Financial News : Celsius Holdings, Inc. (OTCMKTS:CELH)
Webcide Com
2015-04-29
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Celsius Holdings, Inc. (OTCMKTS:CELH) -The first thing that we like to look at when sizing up a micro-cap opportunity, is how does the company and its products fit within the overall macro trends taking place within a specific industry sector. In the case of the beverage industry there has been a growing concern in the C-suites of these companies over the slowing sales of traditional soft drinks that contain high-fructose corn syrup and other ingredients. Increasingly, these traditional beverages, the foundation of many big beverage portfolios, are now coming under scrutiny by consumers, and regulators, who are concerned about the health effects of these products.
At the same time, there has been tremendous growth in the non-traditional beverage category, including such products as enhanced waters, specialty teas, energy drinks, coconut waters, sports drinks and functional products that target a variety of consumer interests including relaxation, mental focus, digestive health, hangover recovery, relief from stiff bones and joints, etc. The size and scope of the functional beverage market has been estimated to be approximately $60 billion, according to Euromonitor.
A recent report published by Canadean shows that Celsius' revenues grew at a compound annual growth rate of 15.97% from 2009-2013, and 38.12% in 2012 over 2011 numbers. The company's 2013 revenues saw a year-over-year increase of another 38% from 2012 results. We expect 2014 revenues to exceed those posted in 2013 by over 40%. There aren't many beverage companies that can say that they've experienced organic growth at those kinds of levels. If anything, growth levels have stagnated in the beverage business, as evidenced by the slowdown many large beverage brands are experiencing.
It is interesting to point out that the most recent data from IRI's mid-June 2014 report shows that Celsius was in the top quintile, ranked 112 out of 599 brands in its peer group, consisting of the Energy, RTD Coffee Tea, Waters, Isotonic, Functional, Water and Coconut Water categories. It was also noted in that same report that of the top 125 brands, 59 (47%) are declining in sales, while Celsius continues to show meaningful growth.
We expect Celsius Holdings, Inc. to once again report record sales for FY 2014. Our internal projection is for total revenues to come in at between 14-15 million US DOLLARS . That would give the company a YOY increase of 45% at the median level of 14.5 million US DOLLARS . Suffice to say that the Celsius brand continues to experience solid revenue gains, and increasing market share at a time when other brands are struggling to keep market share, let alone grow their revenues.
Address
2424 N Federal Hwy Ste 208
BOCA RATON, FL 33431-7780
United States - Map
+1-561-2762239 (Phone)
+1-561-2762268 (Fax)
Website links
http://www.celsius.com
Officers and directors
Stephen C. Haley Chairman of the Board
Gerry David President, Chief Executive Officer
Geary W. Cotton Chief Financial Officer, Director
Janice H. Haley Vice President - Marketing Communications
Darren Hopkins Vice President - Marketing
Nick Castaldo Director
Kathleen M. Dwyer Director
Kevin F. Harrington Director
James R. Cast Independent Director
Thomas E. Lynch Independent Director
Celsius Holdings, Inc. (Celsius), through its subsidiaries, is engaged in the development, marketing, sale and distribution of functional calorie-burning fitness supplements under the Celsius brand name. The Company’s initial product, Celsius, is the negative calorie supplement drink that burns calories, provide energy and reduce body fat and enhance endurance when combined with exercise. The Company’s Celsius ready-to-drink is available in five flavors, including Sparkling Cola, Orange, and Wild Berry; and two non-carbonated green tea flavors, Raspberry Acai and Peach Mango. Celsius also markets a co-branded powder with International Platinum Recording artist Flo Rida under Flo Fusion label. Celsius Holdings, Inc. distributes its products through direct-store delivery distributors and directly to retailers, across all retail channels in the United States, including supermarkets, convenience stores, mass merchants, health clubs, spas, gyms, military and e-commerce Web sites.
At the same time, there has been tremendous growth in the non-traditional beverage category, including such products as enhanced waters, specialty teas, energy drinks, coconut waters, sports drinks and functional products that target a variety of consumer interests including relaxation, mental focus, digestive health, hangover recovery, relief from stiff bones and joints, etc. The size and scope of the functional beverage market has been estimated to be approximately $60 billion, according to Euromonitor.
A recent report published by Canadean shows that Celsius' revenues grew at a compound annual growth rate of 15.97% from 2009-2013, and 38.12% in 2012 over 2011 numbers. The company's 2013 revenues saw a year-over-year increase of another 38% from 2012 results. We expect 2014 revenues to exceed those posted in 2013 by over 40%. There aren't many beverage companies that can say that they've experienced organic growth at those kinds of levels. If anything, growth levels have stagnated in the beverage business, as evidenced by the slowdown many large beverage brands are experiencing.
It is interesting to point out that the most recent data from IRI's mid-June 2014 report shows that Celsius was in the top quintile, ranked 112 out of 599 brands in its peer group, consisting of the Energy, RTD Coffee Tea, Waters, Isotonic, Functional, Water and Coconut Water categories. It was also noted in that same report that of the top 125 brands, 59 (47%) are declining in sales, while Celsius continues to show meaningful growth.
We expect Celsius Holdings, Inc. to once again report record sales for FY 2014. Our internal projection is for total revenues to come in at between 14-15 million US DOLLARS . That would give the company a YOY increase of 45% at the median level of 14.5 million US DOLLARS . Suffice to say that the Celsius brand continues to experience solid revenue gains, and increasing market share at a time when other brands are struggling to keep market share, let alone grow their revenues.
Address
2424 N Federal Hwy Ste 208
BOCA RATON, FL 33431-7780
United States - Map
+1-561-2762239 (Phone)
+1-561-2762268 (Fax)
Website links
http://www.celsius.com
Officers and directors
Stephen C. Haley Chairman of the Board
Gerry David President, Chief Executive Officer
Geary W. Cotton Chief Financial Officer, Director
Janice H. Haley Vice President - Marketing Communications
Darren Hopkins Vice President - Marketing
Nick Castaldo Director
Kathleen M. Dwyer Director
Kevin F. Harrington Director
James R. Cast Independent Director
Thomas E. Lynch Independent Director
Celsius Holdings, Inc. (Celsius), through its subsidiaries, is engaged in the development, marketing, sale and distribution of functional calorie-burning fitness supplements under the Celsius brand name. The Company’s initial product, Celsius, is the negative calorie supplement drink that burns calories, provide energy and reduce body fat and enhance endurance when combined with exercise. The Company’s Celsius ready-to-drink is available in five flavors, including Sparkling Cola, Orange, and Wild Berry; and two non-carbonated green tea flavors, Raspberry Acai and Peach Mango. Celsius also markets a co-branded powder with International Platinum Recording artist Flo Rida under Flo Fusion label. Celsius Holdings, Inc. distributes its products through direct-store delivery distributors and directly to retailers, across all retail channels in the United States, including supermarkets, convenience stores, mass merchants, health clubs, spas, gyms, military and e-commerce Web sites.
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