Celsius Holdings 2025 Q1 Earnings Misses Targets as Net Income Declines 43%

Celsius Holdings (CELH) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company faced a challenging quarter, missing analyst expectations with a lower-than-anticipated earnings per share (EPS) of $0.15, compared to the forecasted $0.21. Despite a decrease in revenue, Celsius Holdings remains optimistic about leveraging the Alani Nu acquisition to enhance growth. The company has adjusted its guidance, focusing on strategic investments and international expansion to sustain momentum into the second quarter.

Revenue

The first quarter of 2025 saw a decline in Celsius Holdings' revenue, totaling $329.28 million, down 7% from the previous year's $355.71 million. The revenue drop was attributed to the timing and structure of the U.S. distributor incentive program and increased retail promotional allowances. Internationally, revenue rose by 41%, reaching $22.8 million, driven by organic growth in legacy markets and momentum in newly launched regions like the UK, Ireland, France, Australia, and New Zealand.

Earnings/Net Income

Celsius Holdings experienced a significant decline in net income, dropping 42.9% to $44.42 million for Q1 2025, from $77.81 million in Q1 2024. The company's EPS fell 46.4% to $0.15, compared to $0.28 from the previous year, indicating a challenging financial period.

Price Action

The stock price of Celsius Holdings has climbed 6.89% during the latest trading day, has edged up 0.17% during the most recent full trading week, and has edged down 1.33% month-to-date.

Post Earnings Price Action Review

Over the past five years, the strategy of purchasing Celsius Holdings (CELH) shares following a quarter-over-quarter revenue increase has proven successful. The approach yielded an overall return of 91.64%, surpassing the benchmark return of 83.12% by 8.52%. Despite experiencing a maximum drawdown of -10.15%, the strategy maintained a Sharpe ratio of 0.84, emphasizing strong risk-adjusted performance. With a relatively low volatility of 16.68%, it ensured consistent returns over the period. The compound annual growth rate (CAGR) was 14.06%, demonstrating the strategy's ability to generate dependable results.

CEO Commentary

John Fieldly, CEO of Celsius Holdings, expressed optimism regarding the company's performance in the first quarter despite a challenging operating environment. He highlighted the successful investment in the core brand, product innovation, and operational scale. Fieldly noted that business fundamentals strengthened throughout the quarter and emphasized confidence in the growth strategy following the Alani Nu acquisition. He mentioned the ongoing gains in retail shelf space and strong international growth, reinforcing the company’s position as a leader in the modern energy sector.

Guidance

Celsius Holdings anticipates continued positive momentum heading into the second quarter. The company expects to leverage the Alani Nu acquisition to enhance growth and market presence. Management highlighted strong retail performance and increased international expansion, suggesting a focus on sustaining growth through strategic investments and innovation in both legacy and new markets.

Additional News

Recently, Celsius Holdings completed its acquisition of Alani Nu on April 1, 2025, adding a second billion-dollar brand to its portfolio. This strategic move aims to bolster its position in the functional beverage market, with Alani Nu surpassing $1 billion in trailing 52-week retail sales. The company plans to capitalize on this acquisition by expanding distribution and fostering innovation. Additionally, Celsius Holdings has been actively increasing retail shelf space, reinforcing its market presence in key international markets. The company’s continued strategic investments and focus on innovation are expected to drive significant growth in the coming quarters.