Celsius(US:CELH)2025-05-06 00:34Revenue Performance - For the three months ended March 31, 2025, revenue was approximately $329.3 million, a decrease of $26.4 million, or 7.4%, from $355.7 million for the same period in 2024[152] - North American revenue declined by $33.0 million, or 9.7%, compared to the prior year, attributed to the timing of promotional efforts and lower velocity[153] - European revenues increased by $4.5 million, or 31.9%, reaching approximately $18.7 million for the three months ended March 31, 2025[154] - Total international revenue grew 41% year-over-year, primarily driven by the company's continued international expansion[154] Profitability - Gross profit decreased by $9.8 million to $172.4 million, a decrease of 5.4%, while gross profit margin improved to 52.3% from 51.2%[156] - Net income attributable to common stockholders for the three months ended March 31, 2025, was $34.4 million, with basic earnings per share of $0.15[161] Expenses - Selling, general and administrative expenses increased by $21.3 million, or 22%, totaling $120.3 million for the three months ended March 31, 2025[157] Acquisition Details - On February 20, 2025, the company announced the acquisition of Alani Nutrition LLC for a total consideration of $1,275.0 million in cash and stock[151] - The acquisition of Alani Nu was completed on April 1, 2025, alongside a debt financing arrangement including a $900.0 million Term Loan B[151] - The company entered into a secured credit agreement providing a term loan facility of up to $900 million and a revolving credit facility of up to $100 million to fund the acquisition of Alani Nu[167] Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of approximately $977.3 million and working capital of $993.6 million[162] - Cash flows from operating activities for the three months ended March 31, 2025, totaled $103.4 million, a decrease of $31.2 million compared to $134.6 million for the same period in 2024[170] - Cash flows used in investing activities increased to $6.9 million for the three months ended March 31, 2025, compared to $4.5 million for the same period in 2024, due to increased purchases of property, plant, and equipment[171] - Cash flows used in financing activities totaled $10.6 million for the three months ended March 31, 2025, an increase of $4.7 million from $5.9 million in the same period in 2024, primarily due to higher stock repurchases and debt issuance costs related to the Alani acquisition[172] - The company believes its current liquidity position and access to financing facilities are sufficient to meet near-term and long-term obligations following the acquisition of Alani Nu[169] Risk Management - The Term Loan Facility and Revolving Facility are secured by a first priority security interest in cash, accounts receivable, and intellectual property[168] - The company does not currently use hedging agreements to manage risks associated with commodity prices and may consider doing so in the future[176] - The company is exposed to market risks related to fluctuations in commodity prices, which may affect the costs of raw materials[176] Accounting Policies - There have been no material changes to critical accounting policies or estimates from those described in the 2024 Annual Report[175]