Core Insights - Celsius Holdings, Inc. (CELH) is focusing on product innovation as a key driver for long-term growth, aligning its offerings with consumer preferences for healthier, sugar-free, and functional beverages [1][10] - The "LIVE FIT" campaign emphasizes health and daily functionality, enhancing consumer engagement and solidifying CELH's position in the growing sugar-free beverage market [2][10] - CELH has strengthened its leadership in the sugar-free energy drink category through its Celsius and Alani brands, introducing diverse products like Celsius Essentials and seasonal offerings [3][5] Product Innovation - The company integrates innovation into its marketing strategy, launching new products such as Fizz-Free flavors, which leverage influencer collaborations and targeted social media campaigns to enhance brand engagement [4][5] - Alani Nu has shown strong performance with innovative flavors like Sherbet Swirl and Cotton Candy, contributing to incremental sales [5] - CELH's robust innovation pipeline and international expansion initiatives position it for continued success in the beverage market [5] Competitive Landscape - The health and wellness trend has intensified competition from major players like PepsiCo, Coca-Cola, and Monster Beverage, all of which are enhancing their sugar-free offerings [6] - PepsiCo is reshaping its product portfolio to focus on functionality and health, with successful products like Pepsi Zero Sugar and Gatorade Zero [7] - Coca-Cola is evolving into a total beverage company, increasing its sugar-free options and reformulating existing products to meet changing consumer tastes [8] - Monster Beverage continues to innovate with affordable energy brands and new flavors, driving growth through a strong product pipeline [9]

a warning if you like your Celsius or if you like your high noon because there's now a recall for some of this stuff after they were mislabeled Celsius as high noon vice versa. Celsius, as you know, does not have vodka in it. Does not have alcohol in it.High noon does. So, fortunately, nobody's reported getting sick so far, but boy, that might be a surprise when you pop the top. High Noon says it's working with the FDA and stores across a bunch of states to get these mislabeled products off shelves.But word ...

Core Insights - Celsius Holdings, Inc. (CELH) is expanding its product line by acquiring Alani Nu, a brand targeting female consumers, officially closing the deal on April 1, 2025, which adds a second billion-dollar brand to its portfolio [1] - The acquisition aligns with a trend in the energy drink market towards wellness-focused consumption, with female consumers being a significant growth segment [1] Group 1: Alani Nu Performance - In Q1 2025, Alani Nu's retail sales increased by 88% year-over-year, raising its market share by 221 basis points to 5.3% [2] - Alani Nu achieved over $1 billion in trailing 12-month retail sales, highlighting its strong consumer connection and role in the better-for-you beverage trend [2] - The combined portfolio of Celsius and Alani Nu captured a 16.2% dollar share in the energy drink category, an increase of 81 basis points from the previous year, contributing approximately 20% of total category dollar growth in Q1 2025 [2][7] Group 2: Integration and Market Position - The integration of Alani Nu is crucial, as management noted only a 15% overlap between Celsius and Alani Nu consumers, indicating potential for complementary growth [3] - As competition in functional energy intensifies, leveraging Alani Nu's female-focused brand could be pivotal for Celsius's market position [3] Group 3: Competitive Landscape - PepsiCo (PEP) reported strong performance in its functional beverage portfolio, with Pepsi Zero Sugar gaining market share and Gatorade leading in sports hydration, alongside a pending acquisition of Poppi, a prebiotic soda brand [4] - The Coca-Cola Company (KO) highlighted growth in its Fairlife brand, with 30% of its volume now from low or no-calorie beverages, emphasizing its commitment to health-conscious consumption [5] Group 4: Financial Performance and Estimates - Celsius shares have increased by 3.1% over the past month, outperforming the industry growth of 1.8% [6] - CELH trades at a forward price-to-earnings ratio of 45.27X, significantly higher than the industry average of 16.07X [8] - The Zacks Consensus Estimate for CELH's EPS indicates year-over-year growth of 17.1% for 2025 and 41.5% for 2026 [9]

Core Insights - Evolving consumer lifestyles are driving demand for healthy offerings, positioning Celsius Holdings, Inc. (CELH) favorably within the health and wellness trends through its "LIVE FIT" campaign [1][10] - The "LIVE FIT" platform emphasizes health, aspiration, and daily functionality, enhancing consumer engagement and participation in the sugar-free beverage category [2][5] Product Development - CELH has strengthened its leadership in the sugar-free energy drinks and powders market with the introduction of CELSIUS HYDRATION, a new line of zero-sugar, zero-caffeine electrolyte powder sticks [3] - The company is targeting untapped potential among female consumers in the energy drinks sector, bolstered by the acquisition of Alani Nu, a brand popular among women [4][10] Competitive Landscape - The health and wellness trend is intensifying competition, with PepsiCo and Coca-Cola adapting their product portfolios to focus on functionality and health [6][7][8] - PepsiCo is emphasizing zero-sugar offerings and functional hydration products, while Coca-Cola is diversifying its brand portfolio with low and no-calorie options [7][8] Financial Performance - CELH shares have increased by 80.8% year to date, contrasting with a 3.2% decline in the industry [9] - The company trades at a forward price-to-earnings ratio of 47.19X, significantly higher than the industry average of 15.84X [11] - Zacks Consensus Estimate indicates year-over-year EPS growth of 15.7% for 2025 and 42.4% for 2026, although recent estimates have been revised downward [12]

Celsius Holdings Company Conference Call Summary Company Overview - Celsius Holdings is a global maker of premium lifestyle energy drinks, including the Celsius brand and Aloni New, which is the fourth largest energy drink brand in the U.S. [2][3] - The company generated approximately $2 billion in revenue last year, with significant growth expected in both the U.S. and international markets [2][3]. Industry Dynamics - The energy drink category is experiencing a renaissance, with an increasing number of consumers, particularly females, entering the market [6][7]. - The category is evolving, with energy drinks being consumed throughout the day and with meals, rather than just for specific needs [7][8]. - The U.S. market has seen a shift towards sugar-free options, with over 50% of sales in the energy drink category now being sugar-free [13][14]. Market Position and Strategy - Celsius currently holds approximately 10.8% to 11% market share in the U.S. energy drink category, down from a peak of 12.3% [25][26]. - The company aims to regain growth through a balanced innovation strategy, including new flavors and partnerships [27][28]. - The addition of Aloni New is expected to enhance Celsius's market position, with both brands together representing about 16.5% of the category [11][12]. Financial Performance and Projections - Celsius is targeting $50 million in synergies from the integration of Aloni New, with a two-year plan to align financial profiles [17][18]. - The company has a gross margin in the low fifties and SG&A in the low thirties, with expectations to improve these metrics through synergies and global expansion [17][18]. - The energy drink category is projected to grow at high single-digit rates over the next several years, providing a favorable environment for Celsius [80]. International Expansion - Celsius is focusing on international markets, having recently launched in France, Australia, New Zealand, and the UK, with a goal of achieving a 10% market share in these regions within three to five years [41][43]. - The company has established a partnership with Suntory for distribution in international markets and aims to build a loyal consumer base [41][44]. Brand Synergies and Management - Celsius and Aloni New will maintain separate marketing teams to preserve brand identities while leveraging synergies in supply chain and promotional strategies [48][49]. - The dual-brand strategy allows for more flexible pricing and promotional tactics, enhancing market competitiveness [47][48]. Product Innovation and SKU Management - Celsius is reviewing its SKU assortment to ensure consistency across retailers and optimize the product portfolio [64][66]. - Limited-time offerings (LTOs) are being used strategically to attract new consumers and disrupt purchasing habits [72][76]. Future Outlook - The company is focused on regaining market share in the U.S. and expanding internationally, with a strong emphasis on health and wellness trends [108][109]. - Celsius aims to continue innovating within the energy drink category while exploring opportunities in adjacent markets, such as hydration products and protein offerings [99][90]. Conclusion - Celsius Holdings is well-positioned to capitalize on the evolving energy drink market, with a clear strategy for growth through innovation, brand synergy, and international expansion [109].

Celsius Holdings, Inc. and Elani Nu Conference Call Summary Company Overview - **Company**: Celsius Holdings, Inc. (CELH) - **Acquisition**: Successfully completed acquisition of Elani Nu, a premium energy drink supplement health nutrition company founded in 2018 [2][5] Industry Insights - **Energy Drink Market**: The energy drink category is projected to grow at approximately 10% CAGR from 2024 to 2029 [10] - **Consumer Trends**: There is a significant consumer shift towards premium functional beverage options that cater to health and wellness [9][10] Financial Highlights - **Elani Nu Performance**: - 2024 net revenues: approximately $605 million - Adjusted EBITDA margin for 2024: approximately 15% - Adjusted EBITDA dollars for 2024: approximately $88 million - Revenue CAGR from 2022 to 2024: approximately 49% [6] - **Combined Financials**: - Projected combined revenues for 2024: approximately $2 billion - Combined brands represent approximately 16% market share in the U.S. energy category [14] - Expected run rate cost synergies of $50 million over two years post-acquisition [11] Strategic Rationale - **Complementary Brands**: The acquisition enhances Celsius's position as an innovative leader in the energy drink category, combining two growing brands with clear category tailwinds [10][11] - **Target Demographics**: - Celsius targets a gender-neutral, performance-driven audience - Elani Nu focuses on female consumers aged 18-24, emphasizing health and wellness [15] Growth Opportunities - **Product Portfolio Expansion**: - Elani's product mix includes RTD energy drinks (83% of sales), protein shakes (6%), and other supplements [7] - Potential to expand into adjacent categories and new channels [17] - **Innovation and Marketing**: - Plans for flavor innovation and marketing initiatives to drive growth [31] - Seasonal limited-time offerings (LTOs) will be strategically timed to maximize market impact [46] Operational Insights - **Integration Plan**: - Full integration of Elani Nu into Celsius's supply chain expected over 24 months, with significant synergies anticipated [24] - Initial synergies projected to roll in by Q4 2025, with a run rate of approximately $4.2 million per month starting April 2026 [27] - **Financial Projections**: - Projected GAAP gross margin for combined businesses in 2025: high 40s percentage - Expected effective tax rate for 2025: approximately 25% to 26% [21][22] Risks and Considerations - **Market Volatility**: The company acknowledges risks and uncertainties that may affect forward-looking statements [3] - **LTO Timing**: The success of limited-time offerings can lead to fluctuations in sales data, complicating revenue recognition [19][35] Conclusion - Celsius Holdings is positioned to leverage the acquisition of Elani Nu to enhance its market share and capitalize on growing consumer trends towards health-focused energy drinks. The integration strategy and focus on innovation are expected to drive significant growth and profitability in the coming years.

Core Viewpoint - Celsius Holdings and Coca-Cola represent two contrasting investment opportunities in the beverage sector, with Celsius focusing on high growth and innovation while Coca-Cola emphasizes stability and consistent revenue generation [3][17]. Group 1: Celsius Holdings - Celsius Holdings is recognized as a rapidly growing energy drink brand, appealing to health-conscious consumers with its zero-sugar offerings [6][7]. - The company has expanded its market presence through the acquisition of Alani Nu, contributing approximately 20% to the energy drink category's dollar growth in Q1 2025 [7]. - Product innovation is a key growth driver, with new flavors and the launch of CELSIUS HYDRATION entering the $1.4 billion hydration powder market [8]. - Celsius has achieved significant retail distribution expansion, but ongoing investment in marketing and supply chain efficiency is crucial for maintaining growth [9]. Group 2: Coca-Cola - Coca-Cola operates globally with over 200 brands, demonstrating resilience with a 6% increase in organic revenues in Q1 2025, driven by a 5% rise in price/mix [10]. - The company's growth strategy includes brand strength, marketing expertise, and innovation, aiming to become a total beverage company [11]. - Coca-Cola has diversified its portfolio to include healthier options and is expanding into the ready-to-drink alcoholic beverage market with new product launches planned for 2025 [12][13]. - The Zacks Consensus Estimate for Coca-Cola's 2025 EPS remains stable at $2.96, indicating a more optimistic profitability outlook compared to Celsius Holdings [14]. Group 3: Performance Comparison - Coca-Cola's forward P/E ratio is 23.45x, reflecting strong earnings visibility, while Celsius trades at a higher 36.46x due to anticipated growth [15]. - Over the past 12 months, Coca-Cola's stock has risen by 14%, contrasting with Celsius Holdings' 60.3% decline, highlighting Coca-Cola's stronger performance amid macroeconomic uncertainty [15]. - The bottom line suggests that Coca-Cola's stable earnings visibility and defensive appeal make it a more reliable investment choice compared to Celsius Holdings, which faces challenges ahead [17][18].

Core Viewpoint - The stock market has experienced volatility in 2025, with some stocks outperforming despite macroeconomic uncertainties, presenting potential investment opportunities [2][3]. Group 1: Uber Technologies - Uber's share prices have increased by 42% since the beginning of 2025, boosted by a $2.3 billion investment from billionaire Bill Ackman [5]. - The company has transformed into a strong cash-generating business, doubling its free cash flow to $6.9 billion in 2024, with expectations for continued growth [6]. - Uber is positioned to benefit significantly from the rise of autonomous vehicles, leveraging its existing user base of 171 million monthly users to support AV companies [7][8]. - The stock trades at approximately 3.5 times analysts' 2025 sales estimates, with a P/E ratio of 35, and analysts project a 36% earnings growth in 2026 [9]. Group 2: Celsius Holdings - Celsius experienced a rough start in 2025, with share prices falling due to disappointing fourth-quarter results, but the stock rebounded after announcing the acquisition of the fast-growing Alani Nu brand [10][11]. - The acquisition is expected to yield $50 million in cost savings within two years, positioning Celsius for growth [11][13]. - Analysts have adjusted their earnings estimates downward by about 10% due to tariff concerns, but the stock is considered a buy at an enterprise-value-to-forward-EBITDA ratio of 16 [14]. Group 3: Netflix - Netflix's stock has risen by 28% in 2025, primarily driven by strong performance in April, with first-quarter revenue increasing by 12.5% and operating margin expanding to 31.7% [15][16]. - The company anticipates 15.4% revenue growth in the second quarter, while maintaining a full-year operating margin guidance of 29% [16]. - Netflix's pricing power and the success of its ad-supported tier are expected to enhance revenue, with management projecting ad revenue to double this year [18]. - Despite trading at about 45 times forward earnings, Netflix has generated significant free cash flow, primarily used for share buybacks, supporting future earnings growth [19][20].

Financial Data and Key Metrics Changes - For Q1 2025, revenue totaled $329.3 million, a 7% decline compared to $355.7 million in the prior year period, attributed to slowed velocity, timing of distributor incentive programs, and increased retail promotions [9][18][20] - Adjusted EBITDA for Q1 2025 was $69.7 million with a margin of 21.2%, down from $88 million and a 24.7% margin in Q1 2024 [9][19] - Gross margin expanded by 110 basis points to 52.3%, supported by sourcing efficiencies for raw and packaging materials [9][19] Business Line Data and Key Metrics Changes - International revenue grew 41% to $22.8 million, indicating strong organic growth in both legacy and new markets [10] - The Celsius brand held a 10.9% dollar share in tracked channels for the 13 weeks ending March 30, 2025, with new retail sales increasing 88% year over year [10][11] - Combined, Celsius and Elani Nu accounted for approximately 20% of total energy drink category dollar growth in Q1 2025 [12] Market Data and Key Metrics Changes - In the U.S., Celsius maintained steady category share despite increased competition and strong pricing actions from other players [11] - The sugar-free energy drink segment surpassed full sugar varieties for the first time in 2024, driving 86% of category growth in Q1 2025 [13] - The average items selling per store within the Celsius brand family increased by 4.1 items in the convenience channel during Q1 2025 [12] Company Strategy and Development Direction - The company aims to lead the modern energy category with a focus on functional beverages that align with health and wellness trends [6][17] - The acquisition of Elani Nu is expected to enhance the portfolio and drive growth, with plans for further innovation and marketing campaigns [7][12] - The company is committed to operational excellence and has appointed a new COO to drive efficiencies and scale [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positive momentum heading into Q2, despite a challenging consumer environment [6][16] - The company is focused on improving velocity, expanding household penetration, and growing share across functional beverage occasions [21][22] - Management highlighted the importance of adapting to consumer purchasing habits and maintaining a cautious approach to pricing and promotions [42][43] Other Important Information - The company plans to hold a public call to discuss modeling and financial considerations related to the Elani Nu acquisition [23] - The balance sheet remains strong with $977 million in cash and no outstanding debt prior to the acquisition [20] Q&A Session Summary Question: Insights on energy drinks category performance - Management noted that the energy category has shown resilience in both dollar and volume growth, driven by health and wellness trends and innovation [25][26] Question: Strategies to increase velocity - Management discussed a balanced approach to innovation and promotional activities, learning from previous years to drive consumer engagement [27][28] Question: Clarification on North America sales performance - Management acknowledged a slow start in Q1, impacted by increased competition and promotional activities, but expressed optimism for improvement moving forward [32][33] Question: Pricing strategies in the category - Management indicated a cautious approach to pricing, monitoring consumer behavior while being open to opportunistic pricing adjustments [40][42] Question: Shelf space expansion expectations - Management highlighted plans for new product launches and increased cooler placements to enhance visibility and drive sales [47][48] Question: Performance of Elani Nu compared to Celsius - Management noted minimal cannibalization between brands and emphasized opportunities for cross-promotion and distribution [76][77] Question: International market performance - Management reported strong acceptance and growth in international markets, with plans for further expansion [88][90]

Financial Data and Key Metrics Changes - For Q1 2025, revenue totaled $329.3 million, a 7% decline compared to $355.7 million in the prior year period, attributed to slowed velocity, timing of distributor incentive programs, and increased retail promotions [19][20] - Adjusted EBITDA for Q1 2025 was $69.7 million with a margin of 21.2%, down from $88 million and a 24.7% margin in Q1 2024 [20] - Gross margin expanded by 110 basis points to 52.3%, supported by sourcing efficiencies for raw and packaging materials [9][20] - Net income attributable to common shareholders was $34.4 million or $0.15 per diluted share, with non-GAAP adjusted diluted EPS at $0.18 compared to $0.27 in the prior year [20][21] Business Line Data and Key Metrics Changes - International revenue grew 41% to $22.8 million, indicating strong organic growth in legacy and new markets [10] - The Celsius brand held a 10.9% dollar share in tracked channels for the 13 weeks ending March 30, 2025, with new retail sales increasing 88% year over year [10][11] - Combined, Celsius and Elani Nu accounted for approximately 20% of total energy drink category dollar growth in Q1 2025 [11] Market Data and Key Metrics Changes - In the U.S. tracked channels, Celsius maintained a steady category share despite increased competition and strong pricing actions from other players [10] - The sugar-free energy drink segment surpassed full-sugar varieties for the first time in 2024, driving 86% of category growth in Q1 2025 [13] Company Strategy and Development Direction - The company aims to lead the modern energy category with a focus on functional beverages, operational excellence, and innovation [6][18] - The acquisition of Elani Nu is expected to enhance the portfolio and drive growth, with plans for further international expansion [6][10] - Marketing initiatives will focus on increasing consumer awareness and trial, with new campaigns launching in summer [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving business fundamentals and momentum heading into Q2, despite a challenging consumer environment [5][17] - The company is focused on improving velocity, expanding household penetration, and growing share across functional beverage occasions [22] - Management highlighted the importance of adapting to consumer purchasing habits and being cautious with pricing strategies [44][46] Other Important Information - The company appointed Eric Hansen as President and COO to drive operational excellence and efficiency [7] - The company plans to hold a public call to discuss financial considerations related to the Elani Nu acquisition [23] Q&A Session Summary Question: Insights on energy drinks category performance - Management noted that the energy category has shown resilience in both dollar and volume growth, driven by health and wellness trends and innovation [26][27] Question: Strategies to increase velocity - The company is implementing a balanced approach to promotional activities and focusing on consumer-centric innovation to drive velocity [28][29] Question: Clarification on North America sales performance - Management acknowledged a slow start in Q1, with increased competition impacting sales, but expressed optimism for improvement as the quarter progressed [35][36] Question: Pricing strategies in the category - Management indicated that they are cautious about pricing, monitoring consumer behavior while being open to opportunistic pricing adjustments [44][46] Question: Shelf space expansion expectations - The company expects to gain additional shelf space through innovative product launches and strategic placements, particularly for the Elani Nu brand [49][50] Question: Performance of Alani Nu compared to Celsius - Management highlighted opportunities for both brands to coexist and leverage each other's strengths, with minimal cannibalization observed [78][81] Question: Update on international market performance - International expansion has exceeded expectations, with positive reception in new markets like Australia and New Zealand [92][93]