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Sep 30, 2022
Monster Beverage Q3 2022 Earnings Report
Achieved record third quarter net sales with pricing actions positively impacting gross margins and a new share repurchase program authorized.
Key Takeaways
Monster Beverage Corporation reported a 15.2% increase in net sales for the third quarter of 2022, reaching a record $1.62 billion. The company mitigated increased costs through pricing actions, which positively impacted gross margins. However, the company experienced a decrease in gross profit as a percentage of net sales due to increased ingredient, logistical, and aluminum can costs. A new $500 million share repurchase program was authorized by the Board of Directors.
Net sales for the third quarter of 2022 increased by 15.2% to $1.62 billion compared to the same period last year.
Net sales adjusted for foreign currency increased by 20.2% for the third quarter of 2022.
Gross profit as a percentage of net sales decreased to 51.3% in the third quarter of 2022, compared to 55.9% in the third quarter of 2021.
The Board of Directors authorized a new share repurchase program for up to an additional $500.0 million of the Company’s outstanding 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
Monster Beverage is planning to launch Monster Energy® Zero Sugar, The Beast Unleashed™, Monster Tour Water™, and Reign Storm™ in the coming months.
Positive Outlook
- Planning to launch Monster Energy® Zero Sugar at retail in the United States in January 2023.
- Planning to launch first flavored malt beverage alcohol product leveraging Monster’s brand equity in the 2023 first quarter.
- The Beast Unleashed™ contains six percent alcohol by volume and will initially be available in four flavors.
- In the first half of 2023, planning to introduce Monster Tour Water™, a pure unflavored water line, in still and sparkling variants in 19.2 oz aluminum cans.
- Planning to introduce four flavors of Reign Storm™ in 12 oz slim aluminum cans, in response to certain competitive new entrants in the energy drink category.
Challenges Ahead
- Cost inflation, including increases in ingredient and other input costs, freight and fuel costs and co-packing fees, remain challenging.
- The strength of the United States dollar in the quarter adversely impacted the solid results of our overseas operations.
- Continuing to deplete inventory of higher cost imported cans in EMEA and in the United States.
- Increased ingredient and other input costs, including secondary packaging materials and increased co-packing fees.
- Increased logistical costs.