If you invest in Celsius Holdings (CELH -0.61%) If you bought the stock five years ago, you probably wouldn't be reading this article. You're probably sitting on a beach somewhere, drinking a cold Celsior Sparkling Orange or a Fantasy Vibe, and enjoying your good investment luck. After all, his $10,000 investment five years ago is worth more than $560,000 to him today.
There's a good reason why Celsius stock is rising. Because business is absolutely booming. Check out the chart below showing annual revenue growth.
| metric | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| revenue growth rate | 43% | 74% | 140% | 108% | 102% |
Data source: Celsius annual report. Graph by author.
This exceptional compound annual growth rate has taken Celsius from $75 million in revenue in 2019 to $1.3 billion in revenue in 2023. But the problem is that most of this revenue comes from the US market. About 96% of its 2023 revenue came from North America, according to the company's filings. It also does not include revenue from Canada, but distribution is limited to north of the border, meaning most of it comes from the United States.
To be clear, Celsius still has room to grow in the US and is pursuing certain opportunities.The distribution contract is pepsico Emerging brands are especially useful for food service companies, university campuses, hotels, and medical facilities.
That said, the Celsius distribution is much richer now than it was five years ago, and will eventually reach a saturation point. That's why this top growth stock is gearing up for his international expansion in 2024 and beyond.
International opportunities for Celsius
So far this year, Celsius has announced expansion plans into five international markets: Canada, the United Kingdom, Ireland, Australia and New Zealand.
As previously mentioned, Celsius distribution in Canada was previously very limited. But sales have already begun, with distribution partner Pepsi helping to spread the brand across the country. In the other four markets, Celsius will work with Suntory, the Japanese beverage giant with global operations. Sales in Europe will start soon, and sales in Oceania are expected to start in the fourth quarter of 2024.
Pepsi shows that international markets can be a big opportunity for Celsius. In 2023, about half of Pepsi's $91 billion in revenue came from international markets. Indeed, Pepsi sells beverages, food, and snacks, while Celsius only sells beverages. However, this comparison shows that there is a strong growth opportunity for Celsius.
If you want to compare Celsius in more detail, here is the link: monster beverage. Monster Inc.'s net sales outside the United States were $2.7 billion, and his total net sales were $7.1 billion.
Not only that, Monster increased its international net sales by $350 million in 2023. growth This was six times the size of Celsius' entire international operations.
I believe this at least suggests a growth opportunity for Celsius. And they already have two huge partners in Pepsi and Suntory helping make that happen.
What it means for investors
Investors could have a completely separate conversation about their valuation of Celsius stock and whether it's a timely buy now that it's already up 55% year-to-date. But my purpose here is simply to point out that investors have not missed the boat yet on Celsius stock.
Celsius had the most incredible compound annual growth rate I've ever seen. But the company still has room to grow and has the right partners to make it happen. This is very important and indicates that this fast-growing beverage business will continue to see strong growth over the long term.
John Quast has no position in any stocks mentioned. The Motley Fool owns a position in and recommends Celsius and Monster Beverage. The Motley Fool has a disclosure policy.
