In This Article:
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Revenue: $329.3 million, a 7% decline compared to the prior year quarter.
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Gross Margin: Expanded 110 basis points to 52.3%.
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Adjusted EBITDA: $69.7 million with a margin of 21.2%.
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Net Income: $34.4 million or $0.15 per diluted share.
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Non-GAAP Adjusted Diluted EPS: $0.18 compared to $0.27 in the prior year period.
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International Revenue Growth: 41% increase to $22.8 million.
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Cash Position: $977 million in cash as of March 31, 2025, with no outstanding debt.
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Alani Nu Retail Sales: Increased 88% year-over-year, reaching a 5.3% share.
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Combined Portfolio Dollar Share: 16.2% for the quarter ending March 30, 2025.
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SG&A Expenses: $120.3 million, reflecting transaction-related expenses and investments.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Celsius Holdings Inc (NASDAQ:CELH) successfully closed the acquisition of Alani Nu, adding a second billion-dollar brand to its portfolio.
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International revenue grew 41% to $22.8 million, demonstrating strong organic growth in both legacy and new markets.
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Gross margin expanded by 110 basis points to 52.3%, supported by sourcing efficiencies for raw and packaging materials.
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Celsius Holdings Inc (NASDAQ:CELH) captured a 16.2% dollar share in the energy drink category, an 81-basis point increase year-over-year.
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The company launched new products, including CELSIUS HYDRATION, expanding into the fast-growing $1.4 billion hydration powder category.
Negative Points
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First quarter revenue declined by 7% compared to the prior year, totaling $329.3 million.
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The company faced slowed velocity in the first quarter, impacting overall sales performance.
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Increased competition and strong pricing actions by other category players posed challenges.
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Selling, general, and administrative expenses increased to $120.3 million, reflecting transaction-related expenses and continued investment.
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Non-GAAP adjusted EBITDA margin decreased to 21.2% from 24.7% in the prior year, driven by organizational investments.
Q & A Highlights
Q: Can you explain why the energy drinks category is accelerating while other CPG categories are declining? A: John Fieldly, CEO, noted that the energy category has been resilient in both dollar and volume growth. Health and wellness trends and significant innovation in the category have driven consumer excitement and growth.
Q: What steps are being taken to improve sales velocity? A: John Fieldly, CEO, mentioned a balanced approach this year, learning from past experiences. The company is focusing on consumer-centric programs and leveraging the brand's DNA to attract more consumers, particularly in the sugar-free segment.