If you had invested in Celsius Holdings (CELH -0.61%) stock five years ago, you might be experiencing a significant windfall today. With a $10,000 investment in Celsius back then, you could be enjoying over $560,000 in returns, possibly lounging on a beach with a refreshing Celsius Sparkling Orange or Fantasy Vibe drink in hand.
The meteoric rise of Celsius stock can be attributed to its robust business growth, as evidenced by its impressive annual revenue expansion. From $75 million in revenue in 2019, Celsius surged to a staggering $1.3 billion in 2023, boasting a remarkable compound annual growth rate.
It’s worth noting that a substantial portion of Celsius’ revenue comes from the U.S. market, accounting for approximately 96% of its total revenue, with limited distribution in Canada. However, recognizing the potential saturation point in the U.S., Celsius is now eyeing international expansion in 2024 and beyond.
In the current year, Celsius plans to enter five international markets: Canada, the United Kingdom, Ireland, Australia, and New Zealand. Collaborations with beverage giants like Pepsi and Suntory are expected to drive sales in these new markets.
Pepsi’s success in international markets serves as a promising precedent for Celsius. In 2023, roughly half of Pepsi’s $91 billion revenue came from overseas sales, indicating substantial growth potential for Celsius outside the U.S.
Comparatively, Monster Beverage, a key player in the beverage industry, generated $2.7 billion in net sales outside the U.S. in 2023, out of a total of $7.1 billion. Monster’s significant increase in international net sales in 2023 alone underscores the vast opportunity for Celsius in global markets.
While discussions about Celsius’ valuation and its recent surge in stock price are ongoing, the investment opportunity in Celsius stock remains compelling. With a history of remarkable growth and strategic partnerships in place, Celsius shows promising long-term growth potential.
Investors considering Celsius should also note its recognition by The Motley Fool Stock Advisor service, which has a track record of identifying high-growth stocks. While past performance is not indicative of future results, the service’s history of successful recommendations highlights the potential for significant returns in the right investments.
The Motley Fool’s Stock Advisor service provides investors with comprehensive guidance and timely stock picks, consistently outperforming the S&P 500 since its inception in 2002. This endorsement adds further credibility to Celsius’ growth prospects and investment appeal.