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Mar 31, 2024
Monster Beverage Q1 2024 Earnings Report
Reported record first quarter net sales with gross profit margin improvement.
Key Takeaways
Monster Beverage Corporation reported an 11.8% increase in net sales for the first quarter of 2024, reaching $1.90 billion. Net income increased by 11.2% to $442.0 million, with earnings per diluted share rising to $0.42. The company intends to commence a tender offer to repurchase up to $3.0 billion of common stock.
Net sales for the first quarter increased by 11.8% to $1.90 billion.
Net income for the first quarter increased by 11.2% to $442.0 million.
Gross profit as a percentage of net sales improved to 54.1%.
The company intends to commence a tender offer to repurchase up to $3.0 billion of common stock.
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 expects to fund the tender offer with approximately $2.0 billion of cash on hand and approximately $1.0 billion in combined borrowings. Mr. Sacks is considering reducing his day-to-day management responsibilities starting in 2025, while continuing to manage certain areas of the Company's business.
Positive Outlook
- Innovation continues to play an important role in our strategy and contributed to our record sales in this quarter.
- We launched a number of new innovation products in the quarter, including Monster Energy® Ultra Fantasy Ruby Red™, Juice Monster® Rio Punch™ and Java Monster® Irish Créme in the United States.
- Predator Energy®, our affordable energy brand, was launched in the Philippines during the quarter.
- Initial response to Predator Energy® Gold Strike has been positive.
- Early response to our hard tea line has been positive.
Challenges Ahead
- The intended commencement of the tender offer.
- The intended $1.0 billion in combined borrowings, consisting of a new revolving credit facility and a new delayed draw term loan facility.
- The impact of the military conflict in Ukraine, including supply chain disruptions, volatility in commodity prices, increased economic uncertainty and escalating geopolitical tensions.
- Our extensive commercial arrangements with The Coca-Cola Company (TCCC) and, as a result, our future performance’s substantial dependence on the success of our relationship with TCCC.
- Our ability to implement our growth strategy, including expanding our business in existing and new sectors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income