$CELH | Celsius Holdings Q3 Earnings Highlights:

🔹 EPS: $0.00 (Est. $0.02) 🔴

🔹 Revenue: $265.75M (Est. $267.55M) 😕; DOWN -31% YoY

🔹 Adj EBITDA: $4.4M (Est. $11.5M) 🔴; DOWN -96% YoY

Regional Breakdown

🔹 North America Revenue: $247.1M; DOWN -33% YoY

🔹 International Revenue: $18.6M; UP +37% YoY

Operational Metrics

🔹 Gross Profit: $122.2M; DOWN -37% YoY

🔹 Gross Profit Margin: 46.0%, DOWN 440 bps YoY

🔹 Net Income: $6.4M; DOWN -92% YoY

🔹 Net Income Attributable to Common Shareholders: $(0.6)M

Year-to-Date (YTD) FY2024 Highlights

🔹 YTD Revenue: $1.02B; UP +5% YoY

🔹 YTD Gross Profit: $513.5M; UP +10% YoY

🔹 YTD Gross Margin: 50.2%, UP 210 bps YoY

Business and Strategic Updates

🔸 Significant growth in the sugar-free energy category, propelling YTD revenue over $1B

🔸 Acquired Big Beverages, a co-packer facility, to enhance supply chain control and support innovation

🔸 Launched new flavors for CELSIUS ESSENTIALS and announced future flavors for CELSIUS Vibe and core lines

CEO John Fieldly's Commentary

🔸 "Celsius continued to drive category growth, outpacing the market in both dollar and volume sales. Supply chain optimization by our largest distributor impacted results but is now stabilizing, allowing us to focus on expanding our consumer base and market availability."

CFO Jarrod Langhans' Commentary

🔸 "Margins fell due to decreased orders from our largest distributor's optimization program. However, we minimized operational disruptions and maintained retail-level customer sales strength."

Alternative Growth Channels

🔹 Amazon Sales: $27M; UP +21% YoY (Celsius' share on Amazon at 20.4%)

🔹 Costco Sales: UP +15% YoY, while total club channel sales declined 4% due to timing of promotions

🔹 Food Service Channel Sales: Represented 12.3% of U.S. sales to PepsiCo

International Expansion

🔸 Strong sales growth in Canada, the UK, and Ireland

🔸 New market entry in Australia and New Zealand through major retailers