Celsius 2025 Q1: Unpacking Contradictions in Brand Growth, Distribution, and Market Strategy

Celsius brand growth strategy, Alani Nu's distribution and market potential, inventory and demand forecasts, category growth and market share, shelf space expansion and competitive positioning are the key contradictions discussed in Celsius's latest 2025Q1 earnings call.



Revenue and Sales Performance:
- Celsius Holdings reported revenue of $329.3 million for Q1 2025, a 7% decline compared to the prior year quarter.
- The decline was attributed to slowed velocity, timing and structure of the US distributor incentive program, and increased retail promotional programs.

Gross Margin Improvement:
- The company saw an 110 basis point improvement in gross margin to 52.3%, supported by sourcing efficiencies for raw and packaging materials.
- This improvement was despite increased promotional activities and incentives.

International Growth:
- International revenue grew 41% to $22.8 million, demonstrating strong organic growth in legacy markets and expansion into new markets like Australia and New Zealand.
- This growth is aligned with a cautious approach to global expansion, focusing on building a strong consumer base in these new markets.

Alani Nu Acquisition Impact:
- Alani Nu's retail sales increased 88% year-over-year, contributing to a combined 16.2% dollar share for Celsius Holdings in the quarter.
- The acquisition of Alani Nu further strengthened the company's portfolio and market positioning in the functional beverage space.