Celsius (CELH) 13 May 212021 Q1 Earnings call transcript

Greetings and welcome to Celsius Holdings' First Quarter Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Cameron Donahue, Investor Relations for Celsius. you. Thank

begin. may You

good Celsius We earnings Holdings' and us conference you today for first morning you appreciate everyone. joining call. Thank quarter XXXX

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

we'll with prepared call the company's released pre-market section. press the will SEC remarks, and company filed today. to time. release are the at and website, that Following the The questions available All its instructions Investor open the your begin under Form on materials XX-Q celsiusholdingsinc.com a Relations

I'd the call the to Executive and filings quarterly before release John? by you as These many Except XXth, With an in of on later As encourage turn turn aware forecasts, management remarks. be any based company's beyond a reminder, Fieldly, of for for I John also over We statements. statements, Officer, expectations, as law, statements Please uncertainties, to including with numerous press and information. additional that, and to XXXX. full contained risks our Safe these replay President the today's forward-looking Harbor that that available call Chief update and disclaims no like duty our are statements be to the obligations review any extent control. forward-looking the the over required in to call may Holdings SEC undertakes and his Celsius prepared are to contained May to John, will this be other involve audio available which today. information

for the our first growth which exceeding company portfolio international you by sales and XX% XX% North in sales. for XXX% were achieved a increased vending, growth quarter, channels, dealing trade sales and International with effects foot strong fitness, $XX and to well with health million a service, experiencing additional several Cameron. impacts you, a in derived us and joining record Even thank from of and which operate from demand we sales continued Thank today. we from morning transportation. continue is as derived of still we America costs in materials the Nordic and our our growth operations. include and several over growth in food see these primarily everyone COVID-XX as raw markets, reduce channels. The in quarter are international Channels record Good traffic

improvements normalized. to However, not see quarter, fully the but we are starting still to first

force countries. from what of remains top in and adversely by in states health to public could EU, extended as in improvements reopenings In our their have some priority due last channels, have our affected and addition, operations Southeast precautions case started as line safety The in been restrictions we East, and adopted we authorities. regions developed potential there implemented, and remains re-closings our hit to hardest while COVID-XX with and see pandemic, Middle few as remained operations sequential be well safety Australia Asia, the our have and which capacity could partners quarters, of uncertainty over with health increases guidance closures employees

cans to The major In expansion cans the to aluminum impacted which shortage an be which we in It impact. in are entire is the have initiated addition experiencing We versus U.S. another back proportion so transportation mix. first COVID in increases a In and represents cans that with received implemented XXXX industry. has the imported will a cans can costs, projects change XXXX large forward. through and XXXX starting online. going of immediately XXXX of half completion we Wrapped the should as a changing Celsius mix our forward expect more that of capacity wrapped higher XXXX. can and fall and to higher be of have by sourcing potentially in wrapped but saw derived which cans cans, imported XXXX the U.S. in a The imported internationally. orders XX% through of time going late plans cost, XXXX. last comes slight proportion from the March expect somewhere cans, to decrease margin higher first company anticipates contingency -- improvement for manufacturers quarter, apply in

programs, to and team the and supplier orders, second contingency distribution performance. in COVID focused source plans environment team minimum expanding and floor the addition adapt In materials to continues further implementing The third efficiencies driving operational warehouse new alternatives. are stock sites, with blanket raw quickly to is purchase

impact our results. in we which a outlined company few in approximately profit remain As confident XX% is range by at XXXX, run margins line the quarter the last that but low will profit call, through first will gross in the gross with this our right points,

by improvement explore for potential of We shortage to Celsius back the continue impacted may available there's additional to they in duration and opportunities is become shorten this end year. can the as the

the holding fully the country have raw because during half increases of the compared North Celsius In promotional for drink product ACV. freeze, but these drink company transportation. quarter, the the sales, experience delays back and category, overall energy as first the been the while shipping did in can its that online optimizing down remains but quarter. energy shortages annual represents convenience a the two inflationary a mitigating the two shows co-packers largest at weeks addition, SPINS latest over in warehouses throughout and The America, X and increase the only in channel in the XX.X% in materials one partially data strategies, which Texas company is architecture a On billion channel generally end available market with side over they and well of a quarter, shut to which X.X% as of year-over-year our XX% convenience for and portfolio

XX with last to convenience have additional the accounts reset. spring stores through months We added expected XX,XXX over

compared growth XXst, March when XX XXXX. category drink second In stable according top energy addition, energy beverages convenience highest XX to the functional SPINs in achieved to and competitors ending the weeks shelf dollar we recently the

United additional win third-party first flavors began spring Bull, for serviced to energy six drink March Statline, in to Industry-backed XX-week which Murphy shocks by by the through our April e-comm tracks than which locations XX% launches and sales XXX.X% with for with share we scan through category, a Amazon increase Celsius the in Consumer achieving data growth recent sales period portfolio as XXXX, with XXXX, be to USA data XX% increased by to show demand weeks The Bull two-week be transitioning growth the accounts including brand ACV in which will network. drive existing drink Red are weeks. the energy ending initially launch year XX.X XXX% in even reporting XX, of a Amazon sales of well Nielsen and two the and our share with largest to with our accelerating DSD in grew for Our as period, four channel most energy DSD X.X that the category National most authorized. on puts April energy has for Celsius an on chains at national data second at Celsius period, of the ago. even the comp at X,XXX serviced In X.X% for as same Celsius share four-week is period, grew stronger our the at XXX.X% continues X.X% which year-over-year share was XXXX, confident the XX.X% reset the the late channel, a XX, as XX.X period, of for timeframe. a further and a the States approximately XXX% four the points and showing and Monster up the next two-week sales for stores grown which drinks recent and above XXX.X% and Celsius XX-week increased last new Amazon will sales according are highest higher in for as the metrics continue Energy now dollars share. XX.X% the will we Red behind four-week and

We conversion lift to the trade continue our network. DSD all acceleration see and are to the to additional of accounts through channels see from of now beginning

key secured availability XX% of expanding since locations regional in store with Recent total metropolitan XXX we distribution beginning exceeds retail major DSD new out builds additional DSD planted the direct Racetracks, XXXX. X-Eleven, door of nationally, been markets, its transition Celsius approximately covering throughout have agreements as up partners States, XX,XXX gaps continues further filling includes regions now others national the and regions, over partners, to to approximately Additionally, distribution which and now major locations XXXX. with of CVS, distribution with Target, United additional and markets. transitioning DSD outside delivery XX,XXX additions predominantly network, distribution partners metropolitan our count Today, Walmart, the centers

number an this line-time grow to to expand locations expect the resets, execute partners quarters coming the further pandemic. as We to their we existing On in continue scale COVID-XX delayed co-packing were priority. planogram our which retailers front, our and even at improving

the out -- Our offset total our global and and Company was Europe support Celsius was impacted are snack from an U.S. and partially and which dominant help impacted step earnings COVID our in by accretive that synergistic further largely we lockdowns Func sales portfolio, in region. stocks -- future that important Food in our to the building the growth. benefits operations locations were and Nordic brand. the the co-packer additional sales strategy footprint and impacted active, of massive in FAST first protein quarter integrated growth acquisition of in which Europe, is which by were by leveraged In will is now protect eight Wellness immediately

great momentum see to these continue in We and markets. opportunities

e-commerce of XX,XXX covers Europe. addition China, model We European and with serves further to in where market distributor a maintain licensing throughout distribution. the royalty approximately expansion in U.K. we in approximately Germany, over the continue Amazon XX expand working to opportunities primarily our our additional locations to Europe and evaluate cities In

resumed international pick partner gyms, Malaysia, reenter to a distributor, plans market specialty and in Australia -- locations, up local retail maintain in also backup to partners off the the Our our vitamins markets ship distribution locations, maintain started with other with base, a we have X,XXX continues. small as a directly retail sales recovery approximately additional through we

see enormous we scale, global to and significant market Europe the for preferences States, with offerings United in capitalize of the consumer For reflecting You a on changes Better opportunity in Asia. As the

on marketing. moving to Now,

target marketing the activate, home. to through consumers consumers while work, connections connections and emotional at play even are robust meaningful we and front, where programs and On integrated existing marketing consumers continue new live, living they

And restrictions, cans quarter support we first continue and consumers sampled during program, virtual despite in our integrated in-person we program, responders, during the COVID-XX of in sponsored doctors, Specifically, open. quarter, limited the that we tour key built COVID sites, thousands markets is and hands events do brand testing which further both and to in the influencer were our targeted tour. reaching leverage ambassador more And reactivated nurses, sampling out an meaningful a way. experiential and in

We acceleration record not reporting quarter. in retailers. third-party is consumer demographics. accelerating, with sales with rate beyond resonating of a a Functional continued of wellness a brand the and for record achieved momentum growth also as Our North our is future diverse but is throughout in the second XXX% Health recognized expanding a driver America, only category with growth the we energy is base, industry a hit trend. data

of we forefront Our and the growth drive. network incremental at the in national DSD recognizing is will place only

Our team is ready.

prepared support is call on Financial Negron-Carballo, I we an and our grab infrastructure Chief continue Officer expedited to now share growth to will to remarks. market place scale. the to over expect his Edwin turn Our Edwin? for in our

John. you, Thank

management's and post-acquisition internal the have results, morning. reputable effective. the are acquisition a that of internal and with review that year be first per requirements which technical relates controls some to the These We the perform CPA I controls, disclosure were the review effectiveness assess of the to XX-K business. firm Acquiring business. for year amendment a background performer the on to also updated addressed of disclosures controls found wanted the over SEC assistance review Before The filed matters controls specifically financial amended one acquired not I international been fiscal in European fully the pertain provide XX-K. to we of have amended regarding XXXX of thorough to XXXX October acquisition this evaluation companies

inconsequential are our as relates As it matters to these to Celsius, financial relates it reporting.

of it's and and impact figures is our misunderstanding over of there to operating impact As standard the such, that regarding is that no investment or disclosures. there the controls internal so wanted XX-K reported XXXX amended impact any or these to clear reporting details the other the there no figures financial reporting. is no community any regarding provide no additional the We and footnotes

results Now, quarter. the to first for the financial review

increased revenue quarter months ended $XX.X prior or $XX.X an Approximately ended an year related million million, or was first March the revenues three balance XX% XX% from revenues Our XX% months increase were for of from from million, this of increase $XX $XX to America European XXXX translates of XXXX revenues. the March a a of for North the where was quarter. of $XX.X the growth increase XXXX. was mainly XXst, XXst, to million three XXX% growth result million in The which

for the amounted $XX.X revenues year. million, As of XXXX million million from $X.X increase an such, first $X.X prior the to quarter European

when of the quarter XX% to the of first XXXX our In of increase for reflected million $X.X European sequential in quarter XXXX. addition, compared a revenue fourth

world-class mainly $XXX,XXX from March XXXX, consist ended revenues increase was in as behind $XX,XXX primary XXX% $XXX,XXX continued prior our North related in increases an volume primarily from to ended markets in XXXX, growth months Other volume the $XXX,XXX international year pricing. in factors revenue year to triple-digit of presses of in of American XXst, sales of for increase three of months with amounted an coupled which the in from XXX% from quarter. increase product The the increase of $XX,XXX retailers. China revenue generated The total revenues prior channels increase quarter. to traditional an strong in attributable during were the increases March three opposed to royalty licensee trade, Asian XXst, for sales

in in and to well delays quarter. warehouses to shortages our and of to strengthening our shipping a when results revenue year by euro of approximately to revenues to two year two increase or in for when Furthermore, that of continued European of distributor XXX% prior the million These ended complexities investment for the the compared can XX.X% related $X.X Additionally, million profit XXst, can prior and $XX quarter QX quarter. year prior were the in increased for some months higher repackaging mainly quarter. increases grew approximately partially X.X% decrease one by a the million which the for from quarter. profit This expansion $X.X related the XXXX down million raw in impact accounted compared procuring offset of $XXX,XXX, our three to profit favorably XX.X% partially prior unfavorable Gross when months in temporary we and XXst, of e-commerce for to from volume XX% related items. the XXst, March $XX compared XX.X% XXXX. mainly XXst, network given or growth to for increases The activities, increase $X.X year was freeze, $X.X XXXX. million. is compared a volume, XX% or additional the co-packers ended months when ended our on were the processing of shut XXXX million three marketing DSD March ended added costs, by million cost million margins $X.X $XX.X also the Texas as a estimates, an marketing delivered as prior augmented which the weeks. of costs, increase from shortage an Sales March million, decline Based Moreover, has three currency the gross million dollars half the offset quarter. in gross while Gross margins for were the months three added our to increase increase expenses of the profit estimated in and XXXX year approximately to supply related increases which provided gross profit unfavorable March impacted product, were in is in freight in the $X by costs, the approximately these incremental in transporting higher costs. dollars and Furthermore, material costs by to $X.X damages related our chain processing

to by other the conversion order DSD costs in marketing area the sales ago amount of the this year in experienced need to infrastructure $XXX,XXX Similarly, trade to to network. we increases support related commercial to mainly from expenses quarter employee $XXX,XXX, as we continue to growth. the invest Additionally, increased have activities in support proper to in the our

million for months prior Lastly, storage expense, as as remainder broker which of expenses year and for administrative the XXXX, and XXXX. distribution in March area expenses, the which option XXst, the of for when $X.X increase ended Management of employees increase to mainly for the ended the in approximately stock compared year total ended accounts amounted quarter. XXXX to increase March into well or to General important which to of the months costs translates the million, increase to accounted three XXst, prior an in $X.X or $X.X area months order XX.X% when $XXX,XXX the was promote million, million the the of for performance this from of million in March related three company. This increase three XXst, this by ownership to continued them were over an $X.X business it participation XX.X%, compared the providing $X.X deems motivate very success quarter.

XX.X%. ended costs reflected employee months XXst, increase $XXX,XXX an three for Additionally, March or XXXX the of

Administrative expenses quarter. As an or are and volume the our is to this increase expenses of to related the higher mainly expenses XXst, to $XXX,XXX of million, amounted investments areas compared net of support $XXX,XXX the a any insurance of total net a non-cash and of and variance, in exchange prior and amount to revenues for interest of general all foreign Total the three increases would year operational expenses reflects China X.X% by quarter. other offset net which of ended the accounted the for compared required business. $XXX,XXX year potential increase to cover other were of bad commercial If be reduction rent. Depreciation, net which of area realization administrative $XX.X properly when other increase expenses other in for to to or in items, the expenses the provide receivable months are three XXXX composed This amounted $XXX,XXX, to $X.X when also for reduced business service March partially higher would of the $XX,XXX XX.X% million, the we debt the administrative which losses ended $XXX,XXX income XXXX. and office XXst, to $XX,XXX, the reduction and currency related our current miscellaneous exclude and Net the months of to were quarter for when $XX,XXX non-operational March compared remainder $XXX,XXX of from costs, quarter. expenses note prior [ph] reserve amortization, other costs the legal issues, distributor. to to

a XX.X per million weighted of based for income company diluted the fourth release. based GAAP XX.X based on of was on the $X.X three XX.X non-GAAP shares was income share of the of above, months when included million, million XXst, earnings measures, and non-GAAP the and of As million understanding on In based a of shares an of average that We've figures million quarter $X.XX compared year released net weighted net $X.XX per $X per average and of reconciliation of outstanding. diluted financial of our business the $X.X true quarter. $XXX,XXX in basically increase March a result and average the outstanding outstanding. in on share Adjusted XXXX, our XXst, weighted of and fully and of $X.XX per ended information shares a earnings million To fully ago to EBITDA performance. weighted outstanding diluted results XX.X been a months $X.XX the our diluted other had comparisons comparison adjusted has or share visibility this or effect, the EBITDA enhanced average for $XXX,XXX for shares March earnings XXXX, share approximately ended three overall million

Now, resources. focusing on liquidity and capital

amount increases flows $XX.X March of Cash XXXX, we of the for million, XXXX and As December $XX.X operating approximately $XX.X respectively $XX.X working of months debt. related in cash exclude is as operations no time. XXXX. remarks. ended during with as processing XXst, which used well use Operator, would delivered XXst, million, by long-term open $XX.X our three you over related had expenses, million of million to of approximately and prepayments these prepared process cash mainly $X.X concludes $XX.X and of quarter XXst, prepaid have million during cash million the quarter. inventories secure the March The activities in totaled That Thank we well call capital respectively million the may to mainly and million inventory as in the inventory the now $X pertain questions. you. and for as If to to aspects, transit, the

a [Operator Ladies Riley you. Our Instructions] B. session. Van from Thank time, with will question. question-and-answer Jeff we this the at Sinderen conducting with & gentlemen, and Company. be your proceed of line Please question comes first

on congratulations Let amazing first, metrics in say QX. me

kind a question. question First is multi-part of

can So, me bear appreciate you it. if with

is cans didn't on production overall Just the increase, sell-through, around due some think now you satisfy was to been getting accounts and were more much get maybe American about And maybe there up regarding any that? where you and North constraints that to more wanted the you stand sell-throughs in enough that color there sequential demand give experiencing pent-up how as triple-digit can versus catching could with you then around if as on shortage, you've given of cans channels much sell-in growth speak they the any acceleration demand? revenue us

quarter. specifically regards full the questions We up -- North the amazing XXX%. through results, the Excellent. over at Thank To we shipping in answer America, did in to not The Jeff, saw sell-in, great sell-through, in you, revenue XXX%, appreciate really it. were team quarter. capacity an job XXX% your

So, demand was higher.

of XX% a rate. [technical of cans, the As at we logistics we the were slower wrapped two probably cans, also velocity roughly an they around the -- we indicated at difficulty] about for half talked also with we produced were freeze freeze, levels In had the weeks. on lot co-packers, lot then Texas headwinds. about a call, a run we wrapping shipping challenges the Texas they And and was quarter, fill of coming there out

been So, first due limited to some line. very to and our sell-out, at inventory we the at at in our strong in the regards quarter somewhat those to and But has sell-in, seems retailers, when of sell-in distributors our be sell-out our -- also look heat our levels the sell-through there.

we're seeing So, data regards and we that's a seeing and referenced the the you the as well scan extremely strong at when I demand the think register sell-out. at correlation there, some is the we're out to some and the data as in Stackline Nielsen of data showing look of scan SPINS, the

out that position feel scan of When to that are QX really a we April produced, of Asia think variety cans, also are a the to now we -- cans Europe, Canada, were suppliers. XXXX is with able once to be regards not the secure you really strong. have cans and we're be supplier cans, produce forecasts. because supplier from coming there, started Therefore, us -- strongly that have very into sales Asia, ashore. we about as from we working -- additional sourced we we sole also QX from main that the all back strategically we good data So, In our were going and cans, to our informed German XXXX head we March, for cans in achieve at our look the to cans latest can moved in our in trying

XXXX our we year to of for remainder secure beyond. have planning the So, it and to cans enough it's the -- volumes and

mix have expecting a U.S. of cans. We imported and are to local

until up potential depending cans capacity ports the as really come well as much the how will these at be a additional on containers and the there going variety get wrapping So, in all through moment we backups of level is going we in all we better know, we're demand at Canal as components, the challenges ports. Suez pandemic well the all a through a and other container with as logistical really the the through U.S.,

of producing are So, we the has. more we're product working lot a But there's through. than producing The teams -- complexities. company are ever

plans have more product beyond. produce QX, to company the QX, than had ever We in and even

we're extremely think we strong. and sell-out in So, position good the seems

Okay, great.

or of in you call XXX% sort of of guess, sense Are rate? back be XXX% just when rate? give at -- getting fill us getting maybe back you a think terms can So, you there to I it, fill

Though probably going things growth some changing transportation. velocity Nielsen when rapidly. scan back we'll the with able I the to able position of you at Right But through some inventory to now of level. to our the the-- half We're extremely meet think in at are bring likely, strong. shortages sell-out is gas freight all We're up QX, sustainable now rates a data data on working be with demand. And retail, orders. we're look and in and levels, better a the all to be to the fulfill at our levels right

gas, to areas. just move, and especially a other get of that in logistics, big thing containers So, that's this on have variety trying don't northeast we're truckers a getting the feedback move, week trucks

So, we're work are things those through We'll dealing that. with.

of -- team; very, -- to half great the will Q of a confidence a will able full team very back working able -- to be demand full in have we this team, the passionate We into half who I demand back and this. and dedicated forward the drive QX team and XXXX. through be have towards are meet

the give just to there, you you expect and you any quarters, And then can more brand us I some I squeeze wanted had including could next think production more moment, FAST? great. around guess, constraints over color, a FAST in if focus follow-up, one Okay, just couple I on of what for the on Europe

rate at growth look sequentially XX% we We they at them; a growth, a a QX, from to derived the from Yes, mainly QX saw when that's are you operations, And when growth had around about rate. look then correct. in roughly quarter-over-quarter. XX% a Europe, good Nordic you

impacted weren't with COVID So, those the in Sweden. shutdowns quarter, Finland, there. numbers first pandemics in Norway, and in They are good in and

So, there difficulty. some was

had with had think the FAST and supply QX, get the think our inventory much well FAST in out, those really not but into But QX -- levels. we're very working about half new be I the back We We we're brand worked Southeast we the portfolio, in the innovative the which launch. we received the with are will getting indulgence bar also portfolio, Also bringing well-positioned. half QX. talked They Those with impacted that. are better that quarter. great snack in new towards successful constraints XXXX realized protein bar, XX will great to was of through and of -- U.S. really back a Finland a middle

Amazon with So, that coming our out with teams, with some digital in for where an be gaining working exclusive traction Amazon the launch weeks, look we'll on there.

So, not we're and full there Europe have the in faith COVID restriction, but executing. woods over things things, out a great that's are going team well of we of lot in and a

my to of hear. questions Okay, and luck. for best good Thanks taking

Jeff. you, Thank

Thank you.

Suisse. next of your comes Our with proceed Please Gajrawala Credit line the Kaumil from question with question.

terms in shelf because of any happening even limitations now, shelf you've winning gains until guess, the new couple you of delay questions, are already shelf do Thank on between on of have of maybe forward benefits but resets of, you. April benefited moving Hey, XXXX It some distribution kind resets, I the the supply. and everybody. real resets, supply? from space sounds accepting like to these A balance

and great resets first it's distribution that Kaumil. are to we April the of USA the when us gets regards you, in win April but additional Murphy's resets, was new distribution bulk In physically did looking May, that the question. that some the distribution. taking at new place add quarter, -- timeframe. reset, Great for a Thank

limited are as expansion not product we are new the we on inventory. We resets; to working have the more We're filled on enough demand. a

shutdowns think companies freeze took and were of place. the affected I a Texas lot with that the

during us impacted really the that quarter. So,

we We be than coming meet more ever producing to more have. we'll have in. product product able feel demand. We're We

and in board have around to to QX rate distribution coming QX are fill expect resets product roughly and board. new But meet coming we XX% fill about new We are with -- on roughly in distribution, doors those that we we an requirements a on those that more around the new experienced.

channel? then what channel. give us we're some bit a We're maybe then perhaps within the reopening, you you read gyms, behavior, recovery. do the look obviously, we of as come suppose early it on XXXX? like full of in to world you just the the some I any fitness what And in a if from seeing to expect what great. what you're a different your And Can seeing it's Okay, at the question like seeing intend on on maybe to looked improvements; strategy, indications kind a

impacted question we Absolutely. Great about Historically, pre-COVID, know. regards. all of fitness represented channel severely XX% revenue, as our approximately the

a that our great We on fitness have and is a core. team -- focused dedicated team great

go-forward very there reopening growth -- we way look continue good the net It's pent-up the that we're We industry of seeing with very see through COVID. have growth, feel gyms. them right forge America. going our summer. great hearing solid think coming. on the it's we're partnerships throughout on excited and support revenue like And about our signups operators really supported chains and -- in reopening a they to We be comments there. about relationships They're approximately fitness are focus also seeing the great to of is did forward around We're a of really XX% to We're us. them revenue, working of contributor We rate and is locations but near focused we're with in move seeing. and lot basis. we the the those chains we're relationships It a continual of to channel to so additional be our demand the Everyone on where hard North going to excited pandemic, to that America, us. excited seems re-openings fitness. and in all key a were momentum get distributors really with talking it's nowhere to QX, the pre It we and a XX% about just represented

I Southeast well. it have We opportunity, a said, for and it's dedicated teams, portfolio especially, the like are that to as great

guys. great. Thanks, Okay,

Thank Kaumil.

Please Ladenburg with from line next Cohen proceed [Operator question with comes Jeffrey the question. of Instructions] your Our Thalmann.

John, Hi you? how are Cameron, Edwin, and

Jeffrey. Excellent

Very well.

hear. Good to

Vibe Tropical see we this may when coming, So, summer?

What's launch such to It's up with this is Vibe another great It at Peach it Summer. actually summer. What's X-Eleven, a our back We this your for going Vibe Your it's we authorization right nationwide pick X-Eleven. successful bringing had Vibe. summer; Vibe; It's at were for Vibe. be Tropical you now can

tastes your team and you and around a it great up can office. it's amazing, flavor disappears to local -- job here pick So, X-Eleven, The profile. great to did the some go

it. Got

portfolio, of can it about give Can to coming said Okay. QX, indication number an in you test see? we'll the SKUs Amazon be you going via was a us of talk you

what exclusive rollout. we're -- initially to from partnership we'll doing that them. And SKUs Amazon is We're an seeing will we'll launched launch to two on see point. be that then scale with Yes, continue grant really methodical as a in

testing. a as feedback initial lot Amazon doing very We've as closely. So, been has working on very well testing positive been of with consumer

going it's to a great -- momentum. snacking And think product from has protein have of be partners. snacking the we So, a a our interest growing of lot lot FAST to addition of a which category, lot we a

bit, the share because on picked from a Fantastic. on of with going you up growth aggregate standpoint sticks the the the numbers? about and talk some your sticks the cans, little side Could have the issues

carry we're they to overall lot growth several specialty well, expanded represent powder Publix, immaterial the a products also a online, additional of Walmart No, an are and interest sticks and we're and additional We're offerings. of and as line CVS, retailers, But where revenue interest now other seeing but of from from topline growing. occasion, seeing seeing number. our our portion usage as vitamins and also they're customers lot as looking mainly extension

And so of there's there. opportunity lot a

We our into potentially And have portfolio a a lot flavors heat the expand well. on-the-go planned to looking opportunities come positive and and got at different our the extremely option flavors. in as feedback of We products. powder also out on pipeline offerings powder with is new our heat

interest there, today but So, our revenue of those RTDs. is getting bulk the

Got you give sensing any data any customer, stickiness there, a of fair as if of us but it. customers Thank you're the reordering And know from could new commentary. we've on acquisitions, trends, got what that for new out can would customer far flavor you lastly, I as amount then current provide you. ordering me, be helpful?

them existing The our you. as of Celsius, as on extremely you consumers Jeffrey. we're many We're we're of know has -- speak seeing it's many And go stores, Vibe five with shelf back we now going to call very to and the -- power is -- the brand in on partners, retail many them we've I about -- customers gain we four of half, been over a stickiness for to as even And our of speak. the that Excellent been availability. more passionate years -- X-Eleven us so and positive sticking of incredible. our and launching better with cold Tropical we placements space, we're continue

XXX,XXX today. end sure. of really excited. be regards year coming We'll the to by for we're we up north So, new of on, to we're XXX,XXX firm the distribution locations this in And locations feel

to able to that leverage. bringing members grow So, getting team we joining further be team our continue great also and We're a lots new as relationships of and good lot we'll scale interest. of

Super. Great quarter. Thank questions. for the you very much taking

Thank Jeffrey. you,

you. Thank

Anthony question. question comes proceed Please Maxim the next line Our Vendetti with from of Group. your with

push Can understanding from percentage the have of every are terms -- depending where not you give get of market every your current John, not is approximately market the Where general where and you penetration in every could made in into be penetration? you Thanks. what see idea DSD, the customer Yes, of base? terms a huge current that can you DSD, market your amenable store; us guys you to in a that is. is on DSD maximum just at network or a

you, focused build keep company a network. it velocity in just demand We're we you see seeing category. levels And very much on high on Anthony. XXXX, were can't to with retail. national -- the thank have that the in in brands, as stock, we just a Yes, you DSD, we're velocity for of We too just at this DSD the

XX% To close going DSD national are working all of targets, able network, and speak, speak, gaps out building an retailers. our we division-by-division, major those being in also X-Elevens are markets, example, accounts been expanding we’re about major X-Elevens be at almost key to we've XXXX -- further CVS DSD over on closed the West to as metropolitan additional Coast migrated for their X,XXX over as we transition our as and to So, almost we distributors. -- be DSD to we'll with have our actually we and

of see through So, committed we our DSD and big to on significant portion service a would like we're that. distribution

by in to of that a We would revenues. haven't better over provided is, importantly, stocks, percentages DSDs, better considerable of I better percentage most where better like placement, and but time, better and velocity our service see retailer execution,

Make sense.

shortage a on the -- color alleviated? the just just and -- expecting cans can situation? come then more U.S. you up because expectations earlier because shortage, I by of it are this guess be your to you're did there? us companies production has other And conference say of in give your calls little on year, for aluminum Good. comments, Based in Okay. on I that for guess, the ramping on that end you this is or your

Yes, absolutely.

to that the So, demand cans, have what's do the happening due capacity. in is the manufacturers in for just increase the just industry U.S. not

recently, it's her XXXX, major into put time enough hearing XXXX every unfortunately, capacity takes it of the the going and take is So, are lines, capacity Rodney same to to lines All running but half just these adding come towards most every expect into not the is capacity There's back the there. issues. some call a you business players will can up. running of the ramp heard beyond, the and in -- brand on we're to we time to just and in on out into Sacks that and production he's business the Monster -- company beverage

goes determined. be The thing continues on-premise for to other the with to That's what and consumers is country go open, to demand happens cans as down. all back fountain

U.S. we XXXX into and internal where right our can domestic timeframe. demands cans, expectations quicker play into fluctuation with here we a that our could But international cans meet more that's U.S. are forecast source have beyond. XXXX and secured and come to So, cans and cans for and now

those. We have secured

a So, now XX% We regards about our derived; we mainly margin to in and it's wrapped how matter forward we in that's talked lot of profit, profile. of cans. mix a move gross QX had

transportation. a during also We quarter increases in and of lot had rework the

optimize with our are to that better cans continue margins. we'll which non-wrapped So, for

that mix international So, but we'll forward. domestic, -- go from and then and have optimize -- as will which we

And expectation but you're expand in about talk the XXXX? sales, international for Middle said moving as to you into and also of East great. year know by then on can the the what's you that Europe, last well looking your question Okay, just I expansion end this

has forward. opportunity But several Edwin, sequencing working potentially that it's to and make We're an do Germany, but us the point. all has impacted don't lot on and we've the focused the as timing exploring. of and it at are for comment potential we on distributors. in you wanted We're of with these this moving a locally working some that we're we Middle is East; on. discussions, timeline -- U.K. and well? of a East others -- distributor the COVID but that, focused talking an area have team basis. have area discussions in been And and you are We to mentioned for Also, an import things Middle that's a been

risks, current continue model to currency was footprint model. we much successful that and is distributors, that that's Yes, say, that that can hopefully, as been model we limit we me, and to going -- the John, just so the And as to through me, forth. key using I the possible. use risk including to minimize going And so the the expand and we

control. the Okay, once internal thanks for clarifying great. And again,

way to call -- question the kick-off to I was good a to rest. that think to put that put that

I'll and it guys. that back Thanks, you. appreciate So, turn over to

Anthony. you, Thank

Pleased Our question with Credit of line Gajrawala Kaumil question. to question the see your follow-up Suisse. next for a with is

more into talk bit a like On overlay think such obviously, for have would to rollout, your regions one months sounds new that. taking have a more And on you aggressively would you're ago. have second -- six to a marketing you than international maybe bit can marketing about about there international, guys. and a Thanks XX you and intentions, maybe the to looking of marketing discussed get the

talk what about investment you are? the of can, ideally, the can plans sort So, what look And would like? if you

Kaumil, you. thank Yes,

effort be we ahead as it it'll of limited. enter a plans fairly of well our mentioned, with that As we're Initially, we we and to is we strategic approach we're have as model collaborative well that are allow market. invest don't going -- importing support that where rollout of the through in through more as it's heavily a a the as more markets. a distributor are margins We methodical generated sales revenue these any

on calls, positive So, that we'll our be we many we've indicated over model the that and last ROI-driven sticking years. several with

as we're we go ROI for investments So, looking forward. positive

relationships, to it'll Some some be the contributing, both but could and investments, initial in regards be of generally be there the margins could material. there

Thank Okay, great. you.

like the back remarks. for to questions. further There are closing no hand management I'd to call

their everyone thank Thank to you. the we'd interest and for of behalf continued support. like On company,

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

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

market winning We have want. rapidly portfolio, a large a team, consumers and that growing and strategy,

the consumers to dedicated significant them I'm and would very mission more Celsius get to of without ahead not we possible. is our see achievements, proud be profitably. Our opportunities team, our tremendous as

navigate the category. the well-positioned result believe are thrive a challenges we'll in today's able and drink the to COVID-XX to of we as energy transformation So, be ahead through pandemic of

Thank have addition, great you for day. continued in Celsius. confidence your and interest everyone I investors and in our their In support stay team. thank a safe, Be healthy, our for

participation. teleconference. this Ladies today's and your Thank for you gentlemen, concludes

wonderful this You may a time day. lines and have disconnect your at