The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how beverages, alcohol, and tobacco stocks fared in Q2, starting with Celsius (NASDAQ:CELH).
These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.
The 15 beverages, alcohol, and tobacco stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1% below.
Thankfully, share prices of the companies have been resilient as they are up 5.2% on average since the latest earnings results.
Best Q2: Celsius (NASDAQ:CELH)
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Celsius reported revenues of $739.3 million, up 83.9% year on year. This print exceeded analysts’ expectations by 14%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
John Fieldly, Chairman and CEO of Celsius Holdings, said: “Celsius Holdings delivered strong results in the second quarter, supported by solid sales growth for the CELSIUS and Alani Nu brands and operational efficiencies across our business. As momentum builds across the energy category, our brands continue to lead - driving household penetration, expanding shelf space and outperforming expectations. We believe modern energy is one of the most exciting growth opportunities in beverages today, and Celsius Holdings is defining the category’s future. We remain focused on disciplined execution, organizational excellence and long-term growth.”
Celsius pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 42.7% since reporting and currently trades at $61.16.
Zevia (NYSE:ZVIA)
With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.
Zevia reported revenues of $44.52 million, up 10.1% year on year, outperforming analysts’ expectations by 6.6%. The business had a stunning quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 23.5% since reporting. It currently trades at $2.63.
Is now the time to buy Zevia? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Tilray (NASDAQ:TLRY)
Founded in 2013, Tilray Brands (NASDAQ:TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.
Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin estimates and a significant miss of analysts’ EPS estimates.
Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 68% since the results and currently trades at $1.17.
Read our full analysis of Tilray’s results here.
Boston Beer (NYSE:SAM)
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Boston Beer reported revenues of $587.9 million, up 1.5% year on year. This result was in line with analysts’ expectations. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 8.5% since reporting and currently trades at $218.97.
Read our full, actionable report on Boston Beer here, it’s free.
MGP Ingredients (NASDAQ:MGPI)
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
MGP Ingredients reported revenues of $145.5 million, down 23.7% year on year. This print surpassed analysts’ expectations by 3.7%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.
MGP Ingredients scored the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $29.19.
Read our full, actionable report on MGP Ingredients here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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