Shares in Celsius Holdings tumbled in pre-market trading today (6 August) after the energy-drinks group’s second-quarter numbers missed Wall Street expectations.
Celsius’s second-quarter revenue grew 11% to $817.9m, contributing to a 50% in the first half to $1.6bn
However, William Blair analyst Jon Andersen said Celsius’s second-quarter sales came in 8% below the financial services firm’s estimate and 6% below the consensus forecast among Wall Street analysts. Celsius booked a 12% drop in adjusted EBITDA in the quarter to $184.2m. Andersen also said the group’s EBITDA in the quarter was equally 6% below the expectations of William Blair and Wall Street.
In the first half, Celsius still saw its adjusted EBITDA grow 26% to $379.6. In the quarter, Celsius said it saw the revenue of its namesake brand decline by nearly 12%, due to higher “trade and promotional investment” and the timing of shipments linked to “inventory rebalancing”. It also attributed the drop to “softness in the club channel, a planned moderation in innovation activity during the period and SKU optimisation initiatives implemented in conjunction with the integration of our recent acquisitions and Alani Nu’s distribution transition”.