Celsius Holdings (NASDAQ: CELH) recently announced its fourth-quarter results, reporting earnings of $0.14 per share on sales of $332 million. The company also revealed plans to acquire wellness brand Alani Nu for $1.65 billion, paying 2.8 times Alani Nu’s projected 2024 revenue of approximately $595 million. Following the acquisition news, CELH stock rose 35% in after-hours trading.
Although Celsius experienced a 4.4% decrease in revenue for the fourth quarter, with North American sales down 6%, international sales surged by 39%. The company’s gross profit margin improved to 50.2%, and its adjusted EBITDA margin increased to 18.9%. The anticipated acquisition of Alani Nu could help Celsius boost its market share, projecting total sales to exceed $2 billion and expecting $50 million in synergies over two years.
Despite a tumultuous 2024, where stock performance fluctuated drastically, Celsius is viewed as having potential for growth in the future. Currently priced at about $35, the stock is seen as undervalued based on its profit margins and strategic acquisition plans. Analysts suggest that CELH could be on an upward trajectory beyond the recent gains, particularly given the current economic climate and its performance metrics.
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