Welcome to the GURU Organic Energy fourth quarter and year-end 2024 results conference call and webcast. Being recorded today, January 23rd, 2025, at 10:00 A.M. Eastern Time. At this time, all participants are in 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 any 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 SEDAR+. During the call, the company may refer to 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 call over to Carl Goyette, GURU's Chief Executive Officer. Please go ahead. Thank you, Operator. Bonjour à tous, good morning everyone, and welcome to GURU's fiscal 2024 year-end results conference call. Joining me this morning is our CFO, Ingy Sarraf. Let's turn to slide five. Fiscal 2024 was a year of driving strategic optimization for GURU. During the year, we focused on driving sustainable growth and our return to profitability, supported by enhancement in operational efficiency and disciplined cost management. Driven by a robust performance in the US, which saw 62% year-over-year growth, net revenue grew by 3.3% to CAD 30.2 million, underscoring successful expansion and brand penetration efforts in priority markets outside of Canada. Our disciplined approach to cost management and pricing strategies continued to bear fruit as gross profit increased by 8.4% to CAD 16.7 million and gross margin improved to 55.3%. As a result of our ongoing efforts to streamline operations and reduce costs, we were able to achieve a 21.3% decrease in net loss in fiscal 2024. These achievements reflect the strength of our strategy to balance growth with financial discipline. Our efforts have laid a solid foundation for the future as we continue to navigate a competitive and evolving market. Turning to slide six. Innovation was central to our success in 2024, highlighted by the launch of our Zero Sugar line. GURU Zero addresses the rapidly growing demand for sugar-free energy drinks, which now account for more than half of the $23 billion North American energy drink market. Like our other products, GURU Zero stands out as the only zero-sugar organic energy drink without sucralose and aspartame. Through innovation, we are attracting more consumers to the brand and expanding our sales and reach in key growth markets, namely the online and wholesale club channels. In the U.S., we achieved record-breaking online performance in 2024, particularly on Amazon, supported by the strong reception of the Zero Sugar line and our targeted digital campaigns. The U.S. retail market also benefited from innovations in 2024, with continued double-digit retail scan growth in the natural channel and at Whole Foods. Starting in January until March, our GURU Zero line will benefit from additional exposure at select Costco stores in Southern California. In our core Quebec market, GURU has solidified its position as the undisputed leader in energy drink innovation, launching the number one energy drink innovation each year for the past three consecutive years. This pivot has been instrumental in maintaining our coveted third place in the market share for energy drinks, despite intense competition. In 2024, Peach Mango Punch and Zero Wild Berry both debuted to exceptional consumer acclaim, reinforcing GURU's reputation as a trusted, forward-thinking brand that continues to set the standard for innovation in the energy drink category. In Canada, we also deepened consumer engagement through initiatives such as our national Costco roadshows, which sampled over 450,000 units and provided valuable insights to guide future product development and distribution strategies. In 2025, we will introduce more better-for-you innovations with the goals of expanding our consumer base across North America. Turning to slide seven. In 2024, we strengthened our leadership team and governance with the addition of three new independent board members who bring extensive experience in beverage and consumer packaged goods, marketing, digital transformation, and operational excellence. These changes ensure robust guidance as we expand our market presence in Canada and in the U.S. Our executive team has also been enhanced with the addition of Xing Li as our new VP of Marketing. Xing Li's expertise in building high-growth brands has already contributed to refining our marketing strategies and enhancing consumer engagement. More recently, we were thrilled to welcome Patrick Charbonneau as our new Executive Vice President of Sales. Patrick brings over 25 years of extensive leadership experience in the food and beverage industry, including key vice president roles at PepsiCo Canada. Renowned for his strategic vision and ability to build high-performing teams, Patrick will oversee all sales activities for GURU in North America. His expertise will play a critical role in achieving our growth objectives in 2025 and beyond. With these new additions, we are more than confident in our team's ability to take GURU to the next level of growth and profitability. Turning to slide eight. After the close of fiscal 2024, we announced that our distribution agreement with PepsiCo Canada will end on May 22nd, 2025. This transition will see us return to our proven direct distribution model, which has fueled GURU's growth for over two decades. This change presents an exciting opportunity to enhance our operational flexibility, strengthen retailer relationships, and invest in more targeted brand-building initiatives. Simply put, it will allow us to invest more efficiently and respond more quickly to capitalize on sales growth opportunities. We are committed to ensuring a smooth transition for all stakeholders, including our retail partners and consumers, as we resume direct distribution in Canada. I will now turn the call over to Ingy Sarraf, our CFO, to discuss our financial results in more detail. Ingy, over to you. Thank you, Carl, and good morning, everyone. Let's turn to slide 10. Fiscal 2024 demonstrated our ability to drive growth and effectively manage costs, which allowed us to increase net revenue by 3.3% to CAD 30.2 million and reduce net loss by 21.3% to CAD 9.4 million. Our focus on cost management continued in Q4, as gross margin improved to 57.1% on lower net revenue of CAD 7.2 million. The 6.9% year-over-year decline in Q4 revenue was offset by stable gross profit, which remained flat at CAD 4.1 million. Our cost reduction activities showed renewed momentum in Q4, as SG&A expenses decreased by 18.8% to CAD 6.8 million as a result of streamlining and efficiencies in sales and lower marketing spend. These combined cost reduction efforts resulted in a 28.1% improvement in net loss to CAD 2.7 million compared to Q4 2023. As of October 31st, 2024, we maintained a strong financial position, with CAD 25.5 million in cash, no debt, and CAD 10 million in unused credit facilities. With our disciplined financial approach, we believe we have ample financial resources to lead us into our next phase of growth and return to profitability. Carl, back to you for concluding remarks. Thank you, Ingy. Turning to slide 12. As we look ahead to 2025, our primary focus remains on driving growth while preparing for the exciting opportunities that lie ahead. Fiscal 2024 demonstrated our ability to optimize operations, innovate, and strengthen our market position. We've made significant progress in reducing our net loss and improving our financial resilience, providing a strong foundation for the next phase of GURU's journey. As we move into 2025, we will focus on, first, seamlessly transitioning our direct distribution model in Canada to enhance operational flexibility and improve retailer relationships. Second, expanding the Zero Sugar line across premium retail and online platforms in both Canada and in the US, targeting urban centers where health-conscious consumers are concentrated. And third, maintaining disciplined cost management while selectively investing in initiatives that align with consumer preference and drive long-term growth. We look forward to returning to our proven direct distribution model in Canada in May, which will allow us to reestablish direct relationships with our retail partners, increase our operational agility, and better align our distribution strategy with our long-term goals. We are fully prepared to make the transition seamless and ensure uninterrupted service and continued growth in the Canadian market. Our innovation pipeline for 2025 is more robust than ever. Building on the success of our Zero Sugar line and other recent launches, we are preparing to introduce new, exciting products that reflect the evolving preferences of our consumers. These innovations will further reinforce our position as a leader in the better-for-you energy drink space. In addition, our strengthened leadership team brings a wealth of expertise and renewed focus on excellence. Their contributions will be instrumental as we expand our market presence in key markets, refine our marketing strategies, and elevate the GURU brand to new heights. We remain steadfast in our mission to clean up the energy drink industry, offering high-quality organic products that resonate with today's health-conscious consumers. With our disciplined approach to cost management, strong focus on innovation, and a clear vision for the future, we are confident in our ability to deliver sustainable growth and long-term value for our shareholders. We are energized by the opportunities that lie ahead and excited to continue this journey with all of you. This concludes our formal remarks. I will now turn the call over to the operator for the Q&A. Thank you. We will now begin the question and answer session. To ask a question, you may press Star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star and then two, and our first question today will come from Martin Landry with Stifel. Please go ahead. Hi. Good morning, Carl and Ingy. Good morning, Martin. My first question, Carl, is you've used to give us the performance at retail in Canada of your products during the quarter, all channels. So I was wondering if you can give us that metric. It helps out, blur away the noise of the selling and sell-through, and see a little bit better your performance at retail. Yes, absolutely, Martin. When I look at the latest, I guess the most reliable metric would be the Nielsen numbers that we just got, right? So they're ending December 28th. In that case, we're flat in dollar sales versus last year in Canada, and this is not where we want to be, but this is considering increased competition over the last year. As you know, there are six new brands that came into the market. Only one of them has seen some traction above 1% market share, but combined, they took a significant portion of the market. Considering the increased competition, we started pretty well. Okay. Thank you for that. And then I'd like to move away from your results that you've published today and focus a little bit more on the upcoming transition of distributor. Is there a risk that Pepsi becomes less engaged as the end of the contract approaches? And is there a risk that you could lose some market share before the transition? Listen, it's a fair question to ask, but the reality is PepsiCo has always been very professional. We have distribution agreements in place, and the clear direction for everybody, Martin, is summarized in three words, right? Business as usual. Business as usual has been the strong communication from our teams to PepsiCo. PepsiCo has made communication to all of their teams. It's business as usual with GURU until May 21st, so I understand why you asked the question, because it would be easy to fall into, "Oh, is PepsiCo letting go on GURU?" But it's not the case at all. We're not seeing that. They're professional. The reps are commission-based. As a business, they have every interest in selling more because GURU is a profitable brand for them, so they have every interest in selling more GURU until the end. They have legal obligations also to make sure that they maintain their obligations and their duties as the exclusive distributor for Canada until May 21st. Fair question, but the short answer to your question is no, there's no risk. And then in your press release, you're quoted saying that GURU is well-positioned to return being profitable. So does the change in distributor accelerate your path to profitability? Yes. The reality is regardless of a change in distributor, we were already on that path, Martin, right? We've been talking about this. GURU was always profitable prior to going public and prior to the PepsiCo partnership. So regardless of this transition, we would have been going back to profitability. Now, this transition allows us to get back to that profitability faster, mainly because of the higher gross margins. With a lot of banners, you're simply eliminating the middleman. So there's a middleman that was taking high margins, as you know, to do their work. And there's going to be an opportunity for us to recapture that margin. Obviously, we're going to be investing in a sales force and building this. But overall, the short answer to your question is yes, this will allow us to accelerate our return to profitability. We aspire to show a profitable quarter as soon as possible. Not sure yet when this will happen, but we're in the modeling of this, and we will show all our investors that we can get back to our historical profitability. Okay. That's great to hear. Is there a potential for you guys to put a break-even EBITDA quarter in fiscal 2025? That's the aspiration. It's always a tricky thing to balance, obviously, balancing growth. The one thing we want to make sure is this is a growth company. This is a growth. As you know, we have big ambitions. So we want to make sure that when we take back our distribution and start working with retailers, that GURU is back, right? GURU is back with aggressive merchandising in the market, aggressive promotions in the market to show everyone what we can do again. So we don't want to compromise this. So it's going to be a fine balance. But as you know, we've been balancing, aggressively reducing our loss over the last few quarters, the last few years. We're going to continue doing that. But is it going to be possible in 2025, or are we going to be able to wait? It's still to be determined. But you're going to see a profitable quarter from GURU in the midterm. Okay. Great. Great to hear. Thank you very much, and best of luck. Thank you. Thank you. Your next question today will come from Sean McGowan with Roth Capital Partners. Please go ahead. Thank you. Good morning. I wanted to follow up on Martin's question about what to expect in terms of sort of Pepsi's performance. The last time around, there was a logical, understandable degree of choppiness to the revenue. There was, you got to fill the pipeline. Maybe you're trying to figure out what the proper level of inventory in the system is. So there were some weird comparisons. This time around, as we approach that May 22nd date, should we expect to see revenue in terms of shipments to Pepsi decline because they're cleaning out their system and cleaning out their inventories? Ingy, you want to take that one? Yes, sure. Hi, Sean. Hi. Of course, we're in discussion with PepsiCo, naturally, right, about the inventory transition plan. And without going into the details of that, we do see, of course, some non-material, however, inventory reductions until the end, which would be logical. And we would be taking back some remaining inventory that they would have had to avoid any out-of-stock in retail because that's our main goal, right? Making sure that our consumers can get our products and our retailers are well-equipped. But of course, because the new distribution model is still being built and it's not yet complete, we don't know yet if there's going to be more inventory or less in the old versus new system. We don't anticipate, however, any huge fluctuations. But of course, Sean, as you know, we're always transparent with you guys, and we'll keep you updated along the way. But we've been working on this for sure. Thank you. Outside of that, okay, were you going to say something, Carl? No, I was just going to add we're probably going to find out a little bit more as we sign our new distributors in, right? So let's say in our Q1 update in March, we'll give you more color on this. Obviously, in June, we'll know exactly. But as Ingy said, maybe the one thing I would add is we have a joint business plan like we used to have, right, with PepsiCo. And we will give you full transparency on inventory reductions at PepsiCo versus inventory build in the new system. And so right now, it's hard to say because it's really hard to model. But I think, as always, we're going to give you full transparency. And I think Martin asked the right question, right? We're going to be looking at scan data as well, which ultimately, inventory variations can be important. But the real metric is what consumers are consuming, right? And how much GURU are they drinking? Right. Outside of that inventory question, are there any other balance sheet implications of the transition? Not at this point, no. We're not seeing any implications. It's still early, but no. Everything should remain close. I wanted to ask a couple of questions about the U.S. I'll put my MAGA hat on. That's Make America GURU again. I love it. We love that. Yeah, we're trying that out, see how that works. What are you doing to? That's the best line, Sean. What do you have to do to prepare for the impact or potential impact of tariffs? Yeah. This has been a hot topic in the news this week. I'm really grateful for the GURU team. We have been very agile and flexible in this, right? So the first thing, when this was first announced, it felt a little bit surreal, but we took the threat really, really seriously. So what we did is we moved. We had decent inventory for the US, right? So proactively moved that inventory in our warehouses in the US, right? So this kind of isolated from the tariffs. So we have five to six months of inventory based on our forecast of sales in the US that's already in the US, right? The other thing that the team did is they started discussions with our co-packers, right? We have different co-packers, as you know, that we talk to. Some of them are based in the U.S., so we started discussions with them. As you know, we have moved around between co-packers in the past. We know this is a process that takes three to four months. We have co-packers who are there. There is capacity in the market right now. So we have co-packers who are ready to take on GURU and would be happy to take on GURU in the U.S. and start producing more of our production in the U.S. to avoid the tariffs. So obviously, we don't like that scenario, but we are fully prepared for it. Okay, then more broadly, for the plans for the US, do you have any information on expansion plans with additional retailers in the US? You saw, right? There's clear momentum in the US, and that's we're very happy about that. Momentum on Amazon continues. This will continue to be a priority for us. It allows us to access the GURU consumers wherever they are, right? The natural channel, as you know, plays a big role from a brand-building perspective, right, to prepare consumers for the next generation of better-for-you energy drinks. Whole Foods has been doing extremely well lately. We saw a 50% increase last month in Whole Foods versus last year. Life Time continues for us to be great. They launched their zero line, and it's already the zero line in Life Time is already performing in the top SKUs, right? This is very encouraging things. From this, there's more of a continuation and working, putting more fuel on the fire where GURU is performing well. We've been quite transparent about our Costco roadshow, right? And this is promising. We started the Costco roadshow in LA, as you know, a few weeks ago. We've performed well despite the unfortunate wildfires that were happening exactly as we were starting this. But we transformed this in some opportunities to give back. So overall, this is the continuation in the strategy. And the more momentum, obviously, opens up opportunities for other new listings and other retailers. But I wouldn't say our strategy is to go again on a big land grab and list and a lot of retailers. I think we're focused on growing velocity. Growing velocity in the retailers we are already in, targeting the right consumers. I think if there's one thing to remain is that both in Canada and the US, we now have a very good understanding of who the GURU consumer is. We're going to be focused on that, right? From a marketing perspective, focusing the right consumer with the right message, but also going to the retailers and distributors who are catering to those consumers. It's a very GURU consumer focus. Okay. Now, with the transition in the distribution, I would imagine that the revenue growth in, even assuming flat units, the revenue growth in Canada would accelerate, right? Because you're selling at a higher price. Would you expect in 2025 that the U.S. would increase as a percentage of total revenue, given that kind of the extra push that Canada is getting from the higher prices? It will depend. It will depend on our performance in Canada post-PepsiCo. Obviously, we're optimistic, but it's too soon for us to give you that type of detail. What we're doing right now is we're modeling. We're looking at our year in kind of two phases, right? There is a pre-PepsiCo transition, right, which is more of a business-as-usual model where we looked at this and say, "Okay, this is how we've been operating with PepsiCo. Here's what we expect. We have a joint business plan in place, and we want to make sure we deliver that joint business plan," right? Then the second phase is really now in construction, right? Because we obviously are having a lot of discussions with retailers, with distributors, rebuilding our sales force. We are, as we have been, as we said in our remarks, optimistic about regaining a direct relationship with retailers. We're already seeing opportunities with banners where we have seen gaps in the past to improve our performance. So we obviously think that we're going to do better managing retailers directly, and we're going to be gaining share in Canada. Now, will Canada be growing at that point faster than the U.S.? I would hope, right? But I also would hope that we think the U.S. is going to continue growing. So it's too soon. Unless, Ingy, you want to add something in the modeling of this, but it would be unfair to give you guidance on this, Sean, because we haven't finished the modeling. Right. Okay. My last question is, there's been a lot of attention in the industry lately on gut health. You're doing very well with zero sugar, but there's all kinds of even more specific functional features added to some energy drinks, mental focus, as I said, gut health, probiotics, prebiotics, etc. Will you be looking at any of these areas besides zero sugar? Innovation is a focus, Sean, right? So our innovations are performing really well year after year. So if there's something we do well is innovations, and we're very proud of this. We don't tend to jump on the latest trend, right? We're waiting to see if it's because sometimes new brands come into the latest trend, and it's not always science-backed. To say the least. That's it. So we want to make sure that whatever claims we make are going to be science-backed. There's real transparency and authenticity that's built in our brand, and we want to use ingredients that are natural, that are time-tested, and that efficacy has been proven, right? So for example, theanine has been proven for centuries to improve cognitive performance when combined with caffeine. So theanine is an ingredient that we continue using, right? We do have prebiotic fibers in our zero line. We use them because we think inulin fiber is a wonderful natural sweetener. We don't make a prebiotic claim with it. Is it something that we could do in the future? Probably. But one thing, the biggest trend right now is the zero sugar trend, and that's why it's a key focus for us, right? The reality is there's a big zero sugar trend, but 99% of zero sugar products are full of sucralose and aspartame, and we think it's wrong, right? We obviously think it's wrong, and we want to use natural sweeteners, and we think this is the future. So we're not going to make zero sugar products with aspartame and sucralose, but we'll continue making great-tasting natural products with zero sugar. Great. Well, thank you very much. Appreciate it. Thank you, Sean. concludes our question-and-answer session. I would like to turn the conference back over to Carl Goyette for any closing remarks. I just want to thank everyone for attending, and have a great day. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines and have a wonderful day.