Celsius Holdings falls after reporting large drops in revenue and EBITDA

Celsius Holdings (NASDAQ:CELH) reported revenue plunged 31% year-over-year in Q3 to $265.7 million, driven primarily by drops in the North American business. International sales jumped 37% to $18.6 million during the quarter.

Notably, the company’s sales to Amazon increased 21% to approximately $27.0 million. Celsius’ (CELH) share on Amazon for the three-month period that ended on October 5 was 20.4%.

Gross profit as a percentage of sales decreased 37% to $122.2 million. Gross profit as a percentage of revenue was 46.0% from 50.4% a year ago, due mainly to promotional allowances, incentives, and other billbacks as a percentage of gross revenue. Although gross profit as a percentage of revenue was lower year over year, CELH did receive the benefit of lower outbound freight and materials as a percentage of gross revenue.EPS came in $0.00 vs. $0.03 consensus and $0.30 a year ago.

Notably, adjusted EBITDA slid 96% year-over-year during the quarter to $4.4 million.

CEO John Fieldly said pronounced supply chain optimization by the company’s largest distributor, which the company believes has largely stabilized, had an outsized and adverse impact on operating results during an otherwise solid quarter. “We remain focused on our long-term growth strategy of expanding our consumer base, broadening our availability, and being the preferred beverage for more occasions,” he highlighted.

Shares of Celsius Holdings (CELH) fell 3.88% in premarket action. Monster Beverage (MNST) rose 0.72%. PepsiCo (PEP) was up 0.55% in the premarket session.