Fitness energy drink Celsius is nearing the $100 million mark in annual revenue for 2020 after the company reported $36.8 million in revenue during the third quarter, a new company record and an 80% rise from the same period last year.
The Boca Raton, Florida-based brand has emerged as a significant player in the burgeoning fitness-focused “performance energy” space, where it competes alongside products from brands like Bang (Vital Pharmaceuticals), Reign Total Body Fuel (Monster), C-4 (Nutrabolt) and A-Shoc (Keurig Dr Pepper). The company has grown its presence outside of fitness and natural channels through a nationwide DSD network of 147-plus regional distribution partners, serving retailers such as Target, Speedway, Walmart and CVS. Celsius products are sold in over 79,000 retailers nationally.
The publicly traded company has outpaced overall category growth in MULO and convenience over the past year, according to data from SPINS.
“During the third quarter, Celsius continued to position the company for outpaced revenue growth through the build out of our national DSD distribution platform, new national retail accounts and first mover marketing initiatives,” said John Fieldly, President and Chief Executive Officer, in a press release.
Fieldly said the brand would continue transitioning to a full DSD system in the coming months. Having recently converted 7-Eleven and Target from wholesale to independent house Big Geyser in New York City — a move that has caused sales volumes to more than double, according to the company — the latter retailer will make the switch in additional markets next year, as will CVS in select regions.
“Moving through the fourth quarter and into 2021, the company expects a continuation of the accelerated DSD transition with our retail partners, further expansion into the underpenetrated convenience channel and new innovative flavors across expanded geographic markets,” he said.
North American revenue was up 60% to $26.9 million, compared to $16.8 million in the same period last year. Weakness in the fitness channel — which has fallen 23% from Q3 2019, mainly due to COVID-19 — was offset by 111% growth in e-commerce and “continued strong double-digit growth” in traditional channels of trade, according to a press release. International revenue rose 172% to $10 million.
Gross profit increased 103% to $17.5 million from a year ago. Net profit to common stockholders was approximately $4.8 million. As a result of a $10 million payment of bonds issued in connection with its acquisition of Func Foods in 2019, the company is now debt free.
Year-to-date, Celsius is up 86.3% from the same point in 2019, with revenue now sitting at $95.1 million. North America continues to drive the majority of that growth, providing $67.1 million in year-to-date revenue, a 57.4% increase from last year. International revenue is up 232% to $28 million, thanks in large part to 251% rise ($26.8 million) from consolidation of the company’s Nordic partners.
In August, Celsius raised $22 million in private equity funding from two global institutional investors and issued 1,437,909 shares of its common stock. On the product front, this month the brand launched a new Kiwi-Guava-Lime flavor in its On-The-Go powder sticks line exclusively at 2,750 Walmart locations.