Celsius Holdings Inc. (CELH) saw its stock surge nearly 36% in after-hours trading following two major announcements. The energy drink giant reported better-than-expected Q4 earnings and revealed its $1.8 billion acquisition of Alani Nutrition LLC. This deal, combining cash and stock, is set to close in Q2 2025 and is expected to create a powerhouse in the U.S. energy drink market.
Alani Nu Acquisition Boosts Growth Prospects
Alani Nu, a female-focused energy drink brand founded in 2018, has been growing rapidly. With retail sales up 78% year-over-year, the acquisition is projected to drive $2 billion in combined sales. The deal includes $1.27 billion in cash, $25 million in earn-outs, and $500 million in Celsius stock. The company plans to fund the cash portion through $900 million in debt and $375 million from its reserves.
Celsius Holdings Q4 Earnings Beat Expectations
Celsius reported Q4 adjusted earnings per share of $0.14, beating estimates of $0.10. Revenue for the quarter stood at $332.2 million, surpassing expectations of $326.19 million. For the full year 2024, Celsius achieved record revenue of $1.36 billion, capturing 11.8% of the energy drink market share.
Retail Sentiment Turns Extremely Bullish
On Stocktwits, investor sentiment shifted to the “extremely bullish” zone as traders celebrated the earnings beat and acquisition news. Comment volumes spiked, with some predicting the stock could hit $70 soon. The deal is expected to boost cash EPS in the first year and deliver $50 million in cost synergies within two years.
Celsius Poised for Long-Term Growth
The acquisition positions Celsius to capitalize on the global energy drink market, projected to grow at a 10% annual rate through 2029. Despite a 3% year-to-date decline, the stock’s recent surge reflects strong investor confidence in Celsius’ growth strategy.
