“We expect to recover in Q1 and build inventory through fiscal ‘24 to support our holy grail launches and core franchises.”

In context

“ur results were exceptional. For the year, we grew net sales by 48% and adjusted EBITDA by 56%. We invested behind our high ROI marketing and digital initiatives and delivered over 100 basis points of adjusted EBITDA margin expansion, supported by the combination of our strong sales growth, gross margin expansion and leverage in our non-marketing SG&A expenses. Moving to the balance sheet and cash flow. Our balance sheet remains strong, and we believe positions us well to execute our long-term growth plans. We ended the year with $121 million in cash on hand compared to a cash balance of $43 million a year ago. Our ending inventory balance was $81 million compared to $84 million a year ago. Given our stronger-than-expected consumption in Q4, our ending inventory was lighter than expected. We expect to recover in Q1 and build inventory through fiscal ‘24 to support our holy grail launches and core franchises. I’m also pleased with the strong free cash flow we generated of approximately $100 million in fiscal ‘23. Given our cash position, and the early repayment of approximately $25 million of our outstanding debt last fall, we ended fiscal ‘23 with a net cash position and less than 1x leverage in terms of total debt to adjusted EBITDA. We expect to continue our free cash flow generation in fiscal ‘24. Looking at our cash priorities. First and foremost, we plan to continue to invest in our people and infrastructure to fuel our growth. As Tarang discussed, this year, we plan to invest behind our ERP transition to SAP, working capital to support the strong demand we continue to see, and increasing our distribution capacity. Now let’s turn to our initial outlook for fiscal ‘24. For the full year,”