CELH - Earnings call transcript Q2 2024

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Operator

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Celsius Holdings, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to Paul Wiseman, Investor Relations. ahead. go Please

Paul Wiseman

good today and webcast. We you appreciate Thank Celsius morning, Holdings us for Earnings Second joining you, everyone. Quarter XXXX

as Joining company's released and morning, are Chairman as Langhans, me website, take earlier questions well Staff. Fieldly, this Executive prepared will website, quarter today Jarrod remarks. The available sec.gov. earnings the Officer; release company The and speakers materials Chief second SEC's David, on and Toby Chief Officer; ir.celsiusholdingsinc.com, all following the Chief its of on Financial John press

As a today's replay the of be will webcast same today this with webcast. later and reminder, an accessed join audio be available to link used can

available involve are beyond contain uncertainties, be statements, expectations based that which to that numerous including this many control. are company's information forecasts, management These time. risks discussion Please at aware and statements may forward-looking on the other this and

Celsius contained additional disclaims factors in of Except results statements. full by a required no to those review risk harbor law, to our any which update undertakes to in by safe release today's and of extent quarterly in description statements the information, these encourage result that our risks may contain statements. differing the SEC materially in filings actual duty our you and with Holdings press obligations We as from forward-looking forward-looking any for contemplated and

the in of Descriptions non-GAAP of accordance such reported Additionally, quarter detailed these on as management and reconciliations our EBITDA a financial basis. release adjusted our and earnings are to GAAP these results of will measures share results for in we non-GAAP operating second non-GAAP with GAAP XXXX. measures that as use, both

like to Fieldly, Chief hand to Officer, remarks. prepared Chairman With John and over I'd that, for his Executive it

John Fieldly

in fantastic in to leader. Total revenue the unanticipated International across financial second to the XX% start revenue, seasons, hope clear reported morning XXXX I open second record Thank that margin broadly our shelf category million. Celsius and morning per our XX% $XX.X quarter cold growth of Celsius to presence last profit, ending gains X, early momentum challenging positive space category, compared the in-store an to of than kick the all XX% quarter in achieved quarter, reflect everyone. all shelf cracked during first shelf Circana's otherwise delivered XX% to increased Paul, and into in pressure more XXXX. resilient XX% innovation, good sold $XXX.X results category by X revenue this growth July ending . Despite growth a quarter XXXX XXXX time according systematic quarter. consumers delicious XX, expanded making Celsius second our Celsius quarter, morning, December million. contributing XXXX read new increasing and million, average continued the the $XXX to to and you've last X-week resets, new this weeks start store bring category the the year-over-year and increased you, SKU gross half second macro increased environment. Celsius revenue for was

the Within period. across store selling average convenience XX% per our SKUs increased channel, the same

consumer we factors While macroeconomic same-store that same are also gains, of effects began and the sales strong to feel achieved the space affecting pressuring habits. we purchasing

and Just drink quarter down other were convenience slowdown. last second than energy contributed same-store largest more week, X sales the of their noted category to change the factors These X%.

sugar-free the field moved key growth been half accounts is we which category. the and fight the across to has within years, the marketing. sales, sector, merchandising, to sugar why of Competition continue for now energy energy has category add several has full The category resources subset greater, which approximately stagnated never is and

are we subset, but we second and within We success, business here brand driving the long-term this believe for from factors largest that see growth the energy impacts the our have sugar-free the we up is category's set way. is entire short-term Celsius that competition it along year. macroeconomic from and

resets lot in headwinds, our the increased of responded grew macroeconomic rate during competition programs of our and quarter. saw Celsius Despite second stabilize. business market a quarter at XXx to applied the delayed pressure and second share pressures, pressures the these the a in to category combination and growth The still quarter. We

momentum, lost fourth and back half have quarter. begin programs share, to that third and we we into growth our the as we're the to moving of great recapture for we Now aggressively the gain believe and quarter

continue incentive programs will of are macroeconomic a ahead the programming, take forces cash bank, in With solid category. We to eager set us. expect ready of also challenges and and to impact on the programs, that the promotional we

Additionally, and formulating for opportunities, partnerships. we several XXXX, are including new new product innovation, fantastic and programs expansions international channel new

be strong. incentive have announced percolate Our is to year, added continues partnership with program this incentivized through partner in fully half of the The in us. where to and ramped with remains Pepsi second expected last our the system we fully quarter to lean

X-week better the MULO+ online XX, in this We in year reference compared Celsius convenience was period geography, includes we're and going with adds down captured geography, today's and percentage ago MULO share patterns. an point increase July the purchasing that channel. in last and period when to of believe X.X coupled retailers quarter-over-quarter. the quarter, new which to ending this X.X% XX%, habits Beginning represents MULOC a and measure of store consumer Circana's club channels tracked

view. in has Celsius In disrupting the always and July seen weeks XXXX, period brand in competitive leadership, right energy now energy and growing world's addition, category and status become we is the different. through was premium drink XX.XX%. no quo by some is X ending convenience highly #X our holistic with been drink category the high-quality Share and resilient category pursuit to remain among rolling the is we XX, marketing. innovation this provide The will shifting have MULO+ metric category more channels, a Celsius

in We currently grew drill have our the Our within our a behind markets driving resources XX% field that points marketing They driving growth. our on are important behind are force our growth. most drill marketing of year. XX XX% past X markets the for is are deep strategy and deep above force share, a focuses which strategy, team by

offset room our we lanes, pricing, is the investments there programs our Looking back across that distribution us commodity inflation, something believe believe are is several marketing XXXX, the an chain We of ahead, will infrastructure. Similar competitors in further and this programs, platforms. invest as to our top we such for in and in half shopper freight implementing as act and marketing growth, and XXXX our promotional to supply infrastructure programs X benefit the in across category.

Sparkling, flavors quarter, very energy launched Vibe in Canada country. Tropical as summer form. most quarter, great-tasting launched Cola. Flavors our flavors poolside making and in Apple Also adding of throughout Sparkling a Watermelon new to now Sparkling Celsius outs and portable delicious X and Sparkling summer, Cherry Celsius including Lemonade, in for refreshing, launched timed Vibe sure cook perfectly popular available last Peach Celsius Celsius Kiwi powder and the new X Celsius Vibe Three I'm customizable the backyard second you'll see and Strawberry flavors, Green these Celsius Vibe, Arctic very powders great beyond. the Cherry On-the-Go

of food to period Nontrack quarter We XXXX of tailwinds are $XX continue channels, quarter come in in the some e-commerce the million interesting the to that. and club, and working million on to on growth. more same overall including to XX% service, our also very for XXXX. $XX first Club be to second sales concepts increased compared

up For the share X to Celsius' a a Red the increased months July the XX% $XX.X Celsius XX.X% $XX.X in year X, according ending sales with million, XX, on and a Amazon Bull prior June second from quarter with to ending Monster period share last year-over-year to period. XX-week million Stackline share compared with XX% XX.X% ended XXXX.

in July's during on Amazon at energy #X to recaptured Red compared last Day, category on XX.X% Prime XX, to XX.X%, Monster the and July share according at well our ending exceptionally position we Bull performed X-week Stackline. the to pushing platform in read XX.X% the and our Celsius

recreation, velocity sales North the in channel increase to in the Celsius was total restaurants, second Celsius international of quarter by our brand and strength strong the to the in club and sales. XX.X% with in Approximately workplace, lodging performing driven convenience revenue is PepsiCo initial well product foodservice awareness. Growth improved exceed expectations, across in and results the with notable in America Canada to gaming continued channels. and was quarter platforms all

these communities Celsius began grow Similar We and marketing category. new new a in into expansion expectations. following are second playbook to to see entry our gyms foundation the progress market Canada, well and a in in our retailer we're the fitness exceeding as product U.K. key and is making as entries solid and foodservice international of running launch. national and initial quarter, Ireland Sales playbook into in global launched with building new our

Zealand New opportunistic and on Australia, year. distribution energy markets. remain for favorable by plans the and global later this pursuing launches to drink growth our to We're partnerships continue Our strategy grow expected in track France year for

and Here and are fitness spreading teams in own customers' abroad, States messaging Celsius Fit Live health and their lifestyles. the our and marketing sales positive on Celsius pursuit the supporting

is which loyalty. programming increase featuring like trial exciting our and meaningful is summer displays FX number to tie-in of marketing days designed XXX eye-catching Celsius promotion, the in-store Our Ferrari activations increasing customer of

be and drive to grown As still opportunistic valuable most markets. the hiring continued team beverage last to in I we've sales and more than and and In marketing retail our sales XXX%, mentioned our earlier, invest we field customers. growth growth continue months, XX to to drive by the our we're to partner

over Officer, the Financial call Celsius' I'll Langhans. turn now to Chief Jarrod

Jarrod Langhans

XX% we Thank for XX, quarter, while year the period. you, $XXX revenue, Revenue producing was million, months United the Canada, and in the the increase was and North record-setting million, from increase certain $XXX which from approximately delivered June X business Celsius XX% ended $XXX returns period. of levered States of American the areas. million John. prior XXXX, in prior strong year another includes an grew an

continued largest million International drive movements our to timing ability sales account by innovation days to including revenue consumer growth on key associated velocity by field We and inventory execution demand, excellent in-store our or increased for strong in several $XX part volume our to increase. the key to factors, teams, attribute grew distributor. XX% offset our as sales with hand quarter and

impact inventory of middle of that we publicly was $XX to the During the movements quarter, million June the during approximately million. stated $XX the

was in days drink on the and of a sales slight As we saw quarter, energy in was we the impact end range. the unit second a category as Keep result, quarter year-over-year closed uptick flat. mind, volume lower the at the hand, that

solid as XX.X% and year the ago. XX% service increasing of and gas the a or revenue X.X versus period, the also Celsius as of volume continued the strong to X.X in our same serve food quarterly quarter, Strength points unit did points increased channel. e-commerce gains sales year-over-year drivers by in share convenience in unit club, our in growth channels share

overall softened category. that the growth in With QX impacted said, and the category of the trajectory has overall

drive new consumers have bringing to We foundation, category to we opportunities. increasing the a look innovation, consumption continue the solid and and through to channel

XX% margins in XX% the second Gross prior is million profit quarter costs. in year second to to improvement for the the the from compared Gross The raw $XXX reduced gross increased year quarter period. costs up freight were profit $XXX revenues in margins to period. of and approximately in attributed XX% prior million, material profit

XXX cost percentage costs of decreased and Second a points. of sales basis invoice quarter net decreased year-over-year, as basis XX goods sold freight points

first the and business showed distribution The leverage ability systems. strength the supply to half our our our and of of year

As cost including we of that materials, drivers the monitoring have half number such are raw second commodity of of year, a we we the aluminum to fuel. and key look specific the as

invest addition, calendar. a wider in we In will growth incentive promotional with

high As a the sticking for margins back and half in of a to approach the result, the remainder gross XX conservative of XXs year. range target year we the are with the in

XX.X% second revenue. in marketing and XX% expenses our targeted for came Sales to within of the at quarter XX% range of

share further the half in marketing in employees across year of the quarter back look hire growth and new and to as and would continued these look we gains to sales assist We the and into driving XXXX. to us second across

we that As high our look anticipate QX, the quarter likely we as the will timing the to with of range move above for of we some of spend the end our across further and train tactics. market the implement market into of our XXXX. test additional some our spending will on tactics, success Based test and these workforce we and newer adjust QX programs,

legal expenses $X.X for the million decrease million, XXXX, and General were charge. of of approximately a incurred quarter second administrative relative XX% when we to a XXXX QX $XX

XX% legal to in was As a prior sales, X% due the to as percentage lower year leverage costs we the such fees. G&A as to third-party of continue compared period, and

As flows of able within year, this remain ebbs to we to anticipate we G&A, the some we leverage across prior be but year. that remainder relative look the the we'll confident and area

increased prior solid year the top EBITDA approximately second $XXX margin compared period, and the million million adjusted quarter in to by to Non-GAAP XX% growth our line in $XX gross driven profile.

increased XX% period. ended approximately June prior year compared share approximately million the quarter approximately in XXXX, period. Net prior compared million in $XX income to or in in year $X.XX income to $X.XX million Net $XX XX% attributed common increased shareholders diluted the to to per to $XX the quarter the XX,

June $XXX an America increase revenue grew XX, $XX was first from from period International XX, X million of the million XX% million, XX% of year. year-to-date the ended months North an the XX% XXXX. same X for the in to for Revenue ended June in months months was $XXX $XXX X of increase revenue approximately XXXX, the XXXX. million,

Gross months were and attributable prior to first the approximately first in margins half year material the compared costs. profit is approximately margin the freight period. XXXX gross in The raw of favorable in profit for of improvement X to XX.X% XX.X% revenues

marketing As the period. X% year compared prior a sales percentage of the was to compared months of in X year X% a G&A was in percentage as of and sales prior XXXX of XXXX to expense first in period. XX% the X the in first months sales, XX%

to approximately compared $XXX in increased to million XXXX compared period. in million XX% the first year million half prior the of in the adjusted compared Non-GAAP to in Net $XXX XX% the attributed $X.XX $XXX prior million of income share year to $XXX common year diluted $XX increased period. income year-to-date increased prior half in or $X.XX million XX% Net period. to to XXXX EBITDA first shareholders the to per

ended accrue on which available hand, cash quarter for We million to the of initiatives. growth with strategic remains approximately and continues $XXX interest

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

Operator

question first from of Your comes with line Instructions] Jefferies. [Operator the Kaumil Gajrawala

Kaumil Gajrawala

that some change about of related an agreements, included talk Can I August, see or new maybe of is control. the were Xst the amendment what what's employment in which there to sort you different on there? purpose just

John Fieldly

which within team in to standardize compensation change associated regards hope everything to committee some going have a standards well. similar I change Yes. of is control, of to conducted We accordance did review employment with change control executive agreements in the have. the the that we

Jarrod Langhans

Yes.

CLO on add we've I changes year, place. just a globally the Supply role. Story year Chief role, leadership and of in bit Chief with little and Commercial we're Golfo some Paul more Kyle our taking Tony as have Officer Chief that. So the shifting Officer announced on the then last taking seen with role, role, taking QX some Watson in the Chain Richard taking in also you'll in the where Officer added responsibilities Marketing the agreements team, And John earlier the of had expanding clarity and we

I it's of and look of change severance So up an getting are terms thing more of in . it where -- more as par packages control. at the to I of really John everybody and with administrative

Kaumil Gajrawala

seeing specifically? And what on us on Great. mentioned you market details maybe July stabilizing share more Okay. you're and you such. give some specifics just or of Could some

John Fieldly

seeing the There's quarter, come prior you challenges down of prescript the the through When and convenience and I category share X about Yes. mentioned in the XX. prerecorded environment. the in on comments, on been script, seeing that the largest sales look some data competition of about weekly X%. we XX in store consumers loss the as talked at we're the also saw to data lot chains or on we the a

our to So overall growth some the We're strategic portfolio. to within top drive going and there's put consumer. targeted challenges understand trying investments, both to investments, some within to line really the on continue that. additional We're line below

When well or cycling, from be a of can prior you're in reads, manipulated promotions, a the a innovation you not, share as as seeing but lot look competition there's there. of year timing some it of weekly but at variety

category we we're looking in when category. still to look the grow. are you continue XX%, category a at growth at to driver So it, are the We know and for we

the a strategies We the XX% we're in the have confident sugar-free leading category. we growth We're We're great and portfolio. driving over compared to movement, have. growth

really watching the a and So go quarter there's back be new July, we the little consumers lot softness we portfolio. that see category further closely. did scan mode. growth as bit continue forward to data. a pick need the Celsius We're in and to really up we Circana the and that's further out, fourth drive to to cautious And into within within But get

We category in the have the X of portfolios brands and new flavors we and feel. refreshing most

Operator

from Your Astrachan next Mark line question of the comes with Stifel.

Mark Astrachan

first is most get guess yet is I question Yes. that the share category, contracted. we Celsius market your meaningfully has ahead is probably of growth frequently, X which why

last Is given, the something weeks the would look anything that those example, X can expanded and call there it, highlight impact you category that X% you is think couple data, XX% X-week versus obviously, down, for in there as at numbers to category you're Circana bps weeks faster share as XX compares think growth the that than the an the that the of you suggests yet last average. the growing share is otherwise. market Celsius If I in like

John Fieldly

Yes.

recently. you're at especially when some within at at when look launches Bull. Bull like you Red you when category, look points gained think you Red great had what I some brands looking the it’s add, other share and the

share dollar percentage XXx of total of kind we're impact on . category you category, though growing the X growth those at a mix -- or a X that will the as of large the growth look share rate, even figures. growth when So such there's

Mark Astrachan

more to does Okay. you're data And that start bit stabilize, then these to Celsius to other to give consumers there maybe that, I know brands? term, about seeing your a from of switching big your market thinking improve? longer guidance, related kind that like normalize, directionally. I'm share then suggest talking things is And want but does in don't you anything picture that to are

John Fieldly

Yes.

data mean look I weeks. get see there the comes at focused X everyone you but that week, -- X of variety watching we're think the is a watching we're I We're It X do back. weeks, closely. on innovation when seeing in. week, is very XX we -- trial, very consumers come does

So we strong have consumer think I loyal really a base.

As consumers are brands become the we're price at pricing more impact that that those promotional this doing? strategies other how point? How sensitive, the as consumer does does entering

at water There's are within things a LRB, that you in as happening LRB, the If look categories of is variety well. total up.

So we're sales categories. are up other seeing that private indicating in label

cautious we brand we're But innovation, the or optimally in position the we So forward. in that category, premiumization fitness we're category. bringing go for great have, within value at into think the as functional positioning, and you lifestyle I the when the and ingredients, we're think you energy flavor consumers at look look driving tailwinds great I the the consumers still

that. That you look we opportunity. eye And on a mean huge and Celsius you build got at we other retailers. share. want and and what relationships are to where number these XX Obviously, So channels, there's share. we're driving We the retail just our resets are about to excited us this portfolio the gives with settle great markets, it. great where to goes, And really with then offer. I partners the in if our we we're confidence we close that When holistically over share we largest excitement. a to the those upon received on we're gaps, keeping Amazon look track resettlement ability continue on at grow are especially

Mark Astrachan

start on the look just could And you to and not see there share that on the put stabilization sales guess you the but of to might share, kind you to same? and market wager when . spot,

John Fieldly

bring shares. number I We we've forward-looking are additional share looking I to to each but going look target. assure exceeded you focusing to XX gaps. close at really on markets strategy. not teams We're the further said to the looking on and you the our Amazon more XX mean markets We're through. provide our we're We're drill guidance give that, over those expanding

within We have closing of a are share X points that gap. of variety markets that

that, of in long reads, other the on especially energy many XXX domestically days There's we're that and a drink working the summer. we're in XX-week share company. the both the confident variables be to number So a the on and category, of so on trajectory happen X-week, abroad. position during the leader weekly, but

forward. and been get what sugar-free So we us the drink headwinds sequencing. time. that's But quickly has I think that's the energy as a we we lot of have There's category now other the of there. we trajectory, timing XX% how for that do against know, go first

have that the the So in are tailwinds segment. moving looking to and we sugar-free we're in leader a be that direction,

Operator

from question next comes Your Sandler. Michael line Piper with the of Lavery

Michael Lavery

question. I kind share I category X% so or with a might the and is on year-over-year the to it's follow-up Mark's that sequential oranges percent just so apples percent year-over-year, growth year-over-year of moves. and appreciate an growth start

is slower. it's a basis, momentum year-over-year -- it's certainly sequential if even on lumpy, very But of Your is the little share, nicely. care course, up a

How that costs. year portfolio what's later come think just guess I and early pricing or how aluminum some about of any slated guess, sugar there? specifics get the next. I can then, sugar I a but . is You do give appreciate and mentioned you maybe you you to And pressure, cost some approach relief you pricing? the with on this more free think about

John Fieldly

close seeing. also shopping. top because that of but category, going in keeping X pricing. they're patterns we're position well our premium as that cautious mean, the category competitors the maintain taking Yes. a where the I to being about consumers, we're And -- We're taking prepared mentioned I are as we're remarks, in on eye the the

is strategy So forward. as go really from our and architecture we key promotional promotional, pricing,

closely variety retailers in we mentioned a programs on, well. marketing prepared with as investments our quarter the in of retail working working increasing remarks, third we're the have and we As

a focus think to forward, teams I -- going more we're to great share we our our take it staff, profitably and the We're a out and share looking doing job. building active as So to main are to sales continue continue build force and to move drive is consumers resonate. drive and to live continue brand our healthy and to lifestyle and this

our If champion, race you Noah expanded look job some Lyles the the at amazing over we've of an with partners like did with living weekend, World gold. Champion,

brand broader and than Our resonating, is it's with before. consumer ever resonating a

environment we're So in we're side. And out some the we're to great getting the we headwinds but ahead. to other and going see regards that prevail on in. strong opportunities come

Michael Lavery

is traction consumer we that clear see that. No, certainly

as certain cohorts are least heard of of at certain from that consumers, how some pressure. we've a lot companies, consumers Just -- under

us C-store of it seen accelerate? channel part Amazons sort driving might pressure. -- that can. it's best of prime is there. just Amazon, a some per have boost your what you where obviously at performing seeing of channel. help strength you you're Are that's Maybe that a Was shift Assumingly, your and what's related under the dynamics that pack given understand on kind better bigger seeing? just day value Have bulk of a

John Fieldly

club Amazon look even a it That's and doing interesting. Yes. business -- the We is well. I you Club at really is doing mean, larger when pack size. business, were

but value there, some big purchase. also So a a you dollar on get a on rate unit it's per basis can

look at you that. when So

understand change trying patterns. understanding. are in the to those things we're So We're consumer

which channels, the total energy mix, sales I look when a again. first you club Amazon sales think convenience, percent for drink what convenience you down as of at saw includes were and Plus the MULOC time, like all reported and

purchasing channels. look club And and expanding seems think overperformed Amazon, when are there. also about we what's I channels it you So Celsius, other great be were that to those and consumers at

embraced want So we embraced omnichannel and it, world from they that. the when consumers and how beginning have we've they an want it, wanting

purchase, their and So great of the and that. to some in, as that But to basket to the we're more they're -- adapt in dynamics dollar I we're consumers a ring think a unit you channels versus consumer is position going a patterns lower think more purchasing look maybe when purchasing capture we're are those maybe looking challenged, go a to at right, larger.

are spot things we're you're on. and So closely those watching

Operator

Your Jonathan comes Keypour Bank of with next line question from America. the of

Jonathan Keypour

So shipments the about versus consumption. first question I have is

there you mentioned there its a was then XX. then the $XX from said on efficiencies. guess, inventories tweaking drag million XX would last On Pepsi after a in similar that I a out you you XQ, be intra-quarter, to call, guys another And and pointed conference drag

ended I from a timing. the So kind you actually of some there was coming what us people so wondering that expecting into this we quarter, just were think size drag shipment for can of get I'm being it if up guys sense can in quarter?

John Fieldly

well see do last about talked We as We've that. see Yes, several Jarrod Jon, quarters. our do We retail some experienced to I'll partner as we shipments. in regards because main let kind of that dive into fluctuation.

no So turn but Jarrod. this quarter will different, it I'll over be to

Jarrod Langhans

Yes.

kind remarks changes. in $XX the and in back June So was prepared mentioned million DOH because million $XX to of I the a there of potential headwind that

up XX% to that ended -- higher range of back that opposed so the as of end the XX% lower so range, So in half end of the to the the range. on more

So that's piece. to the when it where that relates quarter we ended .

Jonathan Keypour

basis? continuing be should and the in as Okay. well, guess, that anything on a expect XQ guys to through year-over-year XQ that will you it's we XQ, carry -- correct, going XX I mentioned And

Jarrod Langhans

where up. fair from managing their They're a I to it see ends have Yes. inventory. X the perspective. It's we'll mean

to have we'll see So where they today. end we where are up

shape. good we're think . I pretty in

Jonathan Keypour

looks that guys you you new sense done, that shelf I -- it getting shelf data, up, the than came down, resets X looking that's decline. like seeing bit so least, comes the if little is can, was done, But the category are makes so TDPs now And a guys it's data at mentioned velocity but mathematically Cool. week based at velocity space, are look to out. shelf the go sequential steeper the it the I appear were think that we're when data, recent sensible. resets like on continues, Nielsen then like be itself. they that decline just still at looks and velocity question Nielsen you It I the

it's I'm -- will So you if I activation it's I know out. know don't know to if that don't guys wondering I of the pushed maybe about recover that. timing. there's August thing some can point a shelf and if resets anything of kind were why an

has through we us expect give going on can the the you anything velocity can potentially been and why sluggish rest what summer. date the Just of somewhat to

Jarrod Langhans

Yes.

I a timing couple sequencing. think there's It's things. of and

beginning You the something of into big 'XX, 'XX system. as and Pepsi at the when back we pickups pretty moved some we saw of similar end saw the

So doesn't unfortunately, away right Celsius dump all we the out the up reset. Celsius when and consumers see pull the bus

There some back also it's resets which and our QX the that some really QX incentive So there's a timing we've but and got throughout some there. of and of in in delayed of good QX. QX promotional something in sequencing activity, the was delays half promotional some calendar

want a the that before then the to activities. a we've would to We of So these turned getting get do sure space. lot math, the those lot to we're start looking we the stuff got velocities make we pushing and on got space activity because just and now that of around ROI didn't we're want

to so Celsius velocity the start pulling programs So curve and in get can up place we improving. start us that lot the a getting we of do the good

John Fieldly

of pay there. the a think to -- data, you there's were cautious, you weekly especially just got prior promos be lot you year. what right, lot just a of Yes. when the in tension read, and noise noise to to There's need weekly And I

we strategies. we've up going been share. got XX% It's around and got holding think I that positioning. great And been right down. great We've

holding. to the it we're . So to next We are on this that's continue summer. need teams take working the to level. what And

Jonathan Keypour

have the And sponsorships you guys year. have lot that. it. sounds Got mentioned last in sounds some It like you and it things a you than pipe like your did of like -- you more

December, through year I a and last to in should probably more year. sense. it seems was QX fair bit September than Is less makes So to probably there QX of reason that It stands likely like resilient last year. see drop-off shares that's that a this little mean, velocities from say?

John Fieldly

was at the focused share. on you driving it time when the this weekly look we're it down mean read. it point, week, last first category When at that on was for I

those challenges. We're driving is rate. We're growth with the category So over-indexing category The are new to not . category. growing.

that. back we drive on. get what big to to retailers out variety consumers and great working segments. rate, some some talked growth got retailer crack-a-cold to we're about with tentpole want a of have new wrapping that summer, That's more Celsius, we So area on this this we're And the refreshing new a great and flavors, in category need focusing we with doing our new category. consumer barbecues, to programs marketing that's around programs We that coming and programs

So And we're I our year, confident it's for this be exciting position. think the to going of in Celsius. as an time half back

Operator

Bill with of next Truist. Chappell comes the from Your question line

William Chappell

see why Is commentary know you're more softness starting this but trying of a and kind it to seeing? bit I is category, the weather? consumer overall happening thoughts guess, to kind preferences it about to best overall little that's of the what X, over is slowing some these of X the past other now, Is categories? of category the months? just any understand why Just a --

John Fieldly

-- total data. at Yes. looking No, we're when LRB it's

you Sports in last see sports if picked as seeing growth of at well drinks. Liquid coming still So the has CSDs more look coffee water, -- pressure Beverages, the as and drinks, then CSDs. teas you saw look growth Refrigerated to that's energy to decreases . And starting from and water, the July at some of we from and XX, We're tea. to what juices and drinks sports segments juices. up

So in at the energy looking was category on up a X-week read about X%. XX, July

we So much the rate prior in obviously year. saw quarter versus first this and year slower the than growth of the

It those things pause. consumers looks overall, a category we're the So is maybe are taking seeing. like are

we out the know pressures are the guys just within watching lot rates. you pressures a the There's there of consumers are. news We extremely closely, interest from like are and

It I aligned these and has energy a days a continue to functional of the grow. that's and to Celsius end with day, think is the at massive to that. lifestyles grow potential beverage is the to truly positioned category capture upside

your rates well. we growth growth -- saw energy last cycling we're from So I year great think category as just -- the in

be cognizant need plays to back see we and out the half. that. of this how So in

but will of lot a tell. think I for optimistic QX, people time are

William Chappell

you the just then And expected, Great. have year-to-date. new as kind touched core . products growth upon really driving growth? some would are Okay. might Or trying seeing with expected? as Have flavored newer been to expanding you're and it of of offerings? looking better understand you than Is the the you Just incremental this of kind offerings? the as the the usage kind of what's

John Fieldly

We We've out got a combination. new -- a there. it's of flavors use variety

We lemonade so have leveraging. the is do We about the Kiwi talked flavors, -- that watermelon we're some and the , cherry we new have of strawberry cola. amazing, play, our portfolio a sparkling total which

that combination a but cola a like on a flavors, as a launch. We're with AMP key flavor, not it's although cherry So specific total portfolio we driving works together. lead at how lead of launches. the launches portfolio, have It's do retailers

So it's Shoppe. on Amazon available also flavor a Vitamin new and

continue that. tried portfolio very If then XX-ounce flavor. suggest and have as it, performed it, at in our really really we're and But launch, since look as driving you a haven't Celsius upon you going grow great great offering. it, total you our it's we're we a to Essentials innovation That's I try to well

Operator

comes question from next UBS. Peter of Grom The with line the

Peter Grom

be just we're to going it kind what in seeing in then anticipate the data that. track a would that and would clarify there's of million know Or backed I XQ and your headwind? clear, headwind question picture of housekeeping to to to aligned. bigger Jonathan's that Like pertains back another I as just and maybe track X moving start want Maybe lot to in here. Pepsi mean of $XX I should kind we expect wanted more pieces to just X take XQ. XQ question, dynamic. I you data inventory reported just the be sales

unpacking how So you of picture, of I touched mean to just I . And and that shelf some love then get I helpful. on would kind release with has flat in data share I'm confident on for to are kind you're touched pretty company total space down how sense a intend largely trying kind on market, trends new it on to to you flattish But for just incremental I performance how space. been you you the you're guess you or you ahead? future going think inform perspective innovation give the kind whether evolving, much space some bigger time. reads positive, get today. be Essentials given would the shelf we're what innovation. share And but some retailers may of sequentially, essentials flat the seeing to bring looking that does innovation seeing get your view see just just shelf now of space of

John Fieldly

the Jarrod let about talk and I'll innovation. I'll inventory, . on take

Jarrod Langhans

I where like land. were we So of lower ended it the to as XX QX up of will said, Time to to we talking we when tell closer was that June, get in terms XX end in range.

we good mid-June, expected. point in in providing a I we at of think were terms what

I where we'll think to have we go. see

it's continue then them have system, further for still to where some see be partners shape. predict there's can't to flexibility optimize their But we'll within good fully to what I them will do. to That's optimize, really optimized, in if that unfortunately, So system to we'll our goes. up that

John Fieldly

it innovation, next for setting up to regards year. Peter, In really

to right, is the outpacing category. that the key drive growth continue really what's and think I rate, we category

have I we number you think continue story incremental. you're one, -- to selling good we're to that, that retailers really a as do

within We . sugar-free. data growth category that rate category. supports driving And within have that. you're Those are megatrends the the

initial of great a been for innovation fairly next retailers so just XXXX, have year, positive. for planned really actually And have started variety discussions about. of key we're We we're which lot that excited with a

just kicking of really We're close some off. to our retailers. So those we're

and shape now I it is so before story really them. to why position, in year. left stands more for and think we're think Celsius what And really now. our There's we're as next of need resets a But good and offer the retailers bring a good selling time lot in and we strong, I

innovation, of Also, when a you well in our retailers. huge powder continue to upon And that. variety at extremely build offerings, we're national look opportunity going done there, on-the-go to

got for plastics. of packages you move beyond great Stanley a the innovation within out there beyond can the at as variety When we look bottles coming So water and the cups on and growth other and XX. consumers go

great that. energy acceptance So to be within of offer to we and been part that want it's that offering. And

Operator

go for Please turn I remarks. the closing John Fieldly over will ahead. back now call to

John Fieldly

Thank webcast everyone, thank and you, for attending this operator, morning. you, our

our category growth convey as and potential. maintain consumers the and has growth to drink in remain and today in long-term like Our brand other well new capture the comments decade strength driver. we are No better than anyone confidence we positioned Celsius last disrupted or else the company's the energy

We both taste and share. for outperform tailwinds have runway, capture and domestically strong us with high-quality shelf season's to and that this excellent long are resets greater products internationally, refreshment a

unwavering their in Thank world. customers become all effort partners you our brand achievement vision for the #X energy the to employees, our and drink our to investors, of and a and

lift summer. safe a a refreshing healthy Grab To have it. and and all, Celsius

Operator

you that you concludes disconnect. all Thank gentlemen, and today's now and Ladies conference. may for joining,

Celsius (CELH) 6 Aug 242024 Q2 Earnings call transcript