Celsius boosts sales, loses more
Calorie-burning drink maker Celsius Holdings fattened up on higher sales, but its losses also bulged.
The Delray Beach-based maker of Celsius lost $5.9 million, or 40 cents a share, on revenue of $2.3 million in the first quarter. In the same quarter last year, it lost $1.2 million, or 16 cents a share, on revenue of $971,000.
Celsius Holdings had $10.2 million in cash and equivalents as of March 31, up from $607,000 as of Dec. 31. That was due to a $13.1 million secondary offering and a $5.1 million conversion of debt to equity completed during the first quarter.
Although sales increased, they were partially offset by coupon redemptions and promotions.
“We also learned that it took longer than expected for the initial pipeline of products that we shipped in the fourth quarter of 2009 to get on retailers' shelves and accordingly, first quarter 2010 refill orders were not received from some customers to the extent we anticipated,” Celsius Holdings Chairman and CEO Stephen C. Haley said in a news release. “While our pace is picking up rapidly, as a conservative measure, we've decided to take these factors into account and adjust our sales guidance for the year to a range of $18 million to $22 million.”
Haley said the company would launch a national advertising campaign, including TV, radio and print.
Celsius shares were down 49 cents, or 15 percent, to $2.76 in morning trading. The 52-week high was $14 on July 21. The 52-week low was 22 cents on Dec. 23.