**Overview:**
Celsius is an energy drink company founded in 2004, headquartered in Boca Raton, Florida. Over the past few years, they have emerged as one of the top players in the global energy drink market, competing with companies like Red Bull, Monster, Kuerig Dr. Pepper, and more. They offer products that are designed to provide energy and boost metabolism, without the addition of harmful artificial ingredients that many traditional energy drinks contain. This focus on health and wellness gives them strong brand recognition within the niche market of fitness, and individuals who live active lifestyles. Consumer preferences have been continuously shifting to health-conscious alternatives, which is why Celsius has been performing greatly, and will continue to.
**The Dip Explained:**
The company has gone through a significant dip in share price, going from $95.15 in May of 2024, to $22.34 in February of 2025. However, since then the company has been making a swift come back and is now trading at $37.36. This recovery came on the news of the Alani Nu acquisition in March of 2025. Now, what made the stock dip so heavily in the first place? For this, it is important to understand the relationship between Celsius and PepsiCo. While they do compete in the same market, given that PepsiCo owns energy drinks like Rockstar, Bang Energy, and MTN Dew Energy, they are also great partners. In August of 2022, PepsiCo invested $550 million into Celsius, giving them 8.5% ownership of the company. This strategic alliance allowed Celsius access to PepsiCo’s distribution network, leading to surges in sales due to increased availability. Celsius quickly became a brand name with a presence in gyms, college campuses, and international chains like Walmart, Costco, Target, and other stores like 7-Eleven. Throughout the span of their relationship, Celsius has seen strongly increasing revenue thanks to PepsiCo, who was responsible for 54.7% of Celsius sales in 2024. Celsius’s next largest customer was Costco which made up around 10%.
So, as we can see, Celsius has a dependency on PepsiCo which is the main driving force behind their growth. In early 2024, PepsiCo distributors had built up excess inventory of Celsius, leading them to cut back on orders because of overstocking. This resulted in a strong halt in Celsius growth, killing all momentum and hype that the stock had. Celsius was a very hot stock at this time and definitely overvalued which is why news of that magnitude had such a drastic impact. Analysts of the stock from companies like BoA and Morgan Stanley downgraded the stock, leading to further decline in the price.
It is very important to note that this does not mean Celsius was not growing. Their retail sales, (the sales they make to every day consumers like you and me) continued to grow, with a 22% YoY growth.
I see Celsius as a fantastic company, that was simply trading too high for the valuation at the time. The hype train got crushed, everyone jumped off, price plummeted, and now we are seeing positive things for the company once again.
**Financials:**
Overall, the financials of this company over the last 5 years are very healthy. Let’s get into them starting with a revenue breakdown which will show Revenue by Geography, and Revenue Growth by Region.
[Sources: Cap IQ, Excel, PowerPoint](https://preview.redd.it/5p98ung0rl0f1.png?width=975&format=png&auto=webp&s=0952f779f10b703ed2887ba8c5abacd60073410c)
As you can see from the tables, Celsius depends heavily on North America for sales. That is where the majority of the energy drink demand comes from. While they are less prominent in international markets, they have still shown their ability to grow both in Europe and Asia-Pacific.
Total revenue was growing at explosive rates over the 5-year time period, with 100+% growth in 3 straight years. While revenue still grew in 2024 at 2.9%, this figure represents the pullback in PepsiCo orders.
Now let us look at some of their profitability ratios to better understand their financial performance. I am not going to go into detail on these, but they are all healthy and worth mentioning for anyone who is curious.
[Source: Cap IQ, Excel, PowerPoint](https://preview.redd.it/s96lk023rl0f1.png?width=975&format=png&auto=webp&s=60d94de13d34fa70f56a83169a39b978c8608f3c)
[Sources: Cap IQ, Excel, PowerPoint](https://preview.redd.it/biq2q5b9rl0f1.png?width=975&format=png&auto=webp&s=efa62594fd1bbee446a00b83cb4ff40de2eff40f)
[Sources: Cap IQ, Excel, PowerPoint \(#'s in Millions\)](https://preview.redd.it/fbvuocrarl0f1.png?width=975&format=png&auto=webp&s=5ebd6301fca2d044013da7b0862667127eb7d06c)
**Celsius has a TTM P/E ratio of 114.89, with a FWD P/E ratio of 42.81. Their TTM P/B ratio is 19.82, and their FWD P/B ratio is 7.76. The company is essentially debt free with a total debt/equity of 1.55%.**
**Acquisitions:**
Celsius is a company focused on fostering organic growth, but also continuously looking for ways to expand inorganically. In 2024, they acquired Big Beverages Contract Manufacturing for $75 million in cash, which gives them control over a 175,000 sqft manufacturing facility in Charolette, North Carolina. This company had been a packing partner for Celsius for years, but Celsius stated the focus of the acquisition was to gain greater control over their supply chain. This will lead to quicker product innovation cycles, and improved margins and profitability through per-case savings and better leverage. The management team and workforce of Big Beverage are remaining with the operation.
Then, in April of 2025, Celsius announced plans to acquire fellow energy brand, Alani Nu for $1.8 billion. $1.275 billion was paid in cash and $500 million issued in common stock. Alani Nu is a rapidly growing brand that operates within a niche market. 92% of the brands digital followers are women, with 49% of them being repeat consumers. They are most popular amongst Gen Z and millennial consumers. In 2024, they had sales of $550 million displaying strong demand.
[Source: Celsius Investor Presentation ](https://preview.redd.it/6sjw4pnerl0f1.png?width=975&format=png&auto=webp&s=582a4d4a8e0ae3c2541954467347753635cf19b5)
**Celsius Q1 2025 Earnings:**
The company reported earnings for Q1 of 2025 on May 6th, narrowly missing EPS and revenue expectations. Revenue saw a 7% decline of $329.3 million for the quarter, compared to $355.7 million from 2024 Q1. However, international revenue increased by $22.8 million for Q1, representing a 41% increase compared to 2024 Q1. and 9% international revenue growth YoY.
Retail sales decreased 3% YoY for Celsius. Despite this, retail sales for Alani Nu increased 88% year over year.
**Conclusion:**
Celsius is a very good brand with strong market positioning. Due to their approach to clean and healthy energy alternatives, they are incredibly well-positioned to continue to capitalize on the changing consumer preferences within the market. I believe the hiccup with PepsiCo is a great buying opportunity, as it killed the momentum of a fantastic long-term stock. **The company continues to expand, with acquisitions like we discussed, and with sales commencing in Canada, the UK, Ireland, Australia, France, and New Zealand in 2024. Celsius has not seen the full benefit yet of PepsiCo’s wide distribution network, and in the following years, I believe they will become a popular global brand outside of the United States. The company has a very good management team, with a clear and outlined strategy for growth and sustainability over the years. This all gives me tremendous confidence in the stock.** **I believe that Celsius Holdings, Inc. is a great company, and therefore a great buy at $37.83 per share.**
**Position:**
https://preview.redd.it/iuay1hy77m0f1.png?width=387&format=png&auto=webp&s=b0f90db507fe83def5a42ee4cfce8bf1f118acde