Celsius Holdings, known for its functional energy drinks, shares (CELH) jumped 20 percent on Thursday after the “energy” drink company posted fourth-quarter sales growth and Adjusted EBITDA numbers that easily blew past Wall Street expectations.

Celsius achieved record fourth-quarter revenue of $347 million, up 95 percent from $178 million for the prior-year fourth quarter, driven predominantly by North American revenue, which increased 97 percent to $333 million, up from $169 million for the prior-year fourth quarter. Management noted that the North American business was led by expansion in distribution points and higher SKUs per location.

International revenue increased 68 percent to $14.6 million for the fourth quarter, from $8.7 million for the prior-year quarter, said to be driven in large part by new flavor launches, product availability and increased velocity.

Gross profit for the fourth quarter of 2023 was $166 million, up 110 percent from $79 million for the prior year fourth quarter.

Gross margin was 47.8 percent of net sales for the quarter, up from 44.4 percent for the prior-year fourth quarter. The 340 basis point improvement in gross profit margin was attributed to efficiencies in raw material sourcing, product waste reduction, and benefits from improved leverage across promotional allowances.

Net income attributable to common stockholders for the fourth quarter of 2023 totaled $39 million, or 17 cents per diluted share, compared to a net loss of $28 million, or a loss of 12 cents per diluted share, for the prior-year fourth quarter.

Non-GAAP Adjusted EBITDA increased 387 percent to approximately $65 million, compared to $13 million for the prior-year fourth quarter, driven by substantial revenue growth and improved gross margins, as well as continued leverage across SG&A.

As of December 31, 2023, Celsius had $756 million in cash and cash equivalents, none of which was restricted, as compared to $653 million as of December 31, 2022, which included $39 million in restricted cash related to distributor termination payments.

“During the fourth quarter of 2023, Celsius delivered record revenue of $347 million and more than $39 million in net income, driven by expanded availability of our products and increased consumer awareness,” commented John Fieldly, chairman and CEO of Celsius Holdings, Inc. “We continued to drive growth of the category by bringing in new loyal consumers, as well as increasing consumption occasions.”

Full Year Results
For the full year, Celsius achieved record revenue of $1.32 billion, up 102 percent from $654 million for the prior year.

North American revenue grew 105 percent to $1.26 billion for the year ended December 31, 2023, from $617 million for the prior year, reportedly driven by continued gains in distribution points and SKUs per location.

International revenue increased by 52 percent to $55 million for the year, compared to $36 million for the prior year, driven in large part by successful innovation launches, increased velocity, and brand awareness.

Gross profit for the full year was $633 million, an increase of 134 percent from $271 million for the prior year.

Gross margin was 48.0 percent of net sales for the year, up from 41.4 percent for the prior year. Gross margin improvements were attributed to efficiencies in raw material sourcing and product waste reduction.

Net income attributable to common stockholders totaled $182.0 million, or 77 cents per diluted share, for the year ended December 31, 2023, compared to a net loss of $198.8 million, or a loss of 88 cents per diluted share, for the prior year.

Non-GAAP Adjusted EBITDA increased 316 percent to approximately $296 million for 2023, compared to $71 million for 2022, benefiting from substantial revenue growth and significantly improved gross margins as well as continued leverage across SG&A.

Image courtesy Celsius Holdings