Celsius Holdings ( (CELH) ) has released its Q4 earnings. Here is a breakdown of the information Celsius Holdings presented to its investors.
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Celsius Holdings, Inc. is a functional beverage company known for its CELSIUS® energy drinks and CELSIUS HYDRATION™ products, focusing on the rapidly growing better-for-you beverage sector.
Celsius Holdings reported its financial results for the fourth quarter and full year of 2024, showcasing a modest revenue growth driven by strong consumer demand and strategic initiatives, despite some challenges in the domestic market.
The company’s full-year revenue increased by 3% to $1.36 billion, reflecting its expanding international reach with a 37% increase in international sales. However, the fourth-quarter domestic revenue faced a decline due to higher allowances in its incentive programs. Gross margins improved, rising by 220 basis points to 50.2% for the year, indicating better cost management. Notably, Celsius announced a significant acquisition of Alani Nu, aiming to strengthen its position in the energy drink market.
Despite the revenue growth, the company saw a decline in net income by 36% for the year, attributed to increased selling, general, and administrative expenses due to legal and restructuring costs. The acquisition of Alani Nu, valued at $1.8 billion, is expected to bolster their functional lifestyle platform, potentially leading to greater market share and financial performance improvements.
Moving forward, Celsius Holdings remains optimistic about its long-term growth strategy, focusing on distribution expansion and strategic acquisitions like Alani Nu. The company aims to continue its leadership in the global energy drink market, leveraging category growth and consumer demand for functional beverages.
