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Celsius (CELH) Conference Call.

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Celsius Holdings, Inc. (NASDAQ:CELH)

Q3 2017 Earnings Conference Call

November 08, 2017, 16:30 ET

Executives

Cameron Donahue – IR

John Fieldly – Interim CEO & CFO

Vanessa Walker – EVP, Sales & Marketing

Analysts

Jeff Van Sinderen – B. Riley

Operator

Greetings, and welcome to the Celsius Holdings Incorporated Third Quarter 2017 Conference Call. [Operator Instructions].

I would now like to turn the conference over to your host, Mr. Cameron Donahue with Hayden IR. Thank you. Please begin.

Cameron Donahue

Thank you. Good afternoon, everyone. We appreciate you joining us today for Celsius Holdings Third Quarter 2017 Earnings Conference Call. Joining me on the call today are John Fieldly, Interim Chief Executive Officer and Chief Financial Officer; and Vanessa Walker, Executive Vice President of Sales and Marketing. Following the prepared comments, we will open the call to your questions, and instructions will be given at that time. We have filed our quarterly report with the SEC and issued a press release today. All materials are available on the company’s website at celsiusholdingsinc.com under the Investor Relations section. As a reminder, before I turn the call over to John, the audio replay will be available later today.

Please also be aware this call may contain forward-looking statements which are based on forecast, expectations and other information available to management as of today, November 08, 2017. These statements involve numerous risks and uncertainties, including many that are beyond the company’s control. Except to the extent required by applicable law, Celsius Holdings undertakes no obligations and disclaims any duty to update any of these forward-looking statements. We encourage you to review in full our Safe Harbor disclosures contained in today’s press release and our quarterly filings with the SEC for additional information.

With that, I’d like to turn the call over to John Fieldly for his prepared comments. John?

John Fieldly

Thank you, Cameron and good afternoon everyone. Thank you for joining us today. The third quarter was a highly productive and eventful quarter at Celsius. Consolidated revenue grew to a record 10.8 million growing more than 60% year over year, our financial results reflected a continued momentum in our ongoing business driven by both similar gains in domestic and international operations and importantly we’re maintaining our gross profit margins in excess of 40% as we continue to focus diligently on managing and controlling costs. Our branding efforts continue to take hold pioneering our position as a lifestyle brand with mass appeal for consumption at any time of day and for those who wish to live an active and healthy lifestyle. Our tagline Live Fit, continues to resonate well with consumers and causes consumers to take action to invest in themselves and our pioneering position in the fitness drink category has a clear advantage at retail as the trade recognizes the consumers’ desire to move beyond traditional sugary drinks in all categories.

Retailers are seeking new ways to bring cutting-edge function to their shelves. We feel we are well positioned to capitalize on this movement which is demonstrated from consumer demands and our financial statements. Our domestic growth is being driven by demand for our products as reorders remain strong and the brand continues to build momentum as a leading proven fitness drink for the active and health-minded consumer. In addition our new trainer great formula Celsius Heat and our new natural line extension continues to be well received by customers and consumers and reorders received in the third quarter indicate these lines will contribute meaningfully to future revenue streams.

On the international front our Swedish distribution partner continues to perform well and most recently in the third quarter just introduced two new flavors, dragon fruit and orange pomegranate which tastes great and were well received in the marketplace. In addition our international expansion continues in the Asia market we expanded our product placement in Hong Kong through our distribution agreement with A.S. Watson industries, a member of a A.S. Watson Group, the largest international health and beauty retailer in Asia and Europe. Through this arrangement we expanded to over 700 points of initial distribution in Hong Kong and our Hong Kong team aims to increase our market share by broadening the reach of our brand across the region. Initial consumer response and feedback has been overwhelmingly positive and signals our plans for broader product distribution throughout the region are in line with market opportunities.

Full Transcript at Seeking Alpha.

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