CELH Earnings Q4 23

Investment Analysis Clubs Saul’s Investing Discussions
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Q4 revenue $347m, 95% YoY (down QoQ as Q4 is always lower due to seasonal inventory management from retailers, etc)
Total 2023 revenue $1.3b, 102% YoY

GM 47.8% vs 44.4% last year

EPS .17 for quarter and .77 for 2023

S&M at 23% vs 19% in 2022 - on the call right now they are explaining that this is due to partnerships and campaigns - seems wise as they’re still single % of market share - honestly it really feels like they can spend more here as they start ramping up international

G&A is down to 7.7%, vs ~12% in prior year, so they are getting leverage in the right places

Stock was down as much as 6% pre market, but is now +11% (was up as much as 15% early in trading)

All in all still firing on all cylinders - I’m more bullish on this long term than SMCI, even tho that name has become my #1 holding due to the insane YTD growth

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Great report.

-First energy company to break the 10-share barrier in 10 years. New record of 11.5%

-Getting above 98% ACV via alignment with PepsiCo distribution “is a major achievement,” said CEO John Fieldly. "The energy drink category is now a 3-team race.

-15-share in over a dozen US markets

-Zero Sugar is now the majority of energy drink sales

-now #1 in energy drink category for Powders

-Pleased with spring reset momentum

-#1 position on Amazon - 73% growth for FY23

-12.5% of sales are through food service and expect to see tailwinds through non-tracked channels

-Canada rollout going well

-UK sales will start slowly in Q2

-Renewed F1 partnerships and increased MLS partnerships

-3 year revenue growth CAGR is 113%

-Unlike Snow, which has insane stock compensation numbers, Stock Compensation for CLH is only about 1% of revenue.

Nice to see raw material costs coming down and gross profit going up:

Gross profit for FY23, was $633 million, an increase of 134% from $271 million for the prior year.

-Gross profit as a percentage of revenue was 48.0% for FY23, up from 41.4% for the prior year.

-Gross profit margin improvements were attributed to efficiencies in raw material sourcing and product waste reduction.

-Long Celsius, 16%

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Don’t overlook the fact that 34% of the shares were sold short, that accounts for a lot of this huge move and it should settle out a bit over time.

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