Financial Performance - Net sales for the three-months ended March 31, 2025, were $1.85 billion, a decrease of approximately $44.5 million, or 2.3% compared to $1.90 billion for the same period in 2024[141] - The Monster Energy® Drinks segment generated net sales of $1.72 billion for the three-months ended March 31, 2025, a decrease of approximately $13.5 million, or 0.8% compared to $1.73 billion for the same period in 2024[143] - Net sales for the Alcohol Brands segment were $34.7 million for the three-months ended March 31, 2025, a decrease of approximately $21.4 million, or 38.1% compared to $56.1 million for the same period in 2024[145] - Net sales for the Strategic Brands segment were $98.3 million for the three-months ended March 31, 2025, a decrease of approximately $10.1 million, or 9.3% compared to $108.4 million for the same period in 2024[144] - Net sales to customers outside the United States were $733.2 million for the three-months ended March 31, 2025, a decrease of approximately $10.9 million, or 1.5% compared to $744.1 million for the same period in 2024[132] - Gross billings were $2.16 billion for the three-months ended March 31, 2025, a decrease of approximately $26.7 million, or 1.2% lower than $2.19 billion for the same period in 2024[163] - For the three months ended March 31, 2025, adjusted net sales were $1,813,880, a decrease of 1.3% from $1,837,495 in the same period of 2024[174] Profitability - Gross profit for the three-months ended March 31, 2025, was $1.05 billion, representing a gross profit margin of 56.5%, an increase from 54.1% in 2024[139] - Gross profit was $1.05 billion for the three-months ended March 31, 2025, an increase of approximately $20.8 million, or 2.0% higher than $1.03 billion for the same period in 2024[149] - Operating income for the three-months ended March 31, 2025, was $569.7 million, an increase of 5.1% compared to $542.0 million for the same period in 2024[139] - Operating income was $569.7 million for the three-months ended March 31, 2025, an increase of approximately $27.8 million, or 5.1% higher than $542.0 million for the same period in 2024[153] - Operating income for the Monster Energy® Drinks segment was $680.4 million for the three-months ended March 31, 2025, an increase of approximately $52.2 million, or 8.3% higher than $628.1 million for the same period in 2024[155] - Operating income for the Strategic Brands segment was $51.9 million for the three-months ended March 31, 2025, a decrease of approximately $10.1 million, or 16.3% lower than $62.0 million for the same period in 2024[156] - Operating loss for the Alcohol Brands segment was $21.5 million for the three-months ended March 31, 2025, an increase of approximately $15.5 million, or 257.2% higher than the operating loss of $6.0 million for the same period in 2024[157] Sales Volume - Energy drink case sales for the three-months ended March 31, 2025, were 213,100 (in thousands), an increase of 0.8% compared to 211,430 for the same period in 2024[139] - Case sales for energy drink products were 213.1 million cases for the three-months ended March 31, 2025, an increase of approximately 1.7 million cases or 0.8% higher than 211.4 million cases for the same period in 2024[147] - Total case sales increased to 213,100 from 211,430, representing a growth of 0.8% year-over-year[174] Cash Flow and Debt - Cash provided by operating activities was $507.6 million, up 23.2% from $412.1 million in the prior year[181] - The company had $1.90 billion in cash and cash equivalents as of March 31, 2025, with $1.25 billion held by foreign subsidiaries[177] - Long-term debt includes a $1.50 billion credit facility, with $750 million available under the revolving credit facility as of March 31, 2025[178] - Cash used in financing activities was $145.6 million, an increase from $84.7 million in the same period of 2024, primarily due to repayments on credit facilities[187] Market and Operational Challenges - The company faces risks related to anticipated demand for its products in both domestic and international markets, which could impact sales growth[195] - The company is experiencing challenges with supply chain disruptions, including shortages of shipping containers and port congestion, which could impair product delivery[196] - Rising costs, interest rates, and inflation are expected to impact consumer discretionary income, potentially leading to decreased demand for the company's products[195] - The company is facing competitive pressures that could affect its market share, including misleading claims and pricing strategies from competitors[195] - The company is navigating regulatory challenges, including proposed legislation that could restrict the sale of energy drinks and alcohol beverages[198] Strategic Initiatives - The company is focused on achieving profitability within its Alcohol Brands segment, which remains a key area for growth[195] - The company is exploring market expansion opportunities, particularly in the alcohol beverage sector, to drive future growth[197] - The effectiveness of sponsorships and endorsements, as well as marketing strategies, is under evaluation for both domestic and international markets[201] Inventory and Production Management - The company is committed to managing its inventory levels effectively to mitigate revenue impacts from fluctuations[196] - There is a need for suitable arrangements to procure sufficient capacity for co-packing both domestically and internationally[201] - The company must secure timely procurement of non-defective raw materials to maintain production quality[201] - The company faces challenges in ensuring timely manufacturing by bottlers and co-packers, which may affect product availability[201] Risk Management - Intellectual property rights protection is critical, with potential risks in certain jurisdictions affecting trademark usage[201] - Stock price volatility may restrict stock transactions and impact equity award motivations[201] - Organizational provisions may hinder beneficial changes in control, affecting stockholder interests[201] - Disruptions in information technology systems, including cybersecurity breaches, could negatively impact business operations and customer relationships[201] - Succession planning and retention of senior management and key employees are essential for maintaining operational stability[201]

Core Insights - Monster Beverage reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and up from $0.42 per share a year ago, representing an earnings surprise of 2.17% [1] - The company posted revenues of $1.85 billion for the quarter, missing the Zacks Consensus Estimate by 6.40%, and down from $1.9 billion year-over-year [2] - The stock has increased approximately 15.2% since the beginning of the year, contrasting with a -4.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $2.05 billion, and for the current fiscal year, it is $1.84 on revenues of $7.99 billion [7] - The estimate revisions trend for Monster Beverage is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Beverages - Soft drinks industry is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Reported net sales for Q1 2025 were $1,850 million, a decrease of 2.3% compared to $1,900 million in Q1 2024 [9] - Gross profit as a percentage of net sales increased to 56.5% in Q1 2025 from 54.1% in Q1 2024, driven by pricing actions and supply chain optimization [9] - Operating income for Q1 2025 increased by 5.1% to $569.7 million from $542 million in Q1 2024 [10] - Net income for Q1 2025 was $443 million, slightly up from $442 million in Q1 2024 [11] - Diluted earnings per share increased by 7.4% to $0.45 in Q1 2025 from $0.42 in Q1 2024 [11] Business Line Data and Key Metrics Changes - Sales of Monster energy drink increased by 8.7% in the thirteen-week period ending April 26, 2025 [14] - Sales of Reign decreased by 9.9%, while NOS increased by 0.8% and Full Throttle decreased by 1.5% [14] - The Alcohol Brands segment saw net sales of $34.7 million in Q1 2025, a decrease of approximately 38.1% compared to the previous year [34] Market Data and Key Metrics Changes - In the U.S., the energy drink category grew by 10% in the thirteen weeks ending April 26, 2025 [6] - In EMEA, the energy drink category grew by approximately 13.7% on an FX neutral basis [7] - In APAC, the energy drink category grew by approximately 13.6% on an FX neutral basis [8] - In Latin America, the energy drink category grew by approximately 15.7% on an FX neutral basis [8] Company Strategy and Development Direction - The company is focused on expanding its presence in non-Nielsen measured channels and optimizing its supply chain [41][42] - Plans for further innovation in the Monster Brewing portfolio and the rollout of Predator and Fury brands in international markets are underway [43][44] - The company is exploring opportunities for its alcohol products in certain international jurisdictions [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for the Monster brand, particularly in China and India [31][38] - The energy category continues to grow globally, with increasing household penetration and per capita consumption [41] - Management noted that April 2025 sales were approximately 16.7% higher than the comparable April 2024 sales [39] Other Important Information - The effective tax rate for Q1 2025 was 23.4%, slightly down from 23.5% in Q1 2024 [11] - The company has approximately $500 million remaining for stock repurchase under the previously authorized program [38] - Management indicated that the tariff landscape is complicated but does not expect current tariffs to have a material impact on operating results [13] Q&A Session Summary Question: Impact of supply chain optimization on Q1 numbers - Management acknowledged that Q1 was impacted by bottler distributor ordering patterns and significant closure days of distribution centers [50] Question: Macro impact on retail sales trends - Management noted that consumer demand remains strong, with positive trends in retail takeaway reflected in Nielsen numbers [55][56] Question: Future gross margin expectations - Management indicated that while Q1 margins were strong, they do not expect the same level of margin in Q2 due to rising costs [65] Question: Top line sales versus internal expectations - Management confirmed that there was more innovation in Q1 than in Q2, with some shipment timing impacts to consider [69] Question: Pricing dynamics and market share satisfaction - Management stated that pricing decisions are based on various factors and emphasized the importance of regaining market share [76][77]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were reported at $1,850 million, a decrease of 2.3% compared to $1,900 million in Q1 2024 [7] - Gross profit as a percentage of net sales increased to 56.5% from 54.1% in the previous year [8] - Operating income increased by 5.1% to $569.7 million from $542 million in Q1 2024 [9] - Net income for Q1 2025 was $443 million, slightly up from $442 million in Q1 2024 [10] - Diluted earnings per share increased by 7.4% to $0.45 from $0.42 in the previous year [10] Business Line Data and Key Metrics Changes - Sales of Monster energy drinks increased by 8.7%, while Reign sales decreased by 9.9% [13] - The Alcohol Brands segment saw a significant decline, with net sales down 38.1% to $34.7 million compared to the previous year [32] Market Data and Key Metrics Changes - In the U.S., the energy drink category grew by 10% year-over-year [5] - In EMEA, the energy drink category grew approximately 13.7% on an FX neutral basis [6] - In APAC, the category grew by 13.6% on an FX neutral basis [6] - In Latin America, the energy drink category grew by 15.7% on an FX neutral basis [6] - Monster's market share in the U.S. convenience and gas channel decreased from 37.1% to 36.4% [14][15] Company Strategy and Development Direction - The company is focused on expanding its product offerings and optimizing supply chains to enhance gross profit [8][9] - Plans for further innovation in the Monster Brewing segment are underway, with new products being launched in various markets [33][34] - The company is optimistic about long-term prospects in China and India, particularly with the rollout of the Predator brand [30][36] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains strong, with positive trends in retail takeaway [39][40] - The company is optimistic about the energy drink category's growth, citing increasing household penetration and per capita consumption [39] - Management acknowledged challenges from foreign currency exchange rates and adverse weather impacting sales [7][10] Other Important Information - The company has approximately $500 million remaining for stock repurchase under its authorized program [36] - The juice plant at the AFF facility in Ireland is expected to be operational by mid-year 2025 [41] Q&A Session Summary Question: Impact of supply chain optimization on Q1 numbers - Management explained that Q1 was impacted by bottler distributor ordering patterns and distribution center closures, but April showed robust sales [47][48] Question: Macro impact on the energy category - Management indicated that the energy category remains healthy, with positive trends in both the U.S. and international markets [52][54] Question: Future gross margin expectations - Management expects that the second quarter margin will not be as high as Q1 due to rising costs from the Midwest premium [62] Question: Innovation pipeline and shipment timing - More innovation was rolled out in Q1 compared to Q2, with continued acceleration in distribution expected [66] Question: Pricing dynamics and market share satisfaction - Management stated that pricing decisions are based on market opportunities and emphasized the importance of regaining market share [72][73]

Financial Performance - Reported net sales for the 2025 first quarter decreased 2.3 percent to $1.85 billion, down from $1.90 billion in the comparable period last year[4] - Net sales, excluding the Alcohol Brands segment, on a foreign currency adjusted basis increased 1.9 percent in the 2025 first quarter[3] - Operating income increased 5.1 percent to $569.7 million, with a 7.9 percent increase to $591.2 million when excluding the Alcohol Brands segment[5][14] - Net income for the 2025 first quarter increased 0.2 percent to $443.0 million, with net income per diluted share rising 7.4 percent to $0.45[16] - Gross profit as a percentage of net sales improved to 56.5 percent from 54.1 percent in the 2024 first quarter[11] - Net sales for the three months ended March 31, 2025, were $1,854,558, a decrease of 2.3% compared to $1,899,098 in the same period of 2024[33] - Gross profit increased to $1,047,962, representing a gross profit margin of 56.5%, up from 54.1% in the prior year[33] - Operating income rose to $569,745, reflecting an operating margin of 30.7%, compared to 28.5% in the previous year[33] - Net income for the period was $442,993, which is 23.9% of net sales, slightly up from 23.3% in the same quarter of 2024[33] - Adjusted net sales, excluding the Alcohol Brands segment, were $1,877,202, a 1.9% increase from $1,843,028 in the previous year[38] - The Alcohol Brands segment reported net sales of $(34,703), down from $(56,070) in the same quarter of 2024[38] Segment Performance - Net sales for the Monster Energy® Drinks segment decreased marginally to $1.72 billion, while on a foreign currency adjusted basis, it increased 2.2 percent[6] - Net sales for the Alcohol Brands segment decreased 38.1 percent to $34.7 million, primarily due to the launch of the Nasty Beast® Hard Tea product line in the previous year[8] Product Launches - The Company launched new products, including Monster Energy® Ultra Blue Hawaiian, which has rapidly become a top seller[21] Shareholder Returns and Debt Management - As of May 8, 2025, approximately $500.0 million remained available for share repurchase under the previously authorized program[25] - The Company repaid $175.0 million on its term loan facility during the first quarter and an additional $200.0 million in April 2025[26] Asset Management - Total assets increased to $8,227,028 as of March 31, 2025, compared to $7,719,089 at the end of 2024[35] - Cash and cash equivalents rose to $1,903,419, up from $1,533,287 at the end of the previous year[35] Sales Volume - Energy drink case sales reached 213,100 (in thousands), an increase from 211,430 in the prior year[33]

2025 First Quarter Highlights Gross Profit as a Percentage of Net Sales Improves to 56.5 PercentOperating Income Increases 5.1 Percent to $569.7 Million (7.9 Percent to $591.2 Million, Exclusive of the Alcohol Brands Segment, Non-GAAP)Net Income Per Diluted Share Increases 7.4 Percent to $0.45 (10.2 Percent to $0.47, Exclusive of the Alcohol Brands Segment, Non-GAAP) The tables at the end of this press release provide a reconciliation of non-GAAP financial measures to the Company’s results, as reported unde ...

Core Viewpoint - Monster Beverage Corporation (MNST) is expected to report first-quarter 2025 results on May 8, with anticipated revenue and earnings growth [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $1.98 billion, reflecting a growth of 4.3% year-over-year [2] - The consensus estimate for earnings is 46 cents per share, indicating a rise of 9.5% from the previous year [2] - The consensus estimates have remained stable over the past 30 days [2] Performance Drivers - The quarterly performance is likely to benefit from strong demand in the energy drinks category, with net sales in this segment estimated at $1.8 billion, showing nearly 4% year-over-year growth [3] - The company is focusing on expanding its distribution network internationally, with net sales outside the U.S. estimated at $730 million, indicating a year-over-year rise of 5.3% [4] - Pricing actions, lower input costs, and improved cost efficiencies are expected to enhance margins [4] Challenges - The company faces high operating expenses due to increased costs related to sponsorships, endorsements, and payroll [5] - Adverse currency rates continue to pose challenges for the company [5] Earnings Prediction Model - The current model does not predict an earnings beat for Monster Beverage, with an Earnings ESP of -1.02% and a Zacks Rank of 3 [6] Valuation Metrics - Monster Beverage stock is trading at a forward 12-month price-to-earnings ratio of 31.38x, above the industry average of 18.73x and its median of 28.08x [7] - The stock has gained 11.3% over the past six months, compared to the industry's growth of 3.1% [7]

Monster Beverage’s NASDAQ: MNST stock received an unwelcome short report that has produced a headwind for the share price. Monster Beverage TodayMNSTMonster Beverage$60.92 +0.87 (+1.45%) 52-Week Range$43.32▼$61.06P/E Ratio39.04Price Target$58.89Add to WatchlistSpruce Point alleged issues with increased competition, increased regulatory hurdles, and unsustainable international growth among other causes for concern.  However, the report reads more like a reason not to invest than a compelling argument for sh ...

Company to Conduct Conference Call at 2 p.m. Pacific TimeCORONA, Calif., May 01, 2025 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) announced today that results for its first quarter ended March 31, 2025, will be reported on Thursday, May 8, 2025, after the close of the market. The company also said that Co-Chief Executive Officers, Rodney Sacks and Hilton Schlosberg, will host an investor conference call that same day at 2 p.m. Pacific Time to review the company’s financial results and op ...

Group 1 - The core viewpoint is that Monster Beverage is expected to experience accelerated growth due to improved underlying demand, pricing, and a favorable comparison base [1] - The analysis emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets [1] - There is a recognition that investing in successful companies carries risks, particularly regarding valuation, but some situations may justify less concern about price in the short term due to significant growth potential [1]