Celsius Holdings, Inc. · NASDAQ:CELH
Celsius — Q4 2024 Earnings Presentation
30 slides from Celsius's earnings presentation, Feb 21, 2025
Slide 1: Investor Presentation
PRESENTATION February 20, 2025 C E L S I U S H O L D I N G S , I N C . | Q U A R T E R 3 , 2 0 2 4 I N V E S T O R P R E S E N TAT I O N In conjunction with moderate fitness activity, Celsius is clinically proven to accelerate metabolism and burn body fat
Slide 2: Non-GAAP Measures and Forward-Looking Statements
NON-GAAP MEASURES Forward-Looking Statements anticipated trends in our financial condition and results of Adjusted diluted earnings per share, provides useful information estimates are derived from publicly available information This presentation contains statements by Celsius Holdings, Inc. operati
Slide 3: The World's Most... On a mission to inspire people to live fit
THE WORLD’S MOST ON A MISSION TO INSPIRE PEOPLE TO LIVE FIT WITH THE ENERGY TO ACHIEVE THEIR GOALS 3
Slide 4: At a Glance
AT A GLANCE PREMIUM BRAND | FUNCTIONAL INGREDIENTS | ZERO SUGAR A CATEGORY GROWTH LEADER FY 2024 FINANCIAL HIGHLIGHTS • Celsius contributed 30.3%1 of all energy drink • Revenue: $1.36B category growth YoY in 2024 • Gross Margin: 50.2% • #3 energy drink brand in the U.S.1 with total • Net Income: $1
Slide 5: Key Messages
KEY MESSAGES 01 Reported 2024 revenue of $1.36 billion, reflecting consumers’ continued preference for our zero-sugar, healthier functional products 02 Delivered strong 22% volume growth year-over-year despite a challenged 2024 CPG and energy drink category1 03 Contributed 30% of all energy drink ca
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS SUMMARY FINANCIALS 4Q 2024 4Q 2023 Change FY 2024 FY 2023 Change (Millions except for percentages & EPS) REVENUE $332.2 $347.4 (4)% $1,355.6 $1,318.0 3% N. AMERICA $311.9 $332.8 (6)% $1,280.9 $1,263.3 1% INTERNATIONAL $20.3 $14.6 39% $74.7 $54.7 37% GROSS MARGIN 50.2% 47.8% +240
Slide 7: The Energy Drink Category
THE ENERGY DRINK CATEGORY CELSIUS RETAIL SALES ACROSS TRACKED CHANNELS1 CELSIUS CONTRIBUTION TO CATEGORY GROWTH BY YEAR2 (MULO+ W/C | BILLIONS) (MULO+ W/C) 100.0% $2.70 90.0% $2.21 80.0% 70.0% 60.0% 50.0% 40.0% $1.01 30.0% 32.2% 30.3% 20.0% 24.8% $0.41 $0.14 10.0% 9.9% 4.3% 0.0% 2020 2021 2022 2023
Slide 8: Revenue
REVENUE REVENUE (IN MILLIONS) QUARTERLY REVENUE LAST 5 QUARTERS (MILLIONS) $450.0M $402.0 $400.0M $355.7 $347.4 $350.0M $332.2 $300.0M $265.7 $250.0M $200.0M $150.0M +95% +37% +23% -31% -4% $100.0M YoY YoY YoY YoY YoY $50.0M $0.0M Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
Slide 9: Sales
SALES 2024 2024 CELSIUS MULO+ W/C RETAIL DOLLAR SALES LAST 13 PERIODS1 BRAND* SHARE2 $ CHG v YA2 1 36.6 $408.7M $233.5M 2 27.7 ($22.5M) $220.8M $218.0M $216.8M $213.1M $212.4M $211.6M $250,000,000 $209.3M $208.9M 11.8 $489.3M $200.7M 3 $187.6M $186.9M $182.2M $200,000,000 4 3.6 $323.6M 5 3.4 $155.9M
Slide 10: W/C Dollar Share
W/C DOLLAR SHARE TOP 3 BRAND $ SHARE OF MULO+ W/C BY QUARTER 2022-PRESENT 45.0 38.6 38.6 39.1 40.0 38.1 37.1 37.5 36.8 36.4 36.4 36.5 36.0 35.8 35.0 31.3 30.8 30.5 30.4 30.3 29.3 30.0 28.7 28.6 28.0 27.7 27.6 27.4 25.0 20.0 15.0 12.3 12.3 11.7 11.2 11.4 10.9 9.7 10.0 8.2 6.2 5.1 5.4 4.6 5.0 0.0 Q1 2
Slide 11: Sales: International Revenue
SALES INTERNATIONAL REVENUE LAST 5 QUARTERS (IN MILLIONS) $20.3 $19.6 $18.6 $16.2 $14.6 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 NOTES: International revenue excludes N. America (U.S. and Canada) 11
Slide 12: Profit
PROFIT GROSS PROFIT AND ADJUSTED EBITDA ($ IN MILLIONS) PERCENTAGES REPRESENT QUARTERLY PERCENTAGE OF REVENUE 250 52.0% 200 51.2% 47.8% Q3 reflects adverse impact of pronounced 50.2% inventory optimization by our largest distributor 150 46.0% 25.0% 100 24.7% 18.8% 18.9% 50 1.7% 4Q 23 1Q 24 2Q 24 3Q
Slide 13: Zero Sugar Innovation
ZERO SUGAR INNOVATION RECENT PRODUCT INNOVATION EXPANDED INTO THE HYDRATION CATEGORY LAUNCHED SIX NEW FLAVORS ACROSS PRODUCT LINES EXPANDED DISTRIBUTION OF TWO PREVIOUS LEAD-LAUNCH FLAVORS INTRODUCED NEW MULTI-PACK VARIETIES 13
Slide 14: Strategy
STRATEGY PEOPLE PLACES OFTEN ATTRACTING NEW CONSUMERS EXPANDING PRODUCT INCREASING CONSUMPTION INTO THE ENERGY CATEGORY AVAILABILITY FREQUENCY U N D E R P I N N E D B Y O P E R AT I O N A L E X C E L L E N C E 14
Slide 15: Celsius: Creating a leading better-for-you functional lifestyle platform
CELSIUS CREATING A LEADING BETTER-FOR-YOU, FUNCTIONAL LIFESTYLE PLATFORM 15
Slide 16: Overview
OVERVIEW Celsius Holdings, Inc. (“Celsius”) has agreed to acquire Alani Nutrition LLC (“Alani Nu”) from co-founders, Katy and Haydn Schneider, and Congo Brands’ co-founders, Max Clemons and Trey Steiger, for $1.8 billion with a mix of cash and stock, including a potential $25 million earn-out base
Slide 17: Alani Nu
ALANI NU GROWING, PROFITABLE HEALTH & WELLNESS LIFESTYLE BRAND WITH DIVERSE FUNCTIONAL PORTFOLIO & LOYAL FEMALE FOLLOWING GROWTH HIGHLY PROFITABLE UNIQUE CONSUMER HEALTH & WELLNESS, AT MODEL WITH BASE INCREMENTAL FUNCTIONAL LIFESTYLE SCALE SYNERGY UPSIDE TO CATEGORY PLATFORM - - - - $595mm 2024A Net
Slide 18: Strategic Rationale
STRATEGIC RATIONALE CREATES A LEADING BETTER-FOR-YOU, FUNCTIONAL LIFESTYLE PLATFORM AT THE INTERSECTION OF CONSUMER MEGATRENDS COMBINES TWO GROWING, SCALED ENERGY BRANDS WITH CLEAR CATEGORY TAILWINDS COMPLEMENTARY BRAND POSITIONING AND ATTRACTIVE CONSUMER DEMOGRAPHICS, EXPECTED TO DRIVE INCREMENTAL
Slide 19: At the Intersection of Consumer Megatrends
AT THE INTERSECTION OF CONSUMER MEGATRENDS ~$2bn Sales Platform1 16% Category Share2 Differentiated Portfolio Fastest Growing in the Attractive Energy Category Portfolio of Scale 3 Attractive Consumer Demographics Driving Incremental Category Growth Over-Indexed to Younger, Affluent And Female Consu
Slide 20: With Clear Category Tailwinds
WITH CLEAR CATEGORY TAILWINDS DRIVING TRANSFORMATION OF US RTD ENERGY DRINK CATEGORY LONG-TERM TRACKED RETAIL SALES 2024 YOY DOLLAR GROWTH1 TAILWINDS IN ENERGY 2024 YoY Growth ($ in millions) DRIVING 50% OF TOTAL ENERGY DRINK $489 CATEGORY GROWTH1 $90bn 10% 2024 Global Energy 2024-29 Global Energy D
Slide 21: Category Growth Expected to Drive Incremental Category Growth
EXPECTED TO DRIVE INCREMENTAL CATEGORY GROWTH TARGET AUDIENCE TARGET AUDIENCE Gender-neutral, performance- Female-focused, lifestyle-oriented driven with broad appeal to for consumers seeking a fun, fitness enthusiasts and beyond approachable brand BRAND POSITIONING BRAND POSITIONING Functionality f
Slide 22: To Drive the Next Phase of Growth
TO DRIVE THE NEXT PHASE OF GROWTH POISED TO DRIVE CONTINUED INNOVATION AND GROWTH CONTINUE DISTRIBUTION DRIVE INNOVATION & ACCESS CONSUMERS IN POISED FOR FURTHER GAINS AND REACH NEW BRAND AWARENESS GROWING ADJACENCIES GLOBAL EXPANSION CHANNELS 22
Slide 23: In Year One With Meaningful Synergy Opportunity
IN YEAR ONE WITH MEANINGFUL SYNERGY OPPORTUNITY INCREASED TOPLINE SCALE STRONG PRO-FORMA PROFITABILITY (2024A NET SALES, $ IN BILLIONS) (2024A ADJ. EBITDA, $ IN MILLIONS) Adj. EBITDA Margin (%): 19% 20%1 $50mm Expected to be $2.0 Clearly Identified Cost Cash EPS $393 Synergies with Accretive Additio
Slide 24: Disciplined Approach to Capital Allocation
TO CAPITAL ALLOCATION Targeted and strategic approach to M&A with complementary acquisition in core energy category M&A while remaining disciplined on valuation STRATEGY REPRESENTS ATTRACTIVE VALUATION OF LESS THAN 3x 2024A ALANI NU REVENUE AND APPROXIMATELY 12x FULLY SYNERGIZED 2024A ALANI NU ADJUS
Slide 25: Appendix
APPENDIX 25
Slide 26: Financial Information
FINANCIAL INFORMATION The following table presents summary historical and unaudited pro forma condensed consolidated financial data for Celsius and Alani Nu, which are based on (i) Celsius’ unaudited financial statements for the year ended December 31, 2024, and (ii) Alani Nu’s preliminary estimated
Slide 27: EBITDA Schedule
EBITDA SCHEDULE Three months ended Twelve months ended (Figures in thousands) December 31, December 31, 2024 2023 2024 2023 Net (loss) income (GAAP measure) $ (18,876) $ 50,116 $ 145,074 $ 226,801 1 Selling, general and administrative expenses related to employee non-cash stock-based compensation ex
Slide 28: Pro-Forma EBITDA Schedule
PRO-FORMA EBITDA SCHEDULE Twelve months ended 12/31/2024 (Figures in thousands) Celsius Alani Combined 1 Selling, general and administrative expenses related to employee non-cash stock-based Net Income (GAAP Measure) with buy-side adj $ 145,074 $ 68,091 $ 213,165 compensation expense. Stock-based co
Slide 29: EPS Schedule
EPS SCHEDULE Reconciliation of GAAP diluted Earnings per share to non-GAAP Adjusted diluted Earnings per share Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023 Diluted Earnings per share (GAAP measure) ($0.11) $0.17 $0.45 $0.77 Add back/(Deduct)7: Distributor Term
Slide 30: Valuation Metrics
$ in thousands VALUATION METRICS 12x fully synergized 2024A adjusted EBITDA <3x 2024A Revenue Pro Forma net leverage 2024 Actual Alani Alani Adjusted EBITDA1 86,973 2024 Revenue1 594,907 Net debt4 384,810 Pro Forma Net Synergies2 50,000 Net purchase price3 1,650,000 2024 Adjusted EBITDA5 392,687 Tot