How Do They Make Money?

Their consumer base primarily consists of distributors, e-commerce retailers, and various brick-and-mortar outlets such as grocery and convenience stores, club stores, and health-focused locations such as gyms and nutrition stores. The recent growth of Celcius can be attributed to their partnership with Pepsi as their distributor. In 2023, sales to Pepsi constituted 59.4% of the total net revenue, and receivables from Pepsi represented 69.0% of total receivables as of December 31, 2023. The loss of Pepsi as a customer could significantly adversely impact operations, potentially resulting in a material adverse effect on their financial results. Sales and marketing prioritizes differentiation, ensuring brands and products stand out visually and distinctively from other beverages on the shelves of retailers. As is typical in the functional energy drink industry, product sales are seasonal, with the highest sales volumes occurring in the second and third calendar quarters, which correspond to the warmer months of the year in major markets. Conversely, the first quarter often records the lowest sales figures. Despite these seasonal variations, they have historically maintained consistent quarter-over-quarter growth. Over the course of a full year, seasonal fluctuations have had no material impact on their financial results.