Vending

Celsius Holdings sets revenue growth record, jumps 80% in Q3

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November 13, 2020

Celsius Holdings Inc., maker of the Celsius fitness drink, reported revenue of approximately $36.8 million for the third quarter ending Sept. 30, 2020, an increase of $16.4 million (80.4%) from $20.4 million for the same quarter of 2019, according to an earnings release.

The gain marked an all-time record, beating market expectations by $3.8 million in revenue and boosting the stock price by 12% to $32.75 against a 52-week range of $3.22-$32.7, according to Seeking Alpha. Diluted earnings per share of 6 cents surpassed expectations by 4 cents.

Net income was $4.8 million or 7 cents per share based on a weighted average of 70.5 million shares outstanding and dilutive earnings per share of 6 cents based on a fully-dilutive weighted average of 74.8 million shares outstanding, according to the earnings release.

In comparison, for the three months that ended Sept. 30, 2019, the company had net income of approximately $961,042 or a 2 cents per share, based on a weighted average of 59.3 million shares outstanding and a dilutive earnings per share of 3 cents based on a fully-dilutive weighted average of 62.5 million shares outstanding.

"Despite the material closure of locations in both our vending and health and fitness channels, which cumulatively represented approximately 23% of North American revenue in our 2019 third quarter, North American revenue growth accelerated 27%, from the 47% revenue growth recognized in the third quarter of 2019, to over 60% in the current quarter," John Fieldly, president and chief executive officer, said in a prepared statement. "Operationally, third-quarter results were an all-time record for the company, including record revenue both in North America and in the Nordics, gross profit, gross margins, operating income and cash flow from operations."

The revenue increase was attributable to continued strong growth of 60.4% in North American revenues, reflecting double digit growth from existing accounts, new distribution and expanded distribution to major retailers, according to the earnings release.

European revenue for the three months was $9.5 million, an increase of 182.3% from 2019 quarter revenue of $3.4 million.

The 2020 results now reflect the full financial impact of consolidation of the results of operations of Func Food Group, Oyj, the European distribution partner acquired in October 2019.

Asian revenues for the three months was $274,532 an increase of 40.8% from $194,982 in the 2019 quarter.

Other international markets generated $145,415 of revenue during the third quarter of 2020, an increase of $57,015 when compared to $88,400 for the same quarter in the prior year. The total increase in revenue from the 2019 quarter to the 2020 quarter was primarily attributable to increases in sales volume as opposed to increases in product pricing.

Moving through the fourth quarter and into 2021, the company expects a continuation of the accelerated DSD transition with retail partners, further expansion into the underpenetrated convenience channel and new innovative flavors across expanded geographic markets, Fieldly said.