CELH - Earnings call transcript Q4 2024

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Operator

Thank you for standing by. My name is Jeanie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Celsius Holdings, Inc. Fourth Quarter and Full Year 2024 Earnings Conference Call.

now Investor turn Relations. would to conference I Wiseman, Paul Instructions] like the to over [Operator

You begin. may

Paul Wiseman

Good evening, With prepared and Langhans, of Fourth John Quarter Staff. thank Chairman Chief you for Full Fieldly, questions Toby XXXX joining Financial Year We'll Officer; Earnings David, CEO; take remarks. Webcast. and me and are and today Jarrod Celsius Chief Holdings' the following

announcing release website, as available quarter fourth and release agreement Our this a also accessible issued well sec.gov. afternoon as on on webcast XXXX Alani press full acquire be of site, this later was earnings are press audio Nu. ir.celsiusholdingsinc.com, our to materials replay tonight. An will the year All and our

and Today's the discussion update by information. many and control. involve company's forward-looking required includes any beyond uncertainties, risks statements, forward-looking statements statements duty expectations law. Holdings current These disclaims Celsius as to except based on

safe and may information, those our a our review actual for by harbor additional of in which risk annual factors materially differing results with in SEC forward-looking contemplated filings that risks our Please quarterly description in statements. press the and release result contain statements from today's and

not non-GAAP on of Alani in GAAP Nu. And basis. results GAAP used release with reported GAAP. financial and acquisition a our be earnings should in press as our announcing fourth results measures both present release EBITDA a quarter reconciliations like adjusted We'll our substitute Non-GAAP detailed and accordance their are and for measures the non-GAAP

to John. I'll that, over With it turn

John Fieldly

year functional the U.S. segments. acquire its definitive XXXX and one drink entered reported key Alani products today, that into to full a outstanding leading Good financial and Nu, a it of you, portfolio evening, we announced Paul. greatly Thank brand Earlier quarter has growing Celsius everyone. results and brand consumer strong admire among agreement for and fourth its affinity a category in energy

this our on would I like exciting announcement, Jarrod detail to providing discuss results. recent Before more and

many reflects record the alternatives. reported Celsius year-over-year which demand consumer growing in This billion, premium XX% drink increase not beverage XXXX. the strong The XX% a XXXX in a and for strong which compared sales CPG grew Yet category growth represents sectors. energy to retail was for Celsius immune X% effects. figure the energy category, $X.XX challenging XXXX revenue was volume to year-over-year revenue and compared X%. to increase total of functional delivered

options choosing represents our of sugar, functional our a beverage energy We needs. and zero for believe for portfolio movement brands consumer bellwether their towards resilience the

the disrupted Celsius today's that has category by innovating consumers products want.

to that belief We sugar-free is came and with expected the which new products our of year, a functional supports competitors last sugar-free. future flurry it our of respond eventually, beverages long-held

functional of and is brought products new of In that the Celsius, Celsius energy the composed available our and Fortunately, new refreshing, presence XX-ounce best-tasting, taste ESSENTIALS, seek portfolio delivers. a Celsius who XXXX, today. great for drinks, beverage line zero-sugar expanded consumers, most our which introduced high refreshing in performance performance CELSIUS

points refreshing in the at heights total in reached distribution is today. ensuring Celsius than meet by United that can more XX.X% in XX% of available Consumers ACV new for outlets consumption States. our increased immediate XXXX purchase We our And the XXX,XXX more cold, demand. places,to year-over-year, Celsius

category in another foundation a variety Celsius routines. launched layer in the portfolio, entirely an new our being lifestyle a of what can we is CELSIUS for Last opens This their leading our occasions include consumers when increasing month, platform. towards daily better-for-you up HYDRATION, functional

in all in large, consumption. new Celsius and of continuing health XX% contributed our retail growth category increasing consumers for the bring Importantly, the XXXX, at of customers, to for category

XXXX the earlier and promotional this that recipient innovation purchasing sales outstanding of Execution Award. merchandising, Immediate suppliers strong X-Eleven for execution to I'm And enhancing consumption driving award note through excelling, Celsius the immediate Consumption that pleased recognizes This month, behavior. was

alongside growth, As a we right strong category. partners. the of evolution begin seeking growing product XXXX, With to and broad we consumers lifestyle positioned we better-for-you long-term community drive innovating growing sustained a our strategy brands portfolio of presence rapidly building functional products, functional drive zero-sugar, have best-in-class we the team believe alternatives, premium continue global well are the of a to and to expanding modern

is the believe with We inventories North distribution from value collaborate strength harness optimize across to and our the to We partner. continually and efficient strong, our productive with we highly America of health We of beyond. continue Pepsi Pepsi a to we look believe seek and chain. supply our and greatest rightsizing XXXX of our communications operations Pepsi Both operations. another forward remains long-term to and pursuit positive our for our

spoke, often. multipack In we I in launched and by we launch new have that cater few time our lead We varieties places, flavors, introduce and and distribution discussed more more value. expanded last consumers X past the to variety of The drivers. previously a reaching sizes people brand-new pursue flavors three X months, growth growth for

CELSIUS grow functional their this daily in I also We a us. which HYDRATION, value lives. brand-new consumers mentioned believe new our the line for excite and will is our products category of

number Amazon. for continue our HYDRATION service brands find food on a on on Celsius a the E-com top be and and among us, regularly growing to retailers. is and strong You can of CELSIUS Amazon now channel

in which also Starting [ nontraditional customer. restaurants, sold strong Home in gained XX,XXX begin a of another will representing ] be to Subway nationwide. total opportunity is March, in Celsius Depot, distribution certain locations Celsius

leading that is with even news functional wellness Alani has brand more Nu. agreed a Celsius female-focused today's portfolio exciting to strengthening acquire Our

provide Jarrod? about more quarter to financial details talking off Before it hand great opportunity, and this our on full-year fourth results. I'll Jarrod some to

Jarrod Langhans

Thanks, John.

solid Our traditional quarter results after us margin. more third as XXXX, ways, in gross several a returned such fourth uncharacteristic quarter, to very of our

global as well costs, impacted to big our our onetime the of several related beverage results. costs Center acquisition, our to Excellence onetime related including penalties legal were there to paid of expenses co-packers as settlement and However, new that creation

promotional top incentive impacted our as This and allowances well with by of of each a revenue some the impact was compared addition, quarter fully year the some resulted as well in program as line EBITDA, timing adjusted In distributor, declining to ago. our orders. implemented fourth largest a in as X%

on on year-over-year a our basis. materials. of of XX.X% said, basis margin that result And purchase and With each at raw our the to was XXX adjusted quarterly a margin freight points gross improved lower savings XX.X%, costs EBITDA as flat

a accrued quarter case we recognized a onetime primarily on related quarter down quarter, year, net to loss co-packer the million $XX.X SG&A the was million to due approximately We charges. in aforementioned costs. the appeal for fourth last legal million, net the $XX.X of in expenses $X.XX. increased EPS gain of to XX% well have as fourth as Adjusted $XXX and to a due restructuring fourth from diluted

billion, business, Ireland, New For our the full from by American seeing revenue ago, the was of which year the an France, $X.XX expansion as North both growth increase year, was business Zealand. Australia U.K., approximately from Canada, a and our international supported into well X% as

XX.X% the and our Gross to a to gross ago. compared to points year profit XXX full $XXX X% million, year profit for margin basis increased increased

in compared due period a prior the XXXX to year to XX% As same advertising in of percentage was marketing activity. sales, additional XX.X% sales and

was of percentage onetime year a XX.X% expenses versus as same an to expense full the in period other ongoing X.X% to G&A for litigation the costs. XXXX sales year due prior related and

distributor XX% million, $XXX for the timing of year was a a result mentioned year income decline a previously approximately Net ago costs. and orders the as compared of the to

EPS balance of we after of for the in acquiring approximately diluted a cash beverages, operating flow. we year cash positive was the $X.XX. experienced full Adjusted $XXX million, pressure second full big maintained and the half year generated XXXX, Despite even

innovation. further with our growth also margin supply in focusing pursue cost investment expected further We're are and to improvement. which continue support will chain and brand on management efficiencies, efforts to support We

quarter, chain functional Nu. with as we better-for-you as planned acquisition will that long and acquisition to of realize As lifestyle the benefits Big the further well with capabilities control gained financial we expand now continue look category of our of and mentioned near the co-packer greater our term. supply new Alani last in over innovation to Beverages, we And

And I'll that, with John. it turn back to you,

John Fieldly

about acquire and the mix Jarrod. talk today to create Thanks, believe for our the you for we billion, stock. definitive We acquisition value agreement $X.X excited our and entered into cash shareholders. I'm comprising Alani Nu of significant will to company a to

products for growing platform and that acquisition consumer to energy segment growing opportunity a Alani Gen of represents Nu delivers community enhance a with focused consumers. within is category. the a profitable, a The brand the wellness differentiated on Z lifestyle great-tasting unique functional, female-focused better-for-you brand Celsius millennials a complementary

for community of out authentic its making its stands and playful consumers. functional a accessible. combine brand bright benefits with yet with wellness They flavors, Nu personality, fun, unique approachable aspirational, voice, connections Alani and

The transaction strategic several delivers compelling benefits.

intersections functional create at consumer platform the First, of together, we leading a megatrends. better-for-you lifestyle

shifts platform wellness pro with energy ongoing forma addition the firmly that the $X differentiated to functional combined active in across in health aligned delivers is cater consumer sales that towards and Nu, With portfolio of the Alani Celsius billion options lifestyles. beverage and premium XXXX a

growing transaction XXXX deal as enhance two an leader combines CAGR from growing to The with the to is large, is XX% scaled innovative position grow energy to XXXX. category, which projected at category brands this in tailwinds. energy Second, clear Celsius expected a

gives a audience provides driving brand complementary the Third, deal positioning is to that access fast-growing growth. expanded wellness-focused incremental category us and

to expected our for investment. company's ample the capabilities with leverages combination further drive added position the strengthen combined our of strengths Fourth, breadth is platform our phase growing The ongoing and of resources next to growth.

achieve growth be propel drive adjacencies, gains, brands brand and continued expansion. global category well in distribution further platform Celsius consumers Both will awareness under to incremental access drive and growing the innovation positioned and

EPS Celsius growth enhances in meaningful accretive expected synergy and cash X line be algorithm a opportunities. the is with year Finally, of combination top to

of strong of contributing cash over flow million years post significant cost X $XX pro profitability a forma close, be rate expect we Additionally, and to achieved synergies generation. run to

continue drive and and potential applying key national We to by Celsius distribution, development digital Nu's included markets, expand opportunities see and Alani in significant innovation to product Nu expansion strategies channel format grow strong to metro and marketing, We flavor continued globally. Alani coastal grow. see growth help

to draw offers. Alani drive We expect to lifestyle wellness continued more and product the innovation consumers also into that Nu development

and believe our retail combined to we benefit growth the will opportunities. continue from strength that we Additionally, at significant resources to each in invest

operate within momentum. business Celsius. Nu to agreed have which leaders Upon Celsius Nu, as Congo continue ensure And key to Alani continued Alani advisers closing, Brands, operate help will from to

and approvals, is Celsius has subject to XXXX. the is agreement by of Board to been close transaction approved in customary expected The quarter regulatory The Directors. conditions, closing second the of including

In position strengthens long-term value combination creation. advances way for strategies, the short, this our our and paves

XX a better-for-you expand was with of to energy we Celsius Alani the of thrilled over years are and the ago, category Nu. acquisition our pioneer portfolio

growth transaction, the capability we sheet following Importantly, have for investment. ample will balance additional

right growth. Alani drive to strengthen We Celsius sustained as category. expected believe the is the growing strategy have innovative long-term to in acquisition Nu leader the energy of an we And large global position

And Jarrod turn of to talk to Jarrod? over about now financial the transaction. more the I'll it terms

Jarrod Langhans

you. Thank

$X.X Max a As a terms partner of Co-Founders, Alani functional and Haydn acquire the to potential on Katy of Nu comprising and including lifestyle earn-out stock, performance. for and the Under will John mentioned, Co-Founders, from excited million better-for-you and to Celsius with cash Trey leading are we based a agreement, mix Nu $XX Congo Alani platform. billion, Brands create XXXX

tax supply This $X.XX million of value billion represents million present for and less XXXX our approximately Alani of an synergies $XXX and XXXX of $XX benefits back-shop sales infrastructure. approximately utilization EBITDA includes XXx net force million, includes in price of adjusted than of $XXX a Xx which chain, our million attractive purchase valuation approximately fully and revenue synergized Nu of net $XXX across

of cash ownership. intend consideration Celsius debt newly and Holdings' forma to fully combination cash the million and of We hand. representing and of cash common on of $X.XXX of a committed stock, restricted $XXX million price X.X% a pro approximately approximately million $XXX financing shares approximately $XX fund issued The of consideration $XXX million earn-out using comprised billion is purchase of

future shareholder that creation. which value. pursue growth allows will growth leverage long-term following balance Xx, be forma us net that our on remain the released investments This Stock with a liquidity opportunistically value position a with and subject transaction lockup to X-year continue strong cash to We consideration of approximately drive to will the ample pro to will sheet. drive interest agreement, period, be allowing over a expect

updated will and the certain agreement integration retain enter the transition brand a months. look coming the leadership you process. we forward and progress into key agreements consulting We services in help deal the to on closing, to At support keeping of

we'll that, for open With line questions. your up the

Operator

Kaumil Instructions] [Operator your line the from Jefferies. Gajrawala And first of of question comes

Kaumil Gajrawala

positioning how positioned Can ] you are the differently the to brands or of [ maybe you talk how and about solve overlaps ]? maybe any [ plan they two

John Fieldly

and also Great about We're excited addition Celsius and our a Celsius. Alani It's consumer younger consumer accessible, and Nu to portfolio to wellness it portfolio question. fitness. around into that Alani complementary the really Nu incremental health targeting female very revolves base, brand The overall of at a Holdings. which and has aspirational. our is unique is It's

the XX% a fairly We female any the And actually the [ in trade when higher at much as media, look brands, a following. looking between at an potential, cannibalization social top-tier about it's we category see in brands ] example, some well. really as has The of low.

So this contributing And has to also been incremental. Nu is rate. the growth Alani category truly

great with energy So to after modern category. two go portfolios this positions us the

Kaumil Gajrawala

issues go inventory maybe with preference have the consolidate ] is Pepsi? how And you some or those before? Is how distribution? of guys [ there involvement has And [ ] preference customers financially to your have Is ]? maybe it about are ABI thinking of it. recently people any major to owning along Got and Pepsi forward Okay. in sort you network X [ as that then

John Fieldly

and the closing businesses customer in Nu. great really the to network. We're It's they're expecting amazing Alani customary today and it got and we're been regulatory procedures the just respective partner approval. is And in the It's transaction. on go through the second quarter. right to growing sometime We're for ABI together. announcing focused an now close a network consumer The

Operator

Salera Your next comes question from with Stephens. of the Jim line

James Salera

the how on to what that growth Nu energy mean we has maybe going bit wanted on is the a drill overall offering piece the I of come Celsius growth, to little and look And obviously, drink I consumption Alani if add incrementality and at down the is scanner you the portfolio. data category focus think down. by maybe more Celsius

there? top and you brand the of grow Alani in Should Nu brand Nu line brand to get of we to be Or kind expect kind come with and do Celsius complement of expect Celsius above-trend the back category to the that legacy to kind as then over then the incremental and Alani the lift growth have the well?

John Fieldly

Yes. Jim. we what we of scanner slow to innovation. data, the a QX were timing mean absolutely, with if look year in start off I and at you cycling versus No, promotions last got

Celsius a I'm with the have really in innovation We robust about strategy portfolio it. excited XXXX.

fitness lifestyle, the especially female. bullish, with really mix, and better-for-you, male approximately positioned feel portfolio We a way the is XX-XX

and free the category category business XXXX, energy to trends positioned that the is to great Celsius the with see on category. We We in XX% portfolio. to now greater in than tailwinds tipping in to health forward of continue drive that sugar the well portfolio. are our capitalize And

untapped we additional at where unlock, in especially about it's cycle it X in of its and you ACV Alani,and When convenience. a at service There's where and ago. look look in Celsius lot years almost to distribution, also was is growth really food

with revenue opportunities brands, incremental and both to are of be lot a profitability. there's So brands to both growth and going additional

James Salera

and RTD There lot of energy portion of Great. know the But one of maybe an I sneak a a and questions of will powder then also I quick And in a snacks Alani. shake have piece the just be kind portfolio. they if follow-up. Great. could on

how plan on centric? that's thoughts to that any portfolio fit with Just kind you of in energy broader the

John Fieldly

Health together Well, to up lifestyle the that part There's offer daily it and continues and into scale. become Alani, us of a especially better-for-you I gives really all opens -- of categories. brands with of opportunities wellness consumers. our think these both platform. expanding adjacent of a lot grow And

So a basis. on go-forward it's incremental

Operator

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

Peter Grom

velocity Nu? maybe just just resets. of have to do Celsius shelf for brand, this specifically, then the around I core And a of on challenged? gains the what expecting you more what out we terms in as particularly any curious, trends been expect shelf are can talk about as you what So ask Alani through wanted here, spring visibility you expecting at kind you're to be look in for just time space bit for have point I'd

John Fieldly

coming around given in NACS in expansion up, ] our seeing our With within we out retail of Yes. XX% we're as expansion to large XX% sets format portfolio well. expect roughly [ and distribution coming Celsius

large seeing even lot a You're format heavier lean of in grocery energy. in and

So category we're really is evolving. this where excited about that

mind, category, which in And is much into that retailers, now. you're up you're getting take packs larger packs keep space, are large of advantage stocking and a portion energy to trying move of the The be categories. in LRB variety to XX on total consumers, seeing that format, the seeing the and beverage

More a the opportunity. daily ] energy of routine a category large to and lifestyle media has of from an advantage that impulse [ taking is formats evolved more, and from and evolving daily purchase part --

expect. So to XX% XX% we about

-- we Alani with continue purchase is path in especially as to season, the placement is improved sizable got gains to more then cold convenience key. reset pretty are distribution We've working really expecting Also, portfolio. the to we retailers entering the within disrupt to We're channel. Celsius on placements. got And through get

Operator

question from Serotta Morgan Eric with line the next of comes Your Stanley.

Eric Serotta

the Does side. would networks, And other if were Pepsi follow-up Congratulations brands that look then distributing A to what in And first Alani what buyouts? for of quarter? was guess, on change refusal the change any hypothetically, turning first the are on have who Pepsi in inventories responsible buy? the quarter? expectations you distributor be your to for the business, distribution to distribution I deal. right you as the And the quick

John Fieldly

Yes.

in companies answered this on closing distribution, And But separate right and let inventory suppliers. that's now. running QX. servicing Right The focus that our transaction, main retailers the a and I'll on regards until focused of the Just closing. kind to focused before. the we're now, comment in comment on Jarrod we're are levels customers

Jarrod Langhans

Yes.

million in million it XX was and impact. the So between terms of X

Operator

question next & with the Your Company. Needham Gerald comes of Pascarelli from line

Gerald Pascarelli

deal. the basis question how Congratulations Great. for a Essentially, put slowdown just the transaction. in seen the transaction the you the maybe you've context on John, core near-term that like portfolio? in your do on of the

right slowdown is guess near-term another that with decided this been how way, helpful. have always Or the and a an I you've the I attractive as said get asset, process the buying is to guess did viewed would for the scale? more some on color you deal aggressive time? while contemplating materialized expedite like just M&A now and be for something

John Fieldly

No, the for the XXXX, about is portfolio fitness it's to and it's slow a in portfolio recognize lifestyle Yes. flavor, And great we're Celsius strong. Celsius continues We in question. innovation. we The to the leveraging confident broader see that consumer. portfolio and start. we great the off And energy category. we're the it. planned we have extremely strong, with extremely tailwinds And a is excited great are innovation a resonate The

at really we brands about the with approximately it, building our admire up XX% a combination of The we built. #X a Alani to X And category. incremental And at really are us player together a is opportunity share they in When now energy energy. great solid what when you it you're these puts came base. Nu, scale, in right look consumer

in about about here. I in mentioned We remarks talked Jarrod built company amazing integrating co-packers. QX, vertically his an prepared with our it

have and gain a built, focused We're infrastructure us. shareholder through We to and it's for natural drive and synergies processes and opportunities. the leverage and disciplined value, fit systems we've

Operator

Teixeira the JPMorgan. comes of question from next line with Andrea Your

Andrea Teixeira

so Celsius particular. in should that, in far gaining follow in have to from on the terms wanted intra-quarter? recent you we see velocity? just also understand if comment of I How most trends is there I on distribution. can tended improvement you when for quarter, up obviously, And And Alani. an the like consumption offset

how reception? understand receptive a mentioned. were related you're strong the the getting that, very the I mainly from you're been that reflection a has a new quite for also But innovation, pipeline lapping And that good you have for stores strong you the I to the innovation. convenience as coming also know fair -- up.

of Alani. be be if these brands more just expect should a distribution evident But how we Also should Or both improvement, second should wondering, that we quarter in comment any? the with seeing Pepsi, this all dynamics on for now?

John Fieldly

portfolio. the Excellent. lot there. the regards unpack Okay. said, like In confident A to of we're Celsius I portfolio, Celsius in

weakness in We have some QX.

cycling prior some of high strong launch and line are innovation some with We pretty the really in had Essentials the year from hurdles QX.

an have the about and into back half innovation. innovation-packed the summer We summer our into excited We're season. beverage -- selling

recent properties the with some It's have great remarks, We partnering prepared at we award mentioned and be I a really timing. our retailers. We're programs. we'll X-Eleven. leveraging tentpole won in

going Energy they're And incrementality used wellness not to here. with gone get Health as and unique Alani, which with to consumer category, gaining niche broader. in it's the has it incremental. mainstream, resonating trends distribution, then to segment the And they're energy as be the it's are continues be.

tomorrow. We're actually health, wellness, presenting talking the all these of are brands growth talking, And consumer at everyone's about CAGNY sugar-free.

and greatest consumer. in have aligned sugar-free beverage two the with portfolios the We that are of health-minded

So combination. headed portfolio. we're It's great with where excited we're a about this

Operator

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

Michael Lavery

could unpack I but now. bit. had do going see your 'XX if little from share with my of to I the trends a what just that you're cash, skip top think I'll maybe And you one list,

sequential pressure the course sequentially of You year. over obviously -- some had the

maybe will some but of certainly address how each Any question, option to changes was diagnosis -- the Subway it to you if that then or quick going [ decision? how related. it? said or as really made could could where of how an share on we it of and unfold? ask meant Is it those if best also And just you ] news, some that could I be follow-up Not do to about what those think a Alani think franchisee's about outlets. might go just How

John Fieldly

-- No, started and some the you QX. went whole hit at challenge see the first great really negative to questions. challenges, the was within We we When years look in for growth. when category -- category impacted we under really in time many were

steep We players the also saw category are competition in, that sugar-free come in really from getting some top of the trial.

But are you Celsius we strength and evolve, of on and feel great X the a with heavily better-for-you leaning the positioned healthy major flavors, that new -- ingredients we category for saw positioning, there, getting well top players that and with new trying are flavors our portfolio refreshing consumers of halo, are our trial getting out this are sugar-free. to in

But consumer. we long-term have a loyal sustained

innovation fruition in and great to come of and to that We to with planned broadening it's our strategy that. with of more upon initiatives We're our some that the after going we people, XXXX more more And marketing a reach. we're our targeting broadening also strategies going have of segments often. some portfolio places and consumer targeted and build have

Operator

Sean Capital question next from of Partners. with comes McGowan line Your the ROTH

Sean McGowan

sustained, then allowances could gross the more generally, how in revenue that this could both margin that the I a was you if promotional us level be you impacted margin the particularly think quarter? with in do you past about tell And of and background? is the the in momentum talked much wondering gross

John Fieldly

activity. mean it I activities. around category Yes. The question turn talk is of to promotional. I'll to great over the high promotional about Jarrod some promotional

Jarrod Langhans

Yes.

from some of the XXXX. activity we We next see across of that promotional to contra it, look XXXX even bit get of versus little on orders, terms leverage revenue around a timing the year. In call did track back with the noise and elevated, XXXX distributor

display, a also in like QX was in from things plan extra approach. will around those we see of QX. because place bit the in phased-in QX, in, inventory and the of have but like of priority it QX benefiting baked full that. kind But already be incentive will things We on implementation periods, a QX, the incentive was program QX fully little you'll

So we to to look kind get normalized to more of back basis. the that

gross as in the As somewhat tariffs it all various the the are to it we're kind pieces. think we're north in would evaluating to relates things. could impact are the don't are out, things, profit, lot impact. although We We from in relates think shape we have coming aluminum a the of of -- significantly those tariffs some good us, up that

could margin Definitely. that the bit? back a little And pull

order shown resilient year that we've that think a pretty this I basis. we're in to get on XX% full-year

So and from high prefer say to number is XXs XX% although I tariffs, could solid be be I think that conservative perspective. a the with

we close. their it we get when after And then as look margin relates we'll to Alani about of kind -- Nu, to talk profile more

think from margin the to to bake perspective. of deck business leveraging is some margin we're fully in. on perspective investor look early to the really synergized, you EBITDA that profile, can we'll data an that forward a incremental it's from be their and at least revenue kind too be right now, and I look There perspective. a And when see

Operator

of comes line Kevin Grundy with Paribas. next Your BNP the question from

Kevin Grundy

Congrats wanted margins, on around the to I line deal. up Jarrod, question. of two-part pick that on question

you on there? million just maybe just much visibility Is key have? identify areas, there cost $XX potential any the how synergies, So upside

I should John. look And want be then something combined like you in reason, for hesitant, margins at least EBITDA the there why a any quick the may Monster's not principal, be have a U.S.? there your then, And little would business, in margins is So understanding EBITDA helpful. bit to your thoughts follow-up

Jarrod Langhans

XX in profile their was, are of to said, where are our cycle kind life cycle. they're in and John Like terms Yes. of our months us where they what we in XX life behind

to further that see business. definitely leverage opportunity So we

terms are just not synergies cost revenue of kind of a percentage in of hard anything. picking The or

and really were chain kind So to our where looking have we of looking cetera, which leveraging our of global our really specific supply using we're XXX that and and savings. global strong HQ, competitive scale different at COGS, we then looking have power and -- at procurement drive sales at also our purchasing to our we're where some a program, that; able be et supply chain we will force,

those as between and then back of some So course, areas well. shop,

the part, was what then second Kevin? And

Kevin Grundy

lot That of there's folks one a on is quick a fail. was the John for deals just know I call. lot helpful. The obviously, of

see, So and my of to need AB and really the don't bit distribution Pepsi, of around and we'll this out into see. There's system on is the you be piece. wait little a question -- redundant maybe comes

you do integration no risk terms are most in and there's goes this bumps limit to ensure smoothly you how pertains with investors What What this the deal? that in as road? it managing share would But about? concerned of that you to

John Fieldly

we're on I No. extremely Kevin. that, focused mean

If used didn't really to you focused rigor the into going We is and retail. integrated distribution any on Pepsi on and on were strategic same I discipline we we have company be this were the didn't that. we way system, really within integration. the think the recall, praised -- how And hiccups

and the a transition -- working fully with us as integrated. on We're the success the brands. In we'll Jarrod brands the And maintaining mentioned, years, addition, agreement the integration. getting on these for and driving X founders making be sure are working synergies we'll are be

integration. So the we feel very in confident

And they in stock have company. they in also the -- mind, keep

disrupt is the the this all we sure we're category, energy beverage the company. successful make aligned vision, And share extremely an drive successful. same XXX% So make and integration all the have to

Operator

comes with question Stifel. Mark next Astrachan from Your

Mark Astrachan

where been that I If I'm figure their getting look guess you had? do out a the question Alani has at up at the gains share doubled consumer how what I've you gains, the talk momentum that of the they've from maintain is, start year. were Maybe a driven share trying has take about one that bit perspective. those to kind they a of market

come It maybe share Celsius' a in, seems gains expense. of little from those the outside bit at will

how confidence are what of kind you you the about that talk that maybe spending that you about so can over several consumer. next consumers think And those you keep this on to many gives And what sustaining years? deal

John Fieldly

questions, incremental prior remarks in in prepared we Alani that the are category portfolio. mentioned add confident our I and is as the the portfolios -- we and total the as the X that consumer strength to in will combined Well,

in its the emotional level As continues in has opportunity growth it's at consumers. we Z, energy demonstrated is broaden. real. There's drink millennials of consumer the connecting to And consumer as brand Alani identity, loyal. segment massive that Gen consumers are a with The a know, female true energy And and the years. an category over it's the

it's the portfolio day And is consumers, for male the category, going it's a the has category to built see. ages, and category. It mainstream. of The take just not we've after modern we and dominant gone modern the and energy tailwinds all all a advantage opportunities

Operator

B. of the Sinderen Jeff from with Van Your comes question next line Riley Securities.

Jeff Van Sinderen

what Alani add can wonder reach you have me you with then to if tell just we plan also, is marketing John, if Let for my Celsius with us And that the penetration? broaden to brand, I then And ACV about Alani? congratulations. they of might your how do any how switch can marketing? today? change And this minute thinking the a year, international

John Fieldly

with international U.K., with the to at even Australia, when Zealand regards looking opportunities of small the Jeff, -- Ireland, In to that's and massive. They And a expanded internationally just opportunity, into you're distribution. regards France. have Celsius, amount we Yes. New international

first started innings. And we're in just the getting

XXXX both XX%. growing $XX from tremendous which the in to trends on and wellness an category, brands expected capitalize to growing opportunities the XXXX at CAGR was XXXX energy and at health in approximately billion have So

So positioned new the category to both attract overall. in. and it's in to category broaden brands a consumers energy And be really great coming these

As it's I gone mainstream. mentioned,

Operator

will Due John constraints, Q&A remarks. back closing for Chairman the Fieldly, concludes conference CEO, turn to over time now Celsius and session. I that to our

John Fieldly

and you active Thank with who options premium in the to you, wellness trend on Thank grow that beverage lifestyles. continues to Celsius operator. towards everyone and category this refreshing joined today for functional today's energy is consumers on great us afternoon. tasting, our the health webcast and shifting beverage

Over tailwinds, grab and a in day, And it see down way. fit. the Nu drivers live great with see the places growth great more and double driving we refreshing Alani that to a few we people often, will opportunities a a guide future. category further leveraging the more of go Make we the Nu expansion Celsius more to Make us let's it now and Alani

Operator

joining. Thank call. This you concludes for today's

now may disconnect. You

Celsius (CELH) 20 Feb 252024 Q4 Earnings call transcript