TLDR
- Celsius Holdings reported Q1 2025 revenue of $329.3 million, a 7% year-over-year decline
- The company completed its acquisition of Alani Nu on April 1, adding a second billion-dollar brand to its portfolio
- International revenue grew 41% to $22.8 million compared to Q1 2024
- Gross profit margin improved to 52.3%, up 110 basis points from the previous year
- Combined Celsius Holdings portfolio captured 16.2% of US energy drink category dollar share in Q1 2025
Celsius Holdings, the maker of functional energy drinks, faced some challenges in the first quarter of 2025 but continues to show strength in its growth strategy. The company reported a revenue decline while simultaneously improving profit margins and expanding its international presence.
The first quarter saw Celsius generate $329.3 million in revenue, representing a 7% decrease compared to the $355.7 million reported in the same period last year.
North American sales took a bigger hit, dropping 10% to $306.5 million.
The company explained that the revenue decline was influenced by the timing of their U.S. distributor incentive program and retail promotional allowances, which were weighted differently than in 2024.
Last year’s first quarter also benefited from multiple promotional activations and the launch of the 16-ounce CELSIUS ESSENTIALS line, making for a tougher comparison.
Despite the revenue drop, there were positive signs in retail scanner data, which showed a 2% increase in dollar sales for the 13 weeks ended March 30, 2025.
International Expansion Shows Promise
One bright spot in the quarterly results was the international segment. Revenue from international markets jumped 41% to $22.8 million.
This growth was driven by organic expansion in existing European markets along with momentum in newer markets including the UK, Ireland, France, Australia, and New Zealand.
Even excluding markets launched in 2024, international revenue grew 9% compared to the prior year period.
The company’s international market share has been steadily climbing, with notable positions in Sweden (13.5%), Finland (6%), New Zealand (4.5%), and Canada (4.0%).
Newer markets like Great Britain, France, and Ireland are still in early growth stages but showing promising results.
On the profitability side, Celsius managed to improve its gross profit margin to 52.3%, up from 51.2% in the first quarter of 2024. This 110 basis point increase was attributed to more efficient sourcing of raw and packaging materials.
However, the company’s selling, general and administrative expenses increased by $21.3 million, or 22%, to $120.3 million. This rise was primarily due to acquisition-related professional services and continued investment in global headcount.
As a result, diluted earnings per share fell to $0.15 from $0.27 in the prior-year period. On an adjusted basis, diluted EPS was $0.18 compared to $0.27 previously.
Strategic Acquisition Strengthens Portfolio
Perhaps the most significant development for Celsius was the completion of its acquisition of Alani Nu on April 1, 2025. This addition brings a second billion-dollar brand to the company’s growing functional beverage portfolio.
Alani Nu has shown impressive growth, with retail sales increasing 88% year over year and reaching a 5.3% dollar share, up 221 basis points from the previous year.
Combined, the Celsius Holdings portfolio captured 16.2% of the US energy drink category dollar share in Q1 2025, representing a gain of 81 basis points year over year.
John Fieldly, Chairman and CEO of Celsius Holdings, expressed confidence in the company’s direction: “We saw business fundamentals strengthen through the quarter and are encouraged by the positive momentum heading into Q2.”
“With the Alani Nu acquisition now closed, continued gains in retail shelf space, and strong international growth across both legacy and new markets, we are confident in our growth strategy, and we believe that we are well-positioned as a leader in modern energy,” Fieldly added.
Wall Street appears cautiously optimistic about Celsius Holdings’ future. According to GuruFocus, the average target price from 17 analysts is $43.97, suggesting a potential upside of nearly 30% from the current price of $33.89.
The company closed its acquisition of Alani Nu on April 1, adding a powerful growth brand that surpassed $1 billion in trailing 52-week retail sales for the period ended April 13, 2025.
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