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Celsius Holdings turned in Q1 with explosive growth riding its acquired Alani Nu brand, tho core Celsius brand delivered lesser mid-single-digit increase that would have cost it some share within robust energy category. Revenue grew 138% to record $782.6 mil. In core N Amer market, sales surged 144% to $747.3 mil while Int'l revenue grew 55% to $35.3 mil on growth in Nordics, among co's earliest overseas footholds, and expansion markets UK, Ireland, France, Australia, New Zealand and Benelux. Gross margin narrowed to 48.3% from 52.3% as additions of Alani Nu last Apr 1 and Rockstar Energy last Aug 28 diluted margins. Also factors were severe winter weather and long-haul freight as Rockstar inventories were rebalanced geographically following that brand acquisition. Operating income more than doubled, +167%, to $139 mil thanks to what CEO John Fieldly heralded as disciplined execution. In pre-opening trading, CELH shares initially popped tho they've since settled back to less than 1% gain. As noted, the story was mainly Alani Nu, which doubled sales at retail, while Celsius edged up lesser 6% and restaging Rockstar contracted 13%. CFO Jarrod Langhans placed Alani's pro forma growth at 68% to $368 mil in period. By now, Alani's 9% $$ share nearly matches Celsius brand's 9.9%; throw in Rockstar's 2% and portfolio collectively holds 20.9% of thriving category. CELH is 6th-largest bevco after Big 3 soda players, Monster Bev and Red Bull. Its portfolio contributed one-third of total category's growth in Q1, per deck presented on call. Still, in energy segment that grew well above 10%, Celsius brand would seem to have lost share.On distribution side, integration of Alani Nu into Pepsi system was essentially completed in Dec/Jan timeframe. The anticipated $50 mil in synergies duly came in, CEO reported. Rockstar distribution integration is anticipated to be complete in coming weeks. CELH accrued $40 mil in distributor termination fees in Q1, atop $264.1 mil for 2025, financial tables indicated. As reported, co continued to build out global footprint with enlistment of Suntory as distribution partner in Spain. Its enhanced int'l biz now is operating out of base in Dublin.On investor call this morning, innovation was key focus. Among initiatives, co continues to build out Fizz Free noncarb subline of Celsius brand as differentiated offering worth additional retail space via items like Pink Lemonade and Dragonfruit Lime. And it's learning with partner PepsiCo to play the LTO game starting with Cherry Bomb, moving to Lime Slush and now adding Electric Vibe "inspired by soccer culture" to ride summer World Cup excitement, with another LTO due later this spring. As prexy/COO Eric Hanson noted on call, those entries drive trial and awareness while winning incremental consumers to category. Some eventually graduate to permanent role in mix.Does Celsius Brand Remain Healthy? On earnings call this morning, a coupla Wall Streeters zeroed in on more sluggish performance of Celsius brand. Was that a result of ongoing sku rationalization that co had disclosed earlier this year, or innovation flow or maybe greater cannibalization than anticipated from Alani Nu? Fieldly and Hanson expressed no concern about path of core brand. Fieldly pointed to key initiatives such as trying to enforce greater consistency of flavor selections across retailers while continuing to boost Fizz Free subline, which grew velocity in Q1. "One thing we know, we need to have consistent flavors and sku's amongst all the retailers," he said. The sku optimization should boost velocities too as it's reflected in spring resets at retail, he indicated.

Celsius Turns in Another Record Topline in Q1, Riding 68% Jump in Alani Sales, Tho Core Celsius Brand Subdued

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