Celsius Holdings, Inc.

Greetings and welcome to Celsius's full year 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Paul Wiseman, Investor Relations for Celsius. Thank you. You may begin.

Thank you and good morning, everyone. We appreciate you joining us today for Celsius Holdings' fourth quarter 2023 earnings conference call. Joining me on the call today are John Fieldley, Chairman and Chief Executive Officer, and Jared Langens, Chief Financial Officer. The call will open to questions following the prepared remarks. The company released its fourth quarter earnings press release earlier this morning, and all materials are available on the company's website, celsiusholdingsinc.com, as well as on the SEC's website, sec.gov. As a reminder, an audio replay of this call will be available later today and can be accessed with the same live webcast link in our conference call announcement release. Please be aware that this call may contain forward-looking statements which are based on forecasts, expectations, and other information available to management at this time. These statements involve numerous risks and uncertainties, including many that are beyond the company's control. Except to the extent as required by law, Celsius Holdings undertakes no obligations and disclaims any duty to update any of these forward-looking statements. We encourage you to review in full our safe harbor statements contained in today's press release and in our quarterly filings with the SEC for additional information. Additionally, management will share operating results on both a GAAP and non-GAAP basis. Descriptions of the non-GAAP financial measures that we use, such as non-GAAP adjusted EBITDA, and reconciliations of these measures to our results as reported in accordance with GAAP are detailed in our earnings release for the fourth quarter of 2023. With that, I'd like to turn the call over to Chairman and Chief Executive Officer John Fieldley for his prepared remarks.

Thank you and welcome everyone to today's call. Also welcome to Paul Wiseman, who recently joined Celsius as our Senior Vice President of Communications. Celsius had a stellar 2023 fourth quarter, the best earnings year in our company's history. We have achieved nearly complete distribution coverage in the United States, topping 98% ACV, which is a major achievement, putting our products in reach of more consumers and more consumption occasions with greater flavors and size options than ever before. In 2023, Celsius set a new yearly revenue record, growing more than 102% or $664 million in sales to finish the year at just over $1.3 billion. Celsius is now truly a billion-dollar brand. Our impressive share gains in 2023 have resulted in Celsius becoming the first company to break the 10-share barrier in more than a decade. According to Cercana, IRI's recent four-week read ending February 11, 2024, in Total Energy US, Celsius held a new record of 11.5 share nationwide in MULOC. The energy drink category is now a three-team race. As of January 2024, Celsius had exceeded a 15 share in over a dozen US markets, and a few of those we are within just a few points of our next closest competitor or have already taken them. Our strong innovation pipeline continues to delight consumers whose taste for zero sugar energy drinks has nearly tripled the overall category sales to a zero sugar majority. Although this year we have launched two new core SKUs, Sparkling Raspberry Peach and Fizz Free Blue Raspberry Lemonade. In addition, two new Celsius Vibe flavors, Astro Vibe and Galaxy Vibe, which has taken our Space Odyssey trilogy even further with the launch of our Cosmic Vibe in 2023 in Circle K. Celsius also launched Celsius Essentials product line, which has proven essential performance energy with Essential Amidos. We are executing our plans to grow the business internationally, taking a methodical approach in each new market we enter. We're very pleased with our sales in Canada after two months in the country. Consumer enthusiasm and acceptance has exceeded our expectations. We're pursuing disciplined growth in our best-in-class sales and marketing organizations. And just two weeks ago, Celsius was recognized with the 7-Eleven's prestigious 2023 Supplier of the Year Award in the non-alcoholic category. This is a tremendous achievement, and I want to thank all of our dedicated team members on achieving this great top industry award. Best-in-class teams drive best-in-class results. With nearly full distribution, we're focusing on driving growth through three areas. Increasing total distribution points at each location, growing in non-track channels, and international expansion over the long-term horizon. Celsius was again the top driver of the energy category in dollars and units sold in MULOC, ending in the fourth quarter up 126.6% and up 140.2% for the full year of 2023, supporting a 30.6% of all the energy category growth for the year. Already this year, we've launched several new and exciting innovations, as well as a brand update to our line of fizz-free beverages, which have a strong and loyal consumer base. A new fizz-free multi-pack available now in Target stores brings together refreshing selection to our consumers who prefer the non-carbonated energy drinks. Sales of Celsius Essentials, our new line of performance-orientated energy, a 16-ounce beverage product launched in the fourth quarter at 7-Eleven stores across the United States, and our two new flavors, Sparkling Mango Tango and Sparkling Fruit Burst, bring the Celsius Essentials line to six unique SKUs. As of January 2024, Celsius Essentials has achieved a record 40% ECV, Year-to-date, February 18th, it's at 49% ACV, continuing to see great acceptance across retailers across the country. Also in January, our Celsius on-the-grow powders claimed the number one position in the energy powder category, according to Cercana's IRI, commanding a 23.1 share, having increased 5.6% compared to the prior period. We have several new on-the-go powder innovations planned for this year and see great opportunities with our versatile on-the-go product line. In 2024, spring resets began in January and typically run through May. We are very pleased with the incremental space we're gaining, which will be reflected across the first and second quarters of 2024. As a reminder, planograms used for most of 2023, when our dollar sales grew 140%, were created while we were holding and held approximately a 4.5 share in the category. For 2024, shelf space planning was conducted with retail partners in Q3 of 2023 when we held a double-digit share position. Celsius is also now fully integrated into PepsiCo's annual planning cycle, and we anticipate ongoing close collaboration with our primary North American distribution partner and expanded key accounts team. Our pursuit of our perfect store resulted in a 60% increase in display activity across the United States, and we placed more than over 10,000 Celsius branded coolers in 2023, and an increase of over 300% year over year. We intend to continue growing our base of branded coolers throughout this year. Non-track channels continue to be a tailwind for us as well. Club sales for the fourth quarter were 77.1 million, up 64% year-over-year. Club sales for the full year 2023 were 254.6 million, representing an 83.6% increase year-over-year. We achieved the number one energy drink position on Amazon in 2023, finishing the full year revenue at $101 million, a 72.9% increase year over year. Our refreshing, great-tasting products are ideal for the meal occasion, and today, more than 12.5% of our PepsiCo sales is to the food service channel. For example, in 2023, we gained distribution in over 2,000 Jersey Mike stores and are authorized to sell in more than 3,000 Dunkin' Donut locations nationwide. We believe there is incremental growth opportunities for Celsius and non-tracked outlets, such as vending, hospitals, corporate cafeterias, and college campuses and more. Turning to international, we began distribution and sales in Canada through Pepsi in mid-January. As we had previously signaled, after approximately one month of sales, we are very pleased with the results and even more so to delight our Canadian consumers who have embraced our products. International sales reached 14.6 million in the fourth quarter of 2023 and 54.7 million for the full year. Also in January, we announced a sales and distribution agreement with Suntory Beverage for Great Britain and Ireland. We expect sales in the United Kingdom to begin gradually starting in the fitness channel in the second quarter. We expect additional international expansion this year. And as previously stated, we're taking a methodical approach to our international growth and we will be following our international growth playbook in each new market we enter. Before I hand it over to Jared to discuss financial highlights for the quarter and the full year, we have several exciting marketing developments and achievements to be proud of. Celsius recently announced a renewed multi-year global team sponsorship with Formula One's iconic Ferrari racing team. Major League Soccer kicked off its regular season last week, and Celsius is a proud league partner, as well as key sponsor of multiple teams and players across the United States and Canada. These strategic investments place our premium brand in the forefront of consumers who share our passion to live fit. With that, I'll pass it over to our Chief Financial Officer, Jared Langans, to discuss our fourth quarter and 2023 full-year financial results. Jared?