Celsius Holdings Reports First Quarter 2025 Financial Results

Closed Alani Nu^® acquisition on April 1, adding a second billion-dollar brand to Celsius Holdings' growing functional beverage portfolio¹

On a pro forma basis, Celsius Holdings captured 16.2% of US energy drink category dollar share in Q1 2025²

Celsius Holdings, Inc. (NASDAQ:CELH) ("Celsius Holdings" or "the company") today reported first quarter 2025 financial results.

Summary of First Quarter 2025 Financial Results

John Fieldly, Chairman and CEO of Celsius Holdings, said: "Celsius navigated a dynamic operating environment in the first quarter while continuing to invest in our core brand, product innovation and operational scale. 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."

FINANCIAL AND MARKET HIGHLIGHTS FOR THE FIRST QUARTER OF 2025

For the three months ended Mar. 31, 2025, revenue totaled approximately $329.3 million, compared to $355.7 million for the prior-year period, representing a 7% decline. First quarter revenue was affected by the timing and structure of our U.S. distributor incentive program and elevated retail promotional allowances, which were more heavily weighted toward the latter part of the quarter compared to the same period in 2024. Additionally, the first quarter of 2024, as compared to the current year period, benefited from multiple promotional activations across key retail and convenience channels, as well as the launch of our 16-ounce CELSIUS ESSENTIALS^® line. While revenue was down year over year, retail scanner data showed a 2% increase in dollar sales for the 13 weeks ended Mar. 30, 2025³, compared to the prior 13-week period.

International revenue totaled $22.8 million for the first quarter of 2025, a 41% increase as compared to the first quarter of 2024, driven by organic growth in our legacy EMEA markets and momentum in newly launched markets, including the UK, Ireland, France, Australia and New Zealand. Excluding markets launched in 2024, international revenue grew 9% compared to the prior-year period.

For the three months ended Mar. 31, 2025, gross profit decreased by $9.8 million to $172.4 million from $182.2 million for the three months ended Mar. 31, 2024. Gross profit margin was 52.3% for the three months ended Mar. 31, 2025, a 110 basis point increase from 51.2% for the same period in 2024. The increase in gross margin is attributed to sourcing efficiencies for raw and package materials.

Selling, general and administrative expenses for the three months ended Mar. 31, 2025, increased $21.3 million, or 22%, to $120.3 million from $99.0 million for the quarter ended Mar. 31, 2024, driven primarily by acquisition-related professional services and continued investment in global headcount compared to the prior-year period.

Diluted earnings per share for the first quarter of 2025 was $0.15 compared to $0.27 for the prior-year period. Non-GAAP adjusted diluted earnings per share for the first quarter of 2025 was $0.18 compared to $0.27 for the prior-year period.

Retail Performance

Retail sales of the Celsius Holdings portfolio in U.S. tracked channels (MULO+ W/C) reflected sustained consumer demand for sugar free, functional beverages for the 13-week period ended Mar. 30, 2025⁴. CELSIUS^® retail sales declined 3% year over year with a dollar share of 10.9%, down 140 basis points from the prior year. Alani Nu^® retail sales increased 88% year over year, reaching a 5.3% dollar share, up 221 basis points. Combined, the Celsius Holdings portfolio captured a 16.2% dollar share, representing a gain of 81 basis points year over year.

For the reporting period, CELSIUS held market share across key international markets as follows: Sweden 13.5%⁵, Finland 6%⁶, New Zealand 4.5%⁷, Canada 4.0%⁸, Australia 2.5%⁹, Ireland 1.2%¹⁰, France 0.6%¹¹ and Great Britain 0.2%¹².

Acquisition of Alani Nu

As previously announced, we closed our acquisition of Alani Nu on Apr. 1, 2025. Powered by strong consumer demand for better-for-you, functional beverages, expanded distribution, and targeted innovation, Alani Nu surpassed $1 billion in trailing 52-week retail sales for the period ended Apr. 13, 2025¹³.

First Quarter 2025 Earnings Webcast

Management will host a webcast today, Tuesday, May 6, 2025, at 8:00 a.m. ET to discuss the company's first quarter 2025 financial results with the investment community. Investors are invited to join the webcast accessible from https://ir.celsiusholdingsinc.com. Downloadable files, an audio replay and transcript will be made available on the Celsius Holdings investor relations website.

About Celsius Holdings, Inc.

Celsius Holdings, Inc. (NASDAQ:CELH) is a functional beverage company and the owner of energy drink brand CELSIUS^®, hydration brand CELSIUS HYDRATION^TM and health and wellness brand Alani Nu^®. Born in fitness and pioneering the rapidly growing, better-for-you, functional beverage category, the company creates and markets leading functional beverage products. For more information, please visit www.celsiusholdingsinc.com.

Forward-Looking Statements

This press release contains statements by Celsius Holdings, Inc. ("Celsius Holdings", "we", "us", "our" or the "Company") that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our prospects, plans, business strategy and expected financial and operational results. You can identify these statements by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," "would", "could", "project", "plan", "potential", "designed", "seek", "target", variations of these terms, the negatives of such terms and similar expressions. These statements are based on certain assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. You should not rely on forward-looking statements because our actual results may differ materially from those indicated by forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: changes to our commercial agreements with PepsiCo, Inc.; management's plans and objectives for international expansion and global operations; general economic and business conditions; our business strategy for expanding our presence in our industry; our expectations of revenue; operating costs and profitability; our expectations regarding our strategy and investments; our ability to successfully integrate businesses that we acquire, including Alani Nu; our ability to achieve the benefits that we expect to realize as a result of our acquisitions, including Alani Nu; the potential negative impact on our financial condition and results of operations if we fail to achieve the benefits that we expect to realize as a result of our business acquisitions, including Alani Nu; liabilities of the businesses that we acquire that are not known to us; our expectations regarding our business, including market opportunity, consumer demand and our competitive advantage; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations affecting our business; the Company's ability to comply with the rules and regulations of the Securities and Exchange Commission (the "SEC"); and those other risks and uncertainties discussed in the reports we file with the SEC, such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Forward-looking statements speak only as of the date the statements were made. We do not undertake any obligation to update forward-looking information, except to the extent required by applicable law.

CELSIUS HOLDINGS, INC. - FINANCIAL TABLES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

Reconciliation of GAAP diluted Earnings per share to non-GAAP Adjusted diluted Earnings per share

USE OF NON-GAAP MEASURES

Celsius defines Adjusted EBITDA as net income before net interest income, income tax expense (benefit), and depreciation and amortization expense, further adjusted by excluding stock-based compensation expense, foreign exchange gains or losses, distributor termination fees and legal settlement costs. Adjusted EBITDA Margin is the ratio between the company's Adjusted EBITDA and net revenue, expressed as a percentage. Adjusted diluted earnings per share is GAAP diluted earnings per share net of add backs and deductions for distributor termination, legal settlement costs, reorganization costs,acquisitions costs, and penalties. Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share are non-GAAP financial measures.

Celsius uses Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share for operational and financial decision-making and believes these measures are useful in evaluating its performance because they eliminate certain items that management does not consider indicators of Celsius' operating performance. Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share may also be used by many of Celsius' investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. Celsius believes that the presentation of Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share, provides useful information to investors by allowing an understanding of measures that it uses internally for operational decision-making, budgeting and assessing operating performance.

Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share are not recognized terms under GAAP and should not be considered as a substitute for net income or any other financial measure presented in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of Celsius' results as reported under GAAP. Celsius strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Because non-GAAP financial measures are not standardized, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted diluted earnings per share as defined by Celsius, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare Celsius' use of these non-GAAP financial measures with those used by other companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506373279/en/

Paul Wiseman

Investors: [email protected]

Press: [email protected]