Mon, Mar 3, 9:06 PM (54 days ago)
Celsius Holdings, Inc. (CELH) reported a 2.9% revenue increase to approximately $1,355.6 million for the fiscal year ended December 31, 2024, with North America contributing $1,280.9 million. Gross profit rose 7.4% to $680.2 million, while gross margins improved to 50.2%. However, SG&A expenses surged by 43% to $524.5 million, driven by increased marketing and legal costs, resulting in net income of $107.5 million, down from $182 million in 2023. The company holds $890.2 million in cash, indicating strong liquidity. Celsius is in the process of acquiring Alani Nutrition for up to $1,800 million, which includes $1,275 million in cash and shares. The deal aims to enhance market presence but poses integration risks. Key risks include reliance on Pepsi for over 54% of revenue, competition from larger brands, and regulatory compliance challenges. The company has successfully remediated prior internal control weaknesses and maintains a strong market position amid evolving consumer preferences.