Celsius Holdings: From Soaring to Rethinking?

Celsius Holdings, known for its unique carbonated drinks that boost metabolism through thermogenic properties, experienced a disappointing year in 2024. The stock, once a favorite among investors, fell by an impressive 45% over the course of the year and a full 70% since reaching its all-time high in March. But what turned the former stock market darling into a concern? Following the pandemic-driven boom, during which Celsius more than doubled its revenues for three consecutive years, recent negative sales reports have caused disappointment. Despite these challenges, some analysts still see potential in the now lower valuation of the stock. Celsius must now prove it can recover from this setback. Celsius's earlier success was based on years of double-digit, sometimes triple-digit, revenue growth. From gyms and nutrition stores, the company expanded into retail, resulting in a revenue jump from $11 million in 2013 to over $1.3 billion ten years later. PepsiCo also plays a key role in this. The beverage giant became a minority shareholder in Celsius and became the main distribution partner. This partnership opened new sales opportunities, including internationally, although foreign sales do not yet bring significant returns. A sign of stagnation was the unexpectedly moderate sales increase of 37% in the first quarter of 2024, which significantly missed analysts’ expectations. Celsius explained this decline with an inventory adjustment at PepsiCo, although the retail sales of its products rose by 72%. The question now is whether Celsius can get back on a growth trajectory.