1)Brazil is small, 2)CELH does not own a plant so manufacturing decreases for the plant as it fills capacity and increases yield. Toll cost declines, 3)Phone call from new owners to increase number of suppliers competing for their biz as well as purchasing power of other biz not just CELSIUS. 4)Revenue is not a return on capital, but is a topline that will generate a return. Inventory turnover on non-frozen bev is very quick and will not take long to reflect in Income statements. 5)There was an additional investment along with the $15.9 that increases the capital to close to $20myn.
Toll processing is very common place in the beverage industry as it allows manufactures to flip the bill for large capital needs of production processing. They are more skilled at efficiencies and will gladly cut toll fees for increases in batch sizes as small batches are costly in yield and downtime.
There are quite a few intelligent long-term investors in this one.
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