Celsius (CELH) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $402 million, up 23% year-over-year, with gross profit of $209.1 million (+32% YoY) and diluted EPS of $0.28 (+65% YoY); first half revenue reached $757.7 million (+29%).

• Contributed 47% of all Q2 energy drink category growth, increasing dollar share by 1.4% YoY, and maintained leadership in the sugar-free segment.

• Expanded shelf presence by 35%, with average SKUs per store rising to 20, and continued strong innovation with new flavors and product forms.

• International revenue grew 30% in Q2, with new launches in Canada, UK, and Ireland, and plans for Australia, New Zealand, and France.

• Inventory timing and management by distribution partners, notably PepsiCo, affected quarterly revenue.

Financial highlights

• Q2 2024 revenue: $402 million (+23% YoY); North America: $382.4 million (+23% YoY); International: $19.6 million (+30% YoY).

• Gross profit: $209.1 million (+32% YoY); gross margin: 52% (up from 49% YoY); adjusted EBITDA: $100.4 million (+29% YoY); net income: $79.8 million (+55% YoY); net income to common shareholders: $66.7 million (+63% YoY, $0.28/diluted share).

• First half 2024: revenue $757.7 million (+29% YoY), gross margin 51.6% (up from 46.6%), adjusted EBITDA $188.4 million (+48%), net income $157.6 million (+70%).

• Ended Q2 with $903.2 million in cash and $1,072 million in working capital.

• Q2 2024 basic EPS: $0.29; diluted EPS: $0.28; six-month basic EPS: $0.56; diluted EPS: $0.55.

Outlook and guidance

• Expect continued macroeconomic and competitive pressures in the second half of 2024.

• Targeting gross margins in the high 40s to 50% range for the remainder of the year.

• Anticipate increased sales and marketing spend in Q3 to support new programs and workforce training.

• Ongoing global expansion with new markets in Canada, UK, Ireland, Australia, New Zealand, and France.

• Current cash resources are considered sufficient to fund both short- and long-term needs.