Jarrod Langhans, Chief Financial Officer of Celsius Holdings, said: “We are pleased that our strategic initiatives are driving long-term share gains and strong retail sales growth. For the full year, revenue increased 3%, and we expanded our gross margin 220 basis points to 50.2%. We are investing behind our growth through targeted strategic investments in vertical integration and capital efficient expansion. We are also excited to announce the acquisition of Alani Nu, which offers a compelling strategic rationale and strong financial benefits. We believe our capital allocation strategy is fully aligned with our vision to be a high-growth leader and deliver the greatest value to our consumers and shareholders.”
_____________
1 Circana Total US MULO+ w/C Calendar year ended 12/29/24, RTD Energy
FINANCIAL AND MARKET HIGHLIGHTS FOR THE FOURTH QUARTER OF 2024
For the three months ended Dec. 31, 2024, revenue was approximately $332.2 million, compared to $347.4 million for the three months ended Dec. 31, 2023, a 4.4% decline. Fourth quarter revenue was negatively impacted by higher domestic allowances from a number of programs including our distributor incentive program, compared to the same period last year.
Fourth quarter international sales of $20.3 million increased 39% year over year from organic growth in our established EMEA markets, as well as recent international expansion launches across the UK and Ireland, France, Australia and New Zealand. International revenue excluding 2024 expansion markets increased 8% compared to the prior-year period.
For the three months ended Dec. 31, 2024, gross profit increased by $0.5 million to $166.7 million from $166.2 million for the three months ended Dec. 31, 2023. Gross profit margin was 50.2% for the three months ended Dec. 31, 2024, a 240 basis point increase from 47.8% for the same period in 2023. The increase in gross profit is primarily attributed to lower outbound freight and materials.
Selling, general and administrative expenses for the three months ended Dec. 31, 2024, increased $77.9 million, or 73%, to $185.2 million from $107.3 million in the quarter ended Dec. 31, 2023, driven primarily by accrued legal expenses in connection with an ongoing litigation matter. Selling, general and administrative expenses were also impacted by one-time restructuring related professional services and contractual co-packer obligations in the quarter ended Dec. 31, 2024.
Diluted earnings per share for the fourth quarter was $(0.11) compared to $0.17 for the prior-year period. Non-GAAP adjusted diluted earnings per share for the fourth quarter was $0.14 compared to $0.17 for the prior-year period.
Retail Performance
Retail sales of Celsius in total U.S. MULO Plus with Convenience increased by 2% year over year as reported by Circana for the last-thirteen-week period ended Dec. 29, 20242. Celsius dollar share for the same period was 10.9%, a decrease of 0.5% from the prior-year period3.
FINANCIAL AND MARKET HIGHLIGHTS FOR FULL-YEAR 2024
Revenue for the 12 months ended Dec. 31, 2024, increased 3% to $1,355.6 million compared to $1,318.0 million for the prior year. Revenue for the 12 months ended Dec. 31, 2024, was impacted by timing of orders from our largest distributor, increased promotional activity and incentive programs. International sales of $74.7 million increased 37% from $54.7 million for the prior year.
Gross profit increased 7% to $680.2 million compared to $633.1 million for the prior year. Gross profit as a percentage of revenue was 50.2% for the 12 months ended Dec. 31, 2024, up from 48.0% in the prior year.
Diluted earnings per share for the year ended Dec. 31, 2024, was $0.45 compared to $0.77 for the prior year. Non-GAAP adjusted diluted earnings per share was $0.70 compared to $0.78 for the prior-year period.
Retail Performance
Retail sales of Celsius in total U.S. MULO Plus with Convenience increased by 22.1% year over year as reported by Circana for the calendar year ended Dec. 29, 20244. Celsius dollar share for the same period was 11.8%, an increase of 1.6% from the prior-year period5.
_____________
2 Circana Total US MULO+ w/C L13W ended 12/29/24, RTD Energy
3 Circana Total US MULO+ w/C L13W ended 12/29/24, RTD Energy
4 Circana Total US MULO+ w/C Calendar year ended 12/29/24, RTD Energy
5 Circana Total US MULO+ w/C Calendar year ended 12/29/24, RTD Energy
Acquisition of Alani Nu
The Company also announced today that it has entered into a definitive agreement to acquire Alani Nutrition LLC (“Alani Nu”) for $1.8 billion including $150 million in tax assets for a net purchase price of $1.65 billion, comprising a mix of cash and stock. The agreement has been approved by the Celsius Board of Directors. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second quarter of 2025. The company has provided additional details regarding this transaction in a separate press release, and management will discuss the transaction on today’s webcast at 6:00 p.m. ET. A presentation highlighting this transaction will be available on the Celsius Holdings investor relations website at https://ir.celsiusholdingsinc.com.
Fourth Quarter and Full-Year 2024 Earnings Webcast
Management will host a webcast today, Thursday, Feb. 20, 2025, at 6:00 p.m. ET to discuss the company’s fourth quarter and full-year 2024 financial results and the Alani Nu transaction 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.
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Nasdaq: CELH) is a functional beverage company and the owner of energy drink brand CELSIUS® and hydration brand CELSIUS HYDRATIONTM. Born in fitness and pioneering the rapidly growing, better-for-you functional beverage category, the company creates and markets leading functional beverage products. For more information, please visit www.celsiusholdingsinc.com.
Forward-Looking Statements
This press release contains statements by Celsius Holdings, Inc. (“Celsius”, “we”, “us”, “our” or the “Company”) 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 may address, among other things, our prospects, plans, business strategy and expected financial and operational results. 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”, variations of these terms, the negatives of such terms and similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. You should not rely on forward-looking statements because our 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: changes to our commercial agreements with PepsiCo, Inc.; management’s plans and objectives for international expansion and global operations; 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 ability to successfully integrate business that we may acquire, including our pending acquisition of Alani Nu; our ability to achieve the benefits that we expect to realize as a result of our acquisitions, including Alani Nu; the potential negative impact on our financial condition and results of operations if we fail to achieve the benefits that we expect to realize as a result of our business acquisitions, including Alani Nu; liabilities of the businesses that we acquire that are not known to us; 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 comply with the rules and regulations of the Securities and Exchange Commission (the “SEC”); and those other risks and uncertainties discussed in the reports we have filed with the SEC, such as our 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. We do 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)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
890,190
$
755,981
Accounts receivable-net1
270,342
183,703
Note receivable-net
—
2,318
Inventories-net
131,165
229,275
Deferred other costs-current2
14,124
14,124
Prepaid expenses and other current assets
18,759
19,503
Total current assets
1,324,580
1,204,904
Property, plant and equipment-net
55,602
24,868
Right of use assets-operating leases
21,606
1,957
Right of use assets-finance leases-net
230
208
Intangibles-net
12,213
12,139
Goodwill
71,582
14,173
Deferred other costs-non-current2
234,215
248,338
Deferred tax assets
38,699
29,518
Other long-term assets
8,154
291
Total Assets
$
1,766,881
$
1,536,396
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable3
$
41,287
$
42,840
Accrued expenses4
148,780
62,120
Income taxes payable
10,834
50,424
Accrued promotional allowance5
135,948
99,787
Lease liability operating leases
3,265
980
Lease liability finance leases
100
59
Deferred revenue2
9,513
9,513
Other current liabilities
15,808
10,890
Total current liabilities
365,535
276,613
Lease liability operating leases
16,674
955
Lease liability finance leases
211
193
Deferred tax liability
2,330
2,880
Deferred revenue2
157,714
167,227
Total Liabilities
542,464
447,868
Commitment and contingencies (Note 15)
Mezzanine Equity2:
Series A convertible preferred shares, $0.001 par value, 5% cumulative dividends; 1,466,666 shares issued and outstanding at each of December 31, 2024 and December 31, 2023, aggregate liquidation preference of $550,000 as of December 31, 2024 and December 31, 2023.
824,488
824,488
Stockholders’ Equity:
Common stock, $0.001 par value; 300,000,000 shares authorized, 235,013,960 and 231,787,482 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively.
79
77
Additional paid-in capital
297,579
276,717
Accumulated other comprehensive loss
(3,250
)
(701
)
Retained earnings (accumulated deficit)
105,521
(12,053
)
Total Stockholders’ Equity
399,929
264,040
Total Liabilities, Mezzanine Equity and Stockholders’ Equity
$
1,766,881
$
1,536,396
[1] Includes $168.2 million and $130.0 million from a related party as of December 31, 2024 and December 31, 2023, respectively; and
[2] Amounts in this line item are associated with a related party for all periods presented.
[3] Includes $1.7 million and $0.1 million due to a related party as of December 31, 2024 and December 31, 2023, respectively.
[4] Includes $0.2 million and $1.0 million due to a related party as of December 31, 2024 and $1.0 million as of December 31, 2023, respectively.
[5] Includes $75.1 million and $51.8 million due to a related party as of December 31, 2024 and December 31, 2023, respectively.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share amounts)
(Unaudited)
For the Three Months Ended December 31,
For the Twelve Months Ended December 31,
2024
2023
2024
2023
Revenue1
$
332,197
$
347,435
$
1,355,630
$
1,318,014
Cost of revenue
165,524
181,190
675,423
684,875
Gross profit
166,673
166,245
680,207
633,139
Selling, general and administrative expenses2
185,169
107,302
524,479
366,773
(Loss) income from operations
(18,496
)
58,943
155,728
266,366
Other income (expense):
Interest income on note receivable
(28
)
8,835
—
128
Interest income-net
7,892
27
39,263
26,501
Foreign exchange loss
(1,378
)
(20
)
(1,734
)
(1,246
)
Other income
1,793
—
1,793
—
Total other income
8,279
8,842
39,322
25,383
Net (loss) income before provision for income taxes
(10,217
)
67,785
195,050
291,749
Provision for income taxes
(8,659
)
(17,669
)
(49,976
)
(64,948
)
Net (loss) income
$
(18,876
)
$
50,116
$
145,074
$
226,801
Dividends on Series A convertible preferred stock3
(6,912
)
(6,950
)
(27,500
)
(27,462
)
Income allocated to participating preferred stock3
—
(4,085
)
(10,117
)
(17,348
)
Net (loss) income attributable to common stockholders
$
(25,788
)
$
39,081
$
107,457
$
181,991
Other comprehensive (loss) income:
Foreign currency translation (loss) gain, net of income tax
(2,912
)
1,840
(2,549
)
1,180
Comprehensive (loss) income
$
(28,700
)
$
40,921
$
104,908
$
183,171
*(Loss) earnings per share4:
Basic
$
(0.10
)
$
0.17
$
0.46
$
0.79
Diluted
$
(0.11
)
$
0.17
$
0.45
$
0.77
*Please refer to Note 3 in the Company’s Annual Report on Form 10-K for the period ended December 31, 2024, for Earnings per Share reconciliations.
[1] Includes $194.2 million and $742.0 million for the three and twelve months ended December 31, 2024, respectively, and $192.3 million and $782.3 million for the three and twelve months ended December 31, 2023, respectively, from a related party.
[2] Includes $0.8 million and $2.4 million for the three and twelve months ended December 31, 2024, respectively, and $1.3 million and $2.4 million for the three and twelve months ended December 31, 2023, respectively, from a related party.
[3] Amounts in this line item are associated with a related party for all periods presented.
[4] Forward Stock Split – The accompanying consolidated financial statements and notes thereto have been retrospectively adjusted to reflect the three-for-one stock split that became effective on November 13, 2023. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for more information.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Reconciliation of GAAP net income to non-GAAP adjusted EBITDA and Adjusted EBITDA Margin
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
Net (loss) income (GAAP measure)
$
(18,876
)
$
50,116
$
145,074
$
226,801
Add back/(Deduct):
Net interest income
(7,864
)
(8,862
)
(39,263
)
(26,629
)
Provision for income taxes
8,659
17,669
49,976
64,948
Depreciation and amortization expense
2,385
1,105
7,274
3,226
Non-GAAP EBITDA
(15,696
)
60,028
163,061
268,346
Stock-based compensation1
5,905
5,005
19,591
21,226
Foreign exchange
1,378
20
1,734
1,246
Distributor Termination2
—
126
—
(3,115
)
Legal Settlement Costs3
54,005
—
54,005
7,900
Reorganization Costs4
5,965
—
5,965
—
Acquisition Costs5
2,008
—
2,008
—
Penalties6
9,350
—
9,350
—
Non-GAAP Adjusted EBITDA
$
62,915
$
65,179
$
255,714
$
295,603
Non-GAAP Adjusted EBITDA Margin
18.9
%
18.8
%
18.9
%
22.4
%
Reconciliation of GAAP diluted Earnings per share to non-GAAP Adjusted diluted Earnings per share
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
Diluted (loss) earnings per share (GAAP measure)
$
(0.11
)
$
0.17
$
0.45
$
0.77
Add back/(Deduct)7:
Distributor Termination2
—
—
—
$
(0.01
)
Legal Settlement Costs3
$
0.16
—
$
0.16
$
0.02
Reorganization Costs4
$
0.05
—
$
0.05
$
—
Acquisition Costs5
$
0.01
—
$
0.01
$
—
Penalties6
$
0.03
—
$
0.03
$
—
Non-GAAP diluted earnings per share
$
0.14
$
0.17
$
0.70
$
0.78
_____________
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.
2Distributor 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.
3 2024 accrued expense for estimated liability in connection with an ongoing litigation during the quarter ended December 31, 2024. 2024 accrued expense for SEC settlement during the quarter ended December 31, 2024. 2023 legal class action settlement pertained to the McCallion vs Celsius Holdings class action lawsuit, which the company settled during the quarter ended June 30, 2023.
4 Reorganization costs represent international re-alignment costs incurred during the quarter ended December 31, 2024.
5 Acquisition costs include fees for Professional services received during the fourth quarter ended December 31, 2024 related to a business acquisition.
6 Accrued expense in the quarter ended December 31, 2024 related to contractual co-packer obligations.
7 Add backs and deductions are net of their respective impacts from tax and reallocation of earnings to participating securities.
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 and legal settlement costs. Adjusted EBITDA Margin is the ratio between the company’s Adjusted EBITDA and net revenue, expressed as a percentage. Adjusted diluted earnings per share is GAAP diluted earnings per share net of add backs and deductions for distributor termination, legal settlement costs, reorganization costs, acquisitions costs, and penalties. Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share are non-GAAP financial measures.
Celsius uses Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share 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, Adjusted EBITDA Margin, and Adjusted diluted earnings per share 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, Adjusted EBITDA Margin, and Adjusted diluted earnings per share, 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, Adjusted EBITDA Margin, and Adjusted diluted earnings per share are not recognized terms 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, Adjusted EBITDA Margin, and Adjusted diluted earnings per share 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.
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Contacts
Paul Wiseman
Investors: [email protected]
Press: [email protected]
