Company: CELH
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001341766-25-000080
Chunk: 52

Company: Celsius Holdings, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 2
Chunk 52
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 from $182.2 million for the three months ended March 31, 2024. Gross profit margin increased to 52.3% for the three months ended March 31, 2025 from 51.2% for the three months ended March 31, 2024. Gross profit margin improvements resulted from decreases in raw and package material unit costs, partially offset by increased promotional allowances as a percentage of revenue.

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Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") for the three months ended March 31, 2025 were $120.3 million, an increase of $21.3 million or 22% from $99.0 million for the three months ended March 31, 2024. 

The changes within SG&A expenses included:

•a $12.1 million increase in administrative expenses related primarily to higher acquisition-related costs, including transaction and legal expenses;

•a $4.9 million increase in employee costs, reflecting our ongoing investments to support growth; 

•a $2.8 million increase in marketing investments, driven by initiatives and events aimed at enhancing brand awareness to reflect our commitment to long-term growth, helping to ensure that our brand remains top-of-mind with consumers and well-positioned in an increasingly competitive market; and

•a $1.5 million increase in all other SG&A expenses.

Other Income (Expense)

Total other income for the three months ended March 31, 2025 was $9.0 million, which reflects a decrease of $0.3 million from $9.3 million for the three months ended March 31, 2024. This decrease was primarily attributed to lower interest income earned on cash held in our money market accounts, driven by a decline in market interest rates.

Provision for Income Taxes

For the three months ended March 31, 2025, the Company’s effective tax rate was 27.2%, as compared to 15.8% for the same period in 2024. The increase was primarily driven by a shift in stock-based compensation-related impacts. In the current period, the tax rate was higher than the U.S. federal statutory rate of 21.0% due to disallowed stock-based compensation expense and state income taxes. In the prior-year period, the rate was lower than the statutory rate due to net tax benefits related to stock-based compensation, partially offset by similar disallowed expenses and state taxes.

The Company