GURU Organic Energy Corp.

Good morning. Welcome to Guru Organic Energy's second quarter 2025 results conference call and webcast, being recorded today, June 12, 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 anybody has difficulty hearing the conference, please press zero, star zero, for the operator to assist you at any time. Guru's press release, MD&A, and financial statements are available in the investor section of the website and on Steerer Plus. 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 the forward-looking statements on slide two of the presentation. I will now turn the conference over to Carl Goyette, GURUS Chief Executive Officer. Please go ahead, sir.

Thank you, Operator. Bonjour à tous. Good morning, everyone, and welcome to GURUS Fiscal 2025 Second Quarter Results Conference Call. Joining me this morning is our CFO, Nji Sarath. Let's turn to slide five. Q2 marked a pivotal quarter in our transformation journey. one that feels especially energizing for myself and the team. It's the quarter where we took back control of our destiny in Canada. With 100% focus on Guru, we now have a direct relationship with retailers, more agility, more control, and more opportunity to go on the offense. We transitioned back to our direct distribution model in Canada, and the response from retailers has been very positive. Many are enthusiastic to work again with a local, agile, and flexible partner, and they're ready to support and grow with us. At the same time, we delivered recent record gross margins and strong U.S. growth, reinforcing our confidence in the model and our progress towards sustainable profitability. Our results showed clear progress. In the U.S., sales rose 38.9%. excluding last year's $1.4 million wholesale club rotations. Amazon US hit a new monthly sales high in March and recorded 50% growth year-to-date. Repeat purchase rates increased to record levels, signaling strong brand loyalty. Whole Foods Market also hit two record months in the quarter, Amazon Canada saw 41% growth, while Guru's website realized its best month of 2025 in May, with 30% year-over-year growth. Growth margins reached a recent record at 59.7%, driven by pricing discipline, reductions in promotions by our exclusive distributor, and supply chain efficiencies. Net loss was nearly cut in half to $1.4 million, our second lowest since Q2 of 2021. And adjusted EBITDA loss improved 55% to $1.2 million. These results confirm that our business fundamentals are not only strong, but continue to improve. And our cash position remained as strong as prior quarters, at $25.3 million with no debt, plus $10 million in unused credit facilities. These results underscore the strength of our brand, our disciplined approach to profitability. Turning to slide six. Our zero lineup continues to win with consumers. In Q2, we launched two new zero sugar flavors in Canada. In June, we launched strawberry, watermelon, online in Canada, and in Quebec retail stores just in time for the summer. Early results exceeded expectations, while Dice Pop outpaced Guru Original in its first weeks on the shelf, quickly becoming the top-performing Guru product in Quebec's leading convenience store chain, a strong signal of consumer demand for our zero innovations. Our new products also are performing in the U.S., Zero Wildberry is already outselling last year's Tropical Punch launch in Whole Foods in the U.S. Turning to slide seven. We officially launched our direct distribution model in Canada on May 22nd. This move marks our return to a proven model that fueled Guru's growth from 1999 to 2021, allowing us to invest smarter, respond faster, and drive better execution at shelf with a singular focus on the Guru brand. All major retailers representing 98% of our volumes are now secured. We've built a robust network of over 25 distributors and brokers to reach retailers across the country. Most partners have already delivered their first orders in the past few weeks. Field activation is well underway with over 120 sales professionals from our partners and internal teams. now representing Guru in stores nationwide. We are very confident in the long-term value of this transition and sales and distribution will unlock for Guru. Turning to slide eight. The U.S. market remains a major growth engine for Guru. Retail sales and natural channel in Whole Foods grew 26% year over year. Whole Foods posted its best two-month streak Our Zero Line continues to be a key growth driver in the U.S., helping expand both trial and loyalty. With stronger velocity, growing repeat rates, and solid new products, we are building a foundation for sustainable growth in the U.S. As the only organic zero-sugar energy drink with no sucralose and no aspartame, Guru continues to offer a unique, better-for-you modern alternative. in an industry still dominated by artificial ingredients and chemicals. I will now turn the call over to NG Seraf, our CFO, to discuss our financial results in more detail. NG, over to you.

Thank you, Carl, and good morning, everyone. Turning to slide 10, let's look at the numbers. Net revenue was $6.5 million. This reflects the planned transition away from our Canadian distributor and the absence of last year's U.S. Costco rotations. As mentioned in our Q2 press release, retail sales in Canada were temporarily impacted by order and shipment shortfalls. These challenges occurred ahead of our May 22nd transition to a direct distribution model and led to short-term product availability issues at certain retailers. We do not expect these issues to continue in future quarters. Gross profit reached $3.9 million with a margin of 59.7%, the highest in our recent history, reflecting our ability to grow profitably at scale. SG&E expenses dropped 26.2%, showing cost discipline. Net loss improved 46.5% to $1.4 million. Adjusted EBITDA loss was down by more than half at $1.2 million. These results underscore our focus on efficiency, execution, and setting up for profitable growth. Our financial position remained solid. We entered the quarter with $25.3 million in cash and no debt. We also have $10 million in unused credit available. This gives us flexibility to continue investing in high-impact areas and to support our relaunch in Canada. Turning to slide 11. Looking ahead, our priorities remain clear. Drive profitable growth in the U.S. through retail, natural, and online channels. Heal our zero line with upcoming Costco rotations in Q4 in Canada and in the U.S. Execute our direct distribution model in Canada with excellence. and maintain cost discipline and expand margins. We're well on track to accelerate our return to profitability in the second half of the year. With that, I'll now turn the call back over to Carl for closing remarks.