Celsius Holdings Stock Falls After Q2 Results

Celsius Holdings Inc CELH reported second-quarter FY21 sales growth of 116% year-on-year, to $65.07 million, beating the analyst consensus of $53.47 million.
Domestic revenue increased 157% Y/Y, and International rose 25%.
Gross profit of $28.2 million rose 117%, and profit margin of 43.4% Y/Y expanded by ten basis points.
Operating expenses rose 109.5% Y/Y to $24.6 million.
The operating margin was 5.5%, and operating income for the quarter rose 188.3% to $3.6 million.
The company held $83.8 million in cash and equivalents as of June 30, 2021.
Non-GAAP Adjusted EBITDA of $7.9 million increased 204% Y/Y.
EPS of $0.05 beat the analyst consensus of $0.02.
Celsius Holdings disclosed in a regulatory filing that a class-action lawsuit filed by Daniel Prescod in 2019 against the company was given the motion to certify the case as a class action on August 2, 2021. The plaintiff asserts the company's use of citric acid in its products while claiming no preservatives were used.
Celsius Holdings said it does not use citric acid as a preservative in its products but rather as a flavoring.
Price Action: CELH shares are trading lower by 3.73% at $74.91 on the last check Thursday.