periods. Celsius believes that the presentation of
Adjusted EBITDA provides useful information to investors by
allowing an understanding of measures that it uses internally for
operational decision-making, budgeting and assessing operating
performance.
Adjusted EBITDA is not a recognized term under GAAP and should
not be considered as a substitute for net income or any other
financial measure presented in accordance with GAAP. Non-GAAP
financial measures have limitations as analytical tools and should
not be considered in isolation or as substitutes for analysis of
Celsius’ results as reported under GAAP. Celsius strongly
encourages investors to review its financial statements and
publicly filed reports in their entirety and not to rely on any
single financial measure.
Because non-GAAP financial measures are not standardized,
Adjusted EBITDA, as defined by Celsius, may not be comparable to
similarly titled measures reported by other companies. It therefore
may not be possible to compare Celsius’ use of these non-GAAP
financial measures with those used by other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806461910/en/
Paul Wiseman Investors: investorrelations@celsius.com Press:
press@celsius.com
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