Celsius Holdings, Inc. (NASDAQ:CELH) reported better-than-expected third-quarter results. The company reported Q3 sales of $384.75 million, up 104% Y/Y, beating the analyst consensus of $348.94 million.
The company reported quarterly EPS of $0.89, beating the analyst consensus of $0.47.
Net sales were driven predominantly by North American revenue, which increased 107% to $371 million, thanks to the expansion in total distribution points and higher SKUs per location.
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Gross profit for the third quarter of 2023 was $194 million, up 147% Y/Y. Gross margin expanded 860 basis points to 50.4% from 41.8% a year ago.
The improvement in gross profit margin was attributed to continued reductions in package and raw material costs, decreased product waste/scrap, improved freight lane efficiency, and benefits from improved leverage across promotional allowances.
Adjusted EBITDA increased 318% to approximately $104 million, driven by substantial revenue growth and improved gross margins, as well as continued leverage across SG&A.
As of September 30, 2023, Celsius had $760 million in cash and cash equivalents, none of which was restricted.
Price Action: CELH shares are trading higher by 0.15% to $177.17 on the last check Tuesday.
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