Russ Savage, founder of Rockstar Energy, has built a stake of more than 12 million shares in Celsius Holdings and is calling for the removal of its chief executive after the energy drink company reported second-quarter results that missed analyst expectations. Savage told CNBC that the position represents approximately 4.7% of Celsius Holdings, with a market value of around $300 million, and he is pushing for the departure of Chairman and CEO John Fieldly, as well as the chief operating officer, brand manager, and marketing manager. Celsius Holdings stock dropped 18% on Thursday after second-quarter revenue of $817.9 million, representing 11% growth year over year, fell short of analyst forecasts, while adjusted diluted earnings per share of 36 cents also missed estimates and net income fell 45% to $55.3 million. Savage, who sold Rockstar to PepsiCo in 2020 for more than $4 billion, said he began acquiring his stake in March when the stock traded in the low $30 range and had been providing strategic advice for more than a year but was largely ignored. A Celsius Holdings spokesperson said the company welcomes value-creating ideas from shareholders and that board and management members have met with Savage multiple times, adding that the company remains focused on executing its total energy portfolio strategy.
Celsius Holdings IncQ2 revenue and EPS missed estimates, net income fell 45%, and activist investor calls for CEO removal.
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