GURU Organic Energy Corp.

Welcome to the Guru Organic Energy Second Quarter 2021 Results Conference Call and Webcast being recorded today, June 14, 2021, at 4.45 p.m. Eastern Time. At this time, all participants are in a listen-only mode. If anyone has difficulties hearing the conference, please press star followed by zero for operator assistance at any time. Please note that, exceptionally, there will be no Q&A session with financial analysts following today's presentation. Guru's press releases issued today, its MD&A, and financial statements are available in the Investors section of its website and on CEDAR. During the call, the company may refer to certain non-IFRS measures. Reconciliations are available in its MD&A. Also note that all financial figures are expressed in Canadian dollars unless otherwise indicated. I would also like to remind you that today's presentation may contain forward-looking statements about Guru's current and future plans, expectations, and intentions, results, level of activity, performance, goals, or achievements, or other future events or developments. As such, please take a moment to read the disclaimer on forward-looking statements on slide two of the presentation. I would now turn the call over to Carl Goyette, GURU's chief executive officer.

Thank you, operator.

Hello, everyone, and welcome to our earnings call. Joining me this afternoon is our CFO, Indy Saraf. This afternoon, Guru released record results for the second quarter of 2021, having made continued progress since the beginning of the year to achieve our growth objectives. We were also very pleased to announce a game-changing distribution agreement with PepsiCo Beverages Canada. But more on that in a moment. First, let's take a look at our quarterly results. Q2 revenue increased by 74%, to $7.1 million, and our gross margins stood at 63%. Record revenue growth was primarily driven by significant increase in our points of sales and continued strong Quebec growth. Sales in Canada grew by 89%. U.S. sales increased for a consecutive quarter to 28% year-over-year increase in constant dollars, and online sales continued to perform well. These results reflect our strong performance in our markets and growing consumer appetite for plant-based products and better-for-you energy drinks. During the quarter, we continue to execute on our near-term growth plans with the addition of over 800 doors, namely with the Fresh Market, Wise Market, and Raley's in the U.S., and Canadian Tire Gas in Canada. We have grown our presence by over 6,000 additional doors in the first half of 2021. With these most recent additions, we have now fully captured the U.S. natural grocery channel in terms of banners, further strengthening our health and wellness conditionings. Also in the U.S., we launched Guru Yerba Mate earlier this month. The product is now available to our various distribution partners there. Guru Yerba Mate has performed extremely well since it launched in Quebec late last year, so we expect that it will contribute to sales growth south of the border as we grow its distribution. This launch is also being supported by some targeted activations. In Canada, we are in full execution mode following the various new doors we announced in markets outside of Quebec in support of our Canadian growth plans. Our efforts are being supported by digital marketing, in-store marketing, field marketing, and sales activation. These activities will be ramping in the coming months through to the fall and will support continued sales growth in subsequent quarters. Online sales continue to be robust. This is supported by ongoing consumer acquisition investments, sustained demand for healthier functional products, and a continued consumer shift towards online channels, accelerated by the pandemic. Finally, on the operations front, proactive measures we have taken to strengthen and diversify our supply chain continue to prove effective, with our supply chain activities running smoothly in support of our growth. NG, over to you.