GURU Organic Energy Corp.

13th, 2025 at 10 a.m. Eastern Time. At this time, all participants are in a listen-only mode. Following management's presentation, there will be a question-and-answer session with financial analysts. Instructions will be provided at that time for you to queue up for questions. If anyone has difficulties hearing the conference, please press star followed by zero for operator assistance at any time. Guru's press release, MD&A, and financial statements are available in the investor section of its website and on CDAR+. During the call, the company may refer to certain non-GAAP 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. Please take a moment to read the disclaimer on forward-looking statements on slide two of the presentation. I will now turn the call over to Carl Goyette, Guru's Chief Executive Officer. Thank you, Operator.

Bonjour à tous. Good morning, everyone, and welcome to GURU's Fiscal 2025 First Quarter Results Conference Call. Joining me this morning is our CFO, Indy Seraf. We're excited to share GURU's strongest first quarter performance on record. We remain focused on expanding in the U.S., reinforcing our leadership position in clean energy, and progressing towards profit and beauty. Today, we'll walk you through the key drivers of our success, how we're strengthening our position, and what's ahead as we continue to execute on our strategy. Our net revenue grew by 8% to $7.7 million, fueled by strong consumer demand, particularly in the U.S., where sales momentum continues to build. U.S. sales surged 46% year over year, reaching $2.1 million, or 27% of net revenue. Gross margin expanded to 59.5% from 52.9%. Net loss improved by 31% to $1.3 million, marking our lowest loss since Q2 of 2021. Adjusted EBITDA loss improved to $1.1 million. Our cash position remained strong at $25.2 million with no debt. These results underscore the strength of our brand, our disciplined approach to profitability, and a growing consumer shift towards better-for-you energy options. Turning to slide six. The U.S. remains a major growth engine for Guru. We continue to gain momentum in key channels, expand our distribution, and strengthen our position in the better-for-you energy space. We continue to expand in key retail channels, with natural channels can sales up 20% in Q1 over last year and Whole Foods up 37%. Our top national accounts, which represent 80% of our volume in this channel, all experience double-digit growth. reinforcing Google's position as a leader in the natural energy drink segment. The Costco Los Angeles Roadshow featuring our Zero lineup allowed us to connect with health-conscious consumers, increase brand trial, and expand our visibility in a key growth market. At the same time, our online business continues to thrive. Amazon U.S. consumer unit sales increased 58% in the last 12 weeks, while Amazon Canada grew 43%. Repeat purchase rates reached an all-time high, reaching 65% in the U.S., demonstrating strong brand loyalty. These results show that Guru is not only growing, but gaining momentum in key channels. Consumers are actively choosing good energy with no artificial sweeteners, zero sucralose, and zero aspartame. And Guru is delivering exactly that. Turning to slide seven. At Guru, innovation is a key driver of our success. It fuels our growth, strengthens our brand, and reinforces our leadership in a better-for-you energy. Our Xero line continues to perform exceptionally well in the U.S., reinforcing a position in the fast-growing Xero sugar energy segment. In Q2, we launched Xero Wildberry, Wild Ruby Red, and Wild Ice Pop in Canada. With Xero Wild Ice Pop also launching in the U.S., as our fourth zero product in that market. While still early, we are already seeing strong initial traction, reinforcing our leadership in the fast-growing zero sugar energy segment and highlighting the strength of consumer demand for clean plant-based alternatives. But innovation is not just about flavors. It's about staying true to our values. Unlike many so-called better-for-you brands that still use artificial ingredients, Kuru offers the only zero-sugar organic energy drink with no sucralose and no aspartame. Consumers today are looking for clean, healthy plant-based energy, and we're delivering it without compromise. With a strong demand for authentic, better-for-you alternatives, we see significant opportunities to continue expansion in the U.S., Canada, and online. I will now turn the call over to NG Seraph, our CFO, to discuss our financial results in more details. NG, over to you.

Thank you, Carl, and good morning, everyone. Let's take a closer look at our financial results for Q1 2025 on slide 9. We delivered net revenue growth of 8%, reaching $7.7 million, driven by strong U.S. performance and expanding consumer base. Gross profit increased by 21% to $4.6 million, supported by higher pricing execution and a more efficient promotional strategy. As a result, Gross margin expanded to 59.5% from 52.9%, reinforcing our ability to scale profitably. At the same time, SG&E expenses improved as a percentage of net revenue, declining to 79% from 85%, reflecting greater operating efficiency. With these strong financial fundamentals, net loss improved by 31% to $1.3 million, marking our lowest quarterly loss since Q2 2021. Our adjusted EBITDA loss also improved to $1.1 million as we continue to leverage scale while driving margin expansion. On the balance sheet, we remain well positioned to fund our growth initiatives. We ended the quarter with $25.2 million in cash and no debt, giving us the financial flexibility to execute our strategic priorities. This compares to $25.5 million in Q4 2024. Our $10 million in unused credit facilities further strengthens our ability to invest in high-impact growth opportunities. Let's turn to slide 10. As we continue through fiscal 2025, our key financial priorities remain expanding our presence in the U.S. by increasing sales velocity and distribution, optimizing growth margins, through pricing execution and disciplined promotional strategies, ensuring a seamless and flawless transition with PepsiCo, optimizing supply chain efficiencies and maintaining strong retailer relationships, and managing costs, minimizing tariffs impacts and driving efficiencies, while maintaining a strong cash position to support our long-term profitable growth. We remain confident in our path to sustained profitability. and will continue to execute with discipline to drive long-term value for our shareholders. With that, I'll now turn the call back over to Carl for closing remarks.