In August, 19 of my 25 positions posted positive returns, while six ended in the red. The total monthly return was 5.31%, amounting to €10,749.22 in absolute terms. This is a very good result, as it significantly outperformed the S&P 500 (EUR) index, which grew by only +1.7%. The portfolio was also affected by the strengthening of the EUR against the USD and SEK, which had a negative impact on returns of approximately €1,735.32. In other words, if exchange rates had remained the same throughout the month, the total return would have been even better – €12,484.54.
Although the returns were relatively broad-based, the portfolio was most positively influenced by Adyen (+19.44%), Snowflake (+11.93%), and Celsius (+11.63%). Adyen released its H1 financial results and continues to grow revenue at a rate of +19% YoY. This is an extremely interesting case, as fundamentally, growth rates have remained consistently high, but the stock price has stayed the same as it was in 2020. This means that over the last six years, the company has become significantly more attractive to investors because you get more for less money.
Celsius Holdings (CELH) also presented its Q2 results, which went into a freefall immediately after the announcement. I took the opportunity and purchased shares across various accounts for $6,672.89 at a price of $25-$26. The reason for the drop was disappointment in the sales volumes of the core Celsius brand, which declined -2% YoY in the second quarter. However, at first glance, the market overlooked the volume growth of the recently acquired Alani Nu, which was +56% YoY, and which compensated for the weak results of the core Celsius brand. In terms of revenue, the core Celsius brand and Alani Nu are almost of equal size.
However, the Celsius stock price began to rally again a few days after the earnings announcement, after Russ Savage, a notable beverage industry investor and the founder of Rockstar Energy, acquired a 4.7% stake in Celsius. The situation with Celsius Holdings is somewhat similar to Adyen’s, as the company's valuation and underlying fundamentals have diverged. At the time of my August purchase, the market value of Celsius Holdings was at 2020 levels; considering the more than 10x revenue growth during that time, future expectations have come down significantly, which makes investing in the company more attractive than ever. Another phenomenon affecting Celsius is the 'Witch's Brew' Halloween release for the Alani Nu brand, which is being sold in limited quantities, leading people to snap them up by the case. This phenomenon should reflect in Celsius's Q3 sales figures.
