NEW YORK - Celsius Holdings Inc. (NASDAQ:CELH) reported third quarter results that fell short of analyst expectations, sending shares down 0.6% in premarket trading Wednesday.
The energy drink maker posted revenue of $265.7 million for the quarter, missing the consensus estimate of $271.09 million. Adjusted earnings per share came in at $0.00, below the $0.03 expected by analysts.
Revenue declined 31% year-over-year, which the company attributed to supply chain optimization by its largest distributor. North American sales dropped 33% to $247.1 million, while international sales grew 37% to $18.6 million.
"Celsius continued to drive energy drink category growth at retail in the third quarter and outpaced the category in dollar and volume sales gains despite overall category softness," said John Fieldly, Chairman and CEO of Celsius Holdings. "Pronounced supply chain optimization by our largest distributor, which we believe has largely stabilized, had an outsized and adverse impact on our operating results during an otherwise solid quarter."
Gross margin contracted to 46.0% from 50.4% in the year-ago quarter due to promotional allowances and incentives.
Despite the quarterly miss, Celsius noted its year-to-date revenue surpassed $1 billion, up 5% from the prior year period. The company remains focused on expanding its consumer base and broadening availability.
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