Celsius Holdings, Inc. · NASDAQ:CELH
Celsius — Q3 2024 Earnings Presentation
23 slides from Celsius's earnings presentation, Nov 6, 2024
Slide 1: Third Quarter 2024 Investor Presentation
THIRD QUARTER 2024 INVESTOR PRESENTATION Nov. 6, 2024 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
Slide 2: Safe Harbor & Non-GAAP Measures
SAFE HARBOR & NON-GAAP MEASURES This presentation contains statements that are not historical facts and are considered forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements contain projections of Celsius’ future resu
Slide 3: Definitions
DEFINITIONS MULO: A Circana measurement geography that reports aggregated CPG sales data from top channels across food, drug, mass, dollar and military. MULOC: A Circana measurement geography that reports aggregated CPG sales data from top channels across food, drug, mass, dollar, military and conve
Slide 4: Executive Management
EXECUTIVE MANAGEMENT JOHN FIELDLY JARROD LANGHANS TONY GUILFOYLE KYLE WATSON TOBY DAVID PAUL STOREY RICHARD MATTESSICH Chairman, President, CEO Chief Financial Officer Chief Commercial Officer Chief Marketing Officer Chief of Staff Chief Supply Chain Officer Chief Legal Officer • Appointed Celsius •
Slide 5: Directors
DIRECTORS A BREADTH OF INDUSTRY, FINANCIAL & EXECUTIVE MANAGEMENT EXPERTISE JOHN FIELDLY HAL KRAVITZ CAROLINE LEVY JOYCE RUSSELL ISRAEL CHAIRMAN LEAD DIRECTOR DIRECTOR KONTOROVSKY* INDEPENDENT DIRECTOR DIRECTOR NICK CASTALDO CHERYL MILLER DAMON DESANTIS HANS MELOTTE* DIRECTOR DIRECTOR DIRECTOR DIREC
Slide 6: Celsius: The World's Most Refreshing Energy Drink
CELSIUS: THE WORLD’S MOST REFRESHING ENERGY DRINK OUR MISSION: INSPIRE PEOPLE TO LIVE FIT TM WITH THE ENERGY TO ACHIEVE THEIR GOALS #3 RTD ENERGY 2023 FULL-YEAR FINANCIAL CATEGORY GROWTH LEADER HIGHLIGHTS1 Celsius contributed 16% of all energy $1.32B revenue drink category growth YoY in Q3 20242 48%
Slide 7: Function, Backed by Science
FUNCTION, BACKED BY SCIENCE 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 7
Slide 8: U.S. Energy Drink Market Outpaces Total Beverage
U.S. ENERGY DRINK MARKET OUTPACES TOT. BEVERAGE RTD ENERGY YEAR-OVER-YEAR UNIT GROWTH VS TOTAL BEVERAGE xENERGY LAST 5 YEARS1 13% 8% 5% 5% 2% 2% 1% -3% -3% -4% 2 2020 2021 2022 2023 2024 BEVERAGE RTD ENERGY 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
Slide 9: Celsius Is Growing the Energy Drink Category
CELSIUS IS GROWING 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% $2.21 $2.23 90.0% 80.0% 70.0% 60.0% 50.0% $1.01 40.0% 37.2% 30.0% 32.2% $0.41 24.8% 20.0% $0.14 10.0% 9.9% 4.3% 0.0% 2
Slide 10: Solid Increasing Volume Growth
SOLID INCREASING VOLUME GROWTH YOY VOLUME GROWTH TOP ENERGY BRANDS L5Y (Volume Sales Chg v YA, Billions) 7 6.62 Billions 6 5 4 3.60 2.89 3 2 1.68 1 0.38 0 -1 -2 2020 2021 2022 2023 2024 CELSIUS RTD ENERGY RED BULL RTD ENERGY MONSTER RTD ENERGY ALANI RTD ENERGY ROCKSTAR RTD ENERGY IN THE PAST 3 YEARS
Slide 11: Health & Wellness Trends Are Driving Zero-Sugar Adoption
HEALTH & WELLNESS TRENDS ARE DRIVING ZERO-SUGAR ADOPTION SUGAR FREE SHARE OF MULO+ W/C RTD ENERGY1 60.0% 28% of energy drink consumers aged SUGAR FREE SHARE OF TTL E NERGY SA LES 10/6/2024, 51.8% 18-34 say better for you or natural 50.0% ingredients are important in purchase 1/29/2023, 46.8% decisio
Slide 12: Ongoing Global Expansion
ONGOING GLOBAL EXPANSION 2024 GLOBAL EXPANSION YTD Canada United Kingdom Ireland Australia New Zealand France 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 Markets with new Celsius sales and distribution in 2024 12
Slide 13: Capital Efficient Growth Investment
CAPITAL EFFICIENT GROWTH INVESTMENT Celsius purchased long-time co-packer Big Beverages Contract Manufacturing in Nov. 2024 Key Facts • Transaction closed Nov. 1, 2024, for $75 million • 170,000 square-foot, turnkey beverage manufacturing facility near Charlotte, N.C. • One operational line; capacit
Slide 14: Q3 2024 Financial Results
Q3 2024 FINANCIAL RESULTS 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 14
Slide 15: Third Quarter 2024 Key Messages
THIRD QUARTER 2024 KEY MESSAGES Retail dollar and unit sales grew ~7% in challenging category period; 1 increased dollar share by 50BPS YoY1 2 Contributed 16% of Q3 energy drink category growth1 and 37% YTD2 Acquired Big Beverages, supporting innovation, R&D, supply 3 chain control; expected near- a
Slide 16: Third Quarter Financial Highlights
THIRD QUARTER FINANCIAL HIGHLIGHTS Summary Financials YTD YTD (Millions except for percentages & 3Q 2024 3Q 2023 Change Change 2024 2023 EPS) Revenue $265.7 $384.8 (31)% $1,023.4 $970.6 5% N. America $247.1 $371.2 (33)% $969.0 $930.5 4% International $18.6 $13.6 37% $54.4 $40.1 36% Gross Margin 46.0
Slide 17: Consolidated Revenue
CONSOLIDATED REVENUE QUARTERLY REVENUE LAST 5 QUARTERS (MILLIONS) $402.0 $384.8 $347.4 $355.7 $265.7 +104% +95% +37% +23% -31% YoY YoY YoY YoY YoY 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 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 17
Slide 18: Retail Sales
RETAIL SALES BRAND* 2024 YTD SHARE2 2024 YTD $ CHG v YA2 1 36.3 $241.5M CELSIUS MULO+&C RETAIL DOLLAR SALES LAST 13 PERIODS1 2 27.8 ($62.4M) $250,000,000 $23 3.5 M $20 9.3 M $21 2.4 M $22 0.8 M $21 8.0 M $21 6.8 M $21 2.9 M $21 1.4 M $20 8.5 M 3 12.1 $481.7M $200,000,000 $19 2.6 M $18 6.4 M $18 1.4
Slide 19: Energy MULO+ W/C Dollar Share
ENERGY MULO+ W/C DOLLAR SHARE TOP 3 BRAND $ SHARE OF MULO+&C BY QUARTER 2022-PRESENT 45.0 38.7 38.7 39.2 40.0 38.2 37.2 36.9 36.6 36.1 36.4 36.5 35.8 35.0 31.3 30.8 30.5 30.5 30.4 29.3 28.7 30.0 28.6 28.1 27.7 27.5 25.0 20.0 15.0 12.3 12.3 11.8 11.2 11.4 9.7 10.0 8.2 6.2 5.1 5.4 4.6 5.0 0.0 Q1 2022
Slide 20: International Sales
INTERNATIONAL SALES INTERNATIONAL REVENUE LAST 5 QUARTERS (IN MILLIONS) $19.6 $18.6 $16.2 $14.6 $13.6 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 NOTES C E L S I U S H O L D I N G S , I N C . | Q U A R T E R 3 , 2 0 2 4 I N V E S T O R P R E S E N TAT I O N 1. Chart: International revenue excludes N. America (U.S
Slide 21: Gross Profit
GROSS PROFIT GROSS AND OPERATING PROFIT ($ IN MILLIONS) PERCENTAGES REPRESENT QUARTERLY PERCENTAGE OF REVENUE 250 52.0% 50.4% 200 51.2% 47.8% 150 46.0% 25.4% 23.4% 100 23.4% 17.0% 50 (1.2)% 0 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 -50 Gross Profit Dollars Operating Profit Dollars C E L S I U S H O L D I N G
Slide 22: EPS
EPS QUARTERLY EPS (DILUTED) LAST 5 QUARTERS $0.30 $0.27 $0.28 $0.17 $0.00 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 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 22
Slide 23: Non-GAAP EBITDA Schedule
NON-GAAP EBITDA SCHEDULE 3 months ended September 30, 9 months ended September 30, 2024 2023 Var. % 2024 2023 Var. % Net income (GAAP Measure) $ 6,356 $ 83,949 $ (77,593) -92% $ 163,950 $ 176,685 $ (12,735) -7% Add back / (Deduct) Net interest income (11,112) (7,225) (31,399) (17,767) Income tax exp