Celsius Holdings (NASDAQ:CELH), a lifestyle fitness drink producer in the performance energy area, soared as high as 38% early Tuesday morning after delivering a stronger than expected first quarter.
Celsius' first-quarter revenue of $28 million was a 95% increase over the prior year, setting a first-quarter company record and topping analysts' estimates of $23 million. Gross profit jumped 128% from the prior year to $13 million, and earnings per share checked in at $0.01, topping analysts' estimates of a $0.01 per share loss.
"Through new and expanded relationships with U.S. retailers and additional DSD distribution agreements, we further expanded our presence and increased throughput to consumers during the first quarter," said John Fieldly, president and CEO, in a press release. "Trend forward functional data indicates Celsius is growing faster than the category, and our financial results reinforce the strong performance of our business."
Another positive takeaway for investors was that management noted demand for its beverages remained strong despite a shift in consumer purchasing behaviors to online platforms amid the COVID-19 outbreak. Many consumer goods companies have been hit hard due to COVID-19, but Celsius management adapted its business model quickly to emphasize online buying options. Its digital and online platforms boasted a 167% increase in average daily online sales volume compared to the prior year. The company's focus will be to continue to expand its product reach nationwide and to weather and adapt to the change in buying behaviors due to COVID-19. So far, so good.