Celsius Holdings Inc (CELH) 2021 Q1 法說會逐字稿

Greetings and welcome to Celsius Holdings' First Quarter Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加攝氏控股第一季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Cameron Donahue, Investor Relations for Celsius. Thank you, you may begin.

現在我很高興向您介紹主持人，Celsius 投資者關係部門的卡梅倫·多納休 (Cameron Donahue)。謝謝，你可以開始了。

Thank you, and good morning, everyone. We appreciate you joining us today for Celsius Holdings' first quarter 2021 earnings conference call. Joining on the call today are John Fieldly, President and Chief Executive Officer; Edwin Negron, Chief Financial Officer.

謝謝大家，大家早安。感謝您今天加入我們攝氏控股 2021 年第一季財報電話會議。今天參加電話會議的還有總裁兼執行長 John Fieldly；埃德溫·內格倫，首席財務官。

Following the prepared remarks, we'll open the call to your questions and instructions will be given at that time. The company filed its Form 10-Q with the SEC and released a press release pre-market today. All materials are available on the company's website, celsiusholdingsinc.com under the Investor Relations section. As a reminder, before I turn the call to John, an audio replay will be available later today.

在準備好發言後，我們將開始電話詢問您的問題，屆時將給予指示。該公司向 SEC 提交了 10-Q 表格，並在今天在上市前發布了新聞稿。所有資料均可在公司網站 celsiusholdingsinc.com 的投資者關係部分取得。提醒一下，在我將電話轉給約翰之前，今天晚些時候將提供音訊重播。

Please also be aware that this call may contain forward-looking statements which are based on forecasts, expectations and other information available to management as of May 13, 2021 These statements involve numerous risks and uncertainties, including many that are beyond the company's control. Except to the extent as 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 statements contained in today's press release and our quarterly filings with the SEC for additional information.

另請注意，本次電話會議可能包含前瞻性陳述，這些陳述基於截至2021 年5 月13 日管理層可獲得的預測、預期和其他資訊。這些陳述涉及眾多風險和不確定性，其中許多風險和不確定性超出了公司的控制範圍。除適用法律要求的範圍外，攝氏控股不承擔任何義務，也不承擔更新任何這些前瞻性聲明的義務。我們鼓勵您完整閱讀今天的新聞稿中包含的安全港聲明以及我們向 SEC 提交的季度文件，以獲取更多資訊。

With that, let me turn the call to the President and Chief Executive Officer, John Fieldly, for his prepared remarks. John?

接下來，讓我請總裁兼執行長約翰·菲爾德利 (John Fieldly) 發表準備好的演講。約翰？

Thank you, Cameron. Good morning everyone, and thank you for joining us today. The company achieved a record first quarter exceeding $50 million in sales, which were derived by over 100% growth in North America sales from continued strong demand for our portfolio, and a 25% growth in international sales. The international sales growth was primarily derived from a 22% growth from our Nordic operations. Even with the record quarter, we are still dealing with the impacts of COVID-19 in several channels, international markets and experiencing increased costs and raw materials and transportation. Channels of trade, we operate in and which we continue to see these effects include, our health and fitness, vending, food service as well as reduced foot traffic in several additional channels. However, we are starting to see improvements through the first quarter, but still not fully normalized. In addition, our EU, Middle East, Southeast Asia and Australia operations remained adversely affected by COVID-19 pandemic.

謝謝你，卡梅倫。大家早安，感謝您今天加入我們。該公司第一季銷售額創歷史新高，超過 5,000 萬美元，這得益於對我們產品組合的持續強勁需求，北美銷售額增長了 100% 以上，而國際銷售額增長了 25%。國際銷售額的成長主要來自我們北歐業務 22% 的成長。即使季度創歷史新高，我們仍在應對 COVID-19 在多個管道、國際市場的影響，並經歷成本、原材料和運輸的增加。我們經營的貿易管道，我們繼續看到這些影響包括我們的健康和健身、自動販賣機、食品服務以及其他幾個管道的人流量減少。然而，我們開始看到第一季有所改善，但仍未完全正常化。此外，我們的歐盟、中東、東南亞和澳洲業務仍受到 COVID-19 大流行的不利影響。

While we have started to see sequential improvements over the last few quarters, with capacity restrictions as well as reopenings in hardest hit channels, there remains uncertainty as their potential could be reclosings due to case increases in our regions of operations, which could force extended closures in some states and countries. The health and safety of our employees and partners remains our top priority and safe precautions have been implemented, which we have developed and adopted in line with guidance from public health authorities.

雖然我們在過去幾個季度開始看到情況有所改善，但由於運力限制以及受災最嚴重的管道重新開放，我們仍然存在不確定性，因為我們營運地區的病例增加，這些管道可能會重新關閉，這可能會迫使關閉時間延長在一些州和國家。員工和合作夥伴的健康和安全仍然是我們的首要任務，我們已經根據公共衛生當局的指導制定和採用了安全預防措施。

In addition to increases in transportation costs, we are experiencing another COVID impact. It is an aluminum can shortage which has impacted the entire industry. The large can manufacturers in the U.S. have initiated major expansion projects, which we expect to be completion time somewhere in the starting in the back half of 2021, and potentially through 2022 and 2023. Celsius immediately implemented contingency plans last fall, by sourcing cans internationally. We received our first orders in March of 2021.

除了運輸成本增加之外，我們還面臨新冠疫情的另一個影響。鋁罐短缺影響了整個產業。美國的大型罐頭製造商已啟動重大擴建項目，我們預計該項目的完成時間將在2021 年下半年開始，並可能持續到2022 年和2023 年。去年秋天，Celsius 立即實施了應急計劃，透過國際採購罐頭。我們在 2021 年 3 月收到了第一批訂單。

The company anticipates 50% of can supply for 2021 will be derived from imported and wrapped cans, which should decrease in late 2021 and through 2022 as more U.S. capacity comes online. In the first quarter, we saw a higher proportion of wrapped cans versus imported cans, but expect that mix to change to a higher proportion of imported cans going forward. Wrapped cans have a higher cost, so that represents a slight margin improvement going forward with the change in mix.

該公司預計 2021 年 50% 的罐頭供應將來自進口和包裝罐頭，隨著美國產能的增加，這一數量在 2021 年底和 2022 年將會減少。在第一季度，我們看到包裝罐的比例高於進口罐，但預計未來這種組合將轉變為進口罐的比例更高。包裝罐的成本較高，因此隨著組合的變化，利潤率略有提高。

In addition, the team is expanding warehouse distribution sites, implementing contingency plans to further source raw materials with minimum floor stock programs, blanket purchase orders, second and third supplier alternatives. The team continue to quickly adapt to the new COVID environment and are focused on driving efficiencies and operational performance. As outlined in our last call, this will impact the gross profit margins by a few points, but we remain confident that the company will run at approximately in the low 40% gross profit range through 2021, which is right in line with our first quarter results. We continue to explore additional opportunities as they may become available to shorten the duration Celsius is impacted by the can shortage, and there is potential for improvement in the back end of this year.

此外，該團隊正在擴大倉庫配送地點，實施應急計劃，以透過最低庫存計劃、一攬子採購訂單、第二和第三供應商替代方案進一步採購原材料。團隊持續快速適應新的新冠疫情環境，並專注於提高效率和營運績效。正如我們在上次電話會議中所述，這將對毛利率產生幾個百分點的影響，但我們仍然相信，到2021 年，該公司的毛利將保持在40% 左右的低水平，這與我們第一季的情況相符結果。我們將繼續探索更多機會，因為它們可能會縮短攝氏溫度受罐頭短缺影響的持續時間，並且今年下半年有可能得到改善。

In addition, the company is optimizing its promotional architecture and strategies, partially mitigating these inflationary increases in raw materials and transportation. The company remains generally available throughout the quarter, but did experience shipping delays because of cans shortages as well as the Texas freeze which shut down 2 co-packers and 1 of our warehouses for over 2.5 weeks during the quarter. But they have been fully back online at the end of the first quarter.

此外，該公司正在優化其促銷架構和策略，部分緩解原物料和運輸的通膨成長。該公司整個季度仍保持正常供應，但由於罐頭短缺以及德克薩斯州的冰凍導致本季度 2 家代加工廠和 1 家倉庫關閉超過 2.5 週，因此確實出現了運輸延誤。但他們已在第一季末完全恢復上線。

On the convenience channel side in North America, which represents the largest energy drink market in the country, with over $9 billion in annual sales, the latest SPINS data shows a 77% year-over-year increase for CELSIUS product portfolio in the convenience channel compared to a 7.5% overall in the energy drink category, while only holding a 16.8% ACV. We have added over 13,500 convenience stores to the last 12 months, with additional accounts expected through spring resets. In addition, we recently achieved the second highest dollar growth in the category when compared to the top 10 energy drink competitors according to SPINS, Shelf Stable Energy & Functional Beverages convenience 12 weeks ending March 21, 2021.

在北美的便利通路方面，北美是該國最大的能量飲料市場，年銷售額超過 90 億美元，最新的 SPINS 數據顯示，便利通路中的 CELSIUS 產品組合同比增長 77%相比之下，能量飲料類別的總體份額為7.5%，而ACV 的份額僅為16.8%。過去 12 個月，我們新增了 13,500 多家便利商店，預計透過春季重置還會增加更多帳戶。此外，根據 SPINS、截至 2021 年 3 月 21 日的 12 週貨架穩定能量和功能飲料便利性，與排名前 10 的能量飲料競爭對手相比，我們最近實現了該類別中第二高的美元增長。

Our first new spring reset win began in late March, with the national launch of Murphy USA in 1,500 locations, which will initially be serviced approximately 80% and stores will be serviced by DSD, with over -- with 6 flavors authorized. Industry back third-party data continue to show accelerating growth and metrics, and we are confident that the Celsius portfolio will continue to drive sales, even higher as we further increase our ACV in the channel, through additional launches with national chains and transitioning existing accounts to our DSD network.

我們的第一個新的春季重置勝利始於 3 月底，Murphy USA 在全國 1,500 個地點推出，最初將提供約 80% 的服務，商店將由 DSD 提供服務，並授權超過 6 種口味。由業界支援的第三方數據繼續顯示加速成長和指標，我們相信，隨著我們透過與全國連鎖店的額外推出和過渡現有帳戶，進一步增加管道中的 ACV，Celsius 產品組合將繼續推動銷售，甚至更高到我們的DSD 網路。

Consumer demand for Celsius has grown even stronger through 2021, with the most recent reported Nielsen scan data as of April 24, 2021 showing CELSIUS sales were up 218% year-over-year for the 2-week period, 220.3% for the 4-week period and 151.4% for the 12-week period as well as an 88.6% for the 52-week period with achieving a 1.2% share in the last 4 weeks. The next highest comp for the most recent 2-week data was Red Bull which grew at a 29% and 37.2% for the 2 and 4-week time frame.

到 2021 年，消費者對攝氏度的需求將更加強勁，截至 2021 年 4 月 24 日的最新尼爾森掃描數據顯示，CELSIUS 兩週銷量同比增長 218%，第四季度銷量同比增長 220.3%。週期間的份額為151.4%，12 週期間的份額為151.4%，52 週期間的份額為88.6%，最近4 週的份額為1.2%。最近 2 週數據中排名第二的是紅牛，在 2 週和 4 週時間範圍內的成長率分別為 29% 和 37.2%。

In our e-com channel, according to Stackline, which tracks energy drink sales on Amazon, The United States for the 4-weeks ending April 17, 2021, sales in dollars in the energy drink category by Amazon including energy shots grew at 160.1% growth, the same period a year ago. CELSIUS sales increased 265% and our share increased by 4.5 points to 15.5% share of the category, which puts CELSIUS as the second largest energy drink brand on Amazon, behind Monster Energy at a 35.6% share and now above Red Bull which is at a 13.7% share. We continue to see acceleration through all channels of trade and are now beginning to see the additional lift from the conversion of accounts to our DSD network.

根據 Stackline 的數據，在我們的電子商務管道中，截至 2021 年 4 月 17 日的 4 週內，亞馬遜的能量飲料類別銷售額（包括能量飲料）增長了 160.1%。增長，與一年前同期持平。 CELSIUS 銷售額成長了265%，我們的份額成長了4.5 個百分點，達到該類別的15.5%，這使CELSIUS 成為亞馬遜上第二大能量飲料品牌，僅次於Monster Energy 的35.6% 份額，現在高於紅牛，後者的份額為13.7%的份額。我們繼續看到所有貿易管道的加速發展，現在開始看到帳戶轉換到我們的 DSD 網路帶來的額外提升。

Additionally, we secured additional distribution agreements with key partners, further expanding availability to new regions, as CELSIUS builds out of national distribution network, which now includes over 180 regional direct store delivery, DSD partners and distribution centers, covering approximately 85% of major metropolitan markets. Recent additions have predominantly been filling distribution gaps outside of the major metropolitan markets. Transition in DSD continues with Target, CVS, Walmart, Racetrack, 7-Eleven and others with additional regions and retail partners planned this transition to DSD throughout 2021. Today in the United States, our total door count now exceeds 92,000 locations nationally, up approximately 10,000 locations since the beginning of 2021. We expect this number to grow even further in the coming quarters as retailers execute their planogram resets, which were delayed due to the COVID-19 pandemic.

此外，我們還與主要合作夥伴達成了額外的分銷協議，進一步擴大了新地區的供貨範圍，因為CELSIUS 建立了全國分銷網絡，該網絡目前包括180 多家地區直營店配送、DSD 合作夥伴和經銷中心，涵蓋約85% 的主要大都市市場。最近新增的產品主要填補了主要大都市市場以外的分銷空白。 Target、CVS、沃爾瑪、Racetrack、7-11 等繼續進行 DSD 過渡，其他地區和零售合作夥伴計劃在 2021 年過渡到 DSD。如今，在美國，我們的門市總數已超過 92,000 個，增加了約自2021年初以來，已有10,000 家門市。我們預計，隨著零售商執行貨架圖重置（由於COVID-19 大流行而推遲），這一數字在未來幾季將進一步增長。

On our co-packing front, we continue to expand our partners and scale at an existing locations, improving quarantine priority. Our total U.S. co-packer footprint is now 8 locations that are active, which will help protect the future of out-of-stocks and support our massive growth. In Europe, we further integrated and leveraged synergistic benefits from the acquisition of Func Food and Nordic wellness company that was immediately accretive to earnings and is an important step in our strategy and building our global dominant brand. Europe operations were impacted by COVID and additional lockdowns in the first quarter which were impacted, largely impacted by the FAST protein snack portfolio, which was partially offset by growth in sales in the -- and sales in CELSIUS in the region, we continue to see great opportunities and momentum in these markets.

在聯合包裝方面，我們繼續擴大合作夥伴並在現有地點擴大規模，提高檢疫優先順序。目前，我們在美國的代加工工廠共有 8 個活躍地點，這將有助於保護未來的缺貨並支持我們的大規模成長。在歐洲，我們進一步整合和利用了收購 Func Food 和 Nordic Wellness 公司的協同效益，這立即增加了盈利，是我們策略和打造全球主導品牌的重要一步。歐洲業務受到新冠疫情和第一季額外封鎖的影響，主要受到 FAST 蛋白質零食產品組合的影響，該產品組合部分被該地區銷售成長和 CELSIUS 銷售成長所抵消，我們繼續看到這些市場的巨大機會和動力。

We continue to evaluate additional European expansion primarily in the U.K. and Germany, in addition to working with Amazon Europe to further expand our e-commerce opportunities throughout Europe. In China, we maintain a licensing royalty model in the market where our distributor covers approximately 76 cities and serves approximately over 60,000 locations of distribution.

除了與亞馬遜歐洲合作進一步擴大我們在整個歐洲的電子商務機會之外，我們還將繼續評估主要在英國和德國的歐洲擴張。在中國，我們在市場上維持許可使用費模式，我們的經銷商涵蓋約 76 個城市，並為約 60,000 多個分銷地點提供服務。

Our other international markets have started to pick up, back up, bought up onto small base. Australia, sales resumed through our distribution partner in the market and in Malaysia, we maintain a direct relationship with the local distributor. We maintain approximately 2,000 retail locations, with plans to reenter gyms, vitamin specialty locations, additional retail partners as the recovery continues. As with Europe and the United States, we see significant opportunity to capitalize on a global scale, reflecting the changes in consumer preferences for better-for-you offerings in the enormous market of Asia.

我們的其他國際市場已經開始回升、回升、小基數買入。在澳大利亞，透過我們在市場上的分銷合作夥伴恢復銷售，在馬來西亞，我們與當地分銷商保持直接關係。我們維持著約 2,000 個零售點，並計劃隨著復甦的繼續而重新進入健身房、維生素專賣店和更多零售合作夥伴。與歐洲和美國一樣，我們看到了在全球範圍內利用的重大機會，這反映了亞洲巨大市場中消費者對「更適合您」的產品偏好的變化。

Now moving onto marketing. On the marketing front, we continue to activate, target new consumers and existing consumers where they live, work and play, building meaningful connections and emotional connections, through robust integrated marketing programs even while consumers are at home. Specifically during the quarter, despite COVID-19 restrictions, we sponsored targeted events, both in-person and virtual and sampled thousands of cans enhanced during the quarter in key markets that were open. And we continue to support -- we support our first responders, nurses, doctors, COVID testing sites and reactivated the Live Fit Tour, which is an integrated experiential sampling tour. And we further leverage and built out our brand ambassador program, influencer program reaching more end consumers in a meaningful way.

現在轉向行銷。在行銷方面，我們持續啟動、瞄準新消費者和現有消費者的生活、工作和娛樂場所，透過強而有力的整合行銷計劃，即使消費者在家時，也能建立有意義的連結和情感連結。具體而言，在本季度，儘管受到新冠肺炎(COVID-19) 的限制，我們仍贊助了面對面和虛擬的有針對性的活動，並在本季度開放的主要市場中採樣了數千個增強罐頭。我們將繼續支援我們的急救人員、護士、醫生、新冠病毒檢測站，並重新啟動了 Live Fit 之旅，這是一次綜合體驗式採樣之旅。我們進一步利用和建立我們的品牌大使計劃、影響者計劃，以有意義的方式接觸更多的終端消費者。

Our momentum is accelerating, our brand is resonating with a diverse consumer base, expanding the category demographics. Health and wellness is beyond a trend, functional energy is recognized throughout the industry as a driver of future growth with retailers. We hit not only a record for sales in North America, but we also achieved a record growth rate of 100% with third-party data reporting continued acceleration in the second quarter. Our national DSD network is in place and only at the forefront of recognizing the incremental growth, we will drive. Our team is ready, our infrastructure is in place to support our growth, and we expect to continue to grab market share on an expedited scale.

我們的勢頭正在加速，我們的品牌正在與多元化的消費者群體產生共鳴，擴大了品類人口結構。健康和保健已不再是一種趨勢，功能性能量被整個產業視為零售商未來成長的驅動力。我們不僅創下了北美地區的銷售記錄，而且隨著第三方數據報告在第二季度持續加速，我們還實現了創紀錄的 100% 增長率。我們的國家 DSD 網路已經就位，只有在認識到增量成長的最前沿，我們才會推動。我們的團隊已準備就緒，我們的基礎設施已就位以支持我們的成長，我們預計將繼續快速搶佔市場份額。

I will now turn the call over to Edwin Negron-Carballo, our Chief Financial Officer for his prepared remarks. Edwin?

現在我將把電話轉給我們的財務長 Edwin Negron-Carballo，聽取他準備好的演講。埃德溫？

Thank you, John. Before I review the financial results, I wanted to first provide some background on the amended 10-K for fiscal year 2019 that we also filed this morning. The amendment relates to management's evaluation of internal controls specifically, disclosure controls that pertain to the October 2019 acquisition of the European business. Acquiring companies have 1 year post acquisition to perform a thorough review over the effectiveness of internal controls of the acquired business. We have since performed a review with the assistance of a reputable international CPA firm and found the controls to be effective. These are technical matters which were not fully address per SEC requirements regarding acquisition disclosures and have been updated in the amended 10-K.

謝謝你，約翰。在審查財務業績之前，我想先提供一些有關我們今天早上提交的 2019 財年修訂版 10-K 的背景資訊。該修正案涉及管理層對內部控制的評估，特別是與 2019 年 10 月收購歐洲業務相關的揭露控制。收購公司在收購後有一年的時間對被收購業務的內部控制有效性進行徹底審查。此後，我們在一家知名國際會計師事務所的協助下進行了審查，發現這些控制措施是有效的。這些技術問題並未完全滿足 SEC 有關收購揭露的要求，並已在修訂後的 10-K 中進行了更新。

As it relates to Celsius, these matters are inconsequential as it relates to our financial reporting. As such, there is no impact to the reported figures or any other footnotes or any of the additional disclosures. We wanted to provide the investment community this details of the amended 2019 10-K, so that there is no misunderstanding and it's clear that there is no impact regarding the reported figures, and no impact regarding our operating and standard internal controls over financial reporting.

就攝氏溫度而言，這些問題對於我們的財務報告而言無關緊要。因此，對報告的數據或任何其他腳註或任何額外的披露沒有影響。我們希望向投資界提供修訂後的2019 年10-K 的詳細信息，這樣就不會產生誤解，而且很明顯，報告的數據不會受到影響，也不會影響我們對財務報告的運營和標準內部控制。

Now to review the financial results for the first quarter. Our first quarter revenue for the 3 months ended March 31, 2021 was $50 million, an increase of $21 million or 78% from $28.2 million for the 3 months ended March 31, 2020. Approximately 90% of this growth was a result of increased revenues from North America, where 2020 revenues were $19.4 million, which translates to an increase of $19.6 million or 101% from the prior year quarter.

現在回顧第一季的財務表現。截至2021年3月31日的三個月，我們第一季的營收為5,000萬美元，比截至2020年3月31日的三個月的2,820萬美元增加了2,100萬美元，即78%。這一成長的約90%是由於營收增加來自北美，2020 年營收為 1,940 萬美元，比上年同期增加 1,960 萬美元，即 101%。

The balance of the increase was mainly related to a 22% growth in European revenues. As such, the first quarter 2021 European revenues amounted to $10.4 million, an increase of $1.9 million from $8.5 million for the prior year. In addition, our European revenue reflected a sequential increase of 50% for the first quarter of 2021 when compared to $6.9 million in the fourth quarter of 2020. Asian revenues which mainly consist of royalty revenues from our China licensee amounted to $536,000 for the 3 months ended March 31, 2021, an increase of 100% from $268,000 for the prior year quarter.

其餘成長主要與歐洲收入成長22%有關。因此，2021 年第一季歐洲營收為 1,040 萬美元，比前一年的 850 萬美元增加了 190 萬美元。此外，我們的歐洲收入在2021 年第一季環比成長了50%，而2020 年第四季為690 萬美元。亞洲收入主要包括來自中國被授權人的特許權收入，這三個月的收入為536,000 美元截至 2021 年 3 月 31 日，較去年同期的 268,000 美元增長 100%。

Other international markets generated $128,000 of revenue during the 3 months ended March 31, 2021, an increase of $71,000 from $57,000 from the prior year quarter. The total increase in revenue was primarily attributable to increases in sales volume as opposed to increases in product pricing. The primary factors behind the increase in North American sales volume were related to continued strong triple-digit growth of 137% in traditional channels of trade coupled with an increase in presence in world-class retailers. Additionally, the continued expansion of our DSD network delivered a growth of 172% in our distributor revenues when compared to the prior year quarter.

截至 2021 年 3 月 31 日的三個月內，其他國際市場產生了 128,000 美元的收入，比去年同期的 57,000 美元增加了 71,000 美元。總收入的成長主要歸因於銷售量的成長，而不是產品定價的成長。北美銷售成長的主要因素與傳統貿易通路持續強勁的三位數成長（137%）以及世界級零售商的影​​響力增加有關。此外，我們的 DSD 網路的持續擴張使我們的經銷商收入與去年同期相比增長了 172%。

Moreover, e-commerce grew 79% or $3.7 million when compared to the prior year quarter. These results were partially offset by some shipping delays related to cans shortages as well as a Texas freeze, we shut down 2 of our co-packers and 1 of our warehouses for 2.5 weeks. Furthermore, we estimated that the strengthening of the euro accounted for approximately 8.4% of the increase in European revenue in the 2021 quarter when compared to the prior year quarter.

此外，與去年同期相比，電子商務成長了 79%，即 370 萬美元。這些結果被罐頭短缺導致的一些運輸延誤以及德克薩斯州的冰凍所部分抵消，我們關閉了 2 家代加工廠和 1 家倉庫 2.5 週。此外，我們估計，與去年同期相比，歐元走強約佔 2021 年季度歐洲收入成長的 8.4%。

Gross profit in Q1 increased by approximately $7.6 million or 58.3% to $20.6 million from $13 million for the 3 months ended March 31, 2020. Gross profit margins declined to 41.1% for the 3 months ended March 31, 2021 from 46.1% for the prior year quarter. The increase in gross profit dollars is related to increases in volume while the decrease in gross profit margins is mainly related to increases in freight costs, repackaging costs, higher raw material costs and higher processing costs. Furthermore, the temporary can shortage has also added incremental costs related to damages in transporting and processing our product, given the added complexities of the supply chain in procuring these items.

第一季的毛利從截至2020 年3 月31 日止的3 個月的1,300 萬美元增至2,060 萬美元，增幅約為760 萬美元，即58.3%。截至2021 年3 月31 日止的3個月的毛利率從去年同期的46.1% 下降至41.1%年季。毛利的增加與銷售量的增加有關，而毛利率的下降主要與貨運成本、重新包裝成本、原物料成本和加工成本的增加有關。此外，考慮到購買這些物品的供應鏈的複雜性增加，暫時的罐頭短缺還增加了與運輸和加工我們的產品的損壞相關的增量成本。

Based on our estimates, the increase in volume favorably impacted gross profit dollars by approximately $7.9 million and a favorable currency impact provided an additional $700,000 which were partially offset by unfavorable increases in costs of approximately $1 million.

根據我們的估計，銷量的增加對毛利產生了約 790 萬美元的有利影響，有利的貨幣影響提供了額外的 70 萬美元，但部分被成本約 100 萬美元的不利增長所抵消。

Sales and marketing expenses for the 3 months ended March 31, 2021 were $12 million, an increase of $4.5 million or 60% from $7.5 million for the 3 months ended March 31, 2020. This increase was mainly related to marketing investment activities, which were augmented by $2.5 million when compared to the prior year quarter.

截至2021年3月31日止三個月的銷售及行銷費用為1,200萬美元，較截至2020年3月31日止三個月的750萬美元增加450萬美元，即60%。這一增長主要與行銷投資活動有關，其中與去年同期相比增加了 250 萬美元。

Additionally, employee costs increased by $650,000 from the year ago quarter, as we need to continue to invest in this area in order to have the proper infrastructure to support the commercial growth. Similarly, we experienced increases in other sales expenses in the amount of $563,000, mainly related to trade marketing activities to support our conversion to the DSD network. Lastly, storage and distribution expenses as well as broker cost accounted for the remainder of the increase in this area of $704,000 when compared to the prior year quarter.

此外，員工成本比去年同期增加了 65 萬美元，因為我們需要繼續在這一領域進行投資，以便擁有適當的基礎設施來支持商業成長。同樣，我們的其他銷售費用增加了 563,000 美元，主要與支持我們向 DSD 網路轉換的貿易行銷活動有關。最後，與去年同期相比，儲存和分銷費用以及經紀人成本佔該領域剩餘成長的 704,000 美元。

General administrative expenses for the 3 months ended March 31, 2021, were $7.8 million, an increase of $3.3 million or 73.3% from approximately $4.5 million for the 3 months ended March 31, 2020. This increase was mainly related to stock option expense, which amounted to $3.6 million for the 3 months ended March 31, 2021 or an increase of $2.2 million, which accounts for 61.1% of the total increase in this area when compared to the prior year quarter.

截至2021年3月31日止三個月的一般行政開支為780萬美元，較截至2020年3月31日止三個月的約450萬美元增加330萬美元或73.3%。這一增長主要與股票選擇權費用有關，截至 2021 年 3 月 31 日的 3 個月，總收入為 360 萬美元，與去年同期相比增加了 220 萬美元，佔該領域總增量的 61.1%。

Management deems it very important to motivate employees by providing them ownership, participation in the business in order to promote over performance, which translates into the continued success of the company. Additionally, employee costs for the 3 months ended March 31, 2021 reflected an increase of $660,000 or 70.2%. As investments in this area are also required to properly service our higher business volume and provide support to the commercial and operational areas of the business.

管理層認為，透過為員工提供所有權和參與業務來激勵員工非常重要，以促進超額績效，從而轉化為公司的持續成功。此外，截至 2021 年 3 月 31 日的三個月的員工成本增加了 66 萬美元，即 70.2%。由於還需要在這一領域進行投資，以妥善服務我們更高的業務量，並為業務的商業和營運領域提供支援。

Administrative expenses amounted to $2.1 million, an increase of $460,000 or 28.8% when compared to the prior year quarter. This increase is mainly related to higher legal costs, an increase in the bad debt reserve to cover any potential realization issues, increases in insurance costs and office rent. Depreciation, amortization and all other administrative expenses accounted for the remainder of the variance, which amounted to a net reduction of $21,000 when compared to the prior year quarter. If we exclude the non-cash items, general and administrative expenses would amount to $15.9 million or would be reduced to 7.8% of net revenues for the quarter.

管理費用為 210 萬美元，比去年同期增加 46 萬美元，即 28.8%。這一增長主要與法律成本上升、壞帳準備金增加以彌補任何潛在的變現問題、保險成本和辦公室租金的增加有關。剩餘差異由折舊、攤提和所有其他管理費用構成，與去年同期相比淨減少 21,000 美元。如果我們排除非現金項目，一般和管理費用將達到 1,590 萬美元，或將減少至該季度淨收入的 7.8%。

Total net other expenses for the 3 months ended March 31, 2021 were $228,000, which reflects a reduction of $194,000 when compared to the total net other expenses of $422,000 for the 3 months ended March 31, 2020. Net other expenses of $228,000 for the current quarter are composed of foreign currency exchange losses of $301,000 and other miscellaneous non-operational expenses of $30,000, which were partially offset by interest income of $87,000 related to the note receivable from our China distributor.

截至2021年3月31日止三個月的其他費用淨額總額為228,000美元，與截至2020年3月31日止三個月的其他費用淨額總額422,000美元相比減少了194,000美元。當期其他費用淨額為228,000美元該季度的外匯損失包括 301,000 美元的外匯損失和 30,000 美元的其他雜項非營運支出，其中部分被與中國分銷商應收票據相關的 87,000 美元利息收入所抵消。

As a result of the above, for the 3 months ended March 31, 2021, net income was $585,000 or $0.01 per share based on a weighted average of 72.5 million shares outstanding and dilutive earnings of $0.01 per share based on a fully dilutive weighted average of 76.9 million shares outstanding. In comparison, for the 3 months ended, March 31, 2020, the company had net income of approximately $546,000 or $0.01 per share based on a weighted average of 69.3 million shares outstanding and dilutive earnings of $0.01 per share based on a fully dilutive weighted average of 70.3 million shares outstanding.

綜上所述，截至2021 年3 月31 日的三個月，淨利潤為585,000 美元，即每股0.01 美元，基於7,250 萬股已發行股票的加權平均數，稀釋性收益為每股0.01 美元，基於完全稀釋加權平均數已發行股數為 7,690 萬股。相較之下，截至2020 年3 月31 日的三個月，該公司的淨利潤約為546,000 美元，即每股0.01 美元（基於6,930 萬股已發行股票的加權平均數），稀釋性收益為每股0.01 美元（基於完全稀釋加權平均數）已發行股數為 7,030 萬股。

Adjusted EBITDA for the fourth quarter was basically $5 million, an increase of $2.2 million when compared to $2.8 million in the year ago quarter. We believe this information and comparisons of adjusted EBITDA and other non-GAAP financial measures enhance the overall understanding and visibility of our true business performance. To that effect, the reconciliation of our GAAP results and non-GAAP figures has been included in our earnings release.

第四季調整後 EBITDA 基本為 500 萬美元，比去年同期的 280 萬美元增加了 220 萬美元。我們相信這些資訊以及調整後 EBITDA 和其他非 GAAP 財務指標的比較可以增強我們對真實業務績效的整體理解和可見性。為此，我們的 GAAP 業績和非 GAAP 數據的調整已包含在我們的收益發布中。

Now focusing on liquidity and capital resources. As of March 31, 2021 and December 31, 2020, we had cash of approximately 31.6 and $43.2 million respectively and working capital of approximately 73.6 and $64.9 million respectively with no long-term debt. Cash flows used by operating activities totaled $13.3 million for the 3 months ended March 31, 2020. The use of cash during the quarter is mainly related to increases in inventories in the amount of $19.2 million as well as $2.6 million related to prepaid expenses which mainly pertain to the inventory prepayments and inventory in transit as well as deposits to secure processing time. If we exclude these aspects, operations would have delivered over $8 million of cash during the quarter.

現在重點關注流動性和資本資源。截至2021年3月31日和2020年12月31日，我們的現金分別約為31.6和4320萬美元，營運資金分別約為73.6和6490萬美元，沒有長期債務。截至 2020 年 3 月 31 日的三個月，經營活動使用的現金流量總計 1,330 萬美元。本季的現金使用主要與庫存增加 1,920 萬美元以及與預付費用相關的 260 萬美元有關。涉及庫存預付款和在途庫存以及確保處理時間的押金。如果我們排除這些因素，該季度營運將交付超過 800 萬美元的現金。

That concludes our prepared remarks. Operator, you may now open the call for questions. Thank you.

我們準備好的演講到此結束。接線員，您現在可以發起提問。謝謝。

(Operator Instructions) Our first question comes from the line of Jeff Van Sinderen with B. Riley & Company.

（操作員說明）我們的第一個問題來自 B. Riley & Company 的 Jeff Van Sinderen。

Let me say first, congratulations on amazing metrics in Q1. First question is kind of a multipart question, so if you can bear with me, appreciate it. Just regarding the overall North American revenue increase. Can you speak more about, maybe how much of that sequential acceleration in growth do you think was catching up with sell-in versus sell-through given triple-digit sell-throughs you've been experiencing in some channels? And where the -- were there accounts that didn't get as much as they wanted due to production constraints around the can shortage? Is there any pent-up demand around that? And then maybe if you could give us any more color on where you stand now on getting enough cans to satisfy demand?

首先我要說的是，恭喜第一季取得了驚人的指標。第一個問題是一個由多個部分組成的問題，所以如果您能忍受我，請感激。就北美整體營收成長而言。您能否多談談，鑑於您在某些管道中經歷了三位數的銷售量，您認為成長的連續加速有多少是趕上銷售量與銷售量的？由於罐頭短缺造成的生產限制，哪些帳戶沒有得到他們想要的那麼多？這方面是否有任何被壓抑的需求？然後，也許你能給我們更多關於你現在在獲得足夠的罐頭來滿足需求方面的立場嗎？

Excellent. Thank you, Jeff, really appreciate it. The team did an amazing job in the quarter. Answer your question specifically in regards to the revenue, sell-in, sell-through in North America, we saw great results, up over 100%, 101%. We were not shipping at full capacity through the quarter, so demand was higher. And as we indicated on the call, there is a lot of headwinds that we (technical difficulty) quarter included. In the quarter, we talked about wrapping cans. We produced a lot of wrapped cans, they were -- they run at slower velocity levels at the co-packers. We were shipping probably roughly around about an 80% fill rate and then, we also had challenges with the Texas freeze, also logistics coming out of the Texas freeze for 2.5 weeks. So, in regards to sell-in and sell-out, our sell-in has been somewhat limited in the first quarter due to some of those complexity followed our HEAT line, but our sell-out seems to be very strong, when we look at the inventory levels at our retailers also at our distributors and the sell through there. So I think we're seeing a correlation and you are also seeing some of the scan data that's out there.

出色的。謝謝你，傑夫，真的很感激。該團隊在本季的表現非常出色。具體回答你關於北美地區的收入、銷售、售出率的問題，我們看到了很好的結果，成長超過 100%、101%。本季我們並未滿載出貨，因此需求較高。正如我們在電話會議中指出的那樣，我們（技術困難）季度包括了許多阻力。在本季度，我們討論了包裝罐頭。我們生產了很多包裝好的罐頭，它們在代加工廠中以較慢的速度運作。我們的運輸填充率大約在 80% 左右，然後，我們還遇到了德克薩斯州凍結的挑戰，以及德克薩斯州凍結後 2.5 週的物流問題。因此，就賣入和售出而言，我們的賣入在第一季受到了一定程度的限制，因為其中一些複雜性遵循我們的 HEAT 線，但當我們看時，我們的售出似乎非常強勁我們的零售商和分銷商的庫存水平以及通過那裡的銷售。所以我認為我們看到了一種相關性，而且你也看到了一些掃描資料。

When you look at the scan data in regards to the Nielsen, and some of the -- the SPINS, as well as the Stackline data we referenced is showing extremely strong demand atmosphere in the sellout. So we feel strongly about that. And we think we're in a good position as we head into really Q2 because the latest scan data in April is also very strong. When you look at the sell -- the -- regards to the can, the cans that are out there, we strategically moved back in Q4 of '20 -- really 2020 trying to secure additional cans, once our main supplier or sole supplier for cans informed us, we were not be going to be able to achieve our forecasts. Therefore we have sourced cans from Asia, from Europe, from Canada and working with all a variety of can suppliers. In March, we started to produce Asia cans.

當你查看有關尼爾森的掃描資料和一些 SPINS 以及我們引用的 Stackline 資料時，會顯示出銷售中極其強勁的需求氛圍。所以我們對此有強烈的感受。我們認為，當我們進入真正的第二季度時，我們處於有利的位置，因為四月份的最新掃描數據也非常強勁。當你看銷售時——關於罐頭，那裡的罐頭，我們戰略性地在20 年第四季度向後移動——實際上是2020 年，試圖獲得更多的罐頭，曾經是我們的主要供應商或唯一供應商罐告訴我們，我們將無法實現我們的預測。因此，我們從亞洲、歐洲、加拿大採購罐頭，並與各種罐頭供應商合作。 3月，我們開始生產亞洲罐。

We also have our German cans that were produced that are now coming ashore. So it's -- we have enough cans to secure our volumes for the remainder of the year and planning into 2022 and beyond. We are expecting to have a mix of imported and U.S. local cans. So until we really get capacity up had us much better level in the U.S., there is potential we will be wrapping additional cans as well, depending on how these containers come in through the ports. As we all know, we're going through really a container pandemic at the moment with all of -- with technical challenges going to the Suez Canal and a variety of other demand component (technical difficulty) covers the backups and all the port. So there is a lot of complexities, the teams are working through, but we are producing more product in the company ever has. We have plans to produce even more product in the company ever had in Q2, Q3 and beyond. So we think we're in good position and the sellout seems extremely strong.

我們還有生產的德國罐頭現在正在上岸。所以，我們有足夠的罐頭來保證今年剩餘時間的產量，並計劃到 2022 年及以後。我們期望混合進口和美國本土罐頭。因此，在美國的產能真正提高並達到更好的水平之前，我們也有可能包裝更多的罐頭，這取決於這些貨櫃如何通過港口進入。眾所周知，我們目前正在經歷真正的貨櫃大流行，蘇伊士運河面臨技術挑戰，而各種其他需求組件（技術難度）涵蓋了備份和所有港口。因此，團隊正在解決很多複雜的問題，但我們正在公司生產更多的產品。我們計劃在第二季、第三季及以後生產更多公司產品。因此，我們認為我們處於有利位置，而且銷售情況似乎非常強勁。

Okay. Great. So in terms of getting back, to call it, I guess a 100%% fill rate, are you getting there or maybe just give us a sense of when do you think you can be sort of back at 100% fill rate?

好的。偉大的。因此，就恢復而言，我想是 100%% 的填充率，您是否達到了目標，或者只是讓我們了解您認為何時可以恢復到 100% 的填充率？

But with our growth rates at the -- on the sell-out at retail, when you look at some of the velocity levels with the Nielsen data and the scan data is extremely strong. We're working to bring our inventory levels up right now to a sustainable level. We're able to meet all demand and likely, probably in the back half of Q2, I think we'll be in a better position to be able to fulfill all orders, but things are changing rapidly. Right now we're going through some gas shortages with freight and transportation, so that's a big thing this week. I'm trying to get containers move, trucks move, logistics, we're getting feedback that truckers just don't have gas, especially in the North East and a variety of other areas. So, those are things we're dealing with, we'll work through that. We have a great team, a very, very passionate team, dedicated team and we're working through this. I have full confidence that the team will be able to drive forward and we will be able to meet the demand, pull demand towards the back half of Q2 and into Q -- the back half of 2021.

但考慮到我們零售銷售的成長率，當你用尼爾森數據觀察一些速度水平時，掃描數據非常強勁。我們正在努力將庫存水準提高到可持續水準。我們能夠滿足所有需求，並且可能在第二季後半段，我認為我們將處於更好的位置來滿足所有訂單，但情況正在迅速變化。目前，我們正在經歷一些貨運和運輸方面的天然氣短缺，所以這是本週的一件大事。我正在努力讓貨櫃移動，卡車移動，物流，我們得到的回饋是卡車司機沒有天然氣，特別是在東北部和其他各種地區。所以，這些是我們正在處理的事情，我們將解決它。我們有一支偉大的團隊，一支非常非常熱情、敬業的團隊，我們正在努力解決這個問題。我完全相信團隊將能夠向前推進，我們將能夠滿足需求，將需求拉向第二季後半段，並進入第二季——2021 年後半段。

Okay. Great. And then if I could just squeeze in 1 more follow-up. I just wanted to focus on Europe for a moment, any more color you can give us there? I guess on what you expect over the next couple of quarters, including the FAST brand and I think some production constraints around FAST?

好的。偉大的。然後我能否再擠出 1 個後續行動。我只是想暫時關註一下歐洲，您還能提供我們更多的顏色嗎？我猜你對未來幾季的期望是什麼，包括 FAST 品牌，我認為 FAST 周圍有一些生產限制？

Yes, that's correct. We had a good growth roughly around a 22% growth rate in Europe. When you look at -- and really drive from the Nordic operations. When you look at quarter-over-quarter and then sequentially from Q4 to Q1, we saw about a 51% growth rate. So those are good numbers there. They were impacted with COVID pandemics and shutdowns in the first quarter, in Finland, in Norway and in Sweden, so there is some difficulty. We've also had some supply constraints not with the CELSIUS portfolio, but with our FAST protein snack portfolio, which impacted the quarter.

對，那是正確的。我們在歐洲的成長率約為 22%，成長良好。當你看到——並且真正從北歐運營中開車時。當您查看季度環比以及從第四季度到第一季的順序時，我們看到成長率約為 51%。所以這些都是不錯的數字。在芬蘭、挪威和瑞典，他們在第一季受到了新冠疫情和停工的影響，因此遇到了一些困難。我們也遇到了一些供應限制，這些限制不是針對 CELSIUS 產品組合，而是針對我們的 FAST 蛋白質零食產品組合，這影響了本季。

Those are getting worked out I think, towards the middle to really the back half of Q2, those will be realized and into '20 -- the back half of 2021 will get much better inventory levels, but we're working through that. They had a great new successful launch, we talked about in Q4 with a really great new innovative bar, indulgence bar, that was very well received in Finland and we think we're well positioned. Also, we are bringing the FAST brand to the U.S. in Q2, so look out for that on Amazon, and in the coming weeks, we'll be working with our digital teams gaining some traction with an exclusive launch with Amazon there. So things are going well in Europe and we're not out of the woods in COVID restriction, a lot of things but full faith and we have a great team over there that's executing.

我認為這些正在解決，在第二季度中後期，這些將在 20 世紀實現——2021 年下半年將獲得更好的庫存水平，但我們正在努力解決這個問題。他們成功推出了一個很棒的新產品，我們在第四季度談到了一個非常好的新創新酒吧，即放縱酒吧，它在芬蘭非常受歡迎，我們認為我們處於有利地位。此外，我們將於第二季將 FAST 品牌引入美國，因此請留意亞馬遜，在接下來的幾週內，我們將與我們的數位團隊合作，透過與亞馬遜的獨家發布來獲得一些吸引力。因此，歐洲的事情進展順利，我們還沒有擺脫新冠限制的困境，很多事情但我們充滿信心，我們在那裡有一支出色的團隊正在執行。

Our next question comes from the line of Kaumil Gajrawala with Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Kaumil Gajrawala。

A couple of questions I guess on the balance between accepting, winning new distribution and supply. It sounds like you've already benefited from some shelf resets, but the real benefits are happening now, kind of moving forward in terms of resets. Do you have to delay any of these shelf space gains, maybe even until the April 2022 shelf resets because of limitations on supply?

我想有幾個問題是關於接受、贏得新的分銷和供應之間的平衡。聽起來您已經從一些貨架重置中受益，但真正的好處現在正在發生，在重置方面向前推進。由於供應限制，您是否必須推遲任何這些貨架空間的增加，甚至可能直到 2022 年 4 月貨架重置？

With regards to the new distribution resets, when it's physically looking at the first quarter, we did add some additional distribution, Murphy USA was a great win for us that gets reset, but the bulk of the distribution and new resets are taking place in that April, that May-April time frame. We are not limited to the new expansion on the resets. We have enough product to fulfill demand. We're working on more inventory.

關於新的分配重置，當它從第一季的實際情況來看時，我們確實添加了一些額外的分配，墨菲美國對我們來說是一個偉大的勝利，被重置，但大部分分配和新的重置都發生在那個地方四月，也就是五月至四月的時間範圍。我們不僅限於重置上的新擴充。我們有足夠的產品來滿足需求。我們正在努力增加庫存。

I think a lot of companies were affected with the Texas freeze and the shut downs that took place, so that really impacted us during the quarter. We have more product coming in, we're producing more product than we ever have. We feel we'll be able to meet demand. We are roughly around -- in Q1, roughly around about a 80% fill rate that we experienced, but with the new distribution we have the product coming onboard in Q2, and we expect to meet the new distribution requirements to fill those new doors and those resets that are coming on board.

我認為很多公司都受到德克薩斯州的凍結和關閉的影響，所以這確實對我們本季產生了影響。我們有更多的產品進來，我們正在生產比以往更多的產品。我們認為我們能夠滿足需求。我們在第一季的填充率大致約為 80%，但隨著新的分銷，我們的產品將在第二季度上市，我們預計將滿足新的分銷要求，以填補這些新的大門和那些即將到來的重置。

Okay. Great. And then a question on the fitness channel. We're seeing some improvements, I suppose, we're seeing a bit of a recovery. Can you maybe give us a read on what you expect it to look like as we come to kind of full reopening, maybe just some early indications on what you're seeing at the gyms, perhaps the behavior, if it's any different from what the world look like in 2019? And then your strategy obviously within what you intend to do in the channel?

好的。偉大的。然後是健身頻道的問題。我想，我們看到了一些改進，我們看到了一些復甦。您能否為我們介紹一下，當我們全面重新開放時，您期望它會是什麼樣子，也許只是您在健身房看到的一些早期跡象，也許是行為，如果它與我們所看到的有什麼不同的話？2019 年的世界是什麼樣子？那麼您的策略顯然符合您打算在通路中做的事情嗎？

Historically, pre-COVID, the fitness channel represented about 25% approximately of our revenue, severely impacted as we all know. We have a great team, a great dedicated team focused on fitness and that is our core. We have great partnerships throughout the industry with key chains and locations and working hard with those relationships and we're going to support them, just like we supported them all the way through COVID, and we look to really get forge solid relationships on a go forward basis. Right around the fitness channel represented approximately 10% of our revenue in North America. We did see a good growth rate in Q1 about 33%, our net revenues.

從歷史上看，在新冠疫情之前，健身頻道約占我們收入的 25% 左右，眾所周知，受到了嚴重影響。我們有一支優秀的團隊，一支專注於健身的優秀敬業團隊，這是我們的核心。我們在整個行業與關鍵連鎖店和地點建立了良好的合作夥伴關係，並努力與這些關係合作，我們將支持他們，就像我們在新冠疫情期間一直支持他們一樣，我們希望真正在旅途中建立牢固的關係前向基礎。健身頻道約占我們北美收入的 10%。我們確實看到第一季的淨收入成長率良好，約為 33%。

So seeing continual reopenings and growth, we feel very excited talking to our operators in the chains and also our distributors that are focused on fitness, everyone is very excited to really continue to move forward with the reopening of America and the reopening of gyms. It's really pent-up demand that we're seeing. We're seeing -- we're hearing comments about additional sign ups and there seems to be a lot of momentum there. They are nowhere near where they were pre-pandemic, but it's coming, we are excited about the summer. We think it's going to be a great contributor to us. It is a focus of us. We have teams like I said, that are dedicated to it, and it's a great opportunity, especially for the CELSIUS portfolio as well.

因此，看到不斷的重新開業和成長，我們感到非常興奮與我們的連鎖經營者以及專注於健身的經銷商交談，每個人都非常高興能夠繼續推動美國的重新開放和健身房的重新開放。我們看到的確實是被壓抑的需求。我們看到——我們聽到了關於額外註冊的評論，而且似乎有很大的動力。現在的情況還遠遠沒有達到大流行前的水平，但它即將到來，我們對夏天感到興奮。我們認為它將為我們做出巨大貢獻。是我們關注的一個焦點。我們有像我所說的致力於此的團隊，這是一個很好的機會，特別是對於 CELSIUS 產品組合而言。

(Operator Instructions) Our next question comes from the line of Jeffrey Cohen with Ladenburg Thalmann.

（操作員說明）我們的下一個問題來自 Jeffrey Cohen 和 Ladenburg Thalmann 的線路。

So when we're -- when may we see Tropical Vibe coming? This summer?

那麼，當我們——什麼時候我們可以看到熱帶氛圍到來？這個夏天？

It is this summer, it's what's your vibe for this summer. We had such a great successful launch with our Peach Vibe, we are bringing back another vibe, it's going to be what's your vibe for summer, it's Tropical Vibe, it's actually -- right now, you can pick it up at 7-Eleven, nationwide authorization at 7-Eleven. So go to your local 7-Eleven, you can pick some up and it's taste amazing, great flavor profile, the team did a great job and it disappears here around the office.

這是這個夏天，這就是你這個夏天的氛圍。我們的 Peach Vibe 發布非常成功，我們將帶回另一種氛圍，這將是你夏天的氛圍，它是 Tropical Vibe，實際上 - 現在，你可以在 7-11 購買它， 7-11全國授權。所以去當地的 7-11 便利商店，你可以買一些，它的味道很棒，味道很棒，團隊做得很好，它就消失在辦公室周圍了。

Got it, okay. Can you talk about the FAST portfolio, you said it was going to be coming in the Amazon in Q2? Can you give us an indication of the number of SKUs we'll see?

明白了，好吧。您能談談 FAST 產品組合嗎？您說過它將在第二季在亞馬遜上架？您能否告訴我們我們將看到的 SKU 數量？

Yes, we're doing a really methodical rollout. We are seeing -- what you'll see is 2 SKUs that will be launched on Amazon initially as an exclusive launch in partnership with them, and then we'll continue to scale the branch from that point. So initial feedback has been very positive on testing. We've been doing a lot of consumer testing as well as working with Amazon very closely. So we think it's going to be a great addition to a snacking, the fast growing protein snacking category, which has a lot of momentum and we have a lot of interest from a lot of our partners.

是的，我們正在進行非常有條理的部署。我們看到 - 您將看到 2 個 SKU 最初將作為與他們合作的獨家發佈在亞馬遜上推出，然後我們將繼續擴大分支機構的規模。因此，最初的測試回饋非常積極。我們一直在進行大量的消費者測試，並與亞馬遜密切合作。因此，我們認為這將成為快速增長的蛋白質零食類別的一個很好的補充，該類別有很大的發展勢頭，我們的許多合作夥伴都對此很感興趣。

Fantastic. Could you talk about the sticks a little bit? Because of the issues going on with the cans, did the sticks picked up some share from your standpoint on the growth side in the aggregate numbers?

極好的。你能談談棍子嗎？由於罐頭存在問題，從您的角度來看，棒在總數量的增長方面是否佔據了一些份額？

As I -- just a line extension, it also expanded usage occasion. Their counter products overall represent an immaterial portion of our top-line revenue number, but they are growing. We're seeing a lot of growth and we're also seeing a lot of interest from retailers, mainly vitamin specialty and online, but now we're seeing interest from CBS, Publix and Walmart and several other customers as well, where they're looking to carry those sticks as additional offerings.

正如我——只是產品線的延伸，它也擴大了使用場合。他們的櫃檯產品總體而言只占我們總收入的一小部分，但它們正在成長。我們看到了很大的成長，我們也看到了零售商的巨大興趣，主要是維生素專業和線上零售商，但現在我們看到了哥倫比亞廣播公司、Publix 和沃爾瑪以及其他幾個客戶的興趣，他們在這些地方我們希望攜帶這些棍子作為額外的產品。

And so there is a lot of opportunity there. We have come out with new flavors. We got a lot of this from flavors planned in the pipeline, and the feedback is extremely positive on our powder products, and also looking at opportunities potentially to expand our HEAT portfolio and our HEAT offerings into a cutter, On-the-Go the go option as well. So getting interest there, but the bulk of our revenue today is those RTDs.

所以那裡有很多機會。我們推出了新口味。我們從管道中計劃的口味中得到了很多這樣的信息，並且對我們的粉末產品的反饋非常積極，並且也在尋找潛在的機會將我們的HEAT 產品組合和我們的HEAT 產品擴展到切割機、On -the-Go 中選項也是如此。因此，人們對此產生了興趣，但我們今天的大部分收入來自這些 RTD。

Got it. And then lastly from me. If you could provide any commentary, I know we've got a fair amount of data on the order insurance, but can you give us any flavor from what you're sensing as far as new customer, new customer acquisitions, reordering, stickiness of current customers out there, that would be helpful.

知道了。最後是我。如果您可以提供任何評論，我知道我們已經獲得了相當多的有關訂單保險的數據，但是您能否從您感覺到的新客戶、新客戶獲取、重新訂購、粘性等方面向我們提供一些信息？目前的客戶，這會很有幫助。

The stickiness of existing customers has been extremely positive. As we -- as many of us on the call know, we are very passionate about CELSIUS. We are -- our consumers and I speak to as many of you. And it's -- the sticking power of the brand is incredible, we're seeing that and you go back even 7-Eleven, we're launching our Tropical Vibe with them as we speak and we've been with them for over -- going on 4.5, 5 years now and many of our retail partners. So we continue to gain more shelf space, better placements in stores, cold availability, so we're really excited.

現有客戶的黏性非常積極。正如我們許多參加電話會議的人所知，我們對 CELSIUS 充滿熱情。我們是－我們的消費者，我也和你們中的許多人交談過。這個品牌的黏著力令人難以置信，我們看到了這一點，你甚至可以回去 7-11，我們正在與他們一起推出我們的 Tropical Vibe，我們已經與他們合作超過 -持續4.5、5 年，現在還有我們的許多零售合作夥伴。因此，我們繼續獲得更多的貨架空間、更好的商店擺放位置、冷貨供應，所以我們真的很興奮。

In regards to the new distribution coming on, we feel we're up to a 192,000 locations today. We'll be for north of 100,000 locations by the end of this year for sure. So lots of interest. We're also getting a lot of good new team members joining our team as we continue to scale and grow and bringing great relationships that will be able to further leverage.

關於即將推出的新發行版，我們認為今天的發行地點已達到 192,000 個。到今年年底，我們肯定會覆蓋超過 100,000 個地點。所以很有興趣。隨著我們不斷擴大規模和發展，我們也吸引了許多優秀的新團隊成員加入我們的團隊，並帶來了能夠進一步發揮作用的良好關係。

Our next question comes from the line of Anthony Vendetti with Maxim Group.

我們的下一個問題來自 Maxim Group 的 Anthony Vendetti。

Yes, just in terms of DSD. John, you guys have made a huge push into the DSD network, understanding that not every market is amenable or not every store, every market can be a DSD depending on where that market is. Can you give us a general idea of what is the maximum penetration you see from your current -- in your current customer base? Where could you get to, and approximately where are you at in terms of the percentage penetration?

是的，僅就 DSD 而言。約翰，你們在 DSD 網路中做出了巨大的努力，了解並非每個市場都適合，也不是每個商店都適合，每個市場都可以成為 DSD，具體取決於該市場所在的位置。您能否向我們介紹一下您目前的客戶群中的最大滲透率是多少？您能達到什麼水平？就滲透率而言，您大約處於什麼位置？

Anthony, we are very much focused on DSD. Just with the velocity levels that we see at retail and the demand for the brand, you have to build this company on a DSD national network. We just -- as we were seeing in 2019, you just can't keep it in stock. We're in too high of a velocity category. So we've been building out our national DSD network, we're at about 85% major metropolitan markets. We have closed additional distributors to close those gaps to be able to transition our key accounts over to DSD.

安東尼，我們非常關注 DSD。就我們在零售業看到的速度水平和對品牌的需求而言，你必須在 DSD 全國網路上建立這家公司。正如我們在 2019 年所看到的，我們只是無法保留庫存。我們的速度太快了。因此，我們一直在建立全國 DSD 網絡，我們涵蓋了約 85% 的主要大都會市場。我們已經關閉了更多經銷商來彌補這些差距，以便能夠將我們的主要客戶轉移到 DSD。

And as we speak, we are expanding on the West Coast, as an example, 7-Eleven is almost 1,500 -- actually almost 2,000 7-Eleven's are being migrated over to DSD as we speak, and we'll be doing further in division-by-division also working with CVS, further Targets and all of our major retailers. So we would like to see a big significant portion of our distribution service through DSD and we're committed on that. We haven't provided percentages of where that is, but over time, I would like to see a considerable percentage of our retailer serviced by DSDs, better placement, better in-stocks, better execution, and most importantly, better velocity and better revenues.

正如我們所說，我們正在西海岸擴張，例如，7-11 幾乎有 1,500 家——實際上，就在我們所說的時候，近 2,000 家 7-11 正在遷移到 DSD，我們將進一步進行劃分- 按部門也與CVS、其他Targets 和我們所有的主要零售商合作。因此，我們希望看到我們的分銷服務有很大一部分是透過 DSD 實現的，我們也致力於此。我們還沒有提供具體的百分比，但隨著時間的推移，我希望看到我們的零售商中有相當一部分由DSD 提供服務、更好的佈局、更好的庫存、更好的執行，最重要的是，更快的速度和更好的收入。

Make sense. Okay. Good. And then just on the aluminum can shortage because this has come up on other conference calls for companies that are in your situation. Based I guess, on your earlier comments, you're expecting -- did you say, by the end of this year for that shortage to be alleviated? I guess, is it because of the ramp in U.S. production work, can you just give us a little more color on your expectations there?

合理。好的。好的。然後就是鋁罐短缺問題，因為在其他與您處境相同的公司的電話會議上也提到了這個問題。根據我猜想，根據您先前的評論，您是否預計到今年年底，這種短缺現象將會得到緩解？我想，是因為美國生產工作的增加，你能給我們更多關於你對那裡的期望的資訊嗎？

Yes, absolutely. So what's happening in the industry is, that just due to the increase in demand for cans, the U.S. manufacturers just do not have the capacity. So you heard Rodney Sacks on the Monster call most recently, every brand is running into, every company in the can business and the beverage business is running into the same issues. There's just not enough capacity out there. All the major players are adding a capacity lines, unfortunately it just takes time to put these lines in. We expect some of the production in the capacity will come on towards the back half 2021 we're hearing and into 2022 and beyond, but it's going to take time to ramp that up.

是的，一點沒錯。因此，該行業正在發生的情況是，僅僅由於罐頭需求的增加，美國製造商就沒有能力。所以你最近聽到羅德尼·薩克斯（Rodney Sacks）在怪獸電話會議上聽到，每個品牌、每個罐頭行業和飲料行業的公司都遇到了同樣的問題。只是那裡的容量不夠。所有主要參與者都在增加產能生產線，不幸的是，投入這些生產線只是需要時間。我們預計，我們聽說的一些產能生產將在 2021 年下半年、2022 年及以後進行，但這是需要時間來提高這一點。

The other thing is, what happens as the country continues to open? Your consumers go back to on-premise with Mountain and demand for cans goes down, that's all to be determined, so that's a fluctuation that could come into play here where we can source more U.S. cans at a quicker time frame. But right now we are secured with international cans and U.S. cans, domestic cans to meet our forecast demands, and our internal expectations for 2021 and into 2022 and beyond. We have secured those, so now it's a matter of mix on how we move forward.

另一件事是，隨著國家繼續開放，會發生什麼事？您的消費者回到 Mountain 本地，對罐頭的需求下降，這一切都有待確定，因此這可能會在這裡發揮作用，我們可以在更快的時間內採購更多的美國罐頭。但目前我們有國際罐頭和美國罐頭、國內罐頭來滿足我們的預測需求以及我們對 2021 年、2022 年及以後的內部期望。我們已經確保了這些，所以現在是我們如何前進的混合問題。

In regards to our margin profile, we talked about in Q1, our 41% gross profit, mainly that's thrived. We had a lot of wrapped cans, we also had a lot of rework during the quarter and increases in transportation, so we'll continue to optimize that with non-wrapped cans, which are better for our margins. So -- and then -- but we'll have that mix from international and domestic which will optimize as we go forward.

關於我們的利潤率狀況，我們在第一季談到了我們的毛利為 41%，主要是蓬勃發展。我們有很多包裝罐，本季我們也進行了大量返工，運輸量增加，因此我們將繼續優化非包裝罐，這對我們的利潤來說更好。所以，然後，我們將擁有國際和國內的組合，隨著我們的前進，這將會得到最佳化。

Okay, great. And then just a last question on the international sales. I know you said you're looking to expand in Europe, but can you also talk about the Middle East as well? What's your expectation for that expansion by the end of this year moving into 2022?

好的，太好了。最後一個問題是關於國際銷售。我知道您說過您希望在歐洲擴張，但也能談談中東嗎？您對今年年底到 2022 年的擴張有何期望？

We're working potentially in the U.K. and Germany, that's an area we've been focused on and exploring. We're talking to potential distributors. We don't have a time line for that, but it is an area of opportunity for us that the team has been focused on. Also you mentioned the Middle East. We do have a distributor locally in the Middle East, and we're working with several others on an import basis, but it's all timing and sequencing. At this point -- and COVID has impacted a lot of that -- some of these discussions, but we are in discussions and things are moving forward. Edwin, you wanted to make comment as well?

我們正在英國和德國開展工作，這是我們一直在關注和探索的領域。我們正在與潛在的經銷商交談。我們沒有具體的時間表，但這對我們來說是團隊一直關注的一個機會領域。你也提到了中東。我們在中東當地確實有一個經銷商，我們正在與其他幾個經銷商合作進行進口，但這都是時間和順序的問題。目前，新冠疫情已經對其中的一些討論產生了很大影響，但我們正在進行討論，事情正在向前推進。 Edwin，你也想發表評論嗎？

Yes, I was just going to say, John, to me, the key is that, we limit the footprint as much as possible and we use the model going through distributors, so that we minimize the risk including currency risks and so forth, and that to me that's been the successful model and hopefully we can continue to expand using that model.

是的，我只是想說，約翰，對我來說，關鍵是，我們盡可能地限制足跡，我們使用通過分銷商的模式，這樣我們就可以最大限度地降低包括貨幣風險等在內的風險，並且對我來說，這是一個成功的模式，希望我們可以繼續使用該模式進行擴展。

Our next question is a follow-up question from the line of Kaumil Gajrawala with Credit Suisse.

我們的下一個問題是來自瑞士信貸銀行 Kaumil Gajrawala 的後續問題。

On international, and you think about the international rollout, can you talk a bit about the marketing and your marketing intentions? It sounds like you're looking into going -- you're looking to get into new regions and such, maybe more aggressively than you would have discussed 6 to 12 months ago and obviously, they don't have to have a bit of a marketing overlay on that. So can you talk about what the plans are and ideally, if you can, what sort of investment -- the investment would look like?

在國際方面，您想到國際推廣，您能談談行銷和您的行銷意圖嗎？聽起來你正在考慮進入新的地區等等，也許比你 6 到 12 個月前討論的更積極，顯然，他們不需要有一點營銷覆蓋於此。那麼您能否談談計劃是什麼？如果可以的話，理想情況下，投資會是什麼樣子？

Yes Kaumil, as we mentioned, we're going through more of a distributor model where we're importing and we allow -- is the collaborative effort with the margins that are generated through the sales as well as our support as well, but it will be fairly limited. Initially, it is a more methodical rollout, that we are strategic approach as we enter a market, we don't have plans to invest heavily ahead of revenue in any of these markets, so we will be sticking with our positive ROI driven model that we've indicated on many calls and over the last several years. So we are looking for positive ROI investments as we go forward. Some of the initial relationships there could be in regards to the margins and both contributing, there could be some investments, but it will be generally immaterial.

是的，考米爾，正如我們所提到的，我們正在經歷更多的分銷商模式，我們進口並允許 - 是與通過銷售以及我們的支持產生的利潤的協作努力，但它將相當有限。最初，這是一個更有條理的推出，我們在進入市場時採用戰略方法，我們沒有計劃在任何這些市場的收入之前進行大量投資，因此我們將堅持我們的積極投資回報率驅動的模型我們在過去幾年的許多電話中都表明了這一點。因此，隨著我們的前進，我們正在尋找積極的投資報酬率投資。一些最初的關係可能​​與利潤有關，兩者都有貢獻，可能會有一些投資，但這通常是無關緊要的。

There are no further questions. I'd like to hand the call back to management for closing remarks.

沒有其他問題了。我想將電話轉交給管理階層以供結束語。

Thank you. On behalf of the company, we'd like to thank everyone for their continued interest and support. Our results demonstrate our products are gaining considerable momentum. We are capitalizing on today's global health and wellness trends and the transformation taking place in today's energy drink category. Our active lifestyle position is a global position with mass appeal. We're building upon our core and leveraging opportunities and deploying best practices. We have a winning portfolio, strategy and team and a large, rapidly growing market that consumers want.

謝謝。我們謹代表公司感謝大家一直以來的關注與支持。我們的結果表明我們的產品正在獲得巨大的發展勢頭。我們正在利用當今的全球健康和保健趨勢以及當今能量飲料類別正在發生的轉變。我們的積極生活方式定位是具有大眾吸引力的全球定位。我們正在以我們的核心為基礎，利用機會並部署最佳實踐。我們擁有成功的產品組合、策略和團隊，以及消費者想要的龐大且快速成長的市場。

Our mission is to get Celsius to more consumers profitably. I'm very proud of our dedicated team as without them, our tremendous achievements and the significant opportunities we see ahead would not be possible. We believe we'll be able to navigate through the challenges ahead as a result of the COVID-19 pandemic, and we are well positioned to thrive in the transformation of today's energy drink category. In addition, I thank our investors for their continued support and confidence in our team. Thank you everyone for your interest in Celsius. Be safe, stay healthy, and have a great day.

我們的使命是將攝氏度帶給更多消費者並從中獲利。我為我們的敬業團隊感到非常自豪，因為沒有他們，我們的巨大成就和我們未來看到的重大機會就不可能實現。我們相信，我們將能夠應對 COVID-19 大流行帶來的挑戰，並且我們已做好充分準備，在當今能量飲料類別的轉型中蓬勃發展。此外，我感謝我們的投資者對我們團隊的持續支持和信任。感謝大家對攝氏的興趣。確保安全，保持健康，祝您有美好的一天。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路，度過美好的一天。