Celsius Holdings Posts 173% Revenue Surge as Alani Nu Integration Accelerates

Core Insights - Celsius Holdings reported an adjusted EPS of $0.42, exceeding expectations of $0.28, and revenue of $725.1 million, slightly above the consensus of $724.0 million, indicating strong investor confidence in the company's growth strategy [2][7] - The integration of Alani Nu has significantly contributed to Celsius's transformation into a diversified beverage platform, with Alani Nu achieving $332.0 million in sales during the quarter [3][7] - The company experienced a gross margin expansion of 530 basis points to 51.3%, reflecting improved operational efficiency and product mix [5][7] Revenue Growth - Celsius achieved a remarkable revenue growth of 173% year over year, with the CELSIUS brand growing 44% organically, driven primarily by Alani Nu's sales [3] - International revenue increased by 24%, particularly in Nordic markets, indicating successful geographic diversification [4] Profitability Metrics - The gross margin improvement to 51.3% demonstrates operational leverage and a favorable product mix, while operating cash flow was reported at $75.7 million and free cash flow at $70.3 million [5][7] - Despite the positive cash flow metrics, GAAP net income showed a loss of $61.0 million, attributed to one-time distributor termination costs related to the PepsiCo transition [6][7] Market Positioning - Celsius trades at a forward P/E of 157.68, significantly higher than Monster Beverage's 42.16, reflecting market expectations for sustained growth despite the lack of proven profitability at scale [7]