Core Viewpoint - Celsius Holdings Inc reported better-than-expected fourth-quarter earnings and announced the acquisition of Alani Nutrition for $1.8 billion, which is expected to enhance growth and market share in the energy drink sector [1][9]. Financial Performance - Celsius surpassed expectations for sales, adjusted EBITDA, and EPS in the fourth quarter, with North American sales declining by 6% while international sales increased by 39% [5]. - The acquisition of Alani Nu is valued at a revenue multiple of less than 3x for 2024, financed through $1.275 billion in cash and $500 million in stock, with a potential $25 million earnout tied to 2025 performance [2][9]. Market Position and Strategy - Post-acquisition, Celsius's market share in the U.S. energy sector is expected to rise from approximately 11.8% to 16%, surpassing the double-digit threshold [3][7]. - The acquisition is strategically significant as Alani is one of the fastest-growing energy brands, enhancing Celsius's appeal to female consumers [3][8]. Analyst Sentiment - Analysts have reiterated Buy ratings on Celsius shares, with price forecasts ranging from $37.00 to $49.00, reflecting optimism about the acquisition and stronger-than-expected earnings [4][5][8]. - The deal is anticipated to boost Celsius's sales and adjusted EBITDA by approximately 50% in 2026, assuming $50 million in run-rate synergies and a 28% average adjusted EBITDA growth in 2025-2026 [10][11]. Competitive Landscape - The energy drink sector remains competitive, with major rivals focused on increasing market share amid a challenging consumer environment [6]. - Celsius aims to attract new customers, expand product availability, and enhance consumption frequency through retail activations and product innovation [6].

Core Insights - The article discusses the potential for investing in undervalued stocks that are mispriced by the market as of the end of February [1] Group 1 - The article suggests that investors may consider joining a platform that provides insights on undervalued stocks [1]

Group 1 - The last year for Celsius Holdings has been described as a "roller coaster ride," indicating significant volatility in the company's performance [1] Group 2 - The company aims to invest in firms with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them long-term [2] - The investment strategy involves managing a concentrated portfolio to avoid losses while maximizing exposure to high-potential winners [2]

Group 1 - The article discusses the positions held by Travis Hoium in Celsius and mentions that The Motley Fool also has positions in and recommends Celsius [1] - It highlights that The Motley Fool has a disclosure policy regarding its affiliations and potential compensations [1] - The opinions expressed in the article are stated to be independent and unaffected by The Motley Fool's financial interests [1]

Core Insights - Celsius Holdings shares surged 23.4% following the announcement of better-than-expected earnings and the acquisition of Alani Nu for $1.8 billion [1][4] Financial Performance - The company reported a 4% decline in revenue for the fourth quarter, totaling $332.2 million, which exceeded the consensus estimate of $327 million [3] - Gross margin improved from 47.8% to 50.2%, indicating positive business momentum [3] - Adjusted earnings per share decreased by 18% to $0.14, surpassing estimates of $0.10 [3] Acquisition Details - Celsius is acquiring Alani Nu for a net price of $1.65 billion after accounting for $150 million in tax assets, paying less than three times trailing revenue and about 12 times trailing adjusted EBITDA [4] - Alani Nu is the fourth-largest energy drink maker and offers a complementary portfolio of shakes and snacks, enhancing Celsius' product line [5] - The combined market share of Celsius and Alani Nu will be 16% in the energy drink industry [5] Market Context - Despite challenges with the PepsiCo distribution deal, Celsius has shown strong retail growth, with a 22% increase last year according to market researcher Circana [7] - The stock price had been under pressure, making the acquisition news particularly impactful [7]

Core Viewpoint - Celsius Holdings has made a significant acquisition of Alani Nu for $1.8 billion, which is expected to revitalize its growth trajectory after a challenging year [1][2]. Financial Performance - Celsius experienced a respectable recovery in the fourth quarter, with a 4% decline in revenue compared to a shocking 31% year-over-year decline in the previous quarter [10]. - The acquisition of Alani Nu is seen as a strategic move to enhance growth, especially after Celsius faced back-to-back quarters of declining revenue [3][10]. Acquisition Details - The deal involves $1.275 billion in cash, an additional $25 million contingent on Alani Nu's performance in 2025, and $500 million in new Celsius shares for Alani Nu stakeholders, bringing the net price to $1.65 billion [5]. - The acquisition values Alani Nu at 3 times its projected 2024 sales and 12 times its last year's EBITDA, which is favorable compared to Celsius's own multiples [5]. Market Position and Strategy - Alani Nu primarily targets a female audience and offers a range of products including protein shakes and dietary supplements, which could diversify Celsius's product offerings [4]. - The acquisition is expected to leverage Celsius's existing distribution channels, particularly through its minority shareholder PepsiCo, to enhance Alani Nu's profitability [6]. Historical Context - The article draws a parallel with Crocs' acquisition of Heydude, which initially seemed promising but did not yield the expected growth, highlighting the risks associated with such acquisitions [6][8]. - Celsius aims to avoid the pitfalls experienced by Crocs and is optimistic about the potential synergies and growth opportunities from the Alani Nu acquisition [9][11].

Shares of the third-largest energy drink brand in the United States, Celsius (CELH 32.35%), were up 44% this week as of 11 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.While the company reported acceptable fourth-quarter results on Thursday, its announcement of a significant acquisition stole the show and led to a skyrocketing price.Much ado about Alani Nu?In an excellent move to divert attention from somewhat turbulent 2024 results, Celsius announced that it had acquired Ala ...

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 ...