BOCA RATON, Fla. - Celsius Holdings , Inc. (NASDAQ: NASDAQ:CELH), known for its CELSIUS® energy drink, is set to enter the French market in the fourth quarter of 2024. The company has chosen Suntory Beverage & Food France as its exclusive partner for sales and distribution in the region.
The announcement builds on Celsius's recent agreements for expansion into other international markets, including a similar partnership with Suntory Oceania for Australia and New Zealand, with sales expected to commence in the fourth quarter of 2024. Additionally, the company is preparing for a launch in the United Kingdom and Ireland through Suntory Beverage & Food Great Britain and Ireland, slated for the second quarter of 2024.
Tony Guilfoyle, Chief Commercial Officer of Celsius Holdings, expressed enthusiasm for the brand's introduction to French consumers, emphasizing the strategic plan set for the end of 2024 and a broader rollout in 2025. Pierre Decroix, CEO of Suntory Beverage & Food Europe, also welcomed the partnership, highlighting the growth opportunity for retail partners and the aim to offer a new consumer experience in the energy drinks segment.
Suntory Beverage & Food France, a subsidiary of the Japanese Suntory group, is a market leader in France with notable brands such as Orangina and Schweppes. The company reported sales of €1.088 billion in 2023 and is recognized for its commitment to sustainability and innovation.
Celsius Holdings, the maker of CELSIUS®, a lifestyle energy drink, continues to grow its global footprint. This expansion into France marks another step in the company's strategy to increase its presence in international markets.
The information regarding the sales and distribution agreement and the planned expansion is based on a press release statement from Celsius Holdings, Inc.
InvestingPro Insights
As Celsius Holdings, Inc. (NASDAQ: CELH) gears up for its expansion into the French market, its financial health and market performance are critical factors for investors to consider. Here are some key insights from InvestingPro that shed light on the company's current financial status and market valuation:
InvestingPro Data shows a robust revenue growth for Celsius, with a remarkable increase of 101.65% in the last twelve months as of Q4 2023. This could signal strong market demand and operational efficiency, which might translate well into new territories like France. The company's Gross Profit Margin stands at an impressive 48.04%, indicating a healthy difference between the cost of goods sold and net sales.
Despite a high P/E Ratio of 98.19, the company's PEG Ratio of 0.54 suggests that Celsius's earnings growth rate is considered undervalued by the market. This could imply potential for future stock price appreciation, especially as the company continues to expand internationally.
InvestingPro Tips highlight that Celsius holds more cash than debt on its balance sheet and analysts anticipate sales growth in the current year, which may provide a cushion for the company's ambitious expansion plans. However, it is also noted that the stock has experienced significant volatility and a substantial hit over the last week. With 19 additional InvestingPro Tips available, investors can delve deeper into the company's financial nuances to better understand its investment potential.
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