Celsius Q4/FY2024 + Takeover Alani Nutrition
Last Thursday evening, Celsius Holdings Inc. $CELH published its Q4/FY2024 financial results. Below are the highlights.
In Q4 2024, Celsius’ revenue declined by 4% to $332 million (North America: -6%). For FY2024, the company reported total revenue of $1,356 million (+3% YoY), with the North America segment contributing $1,281 million (+1% YoY), accounting for 95% of the total. Although the smaller International segment, representing 5%, currently provides a limited contribution to overall revenue, Celsius’ international sales grew rapidly by 37% YoY.
While the company’s gross profit margin increased year-over-year by 214 bps to 50.2%, its operating and net profits declined on an annual basis. According to the company, this was primarily due to elevated SG&A expenses, including $54 million in accrued expenses related to legal costs for an SEC settlement.
As a result, the company recorded an operating loss of $18 million in Q4 2024, compared to an operating profit of $59 million in Q4 2023. For FY2024, Celsius’ operating profit totaled $156 million (-42% YoY). The company’s net profit for the past fiscal year was $105 million (FY2023: $183 million). Celsius currently has a market capitalization of $7.7 billion.
As of December 31, 2024, the company held $890 million in cash and cash equivalents (+$134 million YoY), with part of this year-over-year increase attributable to freed-up inventory. Celsius’ inventory levels decreased by $98 million in FY2024, reaching $131 million as of December 31, 2024.
On Thursday evening, Celsius also announced its acquisition of Alani Nutrition for $1.8 billion, comprising $1,275 million in cash and $500 million through the issuance of approximately 22.5 million restricted shares of Celsius Holding common stock. This transaction will result in an approximately 8.7% dilution for existing shareholders, based on the market capitalization earlier this week.
Alani Nutrition primarily targets Gen Z and millennial female customers and was founded in 2018. Like Celsius, Alani Nutrition focuses on producing healthier-than-traditional energy drinks.
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