Anticipation: Celsius Holdings is Set to Skyrocket in the Next Three Years. One Notable Justification.
Health-focused energy drink manufacturer Celsius Holdings (CELH, currently at 7.49%), formerly thriving, is now trading near its lowest points of the past two years, marking a significant drop of over 70% from its record prices in late May.
The primary reasons behind this decline can be attributed to the not-so-desirable consequences of an erstwhile distribution partnership with cola and snack titan PepsiCo. Due to Pepsi's inventory revamp, Celsius' sales have seen a dramatic reduction in orders, causing a 31% year-on-year decline in the latest earnings report.
However, this could be an excellent opportunity to invest in Celsius stock at a reduced price. Prospects for this company look promising, and one standout factor outshines the rest. I am referring to the company's potential for global expansion.
Expanding Overseas Prospects
So far, Celsius is predominantly an American brand. Recently developed foreign operations in Canada, the United Kingdom, Australia, and New Zealand have barely impacted the financial reports. International sales accounted for a mere 5.3% of the company's total sales in the first three quarters of 2024. Nevertheless, overseas revenue expansion saw a remarkable 36% year-on-year growth in this period. In contrast, domestic sales only marginally increased by 5% due to Pepsi's inventory shift.
Investors are currently inclined towards the questionable sales in the domestic market. This trend makes perfect sense, given that the financial opportunities lie primarily in the home territory. Consequently, Celsius' share prices have plummeted as the company grapples with challenges on home ground.
However, the long-term potential abroad is substantial. Celsius' partnership with PepsiCo, its preferred international distributor, is yet to provide significant results. The energy drink sector is experiencing substantial growth in international markets, with arch-rival Monster Beverage generating 38% of its sales from foreign lands, particularly Europe and Asia.
Celsius, despite its initial focus on domestic expansion, has only just begun to tap into the market's awareness of its health-centric energy drink concept. I anticipate impressive outcomes from Celsius' international expansion efforts in the near future. As Pepsi's inventory adjustments subside and international sales surge, the abashed stock is likely to regain its footing and witness notable gains.
Based on the text, here are two sentences that contain the words 'money', 'finance', 'investing':
- Given the significant drop in Celsius' stock price and the promising potential for global expansion, some financial analysts are suggesting that this could be an excellent time for investing in Celsius Holdings (CELH) shares.
- With Celsius' international sales showing a remarkable 36% year-on-year growth and the energy drink sector experiencing substantial growth in international markets, potential investors are keeping a close eye on the company's financial performance, hoping for gains as the stock regains its footing.
