Celsius tops Q3 profit and revenue estimates on Alani Nu growth

Celsius Holdings (CELH) topped third-quarter estimates for profit and revenue as revenue rose 16.8% from a year earlier to $847.2 million.

Shares fell 1.9% at 10:02 a.m. ET, from a $30.75 close.

Adjusted diluted earnings per share were 41 cents, above the 35 cents consensus.

Here's how the company did:

• Revenue: $847.2 million vs. $725.1 million a year earlier, topping the $815.74 million estimate
• Adjusted EPS: 41 cents vs. 42 cents a year earlier, above the 35 cents consensus estimate
• Diluted EPS: 39 cents vs. a loss of 27 cents a year earlier
• Gross margin: 46.8% vs. 51.3% a year earlier

Net income was $127.0 million, compared with a loss of $61.0 million a year earlier. Adjusted EBITDA was $198.6 million, compared with $205.6 million a year earlier.

Brand results

Alani Nu revenue rose about 24% to $410.1 million, helped by wider distribution within the PepsiCo DSD system and the limited-time Witch's Brew flavors.

CELSIUS brand revenue fell about 6% to $356.8 million, from $381.0 million, due to SKU optimization, shipment timing and softness in the club channel.

CELSIUS brand international revenue rose 78% to $41.0 million, from $23.1 million, led by the Nordic markets and expansion markets including Iberia and the UK.

Rockstar Energy contributed $80.3 million in revenue, driven by strong performance in Canada on order timing.

Margins and buybacks

Gross margin fell to 46.8% from 51.3%, as commodity costs, primarily aluminum and fuel, rose and the mix of DSD sales increased.

Chairman and CEO John Fieldly said the company is focused on "improving margins through revenue growth management, supply chain and cost initiatives."

The company repurchased about $44.5 million of shares in the quarter under its $300 million authorization.

The company also appointed Alex Zigliara as President, CELSIUS, and Rishi Daing as President, Rockstar Energy & Emerging Growth.