Celsius Holdings, Inc. Q4 FY2025 earnings call

Management discussed managing and investing in Celsius, Alani New, and Rockstar portfolios to broaden reach. Alani New made progress in integration, achieved record sales, and saw successful LTO. Rockstar integration on track. International expansion with prioritized market selection. New brand studio for marketing capabilities. Innovation including Fizz Free line and LTOs.

Celsius brand focused on strengthening momentum, with 12.8% scanner data for Q4 but 7.7% decline in underlying gap sales; Alani New achieved record net sales of $370 million in Q4, up 136% quarter-over-quarter pro forma and contributed $1 billion in net sales in nine months since acquisition; Rockstar had $45 million net sales in Q4 and $56 million full-year, with international as long-term growth opportunity.

Expect gross margins to return to low 50% range by end of 2026, with Alani integration completed by end of Q1 2026 and Rockstar by end of Q2 2026. Confident in stabilizing and growing Rockstar business over next few years.

Risks include integration challenges during Alani and Rockstar integration, potential market volatility affecting sales, and working capital volatility during transition periods.

Q: About shelf space gains and Q1 sales impact for Celsius.

A: Shelf gains materialize by end of spring, expect improvement in Q1.

Q: Unpack 25 million net benefit from Celsius vs Alani.

A: Tightening peaks and valleys with Pepsi partnership, managing portfolio holistically.

Q: Impact of Midwest premium on gross margins.

A: Working on cost structure integration, expecting margin improvement with orbit model and mix.

Q: Sales predictability with Pepsi deal and margin evolution.

A: Portfolio allows SKU prioritization, innovation drives growth, revenue management optimized.

Q: Distribution gains quantification and velocity growth.

A: Category expanding shelf space, Alani entering new regions with lower initial velocity but building momentum.