Despite continued strong growth driven by its acquisition of Alani Nu, Celsius (CELH 0.27%) has seen its shares struggle to gain any traction. The fitness drink maker's stock is down around 25% on the year -- and nearly 50% off its highs.
However, with sales of its newly acquired Alani Nu brand soaring and the shares at low ebb, let's see if now could be a good time to buy Celsius stock.
NASDAQ: CELH
Key Data Points
Alani Nu growth continues
Energy drink maker Alani Nu, which was acquired last April, once again helped fuel Celsius' overall growth, with pro forma revenue jumping 60% to $368 million. The company also saw $67 million in sales from its recently acquired Rockstar brand, another line of energy drinks. Revenue from the flagship Celsius brand, meanwhile, returned to growth, up 6%.
Overall, company sales surged 138% to $782.6 million. Meanwhile, retail sales increased by 29.8%. Celsius brand retail sales were up 6%, while Alani Nu retail sales doubled. Rockstar's retail sales fell by 13%.
Sales in North America surged 144% to $747.3 million. International sales, meanwhile, climbed 55% to $35.3 million. The company launched its Celsius brand in Spain in the quarter and will launch in Portugal next.
The company saw shelf-space gains in the quarter, with Celsius gaining about 17% more shelf space and Alani doubling its shelf space. Rockstar maintained its current shelf space.
Gross margins fell 400 basis points to 48.3%, but improved 90 basis points compared to the fourth quarter. The company continues to deal with elevated costs with aluminum and freight, but expects gross margins to return to the low 50% range if commodity prices ease.
Turning to profitability, adjusted earnings per share (EPS) climbed 128% to $0.41, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 181% to $195.5 million.
Image source: The Motley Fool.
Is Celsius stock a buy?
Alani Nu continues to look like a great acquisition and should continue to see strong growth this year, given the shelf space gains it has attained. Meanwhile, the Celsius brand could be on the road to recovery, with solid shelf space gains in place and the recent launch of its Fizz Free line and new innovative limited-time offerings set for the summer and continued international expansion.
Looking at valuation, the stock now trades at less than 21 times 2026 analyst earnings estimates and 16.5 times 2027 estimates. Given its current growth outlook, that is an attractive valuation. With the strong growth and huge momentum Alani is seeing -- and with the shares trading well off their highs -- Celsius looks like a solid growth stock to buy now.
