Tue, May 6, 10:08 AM (6 days ago)
**Celsius Holdings, Inc. (CELH) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $329.3 million, a 7.4% decrease from Q1 2024 ($355.7 million). - **Gross Profit:** $172.4 million, a 5.4% decrease from Q1 2024 ($182.2 million). - **Gross Profit Margin:** Increased to 52.3% from 51.2% in Q1 2024. - **Net Income:** $34.4 million, a 47% decrease from Q1 2024 ($64.8 million). - **Earnings per Share (EPS):** Basic $0.15, diluted $0.15, down from $0.28 (basic) and $0.27 (diluted) in Q1 2024. - **Cash and Cash Equivalents:** $977.3 million, up from $890.2 million in Q4 2024. - **Working Capital:** $993.6 million. **Operational Metrics:** - **Selling, General, and Administrative Expenses (SG&A):** $120.3 million, a 22% increase from Q1 2024 ($99.0 million). - **Other Income:** $9.0 million, a slight decrease from $9.3 million in Q1 2024. - **Effective Tax Rate:** 27.2%, up from 15.8% in Q1 2024. **Trends and Uncertainties:** - **Revenue Decline:** Primarily due to timing differences in promotional activations and increased promotional allowances. - **Gross Profit Margin Improvement:** Driven by decreased raw and package material unit costs. - **SG&A Increase:** Attributed to higher acquisition-related costs, employee investments, and marketing initiatives. - **Acquisition of Alani Nu:** Completed on April 1, 2025, for $1.275 billion in cash, 22.5 million shares, and up to $25 million in additional cash based on performance. - **Legal Proceedings:** Ongoing litigation and regulatory inquiries, with potential material impacts. - **Market Risks:** Exposure to commodity price fluctuations and competitive pricing pressures. **Future Operations Impact:** - **Integration of Alani Nu:** Expected to drive growth in the performance energy and health-focused wellness segments. - **Debt Financing:** Secured $900 million term loan and $100 million revolving credit facility to fund the Alani Nu acquisition. - **Liquidity:** Strong liquidity position with sufficient cash flow from operations to meet obligations and strategic investments. - **Strategic Investments:** Focus on innovation, marketing, and expanding distribution channels to drive long-term growth.