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Celsius Holdings CEO Touts Favorable Outlook After Q4 Report Sends Stock Down

Shares of global fitness drink maker Celsius Holdings, Inc. (NASDAQ: CELH) plummeted more than 20% Thursday after the company reported fourth-quarter

· 03/16/2021 11:35

Shares of global fitness drink maker Celsius Holdings, Inc. (NASDAQ:CELH) plummeted more than 20% Thursday after the company reported fourth-quarter results that signaled a pause in growth.

Celsius Holdings CEO John Fieldly was on CNBC's "Mad Money" Monday and said investors got the near-term trade wrong.

What Happened: Celsius reported fourth-quarter revenue of $35.7 million, which marked a sequential decline from $36.8 million in the prior quarter. In addition, the full-year profit fell from nearly $10 million in 2019 to $8.5 million in 2020.

Throughout 2020, the company expanded its footprint to more than 82,000 locations, including convenience stores, grocery stores and pharmacy retailers, Fieldly said.

"We have been trying to get on these trucks for years," the CEO said.

Related Link: After 1,000% Rise In One Year, Is This Energy Drink Stock Still Worth Buying?

Why It's Important: The competitive environment within the energy drink space is very intense and Celsius was previously disadvantaged, as its products were not properly stocked on shelves and sitting in back rooms, the CEO said.

Celsius added 150 new distributors over the last 12 months, and this will translate to "white-glove service" to the retail shelves, he said.

What's Next: The company expects to further expand its exposure throughout 2021, especially as it leverages new distribution agreements in recent years with companies like Anheuser Busch Inbev (NYSE:BUD).

CELH Price Action: Celsius Holdings shares were down 2.67% at $47.30 at last check Tuesday.