Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Celsius Holdings Inc.

First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

pleasure Celsius. your my Investor Cameron now for Relations is to host, introduce Donahue, It Cameron. you, Thank

You may begin.

Cameron Donahue

First Conference Thank We us Holdings appreciate operator you XXXX you, and joining today good for Call. afternoon everyone. Quarter Earnings Celsius

Joining and Jarrod Executive President John Chief the me Financial Officer; Officer. call on Chief are Fieldly, today Langhans, and

begin we'll time. remarks, prepared to the that the call your at questions Following open and instructions will

celsiusholdingsinc.com. and our earnings the press all afternoon, materials released this on will company The company's earlier website, available be release

before the be later webcast turn to the announcement an reminder, release. over a available As and live be audio I call today John, call link our same replay accessed conference will press in can and with

law, forecasts, of be to this Please aware beyond expectations including X, forward-looking May to our no forward-looking statements. by Holdings in for call filings other that these control. you statements, are that review to extent with information our required uncertainties, undertakes encourage These the and risks management and Harbor information. of the disclaims full statements contain company's release in numerous available Except obligations any to additional today's statements contained based many involve as any We Celsius also quarterly as may Safe duty update and XXXX. press SEC and on which are the

and the With John his the John? that, turn let remarks. Chief Executive Officer, President just over to call for prepared me Fieldly,

John Fieldly

exceeded million, of first of first thank sequentially. saw afternoon And of from $XXX $XXX sequential you the growth increase sales the $XX today. and fourth million, XX% joining million, $XXX of approximately year's or a the Good the sales quarter time company in history. million from achieved it million we exceeding threshold Cameron. revenue of for everyone, increase last quarter $XXX XX% by you, quarter Thank record for We for first us an

in the and million, to and energy sales growth category continues CELSIUS categories year ending driver as revenue to million total was retail from for of to ago growing XX U.S. of top XX% and the the be dollar increased approximately up America last number year March $XXX on XXXX, XXX% million increased within quarter the contributed XXX.X% quarter. the North $XXX the $XXX Our an growth of brand in overall ago of for MULO+C XX, the growth versus period. increase weeks energy, one

IRI a the in X.X%, X is March Per energy year new last in reaching X.X% CELSIUS XX, number the total share United share of the States market record as ago. in a brand drink weeks MULO+C four its totaling earnings XXXX energy doubling

and synchronize we Celsius Pepsi continue opportunities continue for to future organizations our As efficiencies. to see

an build the quarter-over-quarter inventory quarter In first we XX, from XXXX. experienced December

inventory and build levels. We retailer due expect anticipated to was resets a this increase

We make will significant to work will the any adequate is is there there shareholders inventory warehouse sure continue deltas with center shortly. Jarrod impact inventory to update inventory levels. additional details provide if and Pepsi quarterly that

the for channel see million in XX those with compared to ending quarter all quarter over non-tracked, growth including We continue XX, totaling to XXXX. XX% the across first Club sales up of March XXXX, channels, the $XX million

XX, a last data. four-week is new Energy Category, just the second Drink ending of XXXX, of total CELSIUS energy a We Stackline as on XX.X category now brand drink Amazon. per U.S. energy the hit largest also the with period record April share

and and and opportunities hospitals, we're hotels, growth time. we in scale eateries seeing colleges, to in continue PepsiCo addition, casinos, more grow foodservice non-tracked Overall and In to of opportunities foodservice significant represented universities, our about more. and gaining are approximately channels over XX% distribution expand revenues

expanding us across in PepsiCo runway retail, of channels, We and including growth convenience our a see variety and with been of partnership foodservice. have extremely ahead long of happy a

CELSIUS our data number energy as for ending X.X% year in an highlighted March a XX, X.X from market As MULO+C in three period in XXXX energy total a stated doubling the four-week spends IRI the high. United now has is its share, all-time supplement per ago the share brand States reaching earning drink new

In addition record teams Pepsi. both grew to tremendous CELSIUS in in XX.X% its XX.X% a our the a achievement period, which by partner ACV year ago MULO+C our versus is and

period ACV in at in versus channel And an gained to end convenience across we now availability of CELSIUS have prior with year compared gained in opportunity XX.X a points XX.X% This year. prior of the awareness are to more gaining country the the growth as ACV greater a convenience additional has XX.X% provides tremendous the consumers. the and

totaling XX% million Internationally the quarter, $X.X going for We first grew believe compared is growth in $XX.X significant PepsiCo. quarter forward growth rate of opportunity to for there million with international XXXX. the sales

our their in network, began distribution U.S. we preferences been discussions the changes and better-for-you offerings. begun just with in initial consumer transition opportunities the reflecting capitalize partnership distribution to to we see have we on While our scale on for the significant focus future, Pepsi global initial and has

our planning roll While likely XXXX and do With production, marketing. for being to we said, forward look the transition additional opportunities expect with early around to taken the we to has of distribution out announce U.S. year international to that logistics, expansion internationally in probably future. a focus majority of the details date, XXXX

and of an The across a results not of record gaining G&A. This by million benefits programs company of for leverage as non-GAAP in period. operational driven but as first sales a achieved sales, the the record the XX% quarter saw we of only timing was over the marketing representing well sales adjusted also $XX.X across EBITDA

to SG&A, and number some grow during expect across to the QX saw to good season continue QX growth, investments we we as this into drive increase awareness we of and entering campaigns awareness. our very would Although profitably our are leverage summer a year brand of designed of

optimize gross half expected XXXX back more and efficiencies. our in gain through incremental synergize efficiencies and the supply from chain we sees opportunities of improvements company The as margins to drive profit

addition, as see scale additional drive In leverage to in we we our efficiencies further opportunities SG&A.

company quarterly quarter, our by the and QX was recorded sales over $XX my revenue history in exceeded highest million. prepared of previous -- in first record growth To remarks, dollar we XXXX, highest previously as quarterly the achieved we in close

market XX% gaining the share in in operating while are fastest quarterly pace time We the at model. same margin highest company over history, our leverage the drove of the at EBITDA demonstrating

category, about have significant opportunities now Celsius category and the as further an entire and of and growth the in believe existing is are shelf resets, customers for our We energy continue we with leader to scale in in spring both placements. our excited partnership. space ahead established additional driving incremental while optimizing runway us growth new driving the leverage we

over call our his remarks. Langhans, Officer I Jarrod? to will Jarrod prepared Chief now for the Financial turn

Jarrod Langhans

Thank you, John.

channels and growth in the distribution C&G North including saw well Turning our XX% to revenues to of our first American from XXX% North increases increases the channels quarter our American $XXX XXXX. an distribution the in where continued sales first volume behind as primary were same including quarter Pepsi of increase million were revenue increase factors The period driven across from the financial business increase million, foodservice. SKU as number new traditional within by strong distribution in results, approximately system, $XXX integration $XXX across a is of board, related million, where an we into

growth. significant post We've also ACV seen velocity our increase our

that as saw anticipate the days sales. to in which incremental During within the to million the this in we would sustained quarter see the mixing end the we selling million XXXX, an season would roughly We centers across be steady outstanding increase through to our $XX $XX inventory summer footprint. of growth relative equated continue to build

Gross margins in was of quarter margins leverage first prices profit write-offs. were part the in million year approximately average model to the ago first increased dollars by and our compared of the approximately due million to from freight XXX% can Gross year quarter. of a The XX% $XX and profit for few quarter. million, prior in inventory XX% the revenues lower improvement in for to offset profit orbit increased up $XXX quarter gross

some system were believe that order we our that to in to continue looking during the while And new margins with the half year, distribution out meet half demand. goal operating the of to new in back year. across second system the quarter pressure the will with in first one we of keeping upside the distribution we the efficiencies year mid-forties to system began shelves maintaining number the supply of better we was drive operate QX within consumer into while the within continue chain with gross and our optimize stocked optimization our the we and and our integrate fully

approximately were within during due timing in we XX%, historical was activation. months ended marketing marketing and spend, million, the Sales increased three by an with sales of March approximately our the XXXX $XX expenses expense less of increase saw offset investment XX, line quarter this to for although

As sales our historical sales, with year. to and expenditures and a run the year compared expect a XX.X% percentage prior marketing marketing remain XX.X% to On of in we to was basis consistent continue sales full rates.

quarter builds timing benefited this well by noted, mixing inventory centers. our As within as some as

as see in with well quarter XXXX. against expense for employee XXXX for administrative grow, relative first in fees area year, consulting G&A that building XX% This back months increase of expect and we scale line the shop this QX as March costs at legal, XXXX audit $XX to begin due with as sales versus to were as of in the million, to prior expenses stock-based associated a growth XX, to the such was three fees. as compensation, increased of leverage General is an which other our We'd was and increase administrative X% including XXXX. during a approximately can expectations. percentage X%

many across controlling, over for sales marketing and an in Moving buildout, our back the year, the of XXXX number processes across and us transparency business. great teams. driving improvements, that with FP&A, to will effective deliver and consistency with environment drive we forward significantly to controlled our HR, look We team office assist expanded to adding team we further last team these the IT, successes have as members office look members operations, our and value a back legal

inquiries we this label have requests not do From received, that have any have In our with and further us. in are a or but to review, at that are point behind SEC cooperate the legal time. settlement any pleased to that perspective, on to regard we with we said, updates the proceedings can continue closed

March on Focusing representing of and excess within cash XX, capital and Included funds primarily million million. was Pepsi approximately of which networking the liquidity of transition. quarter, $XXX XXXX, distributor balances approximately provided as now first had our for million, by is cash balance we resources, $XX to $XXX capital due approximately Pepsi

first working the which growth $X million by for flows used in activities operating with compares cash some as million quarter, by activities last Cash cash operating the capital. saw well provided timing year. totaled of $XX QX usage in our net to we Overall, as associated

As we excluding that on timing we of expect look to transaction, return we Pepsi Overall, generate with to to QX, excess the Pepsi expect funds associated we cash our while the continue transactions DSO. year-over-year. also would improving impacts cash to would would

versus Looking down prior part the million saw at in increases that total inventory, in by large driven This volume. inventory sales significant ended our quarter. was roughly we $XXX at the

months, to to significantly the the As market. will we increase accommodate summer busy production of we look demand the see

up we inventory are DIO XXXX. we would that see we efficiencies we are growth forward make drive we experiencing. the the to do able look with time, through additional to At as move to look opportunities to same carry -- in Going keep sure our we to order in significant

the for our This remarks. call open concludes you. Thank Operator, may prepared questions. now you

Operator

first coming Instructions] Please [Operator your from Our question Astrachan with Mark question. Stifel. from is proceed

Mark Astrachan

fast overall guys. afternoon expectations how that the Man, is into in or you and that from coming resets of for doors much maybe and energy going update Whew, give Good to spring look us existing for Anyway, just that is writing start, in on still some year? a I breezed down guess kind incremental doors, an standpoint, the bit transcript. space how thanks. Hey, how stuff new a through. of much a I'm space of shelf is

John Fieldly

Yes, Mark, great question.

on about quarter. in good I we of we're started the saw really big the convenience started great biggest we into we're win the think really off the a a It's for the is, ACV channel, really for channels. really a I in if the increase that points really kind us this year, January and convenience, so last saw company. excited you gains of we when expansion, where from mentioned saw had in XX.X% a in expansion go resets looking What as increase distribution the channel call that's over we at of lot especially of a, tracked

So we're really excited about that.

well. seeing velocities the seeing think I We're grow. good we're channel as them in convenience

So out of data. also of that ACV that was MULO+C to most a the March XX.X% in -- of that's data coming as a recently big overall the win IRI SPINS XXth getting

think we some the I expansion grew So but there, really on resets. have we more significantly

average items Also, on well. carried per the number of increased store as

we're as XX.X an at prior year items in of last X.X. So went an was channel at the the weeks average the average looking about right really we end at of about now of versus March the location per recorded quarter, XX, the four from at

of some units. a So We resets got of us. ahead we saw really a more in growth good number

better as availability, gaining placements placements those and have, in we I type channels of really cooler well more locations, as think biggest is executions. cold in tracked more the opportunity

So large the the of at massive number of each the maybe increase for in really XX% quarter, opportunity in but end a being doors retailer's at breadth not the us.

Mark Astrachan

not with just How at of Got somewhat much points doors brand doors, do in accelerating through just number kind they've strong all That's you energy being And of, incremental versus that only but have is awareness? then I summer? the that, how the as many And to the And new that on been distribution. higher velocities related of to about the versus actually existing C-stores surprised so you want think think velocity legacy maybe overall do as been, still be it. folks doors, helpful. door? just the

John Fieldly

Kroger when we variety the including still think food, at at [ph] a those them, the look stores an of of called outside Yes, I as section you food are stores majority of but I maintain you doors, and those, mainly that's you our, guess, in in ACC Publix energy. legacy look in channel, the and when

food we channel. So do great in business the

well well at Publix, at extremely doing extremely do We Kroger.

going there additional So additional we SKUs. placements, it's I look the is this at those not see and gaining placements change at but strategy those that food distribution to our really business so additional opportunities cold shelf We placements, off about ahead, time, that. the in we're cooler within existing when mean, for

We've innovation plan got summer. some for this great

Lemon with Cherry win some flavor Lime, I X-Eleven saw the new come first was think at you us. innovation, Green innovation great our quarter great for out in Apple our flavor a

coming there's summer this we'll add lot that a breadth able within So great to innovation additional be of some the retailers.

Mark Astrachan

the That's thank great. velocity, you. And just on

John Fieldly

Yes, increase, I mean, we're velocity Mark. seeing

opportunities that. closely. for there's we for go to programs north and it think some to us further I We're be think great summer of us. going ahead watching us, got sure summer a We've on marketing great

such at we closely especially ACV. think and don't it forward in I we'd to but monitoring any look we're guidance, all provide something around, increase exponential as increase an

Mark Astrachan

guys. Thanks it. Got

John Fieldly

Mark. Thanks

Operator

you. Thank

question coming next Riley. Your from Van is Jeff B from Sinderen

Your line live. is

Jeff Van Sinderen

quarterly much we bit can new of I channel strong congratulations stores, the into let was QX retail. little of growth cetera, on wonder et metrics. of and delve reacceleration through back more to, kind and initial circle sell call derived for reorders SKUs, my from doors, a fill new it versus how everyone, Hi added add the me if

maybe then I quarter? SKUs impacted how Just trying better think to maybe think here? in the comments, a new or initial we did his I phenomenon might bit in the that acceleration sense, guess, QX? should that alluded doors, what about And to get fill in much just new prepared Jarrod little from have of channel of a you growth how impact

John Fieldly

quarter. think really we're what, gain place, and thanks with through velocity I some see resets pipe to Jeff. had distribution the that is taken starting we're we sign We that that the fills increase, did good know you a as Yes, no, whatever cycling for

So the the overall quicker are velocity, so out the sales increase in of didn't distribution registers. the moving slow

about to his hard feel quarter levels, think the talk that position. about repeat really in We in how million regards We Pepsi confident. to I what It's good the exactly Jarrod So feel earlier get was. million, I inventory out the did say talked a pipe saw we in approximately us think a with which in in increase fill the think inventory quarter seeing strong for average that feeling increase we to really impact we purchases But the velocity's there. we're increase, XX the is levels. I XX seeing puts

Jeff Van Sinderen

of that lower ask little in lower be you this, I volume. the, some might guess Okay. store, quantifying so That's be helpful me perhaps going you're ACV might mean, going let got that example, other C-stores within various I bit Pepsi. you've volume, some, retailers other doors a into with now, you're inventory for great some And into as some the a

Just your business overall what's you're C wondering in sell-throughs what there as far as outlook and for then the your experiencing channel?

John Fieldly

great We and velocities a further gain Yes, expansion out within tier lot It's see did to I one we're mean building a breadth had with question. a system. a with Pepsi the we October seeing, tier since where the convenience distribution, increase. twos. convenience that's four tier of especially -- starting I tier those our lot mean, within of really and three

look at get to I that, on lower the it's think true the velocity. when the velocity, reporting tier tier the on difficult fours, smaller three, you

in overall this overall is health velocity good how I convenience. brand we're of mean, well. as know performs I on indication think on think I And confident we're portfolio the the looking performing. we at a number the really

usage really the occasions we're is we're on energy. where and seeing We're brand excited portfolio and the headed. where where And expand outside just of

foodservice Celsius' brush at of and broad which with look now, consumers shows But you opportunity of brush portfolio something of it's today. So resonating it's the it just a XX% you broad how business, we're closely. monitoring the foodservice when is

Jeff Van Sinderen

like And gaining traction tracked? the more it foodservice as of feel that than not are or reported other in gaining you like sounds you're not some channels you're more, well

John Fieldly

see non-tracked correct. opportunity in well. great We That's channels as

Jeff Van Sinderen

my you Okay, taking I'll terrific. questions. take success. Thank the offline, for continued rest

John Fieldly

Thank you, Jeff.

Operator

from you. Grundy question next Jefferies. coming from is Kevin Thank The

Your line is live.

Kevin Grundy

Hey evening great. guys. Good

John Fieldly

Kevin. evening, Good

Kevin Grundy

for question a John, you. Hey

get in in share has if I the of Just progress a you ambition and an ambition now point. checking XX if it XX% share, this and terms remember we present ACV so items a kind conversation fall, of we I around XX% market is can at current with the had boxes all kind can been very and fantastic. now. the was get of point, if store, It's, so and XX% per ACV, items near per was can you're velocity, the we past store, this that maintain at X.X% the is

you and the possible a strength you attainable The Pepsi do as in this at brand brand? is as XX% of the take of back, look kind term do now is done like possible again think So now the what reach step as it very what seems system, think Pepsi the near what and guys you is as you you system? well the have for with

John Fieldly

think question. a great Yes, Kevin, I mean, it's I

just quite XX% we at get we're take ACV this with that amazed come at we're ACV ACV. and were seeing Internally, months, to think thought we XX I to together how XX to potentially going months another has quickly XX%. least a the

an at totally I our accounts just give in Pepsi our done also So off team our amazing job. sales partner and hats team, really to has key

product, bringing new see the And, convenience that look to in the the see it, lot I they think quarter when that the we two probably Celsius so in, consumers you a we to have in channels category. portfolio in think expanded with next, quickly. opportunity this it's at I have here channel the a learn to this it's over how performs or especially

if per at a So when And But at look end at XX.X. some of think better look of gaining or end at view at to of a of that's we the the when the next we'll at of numbers we're by items potential, XX% -- the velocity that, especially gets of few the I you that XX% the current store to have per share category. end first quarter look and and probably QX. that you on items year, number opportunity XX close store, you that had you XX the our in items,

excited at ahead. quarter So, hit to of share really we're first most and opportunities the end X.X there's the recently of lots the

Kevin Grundy

lost I the Got we not looks Reign just if Monster feel John. Zero in of energy. be prime, a Storm, packaging for the Sugar, product probably not moment. competitive including remiss perspective some it. would sports which in from Thanks and is like And I it think of remarkably then touch your like, followup, on did Kind a space, launches a in you

time, of seeing there, in early Reign are? cetera, fairly with kind terms velocity, So very there's launches and Anything early Thank period where short anything been a of market hitting. share, sugar it's be pass competitive helpful you're you. overlap in still of I know I on. very to can with it in of And those can and think you Celsius, worrisome a just days zero terms I how would Storm, folks? lot you're some days which et there's Thoughts give there

John Fieldly

the share go is competition I have opportunity looking the Yes, Kevin, the where Lauderdale as An talk question. And, of every as April market. lies, in there's weeks they think competition market look in at, where I of MULO+C, in category energy every we're when come. four can where when ending about like Tons and, about about mean, day. you a as last new at Miami, fierce great XX.X day. XXXX, Miami-Fort the Celsius we XX, you

about opportunities excited comment where are on our Pepsi, every We're about with partner So, our business. compete it's in is, brand it's there's now consumers, two where forward. not portfolio lot excited this Amazon. there. their of wish going at big a category, a, resonating excited we operating out and and other really on just moving luck really time of on see lot brand with any brand There's We're category. different number We of a a a lot I'm the to brands opportunities.

Kevin Grundy

Okay, Thanks guys. very good.

success. Continued

John Fieldly

Thank you.

Operator

you. Thank

UBS. Your Please Peter from coming question. with Grom from next your proceed question is

Peter Grom

Thanks, operator, and good evening everyone.

how questions just still just the I a gross year expect just on help And us few margin. first, XX% Maybe for Jarrod, understand the second, I margin much impacted write-off quarter? gross So GM this you had this recognize inventory in can you then mid have I you, mentioned expect just but to that one-half that margins mid is be comment you the that would just I misheard thought may XX% I helpful. any year-over-year, you on Is gross under be color to relative pressure. that And range. range? mean,

Jarrod Langhans

Yes, no, we with we're were to mid-XXs. talk consistent -- we've going been the in saying be

at I huge run rate we a and efficiencies If on you the, amount, additional but as margin left out a did that million a on we write-offs supply QX are not driving looked little to within bit. the inventory couple dollars, call some the channel. the enough we the building mentioned impact so some and chain

a We within also little had bit higher the costs freight quarter.

operating efficiently up we'll So lanes to looking clean we half possible the optimized. supply sure of fully get as sure make year, got as we're the freight to and as chain the we making be back the and

the half So year that, the we're it a into opportunity upside a fully freight the in our what and But and QX perspective. from have confident in new the really the of get the would distributor. we around QX as of really we back still integrated driven see margins was to terms mid-XXs inventory in for just

Peter Grom

get are based likely it can understand be Is going love initial going the decision that to Is these that to that in the I us help can markets? would helpful? be recognize resonate on and be it's more markets helpful. the initially? some just international provide, rollout? you to prove details just, to would broad XX kind any be just to gradual, Super can I targeting do you've brand informs, this super a Okay. you this narrative, of What discussion, some but and you more done I work multi-market guess well And color

John Fieldly

perspective Yes, March, hit in, we've our obviously are talked that back in of think markets. the from been already, conferences some on about to we've we look energy well-defined but I markets this

that going on into train market to the customer what So we're we not a new is energy. have

markets to first look a most are a We're of go that into not of of shotgun different first. a or into you We'll in and with popular kind really think markets, use do around, as energy we'd to look Pepsi if learn that instances approach. and partners Europe, handful Pepsi those and the So roll going and look markets APAC partner to drink Europe to looking at tool markets there the over we're across they're them, a the into, to to markets coming energy learn kind launch, XXXX build them, And would handful I model. learn roll going for really into look but we APAC. be say then but bigger from years, and more would of the of to a markets get understand to

co-packers wouldn't and can the kind in because to see those But really they're needle. they're do We markets ready. of we some opportunities in close where roll some smaller move

are markets and, APAC you Europe know at core some most the there's would what So, in be and learn in look terms drink what in if energy people markets. we'll big the markets those of

aligned the launch with partners. and plans market year So to getting XXXX. about planning, looking really, then this It's creating about roll about that's in it's all it's out

Peter Grom

much. it pass Got it. I'll on. Thanks so

Operator

Thank you.

Your from is next question America. from Bank coming Keypour Jonathan of

Jonathan Keypour

what Hey everybody, quarter. inventory had. XX% If was you sell to Pepsi might just -- that brought congrats of just on drill quarter. impact, the maybe foodservice that's the in commentary the as what kind fill to I the foodservice correctly, in in XQ? sales of heard I'm you for And into wondering pipe that I what wanted guys the have been

Jarrod Langhans

just business. from coming the of as sales XX% myself correct question foodservice is great there, our Jon, is, Yes, and approximately Pepsi

So, we've been working on that since October.

been initially distribution launched into first variety we in partnered of a a of hospitals, outlets, variety when hotels. college, with universities, expanding so expanded just we've So, Pepsi,

We pipe fill continue the just say. to momentum. build would really not quarter, a in it So is the upon I

more more as distribution. are go for but really can distribution, We growth we good reorders gain gaining we're forward a channel, reorders be meaningful the think we seeing within and and and opportunity that us strong

eateries opportunity a We the, ahead distribution there's restaurants, there within opportunities fast really at really the we just untapped. we feel casual as and that's great is look and been has

see the definitely, mix sales you just it's to XX% resonates consumer Pepsi So extremely sales system broad today. the tells with of brand of an at approximately the

us So it excited. really gets

Jonathan Keypour

Great.

the question looking one last about you XXXX, a like got $XX about growth a is same the that Just XXX, what in be, of we and $XX difference. or should Nielsen do I it's have going I to kind to guess sort is XXX%. XQ is asked swings XQ lot of you the kind that but that it I that some of If data, less regard? and we or more the scanned on XQ boring whereas, a in or of any --in or quarter, million this to something lumpiness use a followup. reported there channels was million that difference, any line in lag about have math is like, apply that it guys same between scanned at kind expect, Is implies

Jarrod Langhans

scanned out what getting you're mean, on data of the is coming I Yes, register.

cycling and it's watch. regards at it, barns their then of I to, sales there's the chain it's the So, value into then through. as some Pepsi kind when probably think through we then But the and you mixing going customers centers look and lumpiness the into something in

in You factored grow those also there's well as business that's our club business and didn't Amazon of It have as rates. the there. at our mix

of mix of a those it's a and little think all I probably timing. items So bit

Jonathan Keypour

you. Thank Okay.

Operator

Instructions] Thank Gerald coming [Operator Securities. Wedbush next from from Pascarelli question Your is you.

Your line is live.

Gerald Pascarelli

very Thanks for guys, the Hey question. evening. good much

least to sounds So strong the months. here. going obviously few revenue very distributor inventory levels remain at like next growth It over elevated are

continue in your to relates it your ability longer-term service So know, to you had supply, a now, domestically, can to aluminum chain, has margins. sourced just to of You can this particular to maybe the your over as supply to demand? which speak benefit which type is your being big on obviously back

kind of would just your guess there high be helpful? could provide thoughts So color on I level you Thanks. any

Jarrod Langhans

the ability material number built, to a capacity great have raw our got orbit of our mentioned a we've as We've we terms we Yes, and co-packers production. flex double, perspective, you can like that can we in but in at issues U.S. to there. utilize we've a that and From well. We've from from co-packers partners model in we're quickly current terms got of of multiple capacity got perspective, in got capacity a can the perspective, no shape.

So great even order in we're we're shape outsize demand seeing. meet demand the to in relative to seeing we're what or

and from perspective, in we're production a chain shape. supply So good

Gerald Pascarelli

Perfect. appreciate Jarrod. Thanks it. I

one on me channel. Next the just is from Club

quarter. know of where taking then of a maybe transition? just If was the pack second are of XX-pack stores we course I the finally that legacy the that? were where of midst out BJ's this you on know I in a your could with provide you that refresher to and Thanks. rollout, rolling variety are on we kind place the just over

John Fieldly

pretty started Yes. the Gerald, our its We've much from variety we've and expand of John. XX-pack all into channels, have the to within moved Club pack. core

pack that bi Club of incremental addition, a with our placements channels you'll went in. In at see variety

in both packs combinations have there's flavors and since doing -- and and single great channel to we're think So well I further that extremely been flavor seeing it's opportunities success doing or there. get been

Gerald Pascarelli

guys. Thanks on. color, for much Perfect. very the pass I'll it

John Fieldly

you. Thank

Operator

you. Thank

Your from next from is Lavery Sandler. Michael question Piper coming

is live. line Your

Michael Lavery

afternoon. Good you. Thank

John Fieldly

afternoon. Good

Michael Lavery

wanted Just the you build. for $XX back $XX the the come Pepsi to million to inventory million mentioned inventory system, to

some that or initially is bit of if volume velocities is good are portion faster both? of of there's expected normalized your With Can the out really that's as well there through that to and sell to above that levels amount, that ACV a expectations that's a of what it, that's adjustment kind of kind you reset an they forward? running would and cushion dissect just pulled ahead have really of

John Fieldly

a ready there's of selling a summer bit the it build for get meet to season, expected to so for volume. Yes, so and the

So We've QX number to got QX. we've of a us number anticipation of a your and a programs and point, that of of of also sales is in marketing over bit and ahead got summer. that activations

in it's well, preparation what's partially would I large say of it's to part So come.

Michael Lavery

neighborhood, That's SG&A the rate, in the on Okay. same run And so roughly quarters. or just last three it's helpful. the been

know a year? about do how I about just, but benefits leverage operating revenue rest the get the How look stepping the that the bit, we little ahead, might also talked think Looking up growth. of from over you've some you marketing

John Fieldly

continue of at want or rate. we'll, is plan least drive our maintain if so our to velocity, is, Yes, we expectation kind to our historical to the opportunity we have runway

last to on of in XXXX. kind think our I about XXXX talked call, we

been we've historically think I range. more in XXXX, that XXXX

has also we which some are inventory the -- talking that bill, this that marketing with XX% ability of our to can quarter. And that and our our velocity. speed but our ACV the benefit about has the just been were to with really over revenues did at So year. in We the we been a team drive able team shave off drive with percent sales able We Pepsi. growing couple did

been have benefiting there. and we seeing leverage So

We to we'll the -- summer of a be and a got doing things we've over hundred are of summer. program. going activation days got We've number

increase marketing our do we sales So to spend. and look

at want grow. have that make investment same consistent into is And kind so will, for money history. to If I was we sure time, least with to right opportunity the better? we're but the to end with summer for to is do grow we're continue revenues to the we're, marker. at opportunities XX% the And leverage. we the the roughly goal sure year Can making the the seeing goal period, stay we there continue those right we rate think to putting year at the But that of into the the velocities

Michael Lavery

Okay, great. much. Thanks so

Operator

you. Thank

from coming is from question next McGovern Thomas Your Group. Maxim

live. is line Your

Thomas McGovern

for thanks question. my taking Hey guys,

to have So start, buildout. just the a I on back just office question

how for quite are to times, Do a which office this of a the the continue few XXXX? want guys build international sufficient an So you just get it's and transition given have buildout idea on expect your your then or you throughout guys into back it. at you looking you think presumed launches, mentioned to do markets, summer near-term, to

John Fieldly

for the Well, -- question. Thomas I think thanks,

Jarrod finance, really our out been GL you on we've office building it look our legal teams I teams. as our as as as well as talking well back about, was when at think the IT that referencing he's

referencing, at really look investing built and, departments here well more you when shop as we've legal We back specific a team. there addition was finance few out office have but to, on we hires been Jarrod's in HR, working that we're a we're, areas. probably So on, that great we

We also well. investing in as are department operations

we'll additional have some so So more up open co-packers efficiencies really gain on. and taking to additional with and hires and greater have there runs as and we scale drive logistics place for more

and and also teams marketing grow sales to investing plan been to teams as we our continue But have and invest out. we build

And now have the -- leverage I to broader think to at see out to XX% distribution that better they're get resources. when see, have much leverage marketing especially start you're look especially we I going going on building opportunities, on in think we're our reached to the human investments, ACV U.S. you're going that hand you and

when there half and new but XXXX Now working that markets. back on basis. will we're be these new we out will initial further, investing have that we the to forward go and on build get of markets internationally continue in be as XXXX, enter on, investments will more to we then plans a We'll required be and details

Thomas McGovern

terms my for still last there branded Thanks that don’t, guys was I you just was just curious it of one end are XX,XXX in you quarter. to the are then quick energy the penetrating metrics, mentioned calls. where if coolers of that guys many And real these Pepsi guys are of is of question believe the as kind coolers providing then last you're total? I know in you coolers many color. owned Pepsis, And how on Great. I at How

want there of you update if kind an can on it. Just provide

John Fieldly

coming vigorously. they were details we due category those eliminated We've Yes. competition some that of specific to in, competitive and

that's of towards XX,XXX big half see So Celsius a for for the number planning decision and that's, specific now. racks last a a in have of past that. push call gaining a we're those off-shelf additional said think us any on big types. The forward the on additional investing investing And to we've basis, and opportunity a not that to In placements, a are there's the the cold number but place color branded to opportunities. we we coolers of placements. lot opportunity working that we're by and we still investing, coolers, big not go going were and coolers of more in made we provide end on we We presence disclose we're coolers, approximately year but

Thomas McGovern

and my on time taking quarter. answer great you All Right. the I appreciate to understood. I questions congrats the

John Fieldly

you. thank Excellent,

Operator

Thank you.

McGowan coming is Sean question from from next Your ROTH.

live. is line Your

Sean McGowan

of freight. Thank seen of and you, the freight any on I Have guys. had of a questions; Yes, [indiscernible] one cost is you hello? higher couple [indiscernible]

John Fieldly

We signal. you there? are lost the he Sean, think

Sean McGowan

I Yes, just the later. problem with to must a signal. having talk guys I'll you be

John Fieldly

Okay.

Jarrod Langhans

Okay.

Operator

That you. concludes Thank today's conference.

session. have turn I'll remarks. over the our We management of closing reached the end question-and-answer call ahead. Please now go for to

John Fieldly

their interests Matt. And everyone. to company, On for I'd the thank you and thank Thank everyone you, support. behalf continued of like

in are today's taking today's demonstrate health global capitalizing We're momentum. place products drink considerable our results the transformation and trends wellness and Our on gaining energy category.

practices. core deploying building Our and active We're is best opportunities our appeal. lifestyle position business, mass position upon with global leveraging a

XXnd, be We I'd conferences for including in have investor meeting B. we'll several many forward Jefferies investors confidence rapidly that continued Evercore will May team. Goldman and to support conferences investor market you Thank Sachs seeing of Stifel, upcoming like And interest growing attending and we in and consumers be healthy and The company your Stay and the strategy and of Riley. all in Celsius. everyone fit. live portfolio June, winning want. look you there. a attending a thank our team, for their and to week our

Operator

Thank your every one. you This conference this you you disconnect participation. at for time. and concludes Thank lines your may today’s

Celsius (CELH) 9 May 232023 Q1 Earnings call transcript