Celsius is riding high after posting a record $1.36 billion full-year 2024 revenue and announcing its acquisition of Alani Nu in its earnings report yesterday, but it also revealed some challenges in recent months. The energy drink maker saw revenue fall 4% year-over-year in Q4 due to higher domestic allowances from its distributor incentive program. Here are some key numbers:
- In the quarter ending December 31, revenue was $332.2 million, compared to $374.4 million in 2023. However, revenue still beat Wall Street analysts’ Q4 estimates of $326 billion
- North America revenue declined 6% to $312 million.
- International sales climbed 39% to $20.3 million, primarily driven by organic growth in Celsius’ EMEA markets
- For FY 2024, Celsius saw retail sales rise 22% and category market share grow 160 basis points
In a statement, CEO John Fieldly said Celsius “has the right strategy to drive sustained, long-term growth” and that it expects the $1.8 billion purchase of Alani Nu to “further strengthen [its] position as an innovative leader in the large, growing global energy category.
The Florida-based energy drink maker contributed 30.3% of all category growth year-over-year in 2024, per the earnings report. Additionally, Celsius was the number three energy drink brand in the U.S. with a total share of 11.8% across tracked channels, trailing behind Red Bull and Monster Energy.
In an effort to attract more consumers to the energy category, Celsius in 2024 unveiled a slate of zero sugar innovations, launching six new flavors across its product lines, entering the hydration category with on-the-go powders, expanding distribution of two “lead-launch” flavors and introducing new multi-pack varieties.
Last quarter, Celsius acquired long-time co-manufacturer Big Beverages for $75 million in cash, which has supported the company’s innovation, R&D, supply chain control, and is expected to provide both near and medium-term financial benefits.
“We are pleased that our strategic initiaves are driving long-term share gains and strong retail sales growth. We are investing behind our growth through targeted strategic investments in vertical integration and capital efficient expansion,” said Jarrod Langhans, CFO at Celsius, in a statement.
With the aforementioned acquisition of Alani Nu from co-founders Katy Hearn and Haydn Schneider and Congo Brands, is hoping to capture a greater share of wellness-focused consumers’ wallets. Celsius expects the female-focused performance drink brand to drive topline scale and to be accretive to cash EPS in the first full year of ownership, per the earnings release.
“Alani Nu offers a compelling strategic rationale and strong financial benefits. We believe our capital allocation strategy is fully aligned with our vision to be a high-growth leader and deliver the greatest value to our consumers and shareholders,” said Langhans.