Celsius Holdings, Inc. Reports Record Fourth Quarter Profit and Full Year 2014 Financial Results

Celsius Holdings, Inc., (Other OTC: CELH) the creator and marketer of Celsius®, the world’s first Negative Calorie beverage backed by clinical science, today reported its fourth quarter and full year 2014 results.

Fourth Quarter 2014 Highlights:

• Revenue grew 57% to $4.59 million, compared to $2.93 million last year
• Domestic revenue grew 74% to $2.06 million, compared to $1.18 million last year
• International revenue grew 45% to $2.53 million, compared to $1.74 million last year
• Gross profit margins improve to 40%
• Net Profit amounted to $127,000, compared to a net loss of ($494,000) last year
• Non-GAAP Adjusted EBITDA basis excluding interest, stock based compensation, and depreciation expenses, increased to $407,000 compared to ($261,000) last year

Year-end 2014 Highlights:

• Revenue grew 38% to $14.61 million, compared to $10.61 million last year
• International revenue grew 45% to $7.44 million, compared to $5.12 million last year
• Domestic revenue grew 31% to $7.17 million, compared to $5.49 million last year
• Net Loss increased to ($2.16) million, compared to a net loss of ($1.83) million last year
• Non-GAAP Adjusted EBITDA basis excluding interest, stock based compensation, and depreciation expenses, decreased to ($590,000) compared to ($1.23) million last year

“Significant milestones were achieved in the fourth quarter for Celsius, achieving profitability for the first time with revenues growing to a record $4.6 million. The quarter was highlighted by the growth in existing domestic accounts, with no `fill' orders and continued strong international growth. Double and triple digit percentage growth in all channels of distribution for fourth quarter and record year end revenues of $14.61 million solidifies the turnaround of our company,” said Mr. Gerry David, Chief Executive Officer. "Our partnerships with multi-platinum recording artist, Flo Rida, and NASCAR race team TriStar Motorsports driver Blake Koch, are opening up new demographics for our one of a kind drink that promotes accelerated weight loss," David continued. "Our launch in Brazil with our partners, two time world Formula One Champion, Emerson Fittipaldi, and Latco Beverages, was launched late November 2014 and will provide an exciting opportunity for growth in 2015."

Three months ending December 31, 2014 Financial Results:

Revenue: Revenues for the three months ended December 31, 2014 totaled $4.59 million as compared to $2.93 million for the same period in 2013, a 57% increase. This increase was associated with growth in domestic sales of 74% or $880 thousand, this growth was mainly associated with growth in domestic retail accounts of 71%, growth in health & fitness accounts 212%, and growth in internet retailers 17% versus the same period in 2013, respectively. In addition, existing international accounts grew 45% or $786 thousand versus the same period in 2013, respectively.

Gross Profit: Gross profits for the three months ended December 31, 2014 totaled $1.82 million as compared to $1.11 million for the same period in 2013. Gross profit margins improved 2% to 40% during the three months ended December 31, 2014 versus the same period in 2013. The Company continues to focus on cost savings initiatives and efficiencies to improve gross profit margins.

Operating Expenses: Operating Expenses for the three months ended December 31, 2014 totaled $1.52 million as compared to $1.45 million for the same period in 2013, a $69 thousand or 5% increase. A significant portion of this increase is associated with increases in stock based compensation and investments in human resources, off-set by marketing and warehouse savings.

Net Profit (Loss): The Company recorded a net profit of $127 thousand for the three months ended December 31, 2014 compared to a net loss of ($494) thousand for the same quarter a year ago, respectively. On a non-GAAP Adjusted EBITDA basis, excluding interest, stock based compensation, and depreciation expenses, increased to $407 thousand, compared to ($261) thousand last year.

Fiscal Year ending December 31, 2014 Financial Results:

Revenue: Revenues for the fiscal year ending December 31, 2014 totaled $14.61 million as compared to $10.61 million in 2013, a 38% increase. This growth was associated with a 45% increase in international sales or $2.32 million and growth in domestic sales increasing 31% or $1.68 million. This growth in domestic sales was mainly associated with growth in domestic retail accounts of 37% and health & fitness accounts of 74%, off-set by internet segment decreases of 5% and the elimination of liquidator sales which took place during the same period in 2013.

Gross Profit: Gross profits for the fiscal year ending December 31, 2014 and 2013 totaled $5.60 million and $4.07 million, respectively. Gross Profit margins totaled 38% and remained consistent with the prior period in 2013.

Operating Expenses: Operating Expenses for year ending December 31, 2014 totaled $7.13 million as compared to $5.50 million for the same period in 2013, a 30% increase. A significant portion of this increase is associated with increases in stock based compensation expense increasing $823 thousand, additional investments in marketing programs and additional investment in human resources.

Net Loss: The Company recorded a net loss of $2.16 million for the twelve months ending December 31, 2014 compared to a loss of $1.83 million for the same period a year ago, respectively. On a non-GAAP adjusted EBITDA basis, excluding interest, stock based compensation, and depreciation expenses, decreased to ($590,000), compared to ($1.23) million last year.

Disclosures can be found on the Company’s online disclosure portal at: http://www.otcmarkets.com/stock/CELH/filings

Please visit our new Investor Board we have teamed up with to educate our shareholders at: http://investorshangout.com/Celsius-Holdings-Inc-CELH-59664/

About Celsius Holdings, Inc.

Celsius Holdings Inc. (OTC: CELH) is a science-based functional beverage company, founded in April 2004 to launch the world's first negative calorie beverage. The evolution of the beverage market has evolved from high calorie to low calorie to zero calorie. Celsius® negative calorie beverage is unique worldwide and deeply rooted in science. The first clinical study was conducted in 2005. Six additional studies, including five from the University of Oklahoma, were conducted over the next five years. The studies validated the unique benefits Celsius provides to the consumer. For more information, please visit www.celsius.com.

Forward-Looking Statements

This press release may contain statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Celsius Holdings' future results of operations and/or financial position, or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” “would,” or similar words. You should not rely on forward-looking statements since Celsius Holdings' actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; and other risks and uncertainties discussed in the reports Celsius Holdings has filed previously with the Securities and Exchange Commission. Celsius Holdings does not intend to and undertakes no duty to update the information contained in this press release.