Celsius Holdings, Inc. reported its second consecutive profitable quarter yesterday during a conference call with investors. Powered by a 39 percent increase in international revenue, the calorie-burning beverage company saw overall revenue growth of 20 percent for the quarter, bringing in $4.65 million compared to last year’s first quarter revenue of $3.87 million. Domestically, the company saw its revenue fall 6 percent, which Celsius’ Chief Financial Officer John Fieldly attributed to an increase in promotional allowances.
Celsius CEO and President Gerry David also took time to discuss the company’s recently announced strategic partnership with hip-hop mogul Russell Simmons, his ex-wife Kimora Lee Simmons, and Asia’s richest man, Li Ka Shing, who collectively invested $15.95 million in the Celsius last month.
David noted that Li Ka Shing’s involvement in the brand will “provide significant opportunity for global expansion,” while Celsius’ new association with the Simmons will advance the company’s presence within urban culture.
“Russell and Kimora’s influence and consumer reach to the urban culture was demonstrated when within 36 hours of our announcement of the new partnership, over 300,000,000 impression were generated to consumers regarding the Celsius brand,” David added.
During the Q&A session David also revealed the that company has developed a flavored, all-natural formulation to get its foot in the door in retailers with all-natural requirements, as was the case in its recently added distribution in Lifetime Fitness centers. Now, Celsius has two products with all-natural sweeteners, a lemonade tea and sparkling pineapple lemon flavor, which David says will allow for the brand’s entry into the natural products space and retailers like Whole Foods.