Record first quarter revenue of $355.7 million, up 37% year over year
Record first quarter gross profit of $182.2 million, up 60% year over year
First quarter diluted EPS of $0.27, up 108% year over year
BOCA
RATON, Fla., May 7, 2024
/PRNewswire/ -- Celsius Holdings, Inc. (Nasdaq: CELH), maker of
CELSIUS®, the premium lifestyle energy drink formulated
to power active lifestyles with ESSENTIAL ENERGY™, today reported
record first quarter 2024 financial results.
Summary
Financials
|
|
1Q
2024
|
|
1Q
2023
|
|
Change
|
(Millions except
for
percentages and EPS)
|
|
Revenue
|
|
$355.7
|
|
$259.9
|
|
37 %
|
N.
America
|
|
$339.5
|
|
$248.6
|
|
37 %
|
International
|
|
$16.2
|
|
$11.3
|
|
43 %
|
Gross
Margin
|
|
51.2 %
|
|
43.8 %
|
|
+740
BPS
|
Net
Income
|
|
$77.8
|
|
$41.2
|
|
89 %
|
Net Income att.
to
Common Shareholders
|
|
$64.8
|
|
$31.5
|
|
106 %
|
Diluted
EPS
|
|
$0.27
|
|
$0.13
|
|
108 %
|
Adjusted
EBITDA*
|
|
$88.0
|
|
$48.7
|
|
81 %
|
John Fieldly, Chairman and CEO
of Celsius Holdings, Inc., said: "Celsius reported its best
first quarter ever driving record revenue and contributing
47%1 of the quarterly year-over-year growth in the
energy drink category. Our category share of 11.5 percent as of
April 142 reflects the
early impact of shelf space gains that we are earning from
company-record and ongoing retailer resets, which we believe will
serve as a flywheel for our continued growth. Celsius product
innovation this year has delighted consumers with the most
refreshing products we've ever created."
Jarrod Langhans, Chief
Financial Officer of Celsius Holdings, Inc., said: "Celsius'
first quarter revenue of $356 million
and year-over-year growth of 37 percent is a record, despite
changes in days on hand inventory by our largest customer. Our
solid 51 percent first quarter gross margin reflects a balanced and
disciplined approach to leveraging while simultaneously building
the business and expanding globally, as well as an accelerated
benefit from raw materials pricing and reduced freight costs."
*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.
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER
2024
Revenue for the first quarter increased 37% to $355.7 million compared to $259.9 million for the prior-year period, driven
primarily by the North American business and the company's success
in sustaining consumer demand growth, delivering unique innovation
and overall channel growth, offset in part by inventory movements
within our largest distributor where first quarter 2024 inventory
days on hand declined versus the fourth quarter resulting in an
approximate $20 million impact, while
first quarter 2023 revenue benefited from an inventory buildup of
approximately $25 million. Ongoing
inventory fluctuations may be expected in subsequent quarters
because our largest distributor constituted 62% of our total North
American sales during the first quarter of 2024. However, retail
sales of Celsius in total U.S. MULOC grew by 72.1% in the first
quarter of 2024 year over year3, and subsequent-period
sales show ongoing consumer demand, as reported by Circana for
the period ended April 21, 2024, (L1W
+48.8% YoY; L4W +51.0% YoY; YTD +67.2% YoY)4. Revenue
from U.S. and Canadian sales are reported together as
North America.
International sales of $16.2
million increased 43% from $11.3
million for the prior-year period, driven by ongoing
velocity improvements and product launches.
Gross profit for the first quarter of 2024 increased 60% to
$182.2 million compared to
$113.8 million for the prior-year
quarter. Gross profit as a percentage of revenue was 51% for the
three months ended March 31, 2024, up
from 44% for the prior-year period, as a result of lower freight
and materials costs.
Diluted earnings per share for the first quarter increased 108%
to $0.27 compared to $0.13 for the prior-year period, driven by
improvements in gross margin and leverage across SG&A.
BUSINESS OPERATIONS & COMPANY
HIGHLIGHTS
Share Growth
Celsius held an 11.5% share in the energy
drink category in total U.S. MULOC for the last four weeks ended
April 14, 2024, – a one-point
increase over the prior quarter and approximately four points
higher than one year ago5. This share performance
delivered quarter-over-quarter sales growth for Celsius of 9.6%
during a period when the energy category declined 0.4%. Sugar-free
segment sales in the first quarter were approximately 50% of the
energy drink category6.
Average SKUs per retailer increased in the first quarter of 2024
to 20.6 from 13.5 in the prior-year period7. TDPs
for the quarter grew 55% year over year and 27%
sequentially8.
We estimate that retailers' spring shelf resets were
approximately one-third complete as of March
31, and once concluded, we are expecting our best shelf
space gains in company history. The importance of these space
increases and placement improvements cannot be overstated. The
visual impact of multiple, full shelves of cold Celsius in
convenience store coolers and on grocery shelves is a powerful
in-store billboard and showcases more of the Celsius product
portfolio. The full effect of shelf space gains is expected to be
reflected in scanner data beginning in July 2024.
Growth Drivers
Club channel sales in the quarter ended
March 31, 2024, increased 36% to
$63.0 million compared to
$46.5 million in the prior-year
period.
Celsius sales on Amazon increased 30% in the quarter ended
March 31, 2024, compared to the
prior-year period, to approximately $28
million, and Celsius remained the #1 energy drink brand by
dollar share9.
Case volume in the food service channel increased 186% year over
year and grew 113% quarter over quarter. Approximately 12% of
Celsius' total sales to PepsiCo in the first quarter of 2024 was to
the food service channel.
Innovation & Marketing
Sales of CELSIUS Essentials
continue to exceed expectations and have reached 54.5% ACV and 4.1
average items sold per store10. CELSIUS Essentials were
sold in more than 95,000 stores in the first quarter of
202411.
Celsius introduced new, refreshing 12-ounce flavors in the first
quarter, including: CELSIUS Blue Razz Lemonade, CELSIUS Raspberry
Peach, CELSIUS Astro Vibe, CELSIUS Galaxy Vibe, as well as new
variety packs.
CELSIUS On The Go powders reached the #1 position in the energy
powder category in the first quarter of 2024 and have increased
category share by 1.7 points since January
2024 to 24%12.
Celsius hosted high-profile influencers and celebrities during
the first weekend of the Coachella Valley Music & Arts Festival
at the Celsius Cosmic Desert event featuring the Celsius Space Vibe
Trilogy (CELSIUS Cosmic Vibe, CELSIUS Astro Vibe,
CELSIUS Galaxy Vibe) with exclusive performances by artists
T-Pain, Two Friends, DJ Xandra and more.
International Expansion
Sales in Canada began in the first quarter of 2024 and
continue to exceed pre-launch expectations. Celsius' share in the
energy category in MULOC in Canada
was 5.5% as of Feb. 29, 2024,
according to Canadian NiQ data.
Celsius in the first quarter announced plans to expand its sales
and distribution into Australia,
France, Ireland, New
Zealand and the United
Kingdom in 2024. Sales in the UK and Ireland began in April through the fitness
channel and in select gyms. Sales in Australia, France and New
Zealand are expected to begin in the fourth quarter of this
year with broadening reach throughout 2025.
CONFERENCE CALL
Conference Call
Management will host a conference call
and webcast at 10 a.m. EDT on
Tuesday, May 7, 2024, to discuss the company's first quarter
results with the investment community. All participants must
pre-register to join the Celsius Holdings, Inc. First Quarter 2024
Earnings Conference Call using the participant registration link
https://registrations.events/direct/Q4I739144810. A unique
registration ID and access details will be provided after
registration.
Participants who do not pre-register online may dial in using
the phone numbers below and request conference ID 73914 or the
Celsius Holdings, Inc. First Quarter 2024 Earnings Conference Call
for admittance into the conference.
USA / International Toll +1
(646) 307-1963
USA - Toll-Free (800) 715-9871
Canada - Toronto (647) 932-3411
Canada - Toll-Free (800)
715-9871
Webcast
Participants who wish to join the Celsius
Holdings, Inc. First Quarter 2024 Earnings Webcast must register
at
https://events.q4inc.com/attendee/221116293
Replay of the conference can be accessed through the webcast
link
https://events.q4inc.com/attendee/221116293
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.celsiusholdings.com.
Contacts
Paul
Wiseman
Investor Contact: investorrelations@celsius.com
Press Contact: press@celsius.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 any 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)
|
|
|
March 31,
2024
|
|
December 31,
2023
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
879,498
|
|
$
755,981
|
Accounts
receivable-net
|
200,117
|
|
183,703
|
Note
receivable-current-net
|
2,259
|
|
2,318
|
Inventories-net
|
197,504
|
|
229,275
|
Prepaid expenses and
other current assets
|
21,523
|
|
19,503
|
Deferred other
costs-current
|
14,124
|
|
14,124
|
Total current
assets
|
1,315,025
|
|
1,204,904
|
|
|
|
|
Property and
equipment-net
|
28,350
|
|
24,868
|
Deferred tax
assets
|
22,437
|
|
29,518
|
Right of use
assets-operating leases
|
1,688
|
|
1,957
|
Right of use
assets-finance leases
|
263
|
|
208
|
Other long-term
assets
|
7,963
|
|
291
|
Deferred other
costs-non-current
|
244,807
|
|
248,338
|
Intangibles-net
|
11,741
|
|
12,139
|
Goodwill
|
13,866
|
|
14,173
|
Total
Assets
|
$ 1,646,140
|
|
$
1,536,396
|
|
|
|
|
LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
40,196
|
|
$
42,840
|
Accrued
expenses
|
63,871
|
|
62,120
|
Income taxes
payable
|
58,619
|
|
50,424
|
Accrued promotional
allowance
|
129,201
|
|
99,787
|
Lease liability
obligation-operating leases
|
821
|
|
980
|
Lease liability
obligation-finance leases
|
61
|
|
59
|
Deferred
revenue-current
|
9,513
|
|
9,513
|
Other current
liabilities
|
12,987
|
|
10,890
|
Total current
liabilities
|
315,269
|
|
276,613
|
|
|
|
|
Lease liability
obligation-operating leases
|
850
|
|
955
|
Lease liability
obligation-finance leases
|
245
|
|
193
|
Deferred tax
liability
|
2,248
|
|
2,880
|
Deferred
revenue-non-current
|
164,849
|
|
167,227
|
Total
Liabilities
|
483,461
|
|
447,868
|
|
|
|
|
Commitment and
contingencies
|
|
|
|
|
|
|
|
Mezzanine
Equity:
|
|
|
|
Series A convertible
preferred shares, $0.001 par value, 5% cumulative dividends;
1,466,666 shares issued and outstanding at each of March 31, 2024
and December 31,
2023, aggregate liquidation preference of $550,000 as of March 31,
2024 and December
31, 2023.
|
824,488
|
|
824,488
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
Common stock, $0.001
par value; 300,000,000 shares authorized, 233,070,146 and
231,787,482 shares issued and outstanding at March 31, 2024 and
December 31, 2023,
respectively.
|
78
|
|
77
|
Additional paid-in
capital
|
281,247
|
|
276,717
|
Accumulated other
comprehensive loss
|
(2,055)
|
|
(701)
|
Retained earnings
(accumulated deficit)
|
58,921
|
|
(12,053)
|
Total Stockholders'
Equity
|
338,191
|
|
264,040
|
Total Liabilities,
Mezzanine Equity and Stockholders' Equity
|
$ 1,646,140
|
|
$
1,536,396
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
For the Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
Revenue
|
$
355,708
|
|
$
259,939
|
Cost of
revenue
|
173,501
|
|
146,121
|
Gross profit
|
182,207
|
|
113,818
|
Selling, general and
administrative expenses
|
99,017
|
|
68,905
|
|
|
|
|
Income (loss) from
operations
|
83,190
|
|
44,913
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest income on note
receivable
|
28
|
|
45
|
Interest
income
|
9,612
|
|
4,924
|
Foreign exchange
loss
|
(369)
|
|
(118)
|
Total other
income
|
9,271
|
|
4,851
|
|
|
|
|
Net income before
income taxes
|
92,461
|
|
49,764
|
|
|
|
|
Income tax
expense
|
(14,650)
|
|
(8,537)
|
|
|
|
|
Net
income
|
$
77,811
|
|
$
41,227
|
|
|
|
|
Dividends on Series A
preferred shares
|
(6,837)
|
|
(6,781)
|
Income allocated to
participating preferred shares
|
(6,128)
|
|
(2,934)
|
Net income
attributable to common
stockholders
|
$
64,846
|
|
$
31,512
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
Foreign currency
translation (loss) gain, net of
income tax
|
(1,354)
|
|
594
|
Comprehensive
income (loss)
|
$
63,492
|
|
$
32,106
|
|
|
|
|
*Earnings per
share:
|
|
|
|
Basic
|
$
0.28
|
|
$
0.14
|
Dilutive
|
$
0.27
|
|
$
0.13
|
*Please refer to Note 3 in the Company's Quarterly Report on
Form 10-Q for the period ended March 31,
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
March 31,
|
|
2024
|
|
2023
|
Net income (GAAP
measure)
|
$
77,811
|
|
$
41,227
|
Add
back/(Deduct):
|
|
|
|
Net interest
income
|
(9,640)
|
|
(4,969)
|
Income tax
expense
|
14,650
|
|
8,537
|
Depreciation and
amortization expense
|
1,229
|
|
549
|
Non-GAAP
EBITDA
|
84,050
|
|
45,344
|
Stock-based
compensation13
|
3,563
|
|
5,507
|
Foreign
exchange
|
369
|
|
118
|
Distributor
Termination14
|
—
|
|
(2,234)
|
Non-GAAP Adjusted
EBITDA
|
$
87,982
|
|
$
48,735
|
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.
____________________
|
1
|
Circana Total US MULOC
L13W Ended 3/31/24, RTD Energy
|
2
|
Circana Total US MULOC
L4W Ended 4/14/24, RTD Energy
|
3
|
Circana Total US MULOC
L13W ended 3/31/24, RTD Energy
|
4
|
Circana Total US MULOC
ended 4/21/24, RTD Energy
|
5
|
Circana Total US MULOC
L4W ended 4/14/24, RTD Energy
|
6
|
Circana Total US MULOC
RTD energy weekly sugar free dollar share from 4/11/21 –
3/31/24
|
7
|
Circana Total US MULOC
L13W ended 3/31/24, RTD Energy
|
8
|
Circana Total US MULOC
L13W ended 3/31/24, RTD Energy
|
9
|
Stackline Total US
Energy Drink Category L14W ended 3/30/24
|
10
|
Circana Total US MULOC
L4W ended 3/24/24, RTD Energy
|
11
|
Circana Total US MULOC
L4W ended 3/24/24, RTD Energy
|
12
|
Circana Total US MULOC
L4W ended 3/24/24, Energy Powders
|
13
|
Selling, 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.
|
14
|
2023 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.
|
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SOURCE Celsius Holdings, Inc.