Celsius Adjusted EBITDA Doubles in Q2: How Durable Are Cost Synergies?

Group 1: Company Performance - Celsius Holdings, Inc. reported a 109% increase in adjusted EBITDA for Q2 2025, reaching $210.3 million compared to $100.4 million in the same period last year, driven by the strong performance of the Alani Nu brand and operational efficiencies [1][9] - The company expects to achieve $50 million in run-rate cost synergies within two years following the Alani Nu acquisition, with initial signs of these synergies already materializing [2] - Celsius' overall gross margin for Q2 was 51.5%, supported by lower material costs and an improved product mix, although higher input costs are anticipated to pressure margins in the second half of the year [3][9] Group 2: Industry Comparison - PepsiCo is focused on cost optimization, expecting to deliver 70% more productivity in the second half of the year as part of a multi-year effort to improve its cost structure [4] - The Coca-Cola Company has demonstrated comparable operating margin expansion through effective cost management, focusing on end-to-end revenue growth management capabilities [5] Group 3: Valuation and Estimates - Celsius shares have gained 43% in a month, significantly outperforming the industry's 1% growth [8] - The forward price-to-earnings ratio for Celsius is 47.82X, compared to the industry average of 15.7X [10] - The Zacks Consensus Estimate indicates year-over-year EPS growth of 55.7% for 2025 and 27.4% for 2026 [11]