3 Key Takeaways From Celsius Holdings' Mixed, but Still Outstanding, Results
Beverage company Celsius Holdings (NASDAQ: CELH), a plucky newcomer to a market overshadowed by giants such as Monster Beverage, reported blazing revenue gains in its third-quarter (Q3) earnings report on Nov. 11. The stock market responded positively, bidding its share price up by more than 4% by market close, even though supply problems and the aluminum can shortage made it miss on earnings. Here are three reasons why investors' fizzy optimism about the company may be justified.
Setting a new revenue record as its U.S. sales jumped 214% year over year and international sales grew 5%, Celsius saw its total quarterly revenue surge 157% to $94.9 million compared to Q3 2020. One of the strongest drivers of its growth was its direct store delivery (DSD) network, where distributor revenue grew 429%. DSD is a distribution method involving shipping products directly to the stores where they will be sold from the manufacturer's production facility, rather than sending them to the store chain's distribution center first. The use of DSD maximizes product freshness and often improves sales by giving individual stores the opportunity to quickly restock their inventory as it sells out.
Image source: Getty Images.
Source Fool.com
