I wonder what people’s thoughts are on Celsius Holdings? It is interesting to me as it is high growth but still in the consumer sector. Business model is very simple. “Healthy” energy drinks.
Recent revenue growth looked like:
Annual:
12/31/2021 12/31/2020 12/31/2019 12/31/2018
Annual Revenue 314,272 130,726 75,147 52,604
Quarterly Revenue:
3/31/2022 12/31/2021 9/30/2021 6/30/2021
Total Revenue 133,388 104,254 94,909 65,073
You can see a chart of revenue growth in the article link below.
There is definitely some slowdown here but they are still on track to grow 100% this year. What makes this MUCH more interesting is Pepsi just invested $550 million dollars in them last week and will open up their GLOBAL distribution to them. This feels HUGE to me. Pepsi clearly sees this as a great investment and I imagine this may reaccelerate their revenue to crazy levels when it kicks in. Pepsi may even acquire them eventually. Pepsi’s global distribution solves many of their biggest challenges.
The following is an interesting overview on Seeking Alpha right before the Pepsi investment. I think the Pepsi investment addresses most of the issues pondered here: https://seekingalpha.com/article/4525706-celsius-holdings-in…
The P/S ratio is “only” about 17 on this company. They are profitable but not a large margin so the P/E is crazy high and not useful. Gross margin is 40% and profit margin has declined to 5% which I assume is not completely out of line in this industry. I imagine Pepsi’s distribution will help that margin.
This isn’t SAAS but I see marketshare just expanding in the near to immediate term and it would bring a little diversification.
This stock was first brought to the board by Aphalite on 2/22/21 and is up 40% since then (vs DDOG for instance that is up about 15% since then). Aphalite (don’t now him) did not get any feedback on his post so I would like to hear people’s thoughts.
Jeff
