Celsius Holdings Reports Third Quarter 2024 Financial Results
Celsius Holdings (CELH) reported Q3 2024 financial results showing revenue of $265.7 million, a 31% decrease from Q3 2023, primarily due to supply chain optimization by its largest distributor. Despite this, year-to-date revenue surpassed $1 billion, up 5% from 2023. The company's gross margin declined to 46.0%, down 440 basis points year-over-year. International sales grew 37% to $18.6 million. Notable developments include the acquisition of co-packer Big Beverages and continued market share growth, with Celsius holding an 11.6% energy drink category dollar share. The company maintained profitability despite challenges, though net income decreased 92% to $6.4 million.
Celsius Holdings (CELH) ha riportato i risultati finanziari del Q3 2024, mostrando un fatturato di 265,7 milioni di dollari, con una diminuzione del 31% rispetto al Q3 2023, principalmente a causa dell'ottimizzazione della catena di approvvigionamento da parte del suo principale distributore. Nonostante ciò, il fatturato da inizio anno ha superato 1 miliardo di dollari, registrando un aumento del 5% rispetto al 2023. Il margine lordo dell'azienda è sceso al 46,0%, in calo di 440 punti base su base annua. Le vendite internazionali sono aumentate del 37%, raggiungendo 18,6 milioni di dollari. Tra gli sviluppi significativi c'è l'acquisizione del co-packer Big Beverages e una continua crescita della quota di mercato, con Celsius che detiene una quota di dollar share dell'11,6% nel settore delle bevande energetiche. L'azienda ha mantenuto la redditività nonostante le sfide, anche se il reddito netto è diminuito del 92%, arrivando a 6,4 milioni di dollari.
Celsius Holdings (CELH) reportó los resultados financieros del Q3 2024, mostrando ingresos de 265,7 millones de dólares, con una disminución del 31% en comparación con el Q3 2023, principalmente debido a la optimización de la cadena de suministro por parte de su mayor distribuidor. A pesar de esto, los ingresos acumulados hasta la fecha superaron 1 mil millones de dólares, lo que representa un aumento del 5% respecto a 2023. El margen bruto de la empresa disminuyó al 46,0%, baja de 440 puntos básicos interanuales. Las ventas internacionales crecieron un 37%, alcanzando 18,6 millones de dólares. Entre los desarrollos notables se encuentra la adquisición del co-packer Big Beverages y el continuo crecimiento de la cuota de mercado, con Celsius manteniendo una participación de 11,6% en el sector de bebidas energéticas. La empresa logró mantener la rentabilidad a pesar de los desafíos, aunque la ganancia neta disminuyó un 92%, quedando en 6,4 millones de dólares.
Celsius Holdings (CELH)는 2024년 3분기 재무 결과를 보고하며 매출이 2억 6570만 달러로 2023년 3분기 대비 31% 감소했다고 밝혔습니다. 이는 주된 유통업체의 공급망 최적화 때문입니다. 그럼에도 불구하고 올해 누적 매출은 10억 달러를 초과하여 2023년 대비 5% 증가했습니다. 회사의 총 마진은 46.0%로, 지난해 대비 440bp 감소했습니다. 국제 매출은 37% 증가하여 1860만 달러에 달했습니다. 주목할 만한 발전 사항으로는 공동 포장업체인 Big Beverages의 인수와 에너지 음료 부문에서 11.6%의 시장 점유율을 보유하고 있는 Celsius의 지속적인 시장 점유율 증가가 있습니다. 회사는 도전 과제가 있음에도 불구하고 수익성을 유지했지만, 순이익은 92% 감소하여 640만 달러에 그쳤습니다.
Celsius Holdings (CELH) a publié ses résultats financiers pour le troisième trimestre 2024, affichant un chiffre d'affaires de 265,7 millions de dollars, soit une baisse de 31% par rapport au troisième trimestre 2023, principalement due à l'optimisation de la chaîne d'approvisionnement par son plus grand distributeur. Néanmoins, le chiffre d'affaires depuis le début de l'année a dépassé 1 milliard de dollars, en hausse de 5% par rapport à 2023. La marge brute de l'entreprise a chuté à 46,0%, soit une baisse de 440 points de base d'une année sur l'autre. Les ventes internationales ont augmenté de 37% pour atteindre 18,6 millions de dollars. Parmi les développements notables, on trouve l'acquisition du co-packer Big Beverages et la poursuite de la croissance de la part de marché, Celsius détenant une part de 11,6% dans la catégorie des boissons énergétiques. L'entreprise a su maintenir sa rentabilité malgré les défis, bien que le bénéfice net ait chuté de 92% pour atteindre 6,4 millions de dollars.
Celsius Holdings (CELH) hat die finanziellen Ergebnisse für Q3 2024 veröffentlicht, mit einem Umsatz von 265,7 Millionen Dollar, was einem Rückgang von 31% im Vergleich zu Q3 2023 entspricht, hauptsächlich aufgrund der Optimierung der Lieferkette durch den größten Distributor. Trotzdem überstieg der Umsatz seit Jahresbeginn 1 Milliarde Dollar, was einem Anstieg von 5% gegenüber 2023 entspricht. Die Bruttomarge des Unternehmens fiel auf 46,0%, was einem Rückgang von 440 Basispunkten im Jahresvergleich entspricht. Die internationalen Verkäufe stiegen um 37% auf 18,6 Millionen Dollar. Zu den bemerkenswerten Entwicklungen gehört die Übernahme des Co-Packers Big Beverages und das fortgesetzte Wachstum des Marktanteils, wobei Celsius einen Anteil von 11,6% im Umsatzbereich der Energydrinks hält. Das Unternehmen konnte trotz Herausforderungen die Rentabilität aufrechterhalten, allerdings fiel der Nettogewinn um 92% auf 6,4 Millionen Dollar.
- YTD revenue exceeded $1 billion, growing 5% year-over-year
- International sales increased 37% to $18.6 million in Q3
- Amazon sales grew 21% YoY to $27 million
- Strategic acquisition of Big Beverages manufacturing facility
- Costco sales increased 15% in Q3 2024
- Market share reached 11.6% in energy drink category
- Q3 revenue decreased 31% to $265.7 million
- Gross margin declined 440 basis points to 46.0%
- Net income fell 92% to $6.4 million
- Diluted EPS dropped from $0.30 to $0.00
- North American revenue decreased 33%
- Club channel sales declined 4% to $60.5 million
Insights
The Q3 results reveal significant headwinds with revenue declining
Despite these challenges, there are positive indicators: YTD revenue crossed
The acquisition of Big Beverages represents a strategic vertical integration move that will significantly enhance Celsius' manufacturing capabilities. The 170,000-square-foot facility provides three important advantages: reduced dependency on third-party manufacturers, accelerated innovation cycles and improved production flexibility. This positions Celsius to better control costs, quality and production timing.
The current quarter's performance was heavily impacted by PepsiCo's inventory optimization, but this appears to be a temporary adjustment rather than a fundamental issue. The disconnect between distributor sales and retail performance (
Quarterly results reflect the impact of supply chain optimization by company’s largest distributor
Growth of sugar-free energy category propels YTD revenue over
Co-packer acquisition unlocks innovation and manufacturing capabilities
Summary Financials |
3Q 2024 |
3Q 2023 |
Change |
YTD 2024 |
YTD 2023 |
Change |
(Millions except for
|
||||||
Revenue |
|
|
(31)% |
|
|
|
N. America |
|
|
(33)% |
|
|
|
International |
|
|
|
|
|
|
Gross Margin |
|
|
-440 BPS |
|
|
+210 BPS |
Net Income |
|
|
(92)% |
|
|
(7)% |
Net Income att. to Common Shareholders |
|
|
(101)% |
|
|
(8)% |
Diluted EPS |
|
|
(100)% |
|
|
(8)% |
Adjusted EBITDA* |
|
|
(96)% |
|
|
(16)% |
*The company reports financial results in accordance with generally accepted accounting principles in |
John Fieldly, Chairman and CEO of Celsius Holdings, Inc., said: “Celsius continued to drive energy drink category growth at retail in the third quarter and outpaced the category in dollar and volume sales gains despite overall category softness. Pronounced supply chain optimization by our largest distributor, which we believe has largely stabilized, had an outsized and adverse impact on our operating results during an otherwise solid quarter. We remain focused on our long-term growth strategy of expanding our consumer base, broadening our availability, and being the preferred beverage for more occasions.”
Jarrod Langhans, Chief Financial Officer of Celsius Holdings, Inc., said: “Gross and operating margins in the third quarter fell short due to significantly reduced orders because our largest distributor implemented a sizable, successful and efficient supply chain optimization program in the quarter, but we managed our sales and marketing spend to minimize interruptions while still turning a profit in the quarter. This activity did not impact customer sales at the retail level, which remain healthy. Our strong balance sheet enabled us to acquire a long-time Celsius co-packer, Big Beverages, which we believe will unlock innovation and other supply chain efficiencies.”
FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER OF 2024
For the three months ended Sept. 30, 2024, revenue was approximately
International sales of
For the three months ended Sept. 30, 2024, gross profit decreased by
Diluted earnings per share for the third quarter was
YEAR-TO-DATE FINANCIAL HIGHLIGHTS 2024
Year-to-date revenue for the nine months ended Sept. 30, 2024, increased
Year-to-date gross profit increased
BUSINESS OPERATIONS AND COMPANY HIGHLIGHTS
Share Growth
Celsius’ energy drink category dollar share in MULO Plus with Convenience in the last-four-week period ended Oct. 6, 2024, was
Alternative Growth Drivers
Sales to Costco in the third quarter of 2024 increased
Celsius sales to Amazon increased
Approximately
Innovation and Marketing
In October, Celsius introduced two new flavors in the CELSIUS ESSENTIALS line at NACS Show 2024, including Watermelon Ice and Grape Slush, and revealed plans for two new flavors in each of the CELSIUS Vibe and core product lines to come in the first half of 2025.
Organizational Excellence
Celsius acquired Big Beverages Contract Manufacturing (“Big Beverages”) in November. The strategic transaction provides Celsius with a 170,000-square-foot, modern manufacturing and warehouse facility that is expected to provide greater supply chain control, quicker innovation cycles and greater production flexibility. The facility will continue to be principally dedicated to the manufacture of Celsius products and provides the option to add capacity as the business scales and grows.
International Expansion
Sales of Celsius in
Third Quarter 2024 Earnings Webcast
Management will host a webcast at 8 a.m. EST on Wednesday, Nov. 6, 2024, to discuss the company’s third quarter financial results with the investment community. Investors are invited to join the webcast accessible from https://ir.celsiusholdingsinc.com. Downloadable files, an audio replay and transcript will be made available on the Celsius Holdings investor relations website.
1 |
Circana Total US MULO+ w/C L13W ended 9/29/24, RTD Energy |
2 |
Circana Total US MULO+ w/C L4W ended 10/6/24, RTD Energy |
3 |
Circana Total US MULO+ w/C L13W ended 9/29/24, RTD Energy |
4 |
Stackline, Total US L13W ended 10/5/24, Energy Drinks |
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Nasdaq: CELH) is the maker of energy drink brand CELSIUS®, a lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. For more information, please visit www.celsiusholdingsinc.com.
Forward-Looking Statements
This press release contains statements that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings’ future results of operations or financial position, or state other forward-looking information. You can identify these statements by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” “would,” “could,” “project,” “plan,” “potential,” “designed,” “seek,” “target,” and variations of these terms, the negatives of such terms and similar expressions. You should not rely on forward-looking statements because Celsius Holdings’ actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include but are not limited to: our ability to realize the benefits anticipated from acquisitions, such as the acquisition of Big Beverages, our ability to successfully manage and integrate the operations, internal controls, procedures, financial reporting and accounting systems of acquisitions, and other factors related to the operational challenges and risks of acquisitions, including (i) increased costs, indebtedness, contractual obligations and/or other liabilities; (ii) the expense of integrating acquired businesses; (iii) the ability to retain or hire the personnel required for the successful operation of the acquired business and expanded business operations, in general; (iv) the ability to retain the business relationships of the acquired businesses; (v) diversion of management’s attention; and (vi) the availability of funding sufficient to meet increased capital needs, among others; the strategic investment by and long term partnership with PepsiCo, Inc.; management’s plans and objectives for international expansion and future operations globally; general economic and business conditions; our business strategy for expanding our presence in our industry; our expectations of revenue; operating costs and profitability; our expectations regarding our strategy and investments; our expectations regarding our business, including market opportunity, consumer demand and our competitive advantage; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; the Company’s ability to satisfy, in a timely manner, all Securities and Exchange Commission (the “SEC”) required filings and the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted under that Section; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the SEC, such as its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date the statements were made. Celsius Holdings does not undertake any obligation to update forward-looking information, except to the extent required by applicable law.
CELSIUS HOLDINGS, INC. - FINANCIAL TABLES |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except par value) |
|||||||
(Unaudited) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
903,748 |
|
|
$ |
755,981 |
|
Accounts receivable-net1 |
|
208,774 |
|
|
|
183,703 |
|
Note receivable-current-net |
|
1,025 |
|
|
|
2,318 |
|
Inventories-net |
|
197,572 |
|
|
|
229,275 |
|
Deferred other costs-current2 |
|
14,124 |
|
|
|
14,124 |
|
Prepaid expenses and other current assets |
|
38,227 |
|
|
|
19,503 |
|
Total current assets |
|
1,363,470 |
|
|
|
1,204,904 |
|
|
|
|
|
||||
Property and equipment-net |
|
38,370 |
|
|
|
24,868 |
|
Deferred tax assets |
|
24,186 |
|
|
|
29,518 |
|
Right of use assets-operating leases |
|
5,506 |
|
|
|
1,957 |
|
Right of use assets-finance leases |
|
214 |
|
|
|
208 |
|
Deferred other costs-non-current2 |
|
237,746 |
|
|
|
248,338 |
|
Intangibles-net |
|
11,877 |
|
|
|
12,139 |
|
Goodwill |
|
14,360 |
|
|
|
14,173 |
|
Other long-term assets |
|
8,594 |
|
|
|
291 |
|
Total Assets |
$ |
1,704,323 |
|
|
$ |
1,536,396 |
|
|
|
|
|
||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable3 |
$ |
30,938 |
|
|
$ |
42,840 |
|
Accrued expenses4 |
|
73,024 |
|
|
|
62,120 |
|
Income taxes payable |
|
739 |
|
|
|
50,424 |
|
Accrued promotional allowance5 |
|
158,810 |
|
|
|
99,787 |
|
Lease liability operating-current |
|
1,358 |
|
|
|
980 |
|
Lease liability finance-current |
|
99 |
|
|
|
59 |
|
Deferred revenue-current2 |
|
9,513 |
|
|
|
9,513 |
|
Other current liabilities |
|
14,979 |
|
|
|
10,890 |
|
Total current liabilities |
|
289,460 |
|
|
|
276,613 |
|
|
|
|
|
||||
Lease liability operating-non-current |
|
4,193 |
|
|
|
955 |
|
Lease liability finance-non-current |
|
189 |
|
|
|
193 |
|
Deferred tax liabilities |
|
2,275 |
|
|
|
2,880 |
|
Deferred revenue-non-current2 |
|
160,092 |
|
|
|
167,227 |
|
Total Liabilities |
|
456,209 |
|
|
|
447,868 |
|
|
|
|
|
||||
Commitment and contingencies (Note 16) |
|
|
|
||||
|
|
|
|
||||
Mezzanine Equity2: |
|
|
|
||||
Series A convertible preferred shares, |
|
824,488 |
|
|
|
824,488 |
|
|
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Common stock, |
|
79 |
|
|
|
77 |
|
Additional paid-in capital |
|
292,576 |
|
|
|
276,717 |
|
Accumulated other comprehensive loss |
|
(338 |
) |
|
|
(701 |
) |
Retained earnings (accumulated deficit) |
|
131,309 |
|
|
|
(12,053 |
) |
Total Stockholders’ Equity |
|
423,626 |
|
|
|
264,040 |
|
Total Liabilities, Mezzanine Equity and Stockholders’ Equity |
$ |
1,704,323 |
|
|
$ |
1,536,396 |
|
[1] Includes |
[2] Amounts in this line item are associated with a related party for all periods presented. |
[3] Includes |
[4] Includes no balance due to a related party as of September 30, 2024 and |
[5] Includes |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue1 |
$ |
265,748 |
|
|
$ |
384,757 |
|
|
$ |
1,023,433 |
|
|
$ |
970,579 |
|
Cost of revenue |
|
143,519 |
|
|
|
190,675 |
|
|
|
509,899 |
|
|
|
503,685 |
|
Gross profit |
|
122,229 |
|
|
|
194,082 |
|
|
|
513,534 |
|
|
|
466,894 |
|
Selling, general and administrative expenses2 |
|
125,443 |
|
|
|
96,385 |
|
|
|
339,310 |
|
|
|
259,471 |
|
(Loss) income from operations |
|
(3,214 |
) |
|
|
97,697 |
|
|
|
174,224 |
|
|
|
207,423 |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest income on note receivable |
|
— |
|
|
|
28 |
|
|
|
28 |
|
|
|
101 |
|
Interest income-net |
|
11,112 |
|
|
|
7,197 |
|
|
|
31,371 |
|
|
|
17,666 |
|
Foreign exchange gain (loss) |
|
277 |
|
|
|
(177 |
) |
|
|
(356 |
) |
|
|
(1,226 |
) |
Total other income |
|
11,389 |
|
|
|
7,048 |
|
|
|
31,043 |
|
|
|
16,541 |
|
|
|
|
|
|
|
|
|
||||||||
Net income before provision for income taxes |
|
8,175 |
|
|
|
104,745 |
|
|
|
205,267 |
|
|
|
223,964 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
(1,819 |
) |
|
|
(20,796 |
) |
|
|
(41,317 |
) |
|
|
(47,279 |
) |
Net income |
$ |
6,356 |
|
|
$ |
83,949 |
|
|
$ |
163,950 |
|
|
$ |
176,685 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends on Series A convertible preferred stock3 |
|
(6,913 |
) |
|
|
(6,875 |
) |
|
|
(20,588 |
) |
|
|
(20,512 |
) |
Income allocated to participating preferred stock3 |
|
— |
|
|
|
(6,702 |
) |
|
|
(12,357 |
) |
|
|
(13,605 |
) |
Net (loss) income attributable to common
|
$ |
(557 |
) |
|
$ |
70,372 |
|
|
$ |
131,005 |
|
|
$ |
142,568 |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments, net of income tax |
|
2,025 |
|
|
|
(664 |
) |
|
|
363 |
|
|
|
(660 |
) |
Comprehensive income |
$ |
1,468 |
|
|
$ |
69,708 |
|
|
$ |
131,368 |
|
|
$ |
141,908 |
|
|
|
|
|
|
|
|
|
||||||||
*(Loss) earnings per share4: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.00 |
) |
|
$ |
0.30 |
|
|
$ |
0.56 |
|
|
$ |
0.62 |
|
Diluted |
$ |
(0.00 |
) |
|
$ |
0.30 |
|
|
$ |
0.55 |
|
|
$ |
0.60 |
|
| *Please refer to Note 3 in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2024, for Earnings per Share reconciliations. |
[1] Includes |
[2] Includes |
[3] Amounts in this line item are associated with a related party for all periods presented. |
[4] Forward Stock Split - The accompanying consolidated financial statements and notes thereto have been retrospectively adjusted to reflect the three-for-one stock split that became effective on November 13, 2023. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for more information. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
Reconciliation of GAAP net income to non-GAAP adjusted EBITDA and Adjusted EBITDA Margin |
|||||||||||||||
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (GAAP measure) |
$ |
6,356 |
|
|
$ |
83,949 |
|
|
$ |
163,950 |
|
|
$ |
176,685 |
|
Add back/(Deduct): |
|
|
|
|
|
|
|
||||||||
Net interest income |
|
(11,112 |
) |
|
|
(7,225 |
) |
|
|
(31,399 |
) |
|
|
(17,767 |
) |
Provision for income taxes |
|
1,819 |
|
|
|
20,796 |
|
|
|
41,317 |
|
|
|
47,279 |
|
Depreciation and amortization expense |
|
2,241 |
|
|
|
875 |
|
|
|
4,888 |
|
|
|
2,121 |
|
Non-GAAP EBITDA |
|
(696 |
) |
|
|
98,395 |
|
|
|
178,756 |
|
|
|
208,318 |
|
Stock-based compensation1 |
|
5,377 |
|
|
|
4,979 |
|
|
|
13,685 |
|
|
|
16,221 |
|
Foreign exchange |
|
(277 |
) |
|
|
177 |
|
|
|
356 |
|
|
|
1,226 |
|
Distributor Termination2 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,241 |
) |
Legal Settlement Costs3 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,900 |
|
Non-GAAP Adjusted EBITDA |
$ |
4,404 |
|
|
$ |
103,551 |
|
|
$ |
192,797 |
|
|
$ |
230,424 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Adjusted EBITDA Margin |
|
1.7 |
% |
|
|
26.9 |
% |
|
|
18.8 |
% |
|
|
23.7 |
% |
1 |
Selling, general and administrative expenses related to employee non-cash stock-based compensation expense. Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and directors. The Company believes that the exclusion provides a more accurate comparison of operating results and is useful to investors to understand the impact that stock-based compensation expense has on its operating results. |
2 |
2023 distributor termination represents reversals of accrued termination payments. The unused funds designated for termination expense payments to legacy distributors were reimbursed to Pepsi for the quarter ended June 30, 2023. |
3 |
2023 Legal class action settlement pertained to the McCallion vs Celsius Holdings class action lawsuit, which we settled during the quarter ended June 30, 2023. |
USE OF NON-GAAP MEASURES
Celsius defines Adjusted EBITDA as net income before net interest income, income tax expense (benefit), and depreciation and amortization expense, further adjusted by excluding stock-based compensation expense, foreign exchange gains or losses, distributor termination fees and legal settlement costs. Adjusted EBITDA Margin is the ratio between the company’s Adjusted EBITDA and net revenue, expressed as a percentage. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures.
Celsius uses Adjusted EBITDA and Adjusted EBITDA Margin for operational and financial decision-making and believes these measures are useful in evaluating its performance because they eliminate certain items that management does not consider indicators of Celsius’ operating performance. Adjusted EBITDA and Adjusted EBITDA Margin may also be used by many of Celsius’ investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. Celsius believes that the presentation of Adjusted EBITDA and Adjusted EBITDA Margin provides useful information to investors by allowing an understanding of measures that it uses internally for operational decision-making, budgeting and assessing operating performance.
Adjusted EBITDA and Adjusted EBITDA Margin are not recognized terms under GAAP and should not be considered as a substitute for net income or any other financial measure presented in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of Celsius’ results as reported under GAAP. Celsius strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Because non-GAAP financial measures are not standardized, Adjusted EBITDA and EBITDA Margin, as defined by Celsius, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare Celsius’ use of these non-GAAP financial measures with those used by other companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106047853/en/
Paul Wiseman
Investors: investorrelations@celsius.com
Press: press@celsius.com
Source: Celsius Holdings, Inc.
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