Celsius Holdings, Inc. Q1 FY2025 earnings call

• Celsius navigated a dynamic operating environment, investing in core brand, product innovation, and operational scale.
• Successfully closed the acquisition of Alani Nu on April 1st, adding a second $1 billion brand.
• Appointed Eric Hanson as President and Chief Operating Officer in March.
• Big Beverage facility integrated, providing manufacturing flexibility.
• US revenue decline due to slowed velocity, distributor incentives, and retail promotions.
• International revenue grew 41% with strong organic growth in legacy and new markets.
• Launched new core Vibe and ESSENTIALS flavors, multi-packs, and CELSIUS HYDRATION.
• Expanded foodservice into Home Depot and Subway locations.
• Marketing initiatives like NIL March Madness Campaign and ambassador launches.

For the first quarter of 2025, revenue totaled $329.3 million, a 7% decline compared to the prior year quarter. Adjusted EBITDA was $69.7 million with a margin of 21.2%. Gross margin expanded 110 basis points to 52.3%. International revenue grew 41% to $22.8 million. In the US, Celsius held a 10.9% dollar share for the 13 weeks ending March 30th, 2025, Alani Nu retail sales increased 88% year-over-year reaching a 5.3% share, and combined, the Celsius Holdings portfolio captured a 16.2% dollar share in the quarter.

• Focus on improving velocity, expanding household penetration, functional beverage share, and operational efficiency.
• Confident in strategy to remain resilient through economic times.
• Planning a public call to discuss Alani Nu modeling, pro forma reviews, and purchase accounting impacts.

• Risks related to forward-looking statements, uncertainties beyond control, potential actual results differing from expectations.
• Impact of tariffs, inflation, and other factors on gross margins and supply chain.

Q: Energy drink category acceleration, behind it?

A: John Fieldly talks about resilience, health trends, innovation.

Q: First quarter sales performance, North America decline?

A: John and Jarrod discuss slow start, promotional allowances, distribution partner incentives.

Q: Pricing in category?

A: John Fieldly talks about cautious approach, opportunistic pricing.

Q: Shelf space expansion?

A: John Fieldly talks about innovation, Alani Nu distribution gains.

Q: Costco distribution, allowances, destocking?

A: Jarrod and John discuss timing, promos, working capital.

Q: Gross margins sustainability?

A: Jarrod talks about short-term strength, aluminum tariffs uncertainty.

Q: Alani Nu and Celsius cross-promotion?

A: John Fieldly talks about co-branded coolers, dedicated coolers.

Q: Core portfolio tailwinds?

A: John Fieldly talks about easier comps, marketing campaign, consumer trends.

Q: International market performance?

A: John Fieldly talks about cautious expansion, positive reception in new markets.

Q: Gross margin moderation, Alani Nu modeling?

A: Jarrod talks about purchase accounting, inventory step-up, future call.