Celsius Holdings, Inc. makes a special drink that gives people energy. They had a good amount of money from selling their drink in the first three months of this year, but not as much as some people thought they would. This made the price of their company go down a little bit. However, they still sold more drinks and made more money than before, so some parts were really good for them. They are also trying to sell their drink in more countries like Canada and some places in Europe. Read from source...
1. The title of the article is misleading and sensationalist, as it implies that Celsius Holdings shares are falling because of some negative news or events, when in fact they are missing the street view by a significant margin. A more accurate title would be "Why Celsius Holdings Shares Are Missing Street View by a Wide Margin".
2. The article focuses too much on the positive aspects of the company's performance, such as earnings per share, gross profit, gross margin, and adjusted EBITDA, while ignoring or downplaying the negative aspect of revenue miss. This creates an imbalanced and incomplete picture of the company's situation, which may mislead investors into thinking that everything is going well when it is not. A more balanced approach would be to highlight both the strengths and weaknesses of the company's performance, and explain how they affect the share price and valuation.
3. The article uses vague and ambiguous terms such as "driven primarily by the North American business" and "ongoing velocity improvements and product launches" without providing any specific or quantifiable data to support them. These terms may sound impressive, but they do not give a clear or reliable indication of how well the company is performing in these areas, or what factors are behind its success or failure. A more transparent and credible approach would be to provide concrete numbers and examples, such as sales figures, market share, customer feedback, etc., to back up the claims and show the impact on the bottom line.
4. The article mentions that Celsius is the #1 energy drink brand by dollar share, but does not specify what time period or geographic region this refers to. This may imply that Celius is the leader in the entire global market, which is misleading and exaggerated, as there are many other competitors and segments in the energy drink category. A more accurate and relevant statement would be to mention the time frame and location of this ranking, and compare it with its main rivals or peers.
- Celsius Holdings reported better-than-expected earnings per share of 27 cents, beating the analyst consensus of 18 cents.
- Quarterly revenues of $355.708 million missed the street view of $389.861 million.
- Sales jumped 37% year over year, driven primarily by the North American business and the company's success in sustaining consumer demand growth.
- Gross profit increased 60% year over year to $182.2 million, while gross margin jumped 740 basis points to 51.2%. Adjusted EBITDA jumped 81% year over year to $88 million.
- Club channel sales in the quarter increased 36% to $63 million, while Celsius sales on Amazon increased 30% to approximately $28 million, and Celsius remained the #1 energy drink brand by dollar share.
- Approximately 12% of Celsius' total sales to international markets in the first quarter of 2024 was to the food service channel.
- Ongoing inventory fluctuations may be expected in subsequent quarters because its largest distributor constituted 62% of total North American sales during the first quarter of 2024.
- 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.
- 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 U.K. in 2024.
Based on this information, here are some possible investment recommendations and risks:
1. Buy Celsius Holdings shares if you believe that the company's strong earnings growth, high gross margin, and expanding international presence will outweigh the short-term revenue miss and dependence on one major distributor. You may also expect Celsius to benefit from its innovative product line, market leadership, and potential for further growth in emerging markets.
2. Sell Celsius Holdings shares if you are concerned about the company's reliance on a single distributor for most of its North American sales, as well as the possibility of inventory fluctuations affecting future performance. You may also want to avoid investing in the company if you think that the energy