Celsius Holdings Q3 revenue beats estimates on Alani Nu growth

Overview

• U.S. functional beverage maker's Q3 revenue rose 17% yr/yr, beating analyst expectations

• Company repurchased $44.5 mln of shares during Q3

Outlook

• Company expects long-term margin expansion from supply chain and cost initiatives

• Celsius Holdings anticipates ongoing benefits from integration of recent acquisitions

• Company sees continued commodity price inflation, especially in aluminum and fuel, impacting margins

Result Drivers

• ALANI NU GROWTH - Alani Nu revenue rose 24% on expanded distribution in the PepsiCo DSD system, successful limited-time flavors, and strong consumer demand

• CELSIUS BRAND DECLINE - CELSIUS brand revenue fell 6% due to SKU optimization, shipment timing, and softness in the club channel

• INTERNATIONAL EXPANSION - International revenue jumped 78% on momentum in Nordic and new expansion markets

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

• Wall Street's median 12-month price target for Celsius Holdings, Inc. is $40.00, about 30.1% above its November 4 closing price of $30.75

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• Nov 4 - Coca-Cola Consolidated Q3 sales rise as costs weigh on margins

• Nov 3 - Keurig Dr Pepper Q3 revenue, profit beat estimates

• Nov 4 - Zevia Q3 sales rise on volume growth, pricing actions

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)