Boca Raton, Fla.-based Celsius Holdings Inc. reported its financial results for the three months ending March 31. The company marked a 65 percent increase in revenue to $3.9 million in the quarter, with domestic sales increasing 16 percent and international sales increasing 133 percent, it says. As such, gross profit increased 61 percent to $1.4 million.
More specifically, domestic retail sales increased 21 percent, compared with the prior-year period, and health and fitness sales increased 97 percent. This was offset by a domestic Internet sales decrease of 12 percent as a result of out-of-stock replenishment system errors, which have been corrected, the company says.
“We are very pleased to report continued strong financial results and a record first quarter as revenues grew to $3.9 million,” said Chief Executive Officer Gerry David in a statement. “The quarter was highlighted by the growth in existing international accounts and receipt of our initial orders from Brazil and Dubai. We also received our import and distribution certificate from the People’s Republic of China. Domestically, we continued our sales growth even though retailers and distributers were negatively impacted by the harsh record winter. We are making excellent progress, and our products are resonating well with consumers. I am very encouraged that we continue to deliver revenue growth.
“In addition, as a result of our marketing initiatives, we are attracting new daily consumers and industry-wide brand recognition,” he continued. “Celsius’ public relations efforts have generated over 200 million impressions in the first quarter of 2014, while our digital radio campaign continues to deliver 9 million ads each month that are focused in our ‘drill deep’ markets.”
The company signed worldwide endorsement agreements with rapper Flo Rida, the NASCAR race team Tri-Star Motor Sports, and NASCAR driver and tri-athlete Blake Koch in the quarter to promote the brand.
Operating expenses for the quarter totaled more than $1.9 million, a 56 percent increase compared with the prior year. A significant portion of the increases are associated with increases in marketing programs, including $596,000 related to increased digital radio marketing programs, sampling programs and celebrity endorsement licensing agreements.
For more information about Celsius Holdings and its negative-calorie drinks, visit www.celsius.com.