BOCA RATON, Fla., May 9, 2019 /PRNewswire/ -- (Nasdaq: CELH) Celsius Holdings, Inc., maker of the leading global fitness drink, CELSIUS®, today reported financial results for the quarter ended March 31, 2019.
2019 First Quarter Financial and Business Highlights:
- Revenue of $14.5 million, up 20% from $12.1 million in the 2018 period
- Domestic revenue increased 41% to $11.4 million, up from $8.1 million in 2018
- Driven by continued strong double-digit growth in all channels of trade
- International revenue decreased 22% to $3.1 million, down from $4.0 million in 2018.
- Driven by a business model change in China to a royalty license which mitigates risk and reduces marketing investment, but correspondingly decreases revenue by $1.3 million.
- Gross profit increased by approximately 20% to $5.7 million, up from $4.8 million in the 2018 quarter
- Net Income to common shareholders was $11.7 million, inclusive of a $12.3 million net gain recognized for the establishment of a note receivable related to the business model change in China, compared to a net loss to common shareholders of $3.0 million, inclusive of $2.2 million in net investment in Asia in the 2018 quarter
- Non-GAAP Adjusted EBITDA* of $878,000 compared to loss of $(2.1) million in the 2018 quarter
- Continued strong domestic growth with new high-profile launches and expansion including Target, CVS, Rite Aid, Food Lion and DICKS's with further traction in Fitness, Military and Vending channels.
- Secured additional distribution agreements with partners in the Anheuser-Busch InBev, PepsiCo, Keurig Dr. Pepper and MillerCoors networks, further expanding availability to new regions
- Finalized royalty license and repayment of investment agreement with Qifeng Food Technology (Beijing) Co., Ltd., changing our business model to a royalty license, and in addition to royalties, provides for $12.2 million of invested Celsius capital, with interests, to be recouped over a five year period.
Subsequent to Quarter-end:
- Distribution Agreement with Big Geyser, New York's Largest Independent Non-Alcoholic Beverage Distributor Serving 20,000 Locations in The Five Boroughs of New York City and The Counties of Nassau, Suffolk, Westchesterand Putnam.
"In the First Quarter, Celsius continued to set new revenue records despite the $1.3 million reduction in revenue from China due to the revenue model transition to a royalty license and repayment of investment agreement. Continuing operations, excluding China revenue, increased 35% during the first quarter," said John Fieldly, President and Chief Executive Officer. "Excluding the recognition of $12.3 million below our operating line, accounting for the repayment of invested capital in China, our record growth is even more impressive as we achieve these metrics while driving positive adjusted EBITDA, which is now more evident with the transition of our China business model.
