Celsius plummets as earnings tank on distributor's optimization process
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Celsius Holdings (NASDAQ:CELH) experienced a significant drop in stock price, falling 11% after reporting a sharp decline in profits. The company's North American sales fell by 33% due to supply chain optimization by its largest distributor, leading to a 31% decrease in group revenue for the third quarter. However, international sales increased by 37%, partially offsetting the decline.
November 06, 2024 | 4:30 pm
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Celsius Holdings' stock fell 11% due to a significant drop in Q3 profits, driven by a 33% decline in North American sales. The decrease was attributed to supply chain optimization by its largest distributor, resulting in a 31% drop in group revenue. International sales growth of 37% provided some relief.
The 11% drop in Celsius Holdings' stock price is directly linked to the reported decline in profits and North American sales, which were impacted by the distributor's supply chain optimization. The significant decrease in revenue and profits is a critical factor for investors, leading to a negative short-term impact on the stock price.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100