Celsius Holdings Reports Record Q3 Revenue Amid Declining Flagship Brand Sales
Celsius Holdings (CELH) reported record third-quarter revenue of $847.2 million, a 17% increase year-over-year. However, the company's flagship CELSIUS brand saw a decline in retail sales of 7%, with brand revenue dropping to $356.8 million. Growth was primarily driven by Alani Nu, which saw revenue rise 24% to $410.1 million, and the recently acquired Rockstar Energy. Profitability faced headwinds as gross margins compressed to 46.8% from 51.3%, driven by rising aluminum, fuel, and distribution costs. While the company reported a jump in GAAP profit due to prior-year one-time charges, adjusted earnings per share actually slipped slightly to $0.41. The company attributed the flagship brand's decline to inventory rebalancing and flavor cuts.
Topics: Brand Performance Gross Margin Decline Retail Sales Revenue Growth
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