Celsius (CELH) 7 May 242024 Q1 Earnings call transcript

Good day. My name is Ali, and I will be your conference operator today. At this time, I would like to welcome everyone to the Celsius Holdings, Inc.

First Quarter 2024 Earnings Conference Call. [Operator Instructions]

hand conference to Wiseman. to like now over call the Paul I'd

may begin. You now

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

Executive Chief the on Financial John and Langhans, today Joining Officer; Toby me Jarrod David, call and Staff. Fieldly, are Chairman Chief of Officer; Chief

on release call the SEC's materials its first released will The remarks. company all as celsiusholdingsinc.com, open The website, website, and earnings company's to earlier press well prepared are the morning, questions available following the on this quarter as sec.gov.

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

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

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

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

have X that XXXX for year first digit especially years. our to their million of points you it ago. These except reported alone a company. are you, on in consecutive $XXX.X would so, year-over-year the X than the adversely own X-week growth Thank and higher higher very growing movements Celsius was affected to drink of entire XX.X% Good the than for Circana. CELSIUS approximately a first quarter for year-over-year point for reported as our morning, And XX, was restocking, our results This the destocking period, meant period CELSIUS X we Even to inventory XX% record morning, revenue at XXXX, customer, for new this been and a full revenue the increase planned the past QX the totaling Thank after for due strong, revenue quarter quarter in spring triple prepare a press for joining first first by today. which MULOC everyone. were variation the us compensate year-over-year in responsible an fourth XXXX April beyond energy is quarter largest is which ending release, in to we XX% believe according attributable for elevated robust in to XXXX. holds reset The This the category a is higher morning's that XXXX was share first quarter. control. for inventory now Paul. quarter

first such quarter year. no would a higher seen we spring observed was reload these growth Absent However, this effects, restocking and have in rate.

XXXX. business our subsequent may North fluctuations during be expected XX% because inventory of constitutes Ongoing America first in the quarters total largest distributor our of approximately quarter

grow. a And XX.X% category inventory figures, what's here these ACV. noise on to continues quarterly high on all track tracked with cold, shelves, sequential focus is that CELSIUS in revenue channels our our stocked stocked caused important While channels across fluctuations and is constantly on to

XX.X% distribution ESSENTIALS line Galaxy in beginning well yet, January flavor and the be Vibe, approximately has its our February. ACV as we're the delicious resets of year, company history. complete We this as in new that estimate gains space end since the at may several last retailer best flavor were a achieved national a introduced shelf the spring concluded, X.X-point And refreshing and X/X expecting which once We and in CELSIUS our including share innovations since which we of reported increase now the most began quarter.

July. cold in scanner showcases The these placements shelf resets and is importance data effect gain beginning convenience of expected of the of The full grocery and billboard the these in full space be improvement cannot overstated. shelves stores as impact powerful and multiple in-store The coolers our increases be and portfolio. in visual and in shelf to reflected of a CELSIUS

In our with the contribute energy around further March, will a priorities that to program the our category, alignment including within of program goal drink a in delivering new we Pepsi aligns that becoming long-term energy incentive brand #X world. the launched shared interest and

marketing prepare partner. we we in-store with and Summer most noted, initiatives, in distribution discuss best as I'll the with company XXX America presence the And the As well positioned for aligned Days great refreshing products of our North which campaign, just a call. partnership strong are later our history, some in

MULOC was channels. increase recent X approximately points of growth data share, XX, as compared to XX.X with our continued in share X-week across period. all April the pleased year an Celsius share in We're the of most tracked as ago stated,

within share U.S. earnings we our share XX XX-point we there where or As additional and few a maintains last on a are markets markets. call, points major are just in greater, XX of several Celsius shared

to sales are and times more already team approximately we're accounts this year, last year, the opportunities end this compared increased talented our sales have year, as people. of ahead. staff to growth time see we our by And XX%. supporting X our By and the we've growth expansion, adding many and we key expecting With this

our teams world-class continue date savings at gross raw and operation margin reduce freight this Our efficiencies highest do XX.X%. to to cost to quarter, contributing material to

pricing. to Turning

to drive maintained increased the scanner CELSIUS variety while mix trial. ESSENTIALS promotions We CELSIUS which flat strategically our And volume and overall ounce with per come reflects basis ESSENTIALS' packs promoting our a lower reduced line have a of XX-ounce pricing cost. across new and on of into generally per sales, our pricing data portfolio

allow strategic maintaining promotional and review distribution the us maintain With consider in that across and both premium opportunities position pricing into and category of to and and our to infrastructure continue velocity. monitor environment commodity continue We we the XXXX. that our while XXXX said, the half to back

other most here Rasberry product new the additions line, Vibe. which new innovation Celsius XXXX Lemonade, Galaxy ever our Peach, XX-ounce created. this excellent Vibe, is including year best Astro and tasting A is beverages Blue refreshing joins Raspberry in favorite Sparkling, we've Celsius

line ESSENTIALS, which the [ our CELSIUS ] now supporting pleased across with with retailers our reached ACV approximately initiatives increasing has We are country. very strong XX-ounce of XX.X% the mid-April rolling as out of availability

innovation On perform being with refreshing Celsius and the Blueberry with Lemonade, our a well to top powders recent Strawberry Coconut X performers. our Go continues

line. We our and have with continue overall year continue great more this for Celsius this see On the powder channels, club, innovation to tailwinds foodservice e-com opportunities Go growth. and including Nontrack plan to be to

Club quarter the in prior according Approximately XX% channel, $XX.X XX% sales in in period. with XXXX. through to million Red $XX.X gaming the Celsius first XX% strong in the the share first with XX% up $XX million Amazon $XX XX, XX-week recreation, with quarter, Celsius and million foodservice to compared share restaurants, compared sales the to million of with sales Sales to in a from locations. increased year-over-year, XX.X% first a quarter Pepsi XXXX. the Bull in increased lodging Stackline to data Monster was and the XX.X% especially March quarter in share on a ended ending same period

CELSIUS measured launched International sales, the a periods which in in not do to the January, Canada, $XX.X in levels we stated which began expand to international Canada, continues markets. new exceed in In Nielsen. increased and announced to recently France, first XX% XXXX executing Australia, achieved Celsius first New to to include the Kingdom, Zealand expectations, growth, according share through balancing investment X strategy our million. and quarter, in X.X quarter of Ireland, United plans pursue

IMS in say New XXXX, XXXX. and well Australia in CELSIUS retailers expansion as the are April, France, fourth in in across as across and begin excited officially the with the quarter phased Zealand, is of to that available now Kingdom gradually I'm Sales Ireland. planned countries to United select as and of

fantastic at top-of-mind featured in also marketing in recently, well Grand the Coachella, podium energy clear Formula activations hosted Ferrari Celsius is Saturday as including Celsius activated Desert Ferrari Miami brand recent that global team and functional last we artists. weekend, some and Event celebrities their COSMIC Live produced was influencers our leading just One to a which opening Celsius we with as for partnership making finish. Finally, the And Night Congratulations performers by Prix. skit, the culture. pop

first our Celsius' now the Financial to over I'll Jerry? Langhans, discuss financial Chief Jarrod turn Officer, to results. call quarter

our ] We $XXX.X to areas. $XXX.X expectations in the grew rate field returns Thank XXXX. North by including year. Celsius inventory $X.X have they Monster the account to following in continued and our into consumer March as quarter includes John. which to of was for net grown months to higher revenue increase. for mentioned innovation exceeding approximately in-store million Canada, growth while the we record-setting the [ Energy attribute and increased XX, you, when XX% period increase in John ended excellent volume factors, achieved in XX% even fluctuations from another execution context, million, drive year would at International strong several and from year. $XX.X the our XX% historical strong quarter, the sales the velocity increase last same this delivered an our certain sales key teams. the growth demand, XXXX, To million ability revenue producing quarter previously, was first period. the key prior of put of Revenue grew an X million, and revenue, an American States Adjusted sales, United Celsius grew rate $XXX.X business billion XX% for and levered

did and a channel. the in and growth foodservice as as the or of share of gains in channels more convenience points revenue year-over-year than XX% growth club, also served in the quarter, solid e-commerce Continued X driver strong gas our

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

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

have the as the look we a remainder monitoring, including rising; commodity which fuel aluminum; As we such been that other number and have to year, drivers our key promotional calendar. of of are costs, we costs,

was XXs conservative from stick with that to move achievable, we to that the year year. continue not we too margins approach further we result, in the commentary that taking As high the noted a the and where far until to are very a the ready got of remainder February, but were expectation into from we gross

quarter Sales XX% and were revenue. marketing of for the expenses

of have period of hired was we in fill QX team we open see did a and based the track X slightly number We be XXXX. new benefit are below positions significant expected points members QX. on some timing, to But by higher and where than the end same remaining which to on in the

We will in into internationally. plan continue investment further as and invest drill we deep to XX area markets our this and expand to maintain

sales increase XXXX to to General relative expenses quarter As $XX.X our an in within we administrative of marketing continue XXXX. the and XX% first were to million, QX and remain of approximately will the investment X% for range. XX% grow,

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

and remainder in flows across year, but of look we be the some we to that within we will ebbs we this would area the able remain As G&A, leverage confident XXXX. anticipate

$XX.X million EBITDA shareholders million and continued prior driven attributed across approximately quarter continues increased growth accrue the in the or $X.XX year which by substantially our initiatives. remains interest to per first share to to revenue $X.XX XX% XXX% approximately the adjusted available quarter and prior quarter increased increase in cash $XXX.X to year SG&A. to common period, leverage Non-GAAP in to compared margins the $XX in hand, growth on of period. in We income million and compared for million with Net strategic the ended diluted $XX

quarter, $XXX to period. net the provided which cash Cash flows in first the totaled activities compares activities operating in prior operating million by $XX by provided in negative year million

working across see flow fleet capital growth strong CapEx our our We will to continue invest to in to further well around as as XXXX. drive a opportunity but growth, cash to we in great continue coolers drive do

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

[Operator Instructions] Kaumil Our first question Gajrawala from comes Jefferies. from

and in inventories inventory from a we're XQ, maybe X/X is you reverse some resets, perspective in on give how of XQ. do into also as about progressed Can as another some businesses XQ? now consumption that? question million tight A $XX the we're But thinking shelf context our maybe low just going around of

that did but is don't state we regards to some levels inventory our levels, question. and everyone optimizing We partner. inventory we that her in fluctuation remarks. Great that feel as prepared how evolves. of with inventory control the we'll see do We move forward, the In

$XX If over well, at the the optimized the at flow levels especially our about XX you levels looking as we've cash look our inventory -- months, inventory statement, last million.

optimizing. think So I every to is going business be

preparing most just when importantly for to as scan really we forward. strong, important the the last is Sircana. the week especially really most it register continue reset according data underway shelf cold that's And to the think season thing this shelves keeping we is the and at keeping at stocked, look I progress the

So good shape. difficult levels in we move any you we're further for really inventory feel add. But if have our to know, like partner. predict don't Jarrod, just comments I a to is where

depletions our bake is But for see seen. solid. good. partner in as at here, what normal I April, where We'll at from we've I'd of a moment. new look goes the said, rock a They're of wouldn't are say but this us John reversal I Like really kind

just substantially leverage of there? Was anything Okay. margins it off Got is ahead Or it. plan. And were your in sort then onetime growth? of quite there

don't Jarrod, the about talk Yes. why you margins?

X guardrails, freight as We'll Yes. you I definitely that's we it been. has that, point freight that within of of last see to optimize look but of quarter-to-quarter, years, if always and to that this been look out something will but the into costs something upon quarter. continue fluctuates set you look as mean half good some over be a to kind from We've keep dependent been back able some it that did of year. the a we back to rates fuel the

seen business we time some same at our But promotional into raw terms in activity of and much Days moving scale have We around with the period Summer. leveraging are materials. good time, our a of XXX higher

So were we sand that's to always QX, do But looking in QX, end was to kind said into going deliver kind say the at and or out of end that as line not to which in in the we're why XXs February, that I to long-term the rate ready get we have would We're try we deliver of of of to. not we look put and of a able the goal sticking XXs QX. better, to we're a of that kind we the the kind QX, yet. what high with at to locking quite we're said

from Stifel. Astrachan Mark

timing far back go getting to as wanted that as we're I the stock. today lot the question, this to of one a last that inventory

demand quarters. pronounced. that lumping I Canada, scanner the rough looks last rollout when you're the math, XQ, recently more obviously, some undershipped data So even like into it you've X per you would if state do in

I say sales the is, lot that lower. a, that? you what do your So versus we demand and to all are, guess is end kind are your what of question sales see can a where Meaning

you that, managing be work whatnot? an it yet standpoint a you may And do is seem does from but how Have prevent them shelves, trends sure how about where seen seen kind impact? any to on and you with assuming make moving? that of to haven't impact given you Pepsi that And as you stock level think two, how this to have service

the at in take you our I'll look the we're just question. the XX.X%. maintaining to levels, deliveries, Mark, good of scan We We're partners are beginning inventory seeing at the record broke products really think We're gain now. When inventory I right Yes. stock. data. on share keeping a levels

flowing. is product So

learning to -- supply we're optimize. each and I chains, think getting other, both further our looking

partner, supply levels, can't are speak they our -- customers. for I but maintaining So servicing

so ACV. far. been ones We resets well, have that the The have reset greater gone have

Days working we're on So displays with and programs programs. Summer. further on Working and NCAP XXX of further

really think at. we I where feel good we're So

Like if is some million as Kaumil last You're look about see going at the said the well, optimize sides. that optimization XX I you our we flow statement. to inventory $XX on in did both months, cash

regards in So of stocks. seeing to shelves, out we're not

a to You're always we're that's there's out I the going in ways business, think to further just a we're have some good really always part but in of -- optimized.And place.

good levels confident and the We growth. levels confident supporting inventory feel levels inventory inventory have our Pepsi We in our in now.

it. Got

view point, then say out partly the XX, that in I levels expand. the as in And the substantial implying distribution the March Obviously, with head in talked I guess you through to you Pepsi and points notable? to change points Okay. inventory was held on did part curiosity continue any that March increase what that there just summer. just about you of distribution a staying pretty was quarter that through

So for that know through? progression amount the a me talked Pepsi? I And of think little about bit how would be just you weaker. you to reduce April would that being guess do I you inventory about just odd

more the to work the kind at I beginning and but of the does at through? the the quarter first guess, of sort quarter? how of time they the So question, of related end less that hold Did

we spoken April mean about being I haven't Yes. weaker.

we how maintaining enter I our how as -- to plays inventory this quarter. going levels partners, see this We're how the the think unfolds. talking about quarter second Jarrod with maintaining have was to

XX number shipping of within less many optimizing to think And days. product efficient. Prior, getting we're with X. more inventories, able we're in running we're now, in days. ship I cases, We're

chain. our finding further ways we're So to just supply optimize

order recognition in going the of we that's as forward. continue revenue to to some progress impact standards So

refreshing think to the be most customer, continues I and we activities. there to momentum place double important you taking the Days a which marketing in, sales that. is to But to is really want strong, user great end of the and innovation the scanner XXX don't more look any on color data of Jarrod, especially at extremely good thing staff, end and got Summer, within seems heading know, the I for it what's the add maintain bunch great assets and

with you. aligned I'm

shape. think I we're good in

issues service We as haven't their system. they optimize any seen

as long most what product As concerned with. we're shelf, they're the that's getting on

from from comes Jeff Sinderen B. question Van Riley. next Our

circle to made XX% market specifically close comment and back plans getting add you initiatives to Maybe where guess wanted I you I more markets markets to to to achieve that a apply those done other you've on a markets? color to on any you're can share. in that. what those

several Yes, great Jeff, now share. getting markets then we in that really additional U.S. have we're metropolitan are XX question. that range. in over markets markets, that major exciting that right XX% the It's now close to are And

that Pepsi consumer is awareness, we're consumer. collaboration So where to such further And further and activation, well. sales teams. has what work activating seeing that great team really building and the methodological a really which disrupting marketing brand and using and have that building It's out and trial, they product marketing getting to live, approach flavors a just with loyal play, our worked that great build our partners, path and our great the we we purchase,

levels growth Celsius coming category further Celsius our our and new driving increasing category built their category further we've that. or of consumers seeing growth, the as seeing about creating is to category XX% growth availability, is we're we're from consumption when And out

It's really well exciting. gap the is years. that in many format done talked convenience, closing and gaining that and and closing gyms getting for and health really we're and within about additional online with gap and -- phase about clubs. we've placement. really now in And distribution next really large convenience So really We've the better

numbers start there. You're the share seeing to increase

sort seeing just as terms I quality spacings, well. And touch spring on a of back then of gains. you're to Maybe Great. little that locations, significant SKUs, the circle you Maybe speak thing. shelf wanted about of could Okay. that to in bit resets where more most just

Yes.

I be opportunity. resets, we're as think the really you at to when It's look going the biggest convenience excited.

expecting existing we're as channel the good as So our some accounts. pretty well convenience growth within

energy moved and example, replacement retailers. just the on come in More As energy with the working Publix, we're and over the further to an in we to set. And that. other category coolers, HPC several gained front we've from checkout

all been to by has We accounts gain be done resets positive accounts. looking in really but expect this the June, key full of year. to end further extremely The placements team

follow-up Okay. that. Great. as to a And then just

plans coolers this the this far maybe what are more are healthiest into also, at coolers As lot that opportunity is there cooler year? coolers the an not scale, for to as get And a point?

that's and working think really closely really I that's cold a in gaining Pepsi our huge and with with distribution Yes, placements. more partner and availability opportunity, partnering PepEnergy

on initiative. forward. accounts place. out, as key working to big expect of we number X,XXX with the Our team not coolers. the coolers branded quarter, go number team's substantial continue going to think We're But Celsius we're I almost coolers, opportunities the looking And really is momentum that's in but we first placed lots to a to they're regards a put a

from The next from America. question Jonathan comes of Bank Keypour

just about I on a exposure guys maybe I meaningfully couple sense guess kind us COGS looking on then at magnitude a will Can aluminum costs of to of guess, and, of got where on timing sales. margins any year-over-year. aluminum, margins, think chart a through? those and flow I've give up higher pretty the on couple I you it's

turn then and I'll Jon, Jarrod. to Yes, it over

Yes.

a of couple things. So

on me that inventory was jump Let an asked. question

was talking talking I about when days to consistent was from clarify, hand about on April, into Just is March April. I

we April, data. In the doing you see So can our very wasn't see continue what resets as a we're seeing. and knock-on well happen, to that we're consumer

more get to continue We SKUs.

et get to space, more cetera. We continue

anything. That days hand So more just a comment of more than clarity there. was a on

In terms up. of costs the aluminum, seen you've some go fuel

lot aluminum a in our We have of locked pricing.

in pretty good shape we're So there.

year. of lock that to we So around every in QX tend

margins, guess to just are in what from again, Is anything? to just likely diluted the the do to it agreement, it benefit? may -- or On of margin here? Pepsi amendments implications the I sense what other the there of may a What is Cool. a not terms margins. Okay. Like

Yes.

program So going something So right? the for incentive-based, to obviously, Pepsi, is incentive get it's we're it. for

the are, across We their really to in drive what So energy is are priorities alignment. priorities to energy. idea the want the really what also be our to It's drive #X brand world.

And so it's perspective, from that program. incentive an

idea So cost program. incentive level. push really obviously, the is an so the that -- program, to There it's is to next us a there is of obviously

So the it's and months we something the ramping year, call that the see to X, be across, part X, the the cruising up get I really back would look it, first of of X year. to by to time

Cool.

And sorry, bit a as on on in Costco, more that specifically light, in guess foodservice. same I just revenue. a couple became

Costco Just that decline and what going please? drivers to forward, flat the about wondering the point expect foodservice, in to sequential there any you can or

Yes.

Thanksgiving and should channel, have but that Costco, out Friday. did club see week really last quarter, good the we probably we Black called a So really

So we had the team really activated there. phenomenally

range does remains lumpy that the for is strong. XX-ish little little So us. But at tend be up be the a a channel. foodservice, QX good That get we bit was a also foodservice QX. bump to The of pretty QX at can versus other in part? a there What club slower did being times. in

-- And convenience. gains seeing areas in are we we do like

a are, that from So gains the of perspective, we're scale seeing bigger. some areas in

seeing the growth. are growth see percentage we So dollar but may not same from X%, there, gains we as you see

And coming then one Cool. up. the resets last just on shelf

already Nielsen, trade that the So like coming I it's -- basically guess X/X I that items see in so end innovations TDPs if of been of sounds in the been from down kind going number in -- going like what's is be the facing new put looks X/X the doubling that can there. of to that be it does guess, what's coming, put of triple already. thing? more market going a the to the than to average in doubling to imply you is already, of the keep or flavors Or it kind But year? by up double, moving great. or

Yes.

facing. to I double, think triple the is gain goal

might within per a show data, and scanner the So average gaining resets placements retailers. placements we're third items -- lot increase but not those store secondary of up better the in

checkouts. So as Publix, gaining moving And of cold placements That's an retailers move. at well. HPC also, also into from within an other example, like a availability the mentioned I we're transitional additional aisle, example and in as looking energy

So we think the resets year, launching. have triple I them a be placements. we're facing launched do We flavors. secondary -- really innovation which of a this ESSENTIALS. gaining coming within going great CELSIUS Vibe, in by other Galaxy stores double, We of got variety But we're the are bulk to a and seeing

Lavery comes next from Our Piper Michael from question Sandler.

out restocking. But we more we not a snapback or Is something to wanted inventory inventory to should minute. go? to for? how Just been clear expect any know it levels feel low said come about back that the inventory a an you could destocking? but for And the I watch I you've think right, expect should

that. control or Yes. I mean control we I that can't can't

at register. are the I sales strong are think flowing, it's -- sales

seems I But next it But somewhat think finalized. the like now, balancing has -- right ending as stable after happens? who or week be week So knows what we it March. been seems ended to the the

you there does you place? -- makes prompted change worth What in just that kind obviously, But problem the was great the maybe given what was? you've momentum And I know rationale want you seem because, touch color can it don't some on to incentive on on this fixing qualitatively what too it be back that. plan, changing was Okay. of What the specific. terms?

Yes.

a at partnership, share. heading energy really in think I where We is -- we're XX within the the at when look that broke you just the point great within category. Celsius

we partner that And at further do have our distributors. to do with looking We incentivize retailers partners. employees. and and our You're our our ways and distributor

So a standard this like done in is practice we've the past.

prioritization So further -- it's within And long-term to Pep this achieves We've forward. we with of incentive better both anything what our Jarrod, together. a where feel we add incentives, really And solidifies you it We want standard confident course way do out additional programs. know, drive of business. added to to variety this aligns our I of win else. as continue both don't and I Also -- Celsius parties goals. it's to done incentivize Energy. more anything think in really are don't us

about #X market. together. and agree after to we're really #X to together I making players fully need aligned the that all next take It's it in really go step do with you. sure and to the We

Yes.

from Peter comes UBS. The next from question Grom

Peter, are here? you

Our Andersen Blair. from next question comes from William Jon

rates rate seeing performing is the digging for buy to brand a that both household just the category through? kind I And to the you're that category, through all but overall growth that the So category. come you're wanted As into driving. underpinning know the occasions? new to seeing And penetration what consumers the driving metrics you're then growth the brand seeing? I category repeat think energy you're category, mean, extent of driving you about to extent driving, brands. kind to from new and that of of curious how the some the just in half ask the you're of I'm is into what you're growth your

is and brand of intensification. from great shifting, No, you And because the brand amount It seeing not growth really it's a when we're Yes. like increasing incremental it's shifting. at coming look -- exciting substantial user question. we're our

category then And was And are of for latest consumption base. or then about we intensification of and consumers this to the end had, of us was XX%, consuming more of it's more. XX%, core as our day core is Our March. the new

the shift. XX% seeing really brand So

we've So take well. way Pepsi talk Mike's partnership Dunkin' consumers and think changing really we're of Donuts, category. allows that us and as opportunity. this energy the seen about with And Jersey We're about expanding the the advantage to

We the of new lot most of have the And have a most over world. we essential some great trends. in the better-for-you We X category. refreshed energy growing We We're has the showing. drinks it's Celsius at within we consumers. in brand. vitamins. -- got a We're refreshing feel look bringing attributes

delivers trend, this to Celsius have our and life at that properties. and on foods and health wellness to And look fitness, about If you look you also we're want how we and fit all and fullest. all with function, the beverages live our at thermogenic more then living

really well new the well as category almost user X haven't And a last, over the last increase over change the I seen we we're the to think really So intensification really positioned. as within to that now. year to

guess, you Great. about at maybe That's -- of can that's terms drill-beat what measuring you're doing you're share what or markets, kind doing what results there these of, there different as present? XX-or-so markets, talk XX helpful. drill-down And stick? I a expecting in And on you're

recently distribution household I to most high, that you as think has our household all-time an -- forward our marketing shows talked and about as our well triggered penetration games, Yes, and household drive XX.X% at as with a reached we've programs continued penetration penetration.

proud really doing. all the the work and So of been team hard they've

But starts consumers a of on of the and loyalty. we product it's listening live, lot trial strategy. to where We promote employee not great specific which play, the creating then market. because formula work about all a a a have a here call. touching get are blend We're approach with of And creating take that competitors going special and an drill-deep and creating proprietary into they strategies and awareness, we

next UBS. question Peter comes from Grom Our from

now? Can you hear me

Yes, we Excellent. can you. hear

right. All Cool.

here. couple So I guess of follow-ups just a

in just types or last you remind inventory might dynamic a what just I Jarrod, not kind how you what of on we evolved year perspective? you ago from we're sequentially. terms can how dynamic, manage it think comping Like might have against this when of do year. guess us of the will Just But visibility

I XQ, XQ. in kind held in think of again grew it

would to we kind data year? through kind the gap of continue move expect more be this standard expect of we to should kind as versus this Or point? just you at So aligned of it

remember, spending each dollars mean, started we so I our sure obviously, all just Yes. everybody year it's we're and other. we're chain wisely. still And supply as optimizing CPG, the to last getting in learning make were about

see as again. been buildup kind saw kind optimization buildup, that about, there's $XX QX, So inventory Mark's could occurring QX, we QX. there -- some there, did earlier taken was million. would in they so down some To roughly we Across have we QX innovation stuck and there some that and of weren't optimizing. have it maybe QX steady for And some it like QX, of QX some point, QX, if been across in minor talked clearly, for in were then

committed, And No issue they're so service and of have no with fully having terms product we we're that work on KPIs we fully believe -- the shelf. complaints And committed. fully we do we're have to there. in together standards, maintain

they're to very like how there. to do if opportunity are there's happy going we're with said, too. we'll John and it it, welcome So do optimize, But things

of there, shelf, days that. So what mentioned can think keep with the in saw comfortable is if of kind consumer April -- I the with is maintain we're product the in then March, that April. they levels,and the kind hand inventory maintained were we I But on that's on

you kind resets Great. Okay. of the then kind and share the following of just shelf mentioned. And on metrics up market

X/X did the said March. place take on a the I understand those kind these including is call. to I figures benefit, of XQ in there trying think mean XQ? X-week of when mentioned you done actually you were whether that shelf I'm by share resets just

release today. was it in the same mentioned think that the XX.X% you I latest

basis, shares on So monthly of, kind held steady. a

see But is of expect like? the terms we is these track benefit July. in performance And May? but then I in you now really the any share you resets there share as to the touched there progression of ahead, really as until anything And in What's terms of know think week into phasing the I of we growth or are market you we of happen? first way the where full what won't actually context on look kind look can put benefits?

to think XX I Yes, X. [indiscernible]

been in the think the maybe weeks poll, last I XX last of like more is couple X.

to go do the April we number through climb and into see as we May. So continue

seeing are we good progress. So

really once to we As we they're to early get are happen, once we'll benefit. July Once where in, see those fully we'll continue baked resets everything is in. baked

continue on be to So we track.

a it. that been diligently out gains little customers. to have working history We're resets the year guys in super And key our in year going we're account we're been the a the team the space are in of prior versus excited our -- of company. resets we've rumblings this and slower there phenomenal sales But place. best once years. going We're had have of these of to There's it's some about half that we back with our all get all terms

call John the to like back end now to Fieldly I'd reached the for remarks. question-and-answer the hand session. have final of over We

and Thank us our your heard start you, operator, morning. for about thanks for from We've joining investors earlier everyone time. analysts this and feedback the

have our this we our next will start little to to partners, all starting quarter, bit earlier. Thank who call so hard. of begin So for you employees a especially worked

CELSIUS. Fit. and Your it want day, upcoming participating upcoming Celsius conferences, stay there. be seeing what passion everyone drive that Until schedule grab shortly. is to Make Live full Celsius refreshing you a healthy A makes you forward of conferences in be several special. each great of and -- I and a everyone then, and to will look posted will the

much conference Thank you today's so for call. attending

day. disconnect. Have a You may now wonderful