Celsius(US:CELH)2024-05-07 16:25Financial Data and Key Metrics Changes - Celsius reported a 37% year-over-year increase in revenue for Q1 2024, totaling $355.7 million, marking a new first-quarter revenue record for the company [8][51] - Gross profit increased 60% to $182.2 million, with gross profit margins at 51.2%, up from 43.8% in the prior-year period [52] - Non-GAAP adjusted EBITDA rose 81% to approximately $88 million compared to $48.7 million in the prior-year period [36] - Net income attributed to common shareholders increased 106% to $65 million, or $0.27 per diluted share, compared to $0.13 in the prior-year period [36] Business Line Data and Key Metrics Changes - North American revenue, including the U.S. and Canada, was $339.5 million, a 37% increase from the same period last year [33] - International revenue grew 42% to $16.2 million, driven by increased velocity and strong year-over-year share gains [34] - Club sales increased 36% to $63 million, while Amazon sales rose 30% year-over-year to $28 million [49] Market Data and Key Metrics Changes - Celsius holds an 11.5% share in the energy drink category, a full point higher than Q4 2023 and four points higher than one year ago [9][17] - The company is expanding into Australia, France, Ireland, New Zealand, and the United Kingdom, with plans for gradual sales growth in these markets [18][31] Company Strategy and Development Direction - Celsius aims to become the number one energy drinks brand globally, supported by a new incentive program with Pepsi [17] - The company is focused on optimizing inventory levels and enhancing in-store presence through strategic partnerships and marketing initiatives [19][65] - Celsius is pursuing measured international growth while balancing investment levels in new markets [18] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing inventory fluctuations due to the largest distributor's inventory movements, which may affect revenue figures [10] - The company is optimistic about shelf space gains and expects the full effect of recent resets to be reflected in scanner data beginning in July [12][121] - Rising fuel and commodity costs are being monitored as key drivers for the remainder of the year [19] Other Important Information - The company ended the quarter with approximately $879.5 million in cash, available for strategic growth initiatives [36] - Celsius has increased its sales and key accounts team by approximately 85% to support growth opportunities [28] Q&A Session Summary Question: How are inventory levels progressing into Q2? - Management indicated that inventory levels are being optimized and that they feel confident about maintaining stock levels as they enter the second quarter [38][61] Question: What is the impact of the incentive program with Pepsi? - The incentive program is designed to align priorities and drive growth, with expectations for it to ramp up over the first half of the year [88] Question: How is Celsius driving category growth? - Celsius is seeing growth primarily from new consumers entering the category, with 42% of growth attributed to new category entrants [96] Question: What are the expectations for shelf resets? - Management expects significant growth in the convenience channel and anticipates that the full benefits of shelf resets will be realized by early July [121]