durch starke Nachfrage Celsius Holdings stock: Triple-digit growth due to strong demand

Last Updated: 5. Februar 2024By

Innovative fitness, wellness, and health products are all the rage among people of all ages, as more and more people are engaging in physical activity and paying attention to their health and nutrition. Celsius Holdings (WKN: A0YH6K, ISIN: US15118V2079, symbol: CELH) has developed fitness, sports, and energy drinks that have been clinically tested and have shown remarkable results. According to official studies published in well-known scientific journals, Celsius drinks promote fat burning and have a positive impact on overall health. They also support muscle growth. It’s no wonder that these drinks are becoming increasingly popular.

Healthy energy drinks The drinks offered under the Celsius brand come in a variety of flavors such as apple, orange, kiwi guava, wild berries, and watermelon. There are also various drink powders, called „Celsius-on-the-Go,“ that can be mixed with water. Celsius drinks are free of sugar, artificial sweeteners such as aspartame, artificial flavors, colors, and salt. The entire product line is vegan-certified and free of soy, gluten, and genetically modified ingredients.

Enormous growth potential The company advertises that its drinks not only provide a short-term energy boost like other energy drinks, but also a longer-lasting surge in performance. In fact, the company’s healthy energy drinks are already the best-selling energy drink on Amazon in the US, beating out Monster and Red Bull. Since the company is currently only active in ten countries, there is still enormous potential for growth worldwide.

Beverage giant PepsiCo enters and offers distribution network Beverage giant PepsiCo recognized the enormous growth potential and secured 8.5% of the company’s shares for 550 million USD in August 2022. This gives Celsius access to PepsiCo’s global distribution network, guaranteeing further growth. Since the beverage company’s stake, a four-digit number of new distribution points have been added with a strong upward trend. A complete takeover by PepsiCo is always possible โ€“ but only with a significant premium on the current stock price.

Triple-digit growth in recent years In the last three years, revenues have grown by an impressive average of +120% per year. In the third quarter of 2023, a revenue growth of +104% to 385 million USD was recorded. Earnings per share were +0.89 USD, compared to a loss of -2.46 USD per share in the previous year. The company has only recently started making profits. Analysts expect a strong revenue increase of +99% to 1.3 billion USD and earnings of +0.75 USD per share (previous year: -0.88 USD) in 2023. For 2024, a revenue of 1.8 billion USD (+39%) and earnings of 0.97 USD (+29%) per share are expected.

Stock in an uptrend since IPO Annual chart of CELH stock, source: Stock Screener

Since its IPO in 2019, the stock has been in an intact uptrend and reached new all-time highs in late summer 2023. Interest from large investors in the stock is also high. In the last 7 quarters, the share of stocks held by large investors has steadily increased, most recently by a sensational +19%.

Further growth potential and potential for takeover What Celsius Holdings offers is not something that other beverage manufacturers can offer: energy drinks with proven health benefits. That, combined with the fact that anchor investor PepsiCo is providing its distribution network, makes for excellent international growth prospects. It is always possible that PepsiCo will make a move and acquire Celsius Holdings completely. This would, of course, only be possible with a significant increase in the stock price. However, even without a takeover offer, the chances of rising stock prices are excellent.