Florida-based energy drink maker Celsius Holdings, Inc. reported record first quarter revenue in its Q1 2024 earnings report this morning, rising 37% to $355.7 million, up from $259.9 million in 2023.
- Gross profit for the quarter was up 60% to $182.2 million, versus $113.8 million in Q1 2023.
- As of April 14, the brand held an 11.5% share in the U.S. energy drink category in MULO and convenience retail stores, up one point from Q4 2023 and four points from Q1 2023.
- North America continues to provide the bulk of the brand’s revenue at around $339.5 million (+37% year-over-year) while international sales (excluding Canada) represent $16.2 million (+43%).
Speaking to investors and analysts on an earnings call this morning, Celsius CEO John Fieldly noted that first quarter revenue was negatively impacted by inventory movements by the brand’s “largest customer,” which was beyond the company’s control, and warned that future inventory fluctuations are expected to occur through subsequent quarters.
“When you look at the inventory levels, I think our partners are at really good inventory levels right now,” Fieldly said during the call’s Q&A portion. “We’re maintaining deliveries, we’re keeping product in stock … so product is flowing.”
“[PepsiCo is] maintaining supply levels, servicing customers, we have greater ACV, the resets have gone well,” he added.
Despite some inventory hiccups, Fieldly emphasized in his prepared remarks that the brand’s continued growth and focus on new innovation, highlighting a 98.4% ACV while the energy category continues to grow across all tracked channels.
The company estimates retailer spring resets were around one-third complete at the end of the quarter, but once concluded Celsius is “expecting our best shelf space gains in the company history.” Fieldly added that the company aims to gain double and triple facings in existing retailers, noting that Celsius is already “gaining those secondary and third placements, and better placements” in certain retailers, citing recent expansion in Public as one example.
“The importance of these space gain increases and placements and improvements cannot be overstated,” he said. “The visual impact of multiple full shelves of cold Celsius in convenience stores and coolers and in the grocery shelves is a powerful in-store billboard and showcases our portfolio.”
The brand’s Celsius Essentials line grew ACV to 54.5% with over 95,000 stores and an average of 4.1 items sold per store. Club channel sales were among the strongest growth drivers, representing $63 million (+36%) in the quarter, while Amazon grew 30% to $28 million and case volume in foodservice jumped 186% thanks to the brand’s distribution agreement with PepsiCo.
To support its expansion, Fieldly said the company is continuing to hire and has already grown its sales and key accounts teams by 85% and by the end of 2024 expects to have 3x as many sales staff as it had at this time last year.
The quarter also saw the promotion of several Celsius executives to c-suite level positions, including Kyle Watson, previously VP of marketing, as Chief Marketing Officer, Tony Guilfoyle as Chief Commercial Officer, Toby David became Chief of Staff, and Paul Storey, previously SVP operations, was named Chief Supply Chain Officer.
Celsius is also growing its international presence, launching in Canada in January and already earned a 5.5% market share of the energy category, Fieldly said. Also in Q1, the company announced plans to expand to France, Australia, Ireland, the U.K. and New Zealand, “executing our stated strategy to pursue measured international growth, balancing investment levels in new markets,” he added.