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Mar 31, 2022
Monster Beverage Q1 2022 Earnings Report
Achieved record first quarter net sales and completed the acquisition of CANarchy Craft Brewery Collective LLC.
Key Takeaways
Monster Beverage Corporation reported a 22.1% increase in net sales for the first quarter of 2022, reaching a record $1.52 billion. The company completed its acquisition of CANarchy Craft Brewery Collective LLC and is planning a price increase in the United States effective September 1, 2022.
Net sales increased by 22.1% to a record $1.52 billion in the first quarter of 2022.
The company experienced significant increases in costs of sales due to increased freight rates, fuel costs, and aluminum can costs.
Completed the acquisition of CANarchy Craft Brewery Collective LLC on February 17, 2022.
Planning a market wide increase in pricing effective September 1, 2022, in the United States.
Monster Beverage
Monster Beverage
Monster Beverage Revenue by Segment
Monster Beverage Revenue by Geographic Location
Revenue by Segment
Monster Energy Drinks Revenue
CapyFin.comStrategic Brands Revenue
CapyFin.comAlcohol Brands Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
The company anticipates continued growth in the global energy drink category and is implementing measures to mitigate the impact of increased costs in their supply chain.
Positive Outlook
- The global energy drink category continues its growth trend.
- The company is well placed to capitalize on this growth with its Monster Energy family of brands, as well as its Strategic and Affordable energy brands.
- The company launched a number of new products and expanded distribution of its brands in many international markets in the first quarter of 2022.
- Inventories were steadily rebuilt in the 2022 first quarter, while at the same time meeting strong customer demand.
- The company believes that some of the increased costs that they are experiencing are likely to be transitory.
Challenges Ahead
- Significant increases in freight-in and fuel costs continue to impact costs of sales.
- Other input costs continue to impact costs of sales.
- The shortage of shipping containers and global port congestion remain a challenge.
- There is a need for airfreighting of certain ingredients.
- Increases in fuel and freight costs continue to adversely impact costs of sales and operating expenses.