If you had invested in Celsius Holdings (CELH -0.61%) stock five years ago, chances are you wouldn’t be reading this article right now.
Instead, you’d likely be lounging somewhere on a beach enjoying a refreshing Celsius Sparkling Orange or Fantasy Vibe drink and relishing your investment success.
A $10,000 investment made five years ago would have ballooned to over $560,000 today.
The surge in Celsius stock is attributed to its robust business growth. The chart below illustrates its impressive annual revenue expansion.
This remarkable compound annual growth rate propelled Celsius from $75 million in revenue in 2019 to a staggering $1.3 billion in 2023.
However, it’s noteworthy that a significant portion of this revenue originates from the U.S. market, with approximately 96% derived from North America.
While specific revenue figures for Canada are undisclosed, limited distribution indicates that the bulk of the revenue is generated in the U.S.
Despite ongoing opportunities for growth within the U.S., Celsius recognizes the inevitability of reaching a saturation point. Consequently, the company is eyeing international expansion in 2024 and beyond.
In the current year, Celsius has plans to enter five international markets: Canada, the United Kingdom, Ireland, Australia, and New Zealand.
Previously, Celsius had restricted distribution in Canada, but a partnership with Pepsi promises to expand its reach across the country, with sales already underway.
In other markets, Celsius is collaborating with Suntory, a global beverage giant, to kickstart sales in Europe and Oceania.
Pepsi’s success in international markets underscores the potential for Celsius. In 2023, roughly half of Pepsi’s $91 billion revenue came from overseas sales, indicating substantial growth prospects for Celsius, albeit in the beverage sector exclusively.
For a more direct comparison, Monster Beverage serves as a benchmark. Monster raked in $2.7 billion in net sales outside the U.S., out of a total of $7.1 billion.
Moreover, Monster experienced a $350 million increase in international net sales in 2023 alone, dwarfing Celsius’ entire international business.
While the discussion about Celsius’ valuation and its current 55% year-to-date surge merits attention, it’s evident that the opportunity in Celsius stock remains compelling.
Celsius has demonstrated an extraordinary compound annual growth rate, with ample room for further expansion, supported by strategic partnerships. These factors indicate sustained long-term growth potential for the company.
Investors considering Celsius should note that it didn’t cut The Motley Fool Stock Advisor’s list of top 10 stocks.
However, past recommendations from this service, such as Nvidia in 2005, have delivered substantial returns, underlining the potential for significant growth in the right investments.
The Motley Fool’s Stock Advisor service offers investors comprehensive guidance and timely stock picks, having outperformed the S&P 500 by a significant margin since its inception in 2002.
