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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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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