Celsius Holdings (CELH) earnings

Claimed

• Second quarter revenue reached $818 million, representing an approximately 11% year-over-year increase for the portfolio.
• Alani Nu net sales grew approximately 21% year-over-year to $364 million, with retail sales up 56% in tracked channels.
• Alani Nu surpassed $1 billion in retail sales in tracked channels during the first half of the year.
• The Rockstar integration was completed on the planned 9-month timeline in June, fully transitioning the brand to the company's platform.
• Gross margin remained consistent with the first quarter at approximately 48%, despite a challenging commodity environment.
• Adjusted SG&A was 28.6% of revenue, down from 32% a year ago, while revenue grew 11%.
• The company repurchased approximately $100 million of stock in Q2, contributing to $124 million in repurchases for the first half.

Qualified

• Brand CELSIUS net sales were down approximately 12% year-over-year, with retail sales in tracked channels down 2% in the second quarter.
• Management expects brand CELSIUS's third quarter performance to be similar to the second quarter due to ongoing SKU optimization and cycling prior year innovation.
• Gross margin expansion is largely offset by current diesel and aluminum levels, with Q3 gross margin expected to remain in the high 40s.
• Adjusted EBITDA decreased to $184 million (22.5% of revenue) from $210 million in the prior year, attributed to commodity pressure and brand investments.
• Management acknowledged that the SKU rationalization for CELSIUS was
• too deep
• and would have been handled differently in hindsight.