Celsius Holdings' Alani Nu Buyout Emerges as Growth Catalyst in Q2

Celsius Holdings, Inc.’s CELH acquisition of Alani Nu (completed on April 1, 2025) emerged as a solid growth catalyst in the second quarter of 2025. The company’s reported revenues surged 84% year over year to $739.3 million for the quarter, of which Alani Nu accounted for $301.2 million. 

Alani Nu outperformed on retail metrics, with retail sales rising 129% year over year for the 13 weeks ended June 29, 2025 and 39% sequentially. The brand captured a 6.3% dollar share in the U.S. ready-to-drink energy category for that period, up 3.1 percentage points year over year and one full point sequentially.

Management highlighted limited-time offers such as Sherbet Swirl and Cotton Candy as primary sales drivers. New LTOs, including Witch’s Brew and Pumpkin Cream, also contributed to momentum across the Alani Nu lineup. The company described the brand’s innovation strategy as a meaningful source of consumer engagement and incremental sales.

Alani Nu added significantly to Celsius Holdings’ record adjusted EBITDA of $210.3 million in the quarter and helped raise the company’s energy portfolio share to 17.3%. The contingent payment linked to the Alani Nu deal was also raised to the full $25 million, reflecting higher-than-expected sales.

Integration efforts helped Alani Nu improve its product mix and reduce costs. This led to higher gross margins, even after accounting for a $21.7 million increase in inventory costs. Overall, these results show that Alani Nu is a strong and immediate growth driver for Celsius Holdings in the second quarter.

Growth Catalysts for MNST & KO

Monster Beverage MNST leaned on product innovation and international expansion as its growth catalyst in the second quarter of 2025. MNST reported net sales of $2.11 billion, up 11.1% year over year, with the gross profit margin rising to 55.7%. Monster Beverage highlighted continued innovation and merchandising initiatives that supported strength across regions and channels.

The Coca-Cola Company KO leaned on premiumization and stronger price/mix as its growth catalyst in the third quarter of 2025. KO reported net revenue growth of 5% to $12.46 billion, while its organic revenues jumped 6%, with price/mix up 6%. The Coca-Cola Company also pointed to its recently completed refranchising steps and deeper innovation in its portfolio as further contributors to margin expansion.

CELH Stock’s Price Performance, Valuation & Estimates

Shares of Celsius Holdings have surged 140.7% year to date against the industry’s decline of 7.5%.

CELH Price Performance Versus Industry

From a valuation standpoint, CELH trades at a forward price-to-earnings ratio of 46.14, higher than the industry’s average of 15.55.

CELH Valuation Compared to Industry

The Zacks Consensus Estimate for CELH’s 2025 and 2026 earnings implies year-over-year growth of 60% and 28.3%, respectively.

Celsius Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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