Russ Savage has purchased over 12 million shares of Celsius Holdings, representing approximately 4.7% of the company, valued at around $300 million.
Following Celsius's second-quarter earnings report, which showed earnings of 36 cents per share against an expected 43 cents, and revenue of $817.9 million below the anticipated $870 million, Savage is calling for a complete overhaul of the company's leadership.
He criticized the current management for lacking accountability and being too bureaucratic, suggesting that a single, detail-oriented leader is necessary to navigate the competitive energy drink landscape. Savage's concerns are underscored by the company's recent struggles, including a significant 18% drop in stock price after the earnings miss.
He has expressed a willingness to step in as CEO, citing his experience in managing Rockstar Energy's growth and operations. The current CEO, John Fieldly, attributed the earnings shortfall to a product rationalization program and challenges in integrating acquired brands, but Savage warns that losing shelf space in retail could be detrimental to Celsius's market position.
The stock has seen volatility, trading around $27 per share after a brief recovery following news of Savage's stake, indicating investor sensitivity to management changes and performance outlook