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Celsius: Only Getting Started

Update - Mar. 27, 2024

Celsius is now down nearly 8% on the day on news of new incentives for PepsiCo (PEP) to do their job. No details were released. 

  • Celsius Holdings  added an amendment to the distribution agreement inked with PepsiCo in 2022. The change will provide PepsiCo with an incentive program designed to incentivize and compensate it for its continued focus on and actions to support the sale of Celsius' licensed products.
  • The amendment will boost PepsiCo's average targeted margin on the sale of most licensed products. The amendment also covers products sold through promotional activity. Specific terms were undisclosed by the parties due to competitive reasons.

Finviz Chart

Update - Feb. 29, 2024

Prior to the market open, Celsius reported another strong quarter. The energy drink company again smashed sales estimates and grew by nearly 95%. The stock has surged to new ATHs in no surprise considering the prime EV/S multiple nearly matched the one for Monster Beverage (MNST) with far lower growth. 

-Q4 GAAP EPS of $0.17 misses by $0.01.

-Revenue of $347M (+94.9% Y/Y) beats by $15.55M.

Finviz Chart

Original article posted on Feb. 22

  • Celsius Holdings is experiencing strong growth and is heading towards all-time highs due to the launch of international expansion.
  • The company plans to expand distribution to Canada, the United Kingdom, and Ireland, partnering with PepsiCo and Suntory Beverage & Food.
  • The stock trades at just 8x EV/S targets, similar to market leader Monster Energy, with far slower growth.
Celsius Holdings (NASDAQ:CELH) continues to generate massive growth while the stock has been stuck in a trading range going all the way back to last August. Celsius is now heading back towards the all-time highs due to the launch of multiple international locations to provide an extra boost to strong domestic sales growth. My investment thesis is ultra Bullish on the stock still trading at a similar valuation multiple as a peer without the same growth rates.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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