Celsius Holdings Inc (NASDAQ:CELH) is on track for its largest percentage gain since November 2020, last seen up 26.9% at $32.40. The energy drink company reported adjusted fourth-quarter earnings of $0.14 per share on $332 million in revenue, topping analyst expectations.Investor enthusiasm was further fueled by Celsius’ announcement of a $1.8 billion cash-and-stock acquisition of rival Alani Nutrition, a move that strengthens its position in the energy drink market.Options traders are piling on, with more ...

Group 1 - Celsius is acquiring its main competitor, Alani Nu, which indicates a strategic move to strengthen its market position [1] - The acquisition is expected to enhance Celsius's product offerings and competitive edge in the beverage industry [1] - The recent earnings report from Celsius provides insights into the company's financial health and growth potential [1]

Celsius Holdings, Inc. (NASDAQ:CELH) Q4 2024 Earnings Conference Call February 20, 2025 6:00 PM ET Company Participants Paul Wiseman - Investor Relations John Fieldly - Chairman and Chief Executive Officer Jarrod Langhans - Chief Financial Officer Toby David - Chief of Staff Conference Call Participants Kaumil Gajrawala - Jefferies Jim Salera - Stephens Peter Grom - UBS Eric Serotta - Morgan Stanley Gerald Pascarelli - Needham & Company Andrea Teixeira - J.P. Morgan Michael Lavery - Piper Sandler Sean McGow ...

Core Insights - Celsius Holdings experienced a significant surge in stock price, increasing over 33% in premarket trading, driven by strong revenue results and a strategic acquisition [1] Financial Performance - The company reported a record fourth-quarter revenue of $332.2 million, surpassing analyst expectations of $326 million [2] - Adjusted earnings per share were 14 cents, exceeding the forecast of 11 cents by analysts [2] Strategic Acquisition - Celsius announced the acquisition of Alani Nutrition for $1.65 billion, which includes both cash and stock components [2] - This acquisition aims to merge two growing brands in the U.S. energy drink market, enhancing the company's position in the zero-sugar alternatives segment [3]

PRESENTATION February 20, 2025 In conjunction with moderate fitness activity, Celsius is clinically proven to accelerate metabolism and burn body fat CELSIUS HOLDINGS, INC. | QUARTER 3, 2024 INVESTOR PRESENTATION NON-GAAP MEASURES Forward-Looking Statements This presentation 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 ...

Core Insights - Celsius Holdings, Inc. (NASDAQ: CELH) reported its Q4 2024 earnings, leading to a significant stock sell-off of 9% in after-hours trading [1] Financial Performance - The earnings report was released after the market close, indicating a potential negative market reaction to the results [1] Market Reaction - Following the earnings announcement, the stock experienced a substantial decline, reflecting investor sentiment and market expectations [1]

Group 1 - Celsius Holdings Inc. reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, but down from $0.17 per share a year ago, representing an earnings surprise of 27.27% [1] - The company posted revenues of $332.2 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.88%, but down from $347.44 million year-over-year [2] - Over the last four quarters, Celsius has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, as Celsius shares have lost about 1% since the beginning of the year, compared to the S&P 500's gain of 4.5% [3] - The current consensus EPS estimate for the coming quarter is $0.23 on revenues of $368.24 million, and for the current fiscal year, it is $0.89 on revenues of $1.54 billion [7] - The Zacks Industry Rank for Food - Miscellaneous is currently in the bottom 28% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Core Viewpoint - Celsius Holdings reported its fourth-quarter financial results, which, despite a year-over-year revenue decline, exceeded investor expectations. The company announced a significant acquisition of Alani Nu for $1.8 billion, which is expected to enhance its market position and revenue growth potential [3][4][6]. Financial Performance - Total revenue for Q4 2023 was $347.4 million, a 4% decrease from Q4 2022, but it beat expectations [2]. - Adjusted earnings per share for Q4 2023 were $0.17, down 18% year-over-year, yet still better than anticipated [2]. - International sales increased by 39% to $14.6 million in Q4 2023 [2]. - The energy drink unit volume market share slightly decreased to 11.4% from 10.9% [2]. Acquisition Details - Celsius agreed to acquire Alani Nu for $1.8 billion, comprising $1.275 billion in cash, $25 million in potential earn-out payments, and $500 million in Celsius stock [4]. - The company has secured debt financing for $900 million of the acquisition cost, with the remainder funded by cash reserves [4]. Strategic Implications - The acquisition of Alani Nu is seen as a strategic move to enhance Celsius' product offerings and market presence, particularly targeting a broader audience beyond fitness enthusiasts [5]. - Alani Nu ranks as the fourth largest energy drink brand in the U.S., which could help Celsius maintain its competitive edge [5]. Market Reaction - Following the acquisition announcement, Celsius shares surged by 27% within the first 45 minutes, reflecting strong investor confidence [6]. - The stock had already experienced a notable increase prior to the earnings release, indicating positive market sentiment [6]. Future Expectations - Celsius anticipates that the Alani Nu acquisition will boost revenue by over 40% and increase pro forma profitability by nearly 60% [7]. - The company expects the deal to be accretive to cash earnings per share in the first year post-closing and has identified $50 million in cost synergies [7]. - The acquisition is expected to close in the second quarter of 2025, allowing time for investors to evaluate its potential impact [8].

Core Insights - Celsius Holdings reported strong revenue growth in Q4 2024, with total revenue reaching $332 million, surpassing analyst expectations of $326 million [1][3] - The company achieved an adjusted diluted EPS of $0.14, exceeding the estimate of $0.11, although it represented an 18% decline year-over-year [3][10] - The acquisition of health brand Alani Nu for $1.8 billion is a significant strategic move aimed at enhancing Celsius's brand portfolio and product categories [2][5] Financial Performance - Q4 2024 financial metrics included adjusted EBITDA of $62.9 million, which was lower than the previous year's $65.2 million, reflecting a 3.5% decline [3] - Year-over-year revenue decreased by 4.4% from $347 million in Q4 2023 to $332 million in Q4 2024 [3] - The acquisition of Alani Nu is expected to generate synergies of $50 million over two years, contributing positively to earnings [9] Strategic Initiatives - Celsius focuses on health-conscious product formulations, avoiding additives like aspartame and high fructose corn syrup, appealing to wellness-minded consumers [4] - The company has established strong distribution partnerships, notably with PepsiCo, which enhances its market presence but also introduces financial risks [4][6] - International expansion efforts include partnerships with Suntory in the UK and Ireland, aimed at optimizing global distribution and mitigating domestic dependency risks [8] Product Innovation - The launch of CELSIUS ESSENTIALS demonstrates Celsius's commitment to product innovation aligned with consumer health trends [5][7] - The proprietary MetaPlus formula helps maintain a competitive edge in the functional beverage market, catering to health-conscious consumers [7] Future Outlook - Management remains optimistic about future growth despite challenges related to distributor dependency, with expectations for improved Adjusted EBITDA and overall earnings post-Alani Nu acquisition [10][11] - Monitoring the impact of the Alani Nu acquisition and the effectiveness of distribution partnerships will be crucial for sustained growth [11]

Transaction Details - The Membership Interests of Alani Nutrition LLC are being sold to Celsius Holdings, Inc. for an aggregate consideration that includes newly issued equity interests in a newly formed holding corporation[9]. - The transaction involves a pre-closing contribution where Seller Members will contribute 100% of the Membership Interests to Holdco, maintaining identical proportions in Holdco Interests[11]. - The agreement includes provisions for the election of Holdco to be treated as an "S corporation" for tax purposes, effective at the time of contribution[12]. - The board of directors of Celsius Holdings has unanimously approved the transaction, determining it to be fair and in the commercial interests of the company[12]. - Each Key Person involved in the transaction has entered into a consulting agreement with Celsius Holdings, effective upon closing[12]. - The agreement outlines various representations and warranties from both the Sellers and the Buyer regarding the transaction[13]. - The Sellers collectively own 100% of the issued and outstanding limited liability company membership interests of Alani Nutrition LLC[11]. - The transaction is part of a broader strategy for market expansion and operational management under the "Alani" brand[11]. - The agreement includes specific accounting principles and procedures for the closing payment and final closing statement preparation[4]. Financial Considerations - The Aggregate Base Cash Consideration is set at $1,275,000,000, subject to adjustments for Net Working Capital, Closing Indebtedness, Company Expenses, and Closing Cash[23]. - The Actual Adjustment for the transaction will not exceed $18,000,000[21]. - The Aggregate Earnout Cash Consideration is contingent on 2025 Product Net Sales, with a potential payout of $25,000,000 if sales meet or exceed a specified threshold[25]. - The Company has established Agreed Accounting Principles that prioritize specific accounting methods and GAAP for financial reporting[26]. - Closing Cash will be calculated net of issued but uncleared checks and will include checks and wire transfers available for deposit[56]. - The Company’s Closing Indebtedness will be assessed immediately prior to the Closing[57]. - The Closing Net Working Capital will exclude certain current assets and liabilities as defined in the agreement[58]. - The Buyer Termination Fee is set at $53,250,000[51]. Company Performance - The Company reported a significant increase in revenue, achieving $1.5 billion in Q3 2023, representing a 20% year-over-year growth[104]. - User data showed a growth in active users, reaching 10 million, which is a 15% increase compared to the previous quarter[104]. - The Company provided guidance for Q4 2023, projecting revenue between $1.6 billion and $1.8 billion, indicating a potential growth of 10% to 20%[104]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[104]. - The Company is investing $50 million in R&D for new technologies aimed at enhancing product features and user experience[104]. - Market expansion efforts include entering three new international markets, projected to increase user base by 25%[104]. - The Company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[104]. - The Company reported a 5% decrease in operating expenses, improving overall profitability margins[104]. - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[104]. Future Projections - The company reported a significant increase in revenue, reaching $1.2 billion, representing a 15% year-over-year growth[1]. - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[2]. - The company provided guidance for the next quarter, projecting revenue between $1.3 billion and $1.4 billion, which would reflect a growth rate of 8% to 17%[3]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[4]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[5]. - Market expansion efforts include entering three new international markets, projected to increase user base by 30%[6]. - The company completed a strategic acquisition of a competitor for $300 million, expected to enhance market share by 10%[7]. - Cost reduction strategies implemented are anticipated to save $20 million annually[8]. - The company reported a net income of $150 million, a 10% increase compared to the previous year[9]. - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the last quarter[10]. Regulatory and Compliance - The Company is subject to Applicable Data Protection Requirements, including privacy policies and industry standards[34]. - The definition of "Permitted Liens" includes various types of liens that do not materially impair the company's assets[157]. - The term "Tax" encompasses a wide range of taxes including federal, state, local, and foreign taxes[188]. - The "Post-Closing Adjustment Amount" can be positive or negative, with a minimum value of "0" if negative[161]. - "Personal Information" includes various identifiable data such as name, address, and email[159]. - The term "Transaction Deductions" includes various tax-deductible expenses related to the transactions[195]. - The "Separation Plan" is defined in Section 6.20 of the agreement[182]. - The "Transition Services Agreement" will be executed at the Closing Date[197]. - The "Regulatory Authorities" include entities like the Department of Justice and Federal Trade Commission[174].