2024-07-16 06:28:52 ET
Summary
- Celsius reported strong Q1 FY24 earnings with 37% revenue growth and 81% earnings growth YoY, driven by strength in the North American market.
- Since the earnings call, there are growing concerns over slowing consumer demand and inventory optimization at PepsiCo that has led to a 47% stock decline, creating an attractive buying opportunity.
- Despite short-term challenges, I believe Celsius is well-positioned in the energy drink category as it drives robust product innovation and compelling go-to-market strategies to capture consumer demand.
Introduction & Investment Thesis
Celsius ( CELH ) is an energy drinks company that develops functional drinks and supplements that are marketed to young adults and exercise enthusiasts with the goal of helping people stay active and focused on their goals. The company reported its Q1 FY24 earnings on May 7, where revenue and earnings grew 37% and 81% YoY, respectively, driven by strength in its North American market. However, after reaching a double-top price of $98.85 on May 22, the stock has declined 47% to its current price of $52.63 as of July 15th....
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Celsius: Ignore PepsiCo's Temporary Inventory Optimization, Product Innovation Will Lead The Way