Celsius Holdings, Inc.

Hi, everyone. It's a pleasure to welcome Celsius Holdings to the Cagney stage this year. We're especially pleased as this is Celsius's inaugural Cagney presentation, and so it's my honor to introduce Chairman, President, and CEO John Feedly, CFO Jared Langens, Chief of Staff Toby David, and Chief Marketing Officer Kyle Watson. Now, Celsius has a long and impressive track record of taking share within the competitive energy drink category, becoming a solid number three player. Celsius will continue to focus on driving growth this year by rolling out exciting innovation that capitalizes on the broader secular shift towards sugar-free and functional beverages, as well as capturing incremental shelf space this spring. Now, it's likely going to be another exciting year for Celsius, especially given their recent announced acquisition of Alani New. And with that, I'm going to turn it over to Toby to hear more about their efforts. Thank you.

That's good. Good morning, everyone, and thank you for having us. I'm Toby David, Chief of Staff at Celsius, and we're excited to be presenting at Cagney for our very first time this year. Before we get started, please take note of our safe harbor statement. Some remarks made in this presentation may include forward-looking statements and non-GAAP financial measures. With that, I'd like to turn it over to our Chairman and CEO, John Fieldley.

Thank you, Toby. Good morning, everyone. We're excited to be here at Cagney. Thank you, Bonnie, for that great introduction. I joined Celsius back in 2012 as the CFO and became CEO in April of 2018. We're excited to be here on stage. We have a lot of great things going on, talking about where we've been, where we're at, where we're headed, some of the trends we're seeing in the category, and we're on the forefront of modern energy. Some key themes I want you to take away from today, if you could take away anything else from the presentation. Celsius Holdings is a category disruptor. We have a portfolio of premium brands. We operate in a large growing TAM within energy, and most importantly, even larger is functional beverage, and we'll dive into that. We have a compelling growth strategy. We have effective marketing strategies aligned with today's health-minded consumer, and we have a portfolio of innovation that's planned for this year and beyond. We also have a strong cash generation profile. to further leverage our operations and efficiencies. Celsius is the world's most refreshing energy drink. We bring flavor and innovation and function. We're all about living fit, living life to the fullest. We started off in the gyms and health clubs, but now all the CPG brands are talking about the modern age, better for you, zero sugar. Consumers are evolving. Celsius is a line for those consumers. live fit, achieve your goal, health and wellness. It brings that essential energy for life to power you through your day. If you haven't tried some of our great flavors, we've got some samples out in the hall. Please try it. We know the last several days we've went through a lot of products, so you guys are enjoying it. Really refreshing stuff. And make your day better and accomplish your goals. Back to this slide. At a glance, we're looking at Celsius. Celsius is a premium functional zero sugar offering within energy. It has five product lines. Looking at our core line, we have orange, some great refreshing flavors of kiwi guava. We just launched a mango lemonade for this summer, which is completely refreshing. We have our vibe line, which is experiential. Just think of it as a journey with every sip. We have a sparkling fruit punch flavor with a twist, cosmic vibe, which is out of this world. We have an essential line of a 16-ounce performance-grade line. There's a performance segment that's growing. Consumers want more out of their energy drinks. They want better for you, but they want more, enhanced caffeine, enhanced vitamins, it has BCAs and more. Also, we have our hydration on-the-go sticks we just launched in 2025, and we have on-the-go energy sticks. And that's a great opportunity to expand the Celsius usage occasion. Our RTDs in the U.S. are at a 98.7 ACV. They're in over 250,000 locations in the U.S. Massive opportunities to drive further revenue and share and growth. Also, the portfolio is a solid number three in the energy category. Also, in 2024, it contributed approximately about 30% of the category growth rate. It made it in the top 10 of LRB, and we'll get into that. Made it to number nine in 2024. Number one growth brand in RTD. Drove over $2.7 billion in retail sales. And last night, we reported our earnings as well as announcing acquisition. We'll get into more of that, which further opens up opportunities. But our revenues in 2024 totaled $1.36 billion. Margins came in at 50.2%. Net income came in at $145 million. On adjusted EBITDA level, came in at $256 for the year. And adjusted EBITDA margins came in at 18.9%. Talking about making it into the top 10. This is truly an accomplishment. Shows you where the mega trends are in food and beverage. If you look at this slide, these are global iconic brands. Some date back to the 1800s. Major brands. But what's fascinating and the trends we've been talking about over the last several days from all the companies that have been presenting here, there is a movement taking place. There's a movement also taking place in the energy category and in beverage in total. The Celsius trademark is the only trademark that has a brand of total sugar-free offerings. It's happening, folks, and it's happening quickly, and this is a great example. The energy category continues to evolve. If you also notice, three of the top brands are in the energy category as it's becoming more widespread and broad. We'll get into that. Celsius in 2020 ranked as the 90th brand in the category in LRB at $140 million in sales. We had rapid expansion. We'll get into how we got here. But in 2024, I made it to that number nine at $2.7 billion in retail sales. So the brand Acceleration, just going to walk you through a little bit of history, where we've been, where we're at, and where we're going. Celsius was founded, many believe, only a couple of years ago is when you started to see the brand. It actually was founded back in 2004, Janice Haley and Steve Haley. And a formulator, sports nutrition, world-renowned Greg Horne, They set off to create a beverage that was backed by science, was clinically proven, and something that was unique to disrupt the beverage category to align with health and wellness trends. And diet and nutrition, where diet, nutrition, and sports nutrition meets beverage. They created Celsius, formulated with over seven essential vitamins, over six clinical studies. It's clinically proven with moderate fitness activity to burn calories and body fat and increase your metabolism. That same clinically proven formula that was created in 2004 is the same formula in our products today. Through the journey since 2004, we've built the brand in vitamin shop and GNC, health clubs and gyms. With the health and wellness trends that allowed us to scale the large format, mass, drug, convenience and more. The opportunities not only in the US to get to that number three brand mark, we're also expanding internationally. UK in 2024, UK, Ireland, Australia, New Zealand, France and more. The same health and wellness trends that we see in the US are global trends that are taking place. A little bit along the journey, went through a variety of branding along the way. In 2017 is when we modernized the can to the can you see today, white packaging. We launched our Vibe line in 2020, partnered with Pepsi, 2022. Launched hydration, as I said, in 2025. We have some samples out there. Really refreshing and expands the usage occasion. And then as of last night, we entered into a definitive agreement to acquire Alani-Nu to further increase the TAM, the opportunities to take on the energy category. Also, I think the company's been built on financial discipline. Jared will talk more about this. We've always been focused on ROI, leverage, data, analytics, financial rigor. 2015, the company became cash flow positive for the first time. That same discipline we used back in 2012 when I started as a CFO is the same discipline the company uses today. We're very focused on opportunities to further enhance our leverage. We acquired Big Beverage in 2024 to vertically integrate one of our largest co-packers. The opportunity with Alani New to add additional volume, we'll add additional leverage, additional profitability, and we'll get into more about that. We're using data analytics, we're using AI to better route our routes to market, to improve our deliveries, to improve the functionality and the time spent on accounts with our sales team. Function backed by science, Celsius is a premium brand with functional ingredients and zero sugar. Has those seven essential vitamins that are which were created in 2004 and still here today. It's backed by science with that moderate fitness activity is clinically proven to burn calories, body fat, and accelerate metabolism. It's on the megatrends of health and wellness. Zero sugar, no high fructose corn syrup, no aspartame, very low in sodium, low on the glycemic index, kosher, vegan, gluten-free, soy-free, and more. Truly on the trends everyone's talking about here. What's fascinating is this slide, and you talk about the slide and the evolution of the energy drink category over the last 20 years. The last 20 years, if you go back and think of the energy drink consumer, it was male-dominated, predominantly young, thrill-seekers. If you look at that demographic today in the category, quite niche. I can go back on the journey of working on distribution, talking to buyers in specific channels. taking Celsius and trying to gain distribution, talking about the better for you movement, talking about zero sugar, talking about how consumers want more functionality and live better. They want better offerings. What we were told is our third consumer smokes cigarettes and drinks sugary energy drinks, and our brand didn't belong in their stores. Well, wow, how things changed when you looked at the top 10 ranking in all of LRB. Today, the category is gender balanced, age balanced, lifestyle and functional focused, and is mainstream. Consumers have evolved. Also, what we're seeing now is retailers are evolving. If you talk to retailers, what you're seeing, retailers are expanding space, especially in large format. Big box, food, mass. The traditional energy drink usage occasion historically has been, I need an energy drink right now as immediate impulse purchase to go accomplish a specific task. Today, it's becoming part of a daily routine and a daily lifestyle. And what you're seeing, a lot of CPG companies, we're talking about larger pack size clarification. What you're seeing in large format, mass and food, you're seeing the category, a larger percentage of sales are coming from 12-packs, 8-packs, 6-packs and more. What does that mean? That means that consumers are stocking up on their energy drink offerings and it's becoming part of that pantry purchase. When you're part of the pantry, you're part of the household. That means you've gone mainstream. The opportunity to continue to grow within the energy category is massive, has an extremely large TAM, and is going to continue to grow. We'll talk more about that. Not only in the pantry at the home, stocked up with energy drinks, but the category for the first time, sugar-free, is larger than sugary energy drinks. We've been talking about it. It came so close to reaching a tipping point in 2023, but it happened in 2024. And the Celsius portfolio on the sugar-free portion of the energy drink category represented about 23% share in that segment. And that segment is expected to continue to grow. The Celsius portfolio is well positioned to capitalize on these trends. It's driving the growth in the energy category. Delivered over $2.7 million in retail sales. Retail sales were up about 22% from 2023 to 2024. When you look at this graph and you look at 2023 and 2024, Celsius portfolio represented approximately 30% in both years on average, driving growth in the energy drink category. The portfolio is primed for strong competitive advantages, function backed by science, a category leader in health, wellness, fitness, sports nutrition, a strong brand affinity, has an extremely loyal fan base that we can build upon, has an innovation pipeline, great new flavors and innovation in other products, and has best-in-class operation and supply chain capabilities, which will further leverage as we gain additional scale. Our growth strategy for 2000, our growth strategy we'll be driving is all revolved around three key pillars. More people, more places, and more often. And it's underpillen by operational excellence. More people, what are we focusing on? Celsius portfolio has been driving the category with new consumers entering for the first time. New consumers looking for better for you. The legacy energy brands might not be associated with their lifestyle. Celsius is resonating with a much broader consumer base from age, from demographics, and beyond. Based on our data and insights, numerator and intel, we're seeing great opportunities in the Hispanic community. And our flavor profiles, what the brand DNA is and who we stand for. The brand is over-indexing with the Hispanic community. And that's a big growth driver, a big growing segment in the United States. We're building targeted plans to drive awareness, to drive loyalty and consumption. We also have a great opportunity in converting existing energy drink users. We know a lot of users in the category are moving between the other two top brands, coming in and out between those brands into Celsius. We have an opportunity to create loyalty with those consumers. And we know we can. We're creating a healthy halo campaign in 2025 to really solidify our position. We'll be launching that prior to the summer beverage season. In addition, more places. More places is very critical. Expanding product availability. We have a team of dedicated sales staff of over 500 in multiple regions around the country. Territory managers, regional managers, looking closely with our Pepsi partners. In addition to our dedicated sales reps, We have thousands of Pepsi sales reps that we are leveraging through priority periods and further synergies also tied in now with data and integration. We can do suggested orders. The teams are working extremely close together. In addition, with the expanded usage occasions and energy going mainstream, the modern energy offerings now, we can enhance and go into other spaces. Food service has been a big opportunity for us. Many of you have heard us talk about Jersey Mike's. More opportunities exist with food service. Restaurants, recreational, lodging and more. Also e-commerce has been a key backbone to our overall success on Amazon, Walmart.com and more. Retailers are leaning in further to their econ platforms. Delivery apps. Retailer apps. Consumers want it when they want it. It's an omni-channel world and Celsius is there. So we're increasing our capabilities in our e-commerce platforms. Working closely with our partners. More often. This is the big opportunity with the energy drink category going mainstream and Celsius being the most refreshing energy drink with some of our great flavor combinations. Food service is a big opportunity on lock. We know we're incremental to the basket and ring. We're seeing that in a lot of app data. Also, last night we announced the expansion in the subways up to 18,000 locations in collaboration with our Pepsi partnership. Further retailers and opportunities. We expanded into Home Depot as well and many more. We have a full food service team that's being built out. Also a great opportunity, many of you heard the sober curiosity movement. Bars, restaurants, times are changing. We see massive opportunities to further gain incrementality and increment in new revenue into our system with our mock sales strategies focusing on nightclubs, bars and restaurant and on-premise. It's all about increasing frequency, increasing and expanding that usage occasion. And this is all going to be further amplified with the announcement of the acquisition of Alani New. We're extremely excited about this opportunity. It's creating a leading Better For You platform to further capitalize on these megatrends in the food and beverage industry. Alani New is a female-focused brand. It's growing, profitable, health and wellness lifestyle brand with a diverse functional portfolio of loyal female followings. It's growing at scale. Last year, it delivered approximately $600 million in revenue, growing at approximately a 50% CAGR. It's highly profitable and model a synergistic upside to leverage the infrastructure we have to drive further EPS. Has unique consumer base. It's incremental to the category. Celsius Holdings and the combination, we category drivers. Health and wellness and function lifestyle platform. 80% of those revenues come from the RTD. We have samples out in the hallway. Tastes amazing, very flavorful, colorful. really experiential, and it's connecting with a meaningful female consumer in a category that's coming in. Remember, the category is going mainstream. 80% is coming from the RTDs. It has pre-workouts, energy sticks, shakes, snacks, and more. Opens us up to adjacent categories and opportunities. Scalable, the rationale for the strategic acquisition. Creates a leading better for you functional lifestyle platform at the intersection of mega trends in food and beverage. The two growing scalable brands provide massive tailwinds to continue to drive forward and take advantages of the growth in the energy and functional beverage category most importantly. Has compelling brand positioning and attractive demographics. Leveraging the combined capabilities of the organization will only strengthen their position. and the top line revenue algorithm expected to be cash flow EPS accretive in year one. These two platforms together with these portfolios on the combined proforma in 2020-24 would generate approximately $2 billion in sales. Together, this portfolio will have approximately a 16 share in the energy category. When I started, Celsius was a solid number three player. Now it's a mega number three player. massive opportunities with the tailwinds we see. The Elani and Celsius portfolio together last year with the growth they drove, drove about 50% of the category growth. These brands are scaling and have huge opportunities with connecting consumers and the better for you movement and taking advantage of the larger energy drink category. Last year in 2024 on a global basis it was a 90 billion dollar category and it's expected to grow 10% from 2024 to 2029. And the sugar-free movement in 2020 represented approximately 39% of the category. And as I mentioned, 2024, it tipped for the first time, and that's going to continue to grow. The brands together will be able to capture the 16 share consolidated today with further opportunities to grow and scale and take advantage of the opportunities we see. In addition, they both have products with adjacent categories, sports nutrition, involving all around health and wellness and additional white spaces within the category. Our thesis, a leading portfolio of premium lifestyle brands. We're attracted position and opportunity to take advantage of the scaling opportunities we see in functional beverage, to be category leaders. We have brand affinity, brand loyalty, expanding usage occasion, expanding upon the base. We have a clear path for increased revenue and gross profit and strategies to drive more people in more places more often. And we have a strong financial profile. We have a well-capitalized balance sheet. Thank you. I'll turn it over to Kyle Watson, our chief marketing officer.