Celsius Just Posted Record Revenue, and Rockstar Got the Haircut
Celsius Holdings grew revenue 17% to $847.2 million in Q3, with Alani Nu doing the heavy lifting while the flagship Celsius brand and Rockstar both pulled back.
Celsius Holdings posted record third-quarter revenue of $847.2 million, up about 17% from a year ago, but the growth story inside the number is less about the brand on the label and more about the one it acquired. Alani Nu, the better-for-you energy drink Celsius bought for $1.8 billion last year, grew revenue 24% to $410.1 million, driven by expanded distribution through PepsiCo's delivery network and a run of limited-edition flavors.
The namesake Celsius brand told a different story, with revenue falling 6% to $356.8 million as the company trimmed its SKU lineup and worked through softness in club retail, even as international Celsius sales jumped 78%. Rockstar Energy, the third brand in the portfolio, pulled in $80.3 million, mostly on strong Canadian order timing, while U.S. retail sales fell more than 13% on planned product cuts.
The company also announced leadership changes to match its new three-brand reality, naming separate executives to run Celsius and Rockstar going forward. Gross margin slipped to 46.8% on higher aluminum and freight costs, a reminder that even a portfolio growing this fast still has to answer for what it costs to can the stuff.
Source: Celsius Holdings, Inc.
Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →
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