Celsius Holdings, Inc.(NASDAQ: $CELH) is a leading developer, marketer, and distributor of functional beverages and supplements. The company’s flagship product, the Celsius® brand, is a proven fitness drink that has gained significant popularity among health-conscious consumers. Celsius Holdings operates in multiple countries and continues to expand its global footprint.
On April 4, 2024, Celsius Holdings announced its strategic decision to broaden its market reach by launching sales and distribution operations in France, in partnership with Suntory France beginning in the latter part of 2024.
Tony Guilfoyle, Chief Commercial Officer of Celsius Holdings, Inc., expressed excitement as the company introduced its refreshing and tasty CELSIUS energy drinks to consumers in France. He said, “We’re excited to initiate our strategic plan in the fourth quarter of 2024 and expand our distribution throughout France in 2025.”
Ongoing Global Expansion
The French expansion builds on Celsius’ recent announcements of international growth. The company recently announced a manufacturing, sales, and distribution agreement with Suntory Oceania, with sales in Australia and New Zealand expected to begin in the fourth quarter of 2024.
Additionally, Celsius has secured distribution in the United Kingdom and Ireland through a partnership with Suntory GBI, with sales set to commence in the second quarter of 2024.
Pierre Decroix, CEO of Suntory Europe, stated, “We are delighted to be partnering with CELSIUS in France, building on the partnership announced in the UK and Irish markets in January and to break new ground with a totally different consumer experience in the energy drinks segment.”
Celsius Holdings’ Phenomenal Growth
Celsius’ business has experienced an exceptional growth trajectory in recent years. In 2019, the company saw a staggering annual growth rate of 43%, skyrocketing to an incredible 102% by 2023. This remarkable compound annual growth rate has propelled Celsius from a revenue of $75 million in 2019 to a whopping $1.3 billion in 2023.
While most of Celsius’ revenue, approximately 96% in 2023, has come from the North American market, it is now looking to the international market for growth in 2024 and beyond. Its distribution deal with PepsiCo has been particularly helpful in expanding the brand’s reach within the United States.
Backed by the Suntory partnerships, Celsius is on track to make a meaningful impact in the European and Oceanic markets. European sales are poised to start soon, and Oceania sales are expected to begin in Q4 of 2024.
Q1 2024 Earnings Forecast
Celsius Holdings is expected to announce its earnings report for the first quarter of fiscal 2024 on May 9, 2024. Projections suggest that Celsius is poised to announce an EPS of $0.20 for the current quarter, reflecting a remarkable increase of 53.9% compared to the corresponding quarter of the previous year. The Zacks Consensus Estimate has seen a marginal increase of 0.5% in the past month.
The full-year consensus EPS is $1.09, which would represent a 41.6% increase year over year. This estimate has increased by 9.9% over the last 30 days.
Looking ahead to the fiscal 2025, analysts anticipate an EPS of $1.53, representing a robust 40.5% change compared to the previous year. Moreover, this estimate has changed by +10.2 % over the past month.
Celsius Holdings Stock Update
CELH shares are trading at $84.60 as of 12:08 PM EDT, a surge of 6.46% from the previous closing price of $79.47. Year-to-date, CELH has grown 54.92%, reaching a 52-week high of $99.62, with a corresponding low of $28.08. As of Friday, April 5, it has an intraday market cap of $18.50B.
Over the past year, Celsius has seen a 52-week change of 174.03%, surpassing the S&P 500’s 52-week change of 25.26%. Additionally, its trailing price-to-earnings (P/E) ratio stands at 103.21, with a forward P/E ratio of 70.42.
Analysts’ Outlook on Celsius Stock
According to Wall Street analysts, Celsius Holdings’ stock is expected to continue its upward trajectory. Over the last three months, 11 analysts have weighed in on the company, offering an average price target of $93.10, with the highest estimate at $110.00 and the lowest at $65.00. This suggests a potential 10.06% increase from the current price of $84.59. Notably, 9 of the 11 analysts recommend buying Celsius stock, underscoring the company’s growth potential and strong network of partners.
Is CELH Stock a Buy?
Celsius Holdings’ entrance into the French market represents a strategic move towards global expansion. Bolstered by robust revenue growth and strategic partnerships, Celsius is poised for success in untapped territories. With optimistic projections from financial analysts and a track record of innovation, the company stands as a formidable player in the competitive beverage industry.
As Celsius diversifies its market reach, investors can anticipate sustained growth and promising returns. The company’s commitment to international expansion reaffirms its position as a leader in the energy drinks segment, paving the way for continued success on a global scale.
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