Unveiling the Future: Projecting Celsius Holdings' Growth for the Next 5 Years

Celsius: The Growing Phenomenon

This is one of the fastest-growing companies in the world. In the last five years, shares of Celsius Holdings (NASDAQ: CELH) are up 6,290%. That means for every $1,000 someone invested in Celsius five years ago, it is worth over $60,000 today. Not bad. The owner of the Celsius energy drink brand has grown its revenue like gangbusters as it gains market share in the highly profitable energy drink space and makes investors a fortune in the process.

Slowing Revenue Growth, Expanding Margins

On its face, revenue growth looked a bit weak in the first quarter of 2024. It was just 37% year over year in the period compared to 102% in the fourth quarter of 2023. Sales hit $355.7 million -- a record -- but investors should be rightfully concerned about slowing sales growth as this business matures. However, it looks like management had a decent explanation for the huge slowdown: inventory buildup among its retailers and distributors. In 2023, Celsius's distributors were building up inventory in anticipation of demand, which led to a pull-forward in revenue growth and those 100%+ numbers.

Can the Brand Work Internationally?

There is still room for Celsius to grow in the United States. With how fast it is gaining market share, it wouldn't surprise me if the company doubled or tripled revenue through market share gains and price hikes. This should help consolidated revenue grow for years to come, although you shouldn't expect 100% growth forever. Eventually, the company will need to expand internationally if it hopes to keep growing revenue and match the size of the industry behemoth Monster Beverage. Monster does around $7.3 billion in annual revenue compared to Celsius's $1.4 billion. The brand has announced expansions into France, Australia, the United Kingdom, and New Zealand in recent months.