Companies that consistently give strong financial performances often see steady share price appreciation, and that can eventually lead to a stock split. In that context, stock splits can help investors identify companies with sound fundamentals and a proven ability to create value for shareholders.Hansen Natural is an excellent example. In 2002, the juice and soda company branched into energy drinks, and it sold those beverages under the brand name Monster. That decision was a stroke of genius in hindsight. ...

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Monster Beverage Corporation's unaudited condensed consolidated financial statements for Q3 2023 include balance sheets, income statements, and cash flows, with notes on accounting policies and the Bang Energy acquisition Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | **$5,311,515** | **$4,764,897** | | Cash and cash equivalents | $1,773,849 | $1,307,141 | | Accounts receivable, net | $1,231,188 | $1,016,203 | | Inventories | $883,582 | $935,631 | | **Total Assets** | **$9,314,338** | **$8,293,105** | | **Total Current Liabilities** | **$1,178,802** | **$1,001,978** | | **Total Stockholders' Equity** | **$7,873,149** | **$7,025,041** | Condensed Consolidated Statements of Income Highlights (in thousands) | Account | Three-Months Ended Sep 30, 2023 | Three-Months Ended Sep 30, 2022 | Nine-Months Ended Sep 30, 2023 | Nine-Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | **$1,856,028** | **$1,624,286** | **$5,409,919** | **$4,798,119** | | Gross Profit | $983,763 | $833,725 | $2,855,833 | $2,390,252 | | Operating Income | $510,527 | $417,930 | $1,519,396 | $1,190,369 | | **Net Income** | **$452,694** | **$322,387** | **$1,264,009** | **$889,950** | | Diluted EPS | $0.43 | $0.30 | $1.19 | $0.83 | - On February 28, 2023, the Company announced a two-for-one stock split effected as a 100% stock dividend, issued on March 27, 2023, with all financial statements and per-share amounts retroactively updated to reflect this split[8](index=8&type=chunk)[31](index=31&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed explanations of accounting policies and financial activities include the Bang Energy acquisition, derivative instruments, lease obligations, share repurchases, and segment performance - On July 31, 2023, the Company acquired substantially all assets of Bang Energy for approximately **$363.4 million**, resulting in a recorded gain of **$45.4 million**[37](index=37&type=chunk)[38](index=38&type=chunk)[35](index=35&type=chunk) - The company operates four reportable segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other, with the Monster Energy® Drinks segment being the largest revenue generator from ready-to-drink packaged energy drinks sold to bottlers and distributors[42](index=42&type=chunk)[43](index=43&type=chunk) - The Company uses derivative financial instruments, specifically cash flow hedges, to mitigate risk from fluctuations in foreign currency exchange rates and aluminum commodity prices[32](index=32&type=chunk)[77](index=77&type=chunk) - The Company retired **170.0 million shares** of treasury stock on March 10, 2023, and bought back a total of **7.3 million shares** for approximately **$399.9 million** during Q3 2023 under its June 2022 and November 2022 repurchase plans[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 financial results, highlighting record net sales, improved gross margin, the impact of the Bang Energy acquisition, and details on liquidity and capital resources Q3 2023 vs Q3 2022 Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,856,028 | $1,624,286 | 14.3% | | Gross Profit | $983,763 | $833,725 | 18.0% | | Operating Income | $510,527 | $417,930 | 22.2% | | Net Income | $452,694 | $322,387 | 40.4% | - Gross profit margin improved to **53.0%** in Q3 2023 from **51.3%** in Q3 2022, primarily due to pricing actions, reduced freight-in costs, and decreased aluminum can costs, with the gross margin reaching **53.4%** excluding a **$7.8 million** inventory step-up from the Bang acquisition[161](index=161&type=chunk)[194](index=194&type=chunk) - The acquisition of Bang Energy, completed on July 31, 2023, contributed to sales but resulted in a **$7.8 million** negative impact on gross profit due to an inventory step-up and **$8.0 million** in acquisition-related operating expenses in Q3 2023, offset by a **$45.4 million** gain recorded in other income[157](index=157&type=chunk)[158](index=158&type=chunk)[195](index=195&type=chunk) - Net sales to customers outside the United States grew **20.2%** to **$733.7 million**, representing **40%** of total net sales in Q3 2023, up from **38%** in Q3 2022, with international sales increasing by **24.9%** on a currency-adjusted basis[169](index=169&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) This section provides a detailed comparison of financial performance for the three and nine-month periods ending September 30, 2023, versus 2022, showing significant increases in net sales, gross margin, operating income, and net income Segment Net Sales Growth (Q3 2023 vs Q3 2022) | Segment | Q3 2023 Net Sales | % Change YoY | | :--- | :--- | :--- | | Monster Energy® Drinks | $1.71 billion | +13.7% | | Strategic Brands | $98.8 million | +11.2% | | Alcohol Brands | $42.3 million | +57.8% | | Other | $6.7 million | +3.9% | - For the three months ended September 30, 2023, operating expenses increased **13.8%** to **$473.2 million**, primarily due to higher selling, marketing, and payroll expenses, including **$8.0 million** in acquisition costs for the Bang Transaction[195](index=195&type=chunk) - For the nine months ended September 30, 2023, net sales grew **12.8%** to **$5.41 billion**, with gross profit margin increasing to **52.8%** from **49.8%** in the prior year period, driven by pricing actions and lower input costs[203](index=203&type=chunk)[212](index=212&type=chunk) - Net income for the nine-month period increased **42.0%** to **$1.26 billion**, benefiting from higher sales, improved gross margins, and a lower effective tax rate (**21.9%** vs **24.5%**)[221](index=221&type=chunk)[222](index=222&type=chunk) [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) The company's strong cash position and cash flow from operations, detailing major cash uses like the Bang acquisition and share repurchases, confirm sufficient liquidity for future needs Cash Flow Summary (Nine-Months Ended Sep 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,283,426 | $589,186 | | Net cash used in investing activities | $(360,023) | $(57,743) | | Net cash used in financing activities | $(433,793) | $(459,275) | - The company had **$1.77 billion** in cash and cash equivalents at the end of the quarter, of which **$924.7 million** was held by foreign subsidiaries[240](index=240&type=chunk)[243](index=243&type=chunk) - Major uses of cash in the first nine months of 2023 included the **$363.4 million** Bang Transaction and **$488.1 million** for treasury stock purchases[22](index=22&type=chunk)[251](index=251&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=83&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks were reported for Q3 2023 compared to the disclosures in the 2022 Annual Report on Form 10-K - No material changes in market risks were reported for the three months ended September 30, 2023, relative to the disclosures in the 2022 Form 10-K[267](index=267&type=chunk) [Item 4. Controls and Procedures](index=84&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - The company's management concluded that disclosure controls and procedures were adequate and effective as of the end of the reporting period[269](index=269&type=chunk) - There were no material changes to the company's internal controls over financial reporting during the quarter ended September 30, 2023[270](index=270&type=chunk) [Part II. Other Information](index=85&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=85&type=section&id=Item%201.%20Legal%20Proceedings) Details on the resolution of litigation with Vital Pharmaceuticals, Inc. (VPX) following the Bang Energy acquisition, resulting in mutual release of claims and Monster's allowed unsecured claims in bankruptcy - Following the acquisition of Bang Energy's assets, Monster and Bang Energy mutually released claims related to a prior Jury Award and Arbitration Award, with Monster allowed approximately **$422.0 million** in unsecured claims in VPX's bankruptcy case[100](index=100&type=chunk) - The company notes that from time to time it is named in various litigation in the normal course of business, but management believes such litigation will not have a material adverse effect on its financial position[95](index=95&type=chunk) [Item 1A. Risk Factors](index=85&type=section&id=Item%201A.%20Risk%20Factors) The company refers to the risk factors detailed in its 2022 Form 10-K, emphasizing that these risks could materially adversely affect its business and financial results - The company refers to the risk factors detailed in its 2022 Form 10-K and states that these risks could materially adversely affect its business and financial results[274](index=274&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately 7.3 million shares for $399.9 million during Q3 2023 under authorized plans, with $282.8 million remaining for future repurchases as of November 6, 2023 Share Repurchase Activity (Q3 2023) | Month | Total Shares Purchased | Average Price per Share¹ | | :--- | :--- | :--- | | July 2023 | — | $ — | | August 2023 | — | $ — | | September 2023 | 7,293,834 | $54.83 | - The company exhausted its June 2022 Repurchase Plan by purchasing **3.3 million shares** for **$182.8 million** and purchased an additional **4.0 million shares** for **$217.1 million** under the November 2022 Repurchase Plan during Q3 2023[275](index=275&type=chunk)[276](index=276&type=chunk) - As of November 6, 2023, **$282.8 million** remained available for repurchase under all authorized plans[276](index=276&type=chunk) [Item 5. Other Information](index=86&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 2023 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended September 30, 2023[279](index=279&type=chunk) [Item 6. Exhibits](index=87&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents, Sarbanes-Oxley certifications, and financial statements in iXBRL format - Exhibits filed include certifications from the Co-Chief Executive Officers and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[281](index=281&type=chunk) - The filing includes financial information formatted in Inline eXtensible Business Reporting Language (iXBRL)[281](index=281&type=chunk)

Financial Data and Key Metrics Changes - The company achieved record third quarter net sales of $1.86 billion, a 14.3% increase from $1.62 billion in the same period of 2022, and a 16.1% increase on a foreign currency adjusted basis [6] - Gross profit as a percentage of net sales for the third quarter was 53%, compared to 51.3% in the same quarter of 2022, with an increase to 53.4% when excluding the Bang Inventory Step-Up [7] - Operating income for the third quarter increased by 22.2% to $510.5 million from $417.9 million in the previous year [8] - Net income rose 40.4% to $452.7 million compared to $322.4 million in the third quarter of 2022, with diluted earnings per share increasing 41.3% to $0.43 from $0.30 [9] Business Line Data and Key Metrics Changes - Sales of the company's energy brands excluding Bang increased by 6.7% in the 13-week period ending October 21, 2023, with Monster sales up 4.8% and Reign sales up 36.3% [10] - In the four-week period ending October 21, 2023, sales of Monster increased by 1.9%, while Reign sales increased by 35.2% [11] - The company recorded a gain of $45.4 million related to the Bang Transaction, which was included in interest and other income [5] Market Data and Key Metrics Changes - Net sales to customers outside the U.S. were $733.7 million, representing 39.5% of total net sales in the third quarter, compared to $610.6 million or 37.6% in the same quarter of 2022 [19] - In EMEA, net sales increased by 22.3% in dollars and 23.6% in local currencies compared to the same period in 2022 [20] - In Latin America, net sales increased by 25.2% in dollars and 38.8% in local currencies over the same period in 2022 [22] Company Strategy and Development Direction - The company plans to implement additional price increases in certain international markets to mitigate inflationary pressures [9] - The launch of new products such as Nasty Beast Hard Tea and the expansion of the Beast Unleashed distribution are part of the company's strategy to enhance its portfolio [24][30] - The company aims to regain distribution for Bang Energy and is focusing on positioning it as a lifestyle brand separate from its energy beverages [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the company, highlighting strong performance in October and the potential of the Bang brand [36][51] - The company noted that pricing actions implemented to mitigate inflation have not significantly impacted consumer demand [29] - Management acknowledged the competitive landscape, particularly regarding Red Bull, and emphasized the importance of monitoring pricing strategies [50] Other Important Information - The company purchased approximately 7.3 million shares of its common stock at an average price of $54.83 per share, totaling $400 million [26] - The company continues to focus on innovation and differentiation of its brands, capitalizing on its relationship with the Coca-Cola bottler system [60] Q&A Session Summary Question: Contribution of Bang Transaction to sales and quarter-to-date trends - Management did not provide separate sales numbers for Bang, indicating that it is included within the Monster Energy Drinks segment, and noted that the October sales were strong due to unmeasured channels [34][36] Question: Improving distribution for Bang and market share dynamics - Management is working with Coke bottlers to regain distribution for Bang and is optimistic about extending shelf space without compromising existing brands [40][41] Question: Growth in China and Predator launch - The company is focusing on main SKUs in China, with plans to launch Predator in the second quarter of next year [46][47] Question: Pricing strategies and competition with Red Bull - Management indicated that it takes 60 to 90 days to adjust pricing in the U.S. market and is closely monitoring Red Bull's pricing actions [50][51] Question: Portfolio strategy and brand positioning - Monster remains the lead brand, with a focus on maintaining its authenticity while leveraging other brands to capture different consumer segments [54][56]

Monster Beverage Corporation (NASDAQ:MNST) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Rodney Sacks - Co CEO & Chairman Hilton Schlosberg - Co CEO & Vice Chairman Tom Kelly - CFO Conference Call Participants Peter Grom - UBS Andrea Teixeira - JPMorgan Filippo Falorni - Citi Peter Galbo - Bank of America Chris Carey - Wells Fargo Securities Bonnie Herzog - Goldman Sachs Operator Good day, and welcome to the Monster Beverage Corporation Second Quarter 2023 Financial Results ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 Commission File Number 001-18761 MONSTER BEVERAGE CORPORATION (Exact name of registrant as specified in its charter) Delaware 47-1809393 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1 Monster Way Corona, California 92879 (Address of principal ...

Financial Data and Key Metrics Changes - The company achieved record first quarter net sales of $1.7 billion in Q1 2023, an increase of 11.9% compared to $1.52 billion in Q1 2022, and 15.3% higher on a foreign currency adjusted basis [6][10] - Gross profit as a percentage of net sales for Q1 2023 was 52.8%, up from 51.1% in Q1 2022, primarily due to pricing actions, decreased freight costs, and lower aluminum can costs [6][9] - Operating income for Q1 2023 increased by 21.4% to $485.1 million from $399.5 million in Q1 2022 [9] - Net income rose by 35.1% to $397.4 million compared to $294.2 million in the same quarter of the previous year [9] - Diluted earnings per share increased by 36.6% to $0.38 from $0.27 in Q1 2022 [10] Business Line Data and Key Metrics Changes - Distribution expenses decreased to $76.3 million or 4.5% of net sales in Q1 2023, down from 5.4% in Q1 2022, primarily due to decreased freight out expenses [8] - The company launched several new products in Q1 2023, including Monster Energy Zero Sugar and Reign Storm, with positive early results reported [30][31] Market Data and Key Metrics Changes - In the U.S., sales in the energy drink category increased by 12.7% year-over-year, with Monster's sales up 9.5% and Reign's sales up 24.1% [11][12] - The company's market share in the energy drink category in the U.S. decreased from 37.5% to 36.9% [14] - In Canada, the energy drink category increased by 14.7% in dollars, with the company's energy drink brands increasing by 19.5% [16] - In Latin America, net sales increased by 30.8% in dollars and 40.4% in local currencies [25] Company Strategy and Development Direction - The company plans to implement additional price increases in various international markets throughout 2023 to mitigate inflationary pressures [10] - The company is focusing on expanding its alcohol beverage innovation pipeline and aims to achieve national distribution for its Beast Unleashed product by the end of the year [29][37] - The company is optimistic about the prospects for the Monster brand in China, with net sales increasing by 68.3% in dollars and 81.7% in local currency [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is some slowing in consumer spending, the energy drink category continues to grow, and pricing actions have not significantly impacted consumer demand [47] - The company remains committed to innovation and expanding its brand presence both domestically and internationally [70] Other Important Information - The company reported a negative impact of approximately $52 million on net sales due to foreign currency exchange rates in Q1 2023 [22] - The company is addressing challenges in its supply chain and has rebuilt finished product inventory levels globally [8][9] Q&A Session Summary Question: Expectations for sequential improvement in gross margin - Management indicated that pricing actions and cost moderations should lead to sequential improvement in gross margin throughout the year [40][42] Question: Trends in the energy drink category - Management acknowledged a slight slowing in consumer spending but noted healthy growth in the energy drink category overall [47] Question: Performance of new products like Zero Sugar and Reign Storm - Management reported positive early results for Zero Sugar and is optimistic about Reign Storm, although it is too early to assess its full impact [51][54] Question: Cash balance and share repurchase plans - Management is examining options for utilizing cash balances, including potential share repurchases [68] Question: Succession planning and talent development - Management emphasized the importance of succession planning and the strength of the team below the current leadership [58]

[Part I. FINANCIAL INFORMATION](index=3&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This chapter includes the company's unaudited condensed consolidated financial statements, detailed notes, and covers financial position as of March 31, 2023, and December 31, 2022, and operating results for the three months ended March 31, 2023, and 2022 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the company's condensed consolidated balance sheets as of March 31, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets (As of March 31, 2023, and December 31, 2022, Thousands of USD) | Indicator | March 31, 2023 | December 31, 2022 | | :---------------- | :------------- | :------------- | | **Assets** | | | | Total Current Assets | 5,294,609 | 4,764,897 | | Investments | 41,152 | 61,443 | | Property and Equipment, Net | 545,922 | 516,897 | | Deferred Income Taxes, Net | 177,039 | 177,039 | | Goodwill | 1,417,941 | 1,417,941 | | Other Intangible Assets, Net | 1,222,598 | 1,220,410 | | Other Assets | 145,101 | 134,478 | | **Total Assets** | **8,844,362** | **8,293,105** | | **Liabilities and Stockholders' Equity** | | | | Total Current Liabilities | 1,187,511 | 1,001,978 | | Deferred Revenue | 219,764 | 223,800 | | Other Liabilities | 41,727 | 42,286 | | Total Stockholders' Equity | 7,395,360 | 7,025,041 | | **Total Liabilities and Stockholders' Equity** | **8,844,362** | **8,293,105** | - As of March 31, 2023, total assets were **$8,844,362 thousand**, a **6.65% increase** from **$8,293,105 thousand** as of December 31, 2022[6](index=6&type=chunk) - As of March 31, 2023, total stockholders' equity was **$7,395,360 thousand**, a **5.27% increase** from **$7,025,041 thousand** as of December 31, 2022[6](index=6&type=chunk) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the company's condensed consolidated statements of income for the three months ended March 31, 2023, and 2022 Condensed Consolidated Statements of Income (For the Three Months Ended March 31, Thousands of USD) | Indicator | 2023 | 2022 | Year-over-Year Change (%) | | :---------------- | :----- | :----- | :----------- | | Net Sales | 1,698,930 | 1,518,574 | 11.88 | | Cost of Sales | 801,081 | 741,907 | 7.98 | | Gross Profit | 897,849 | 776,667 | 15.61 | | Operating Expenses | 412,785 | 377,178 | 9.44 | | Operating Income | 485,064 | 399,489 | 21.42 | | Interest and Other Income (Expense), Net | 12,496 | (7,300) | -271.18 | | Income Before Income Taxes | 497,560 | 392,189 | 26.87 | | Provision for Income Taxes | 100,116 | 97,986 | 2.17 | | Net Income | 397,444 | 294,203 | 35.10 | | Basic Net Income Per Share | 0.38 | 0.28 | 35.71 | | Diluted Net Income Per Share | 0.38 | 0.27 | 40.74 | - Net sales for Q1 2023 reached **$1.699 billion**, marking an **11.88% year-over-year increase** and a new record for the first fiscal quarter[9](index=9&type=chunk)[148](index=148&type=chunk)[166](index=166&type=chunk) - Gross margin improved from **51.1% in Q1 2022** to **52.8% in Q1 2023**, driven by pricing actions, lower freight costs, and reduced aluminum can costs[143](index=143&type=chunk)[157](index=157&type=chunk)[173](index=173&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section provides the company's condensed consolidated statements of comprehensive income for the three months ended March 31, 2023, and 2022 Condensed Consolidated Statements of Comprehensive Income (For the Three Months Ended March 31, Thousands of USD) | Indicator | 2023 | 2022 | | :---------------- | :----- | :----- | | Reported Net Income | 397,444 | 294,203 | | Other Comprehensive Income (Loss): | | | | Change in Foreign Currency Translation Adjustments | 7,981 | 1,079 | | Available-for-Sale Investments: | | | | Net Change in Unrealized Gains (Losses) | 3,181 | (4,059) | | Other Comprehensive Income (Loss) | 11,162 | (2,980) | | Comprehensive Income | 408,606 | 291,223 | - Comprehensive income for Q1 2023 was **$409 million**, a **40.35% increase** from **$291 million** in the prior year, driven by net income growth and changes in foreign currency translation adjustments and unrealized gains on available-for-sale investments[16](index=16&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's stockholders' equity for the three months ended March 31, 2023, and December 31, 2022 - The company announced a **two-for-one stock split** of its common stock on February 28, 2023, effective March 27, 2023, with all per share amounts and share numbers retroactively adjusted[8](index=8&type=chunk)[29](index=29&type=chunk)[141](index=141&type=chunk) - On March 10, 2023, the company retired **170 million shares** of treasury stock with a book value of approximately **$4.69 billion**, adjusting common stock and retained earnings accordingly[28](index=28&type=chunk)[102](index=102&type=chunk)[223](index=223&type=chunk) Changes in Stockholders' Equity (For the Three Months Ended March 31, 2023, Thousands of USD) | Indicator | March 31, 2023 | December 31, 2022 | | :---------------- | :------------- | :------------- | | Common Stock | 5,587 | 6,418 | | Additional Paid-in Capital | 4,829,301 | 4,776,804 | | Retained Earnings | 4,706,192 | 9,001,173 | | Accumulated Other Comprehensive Loss | (147,911) | (159,073) | | Treasury Stock | (1,997,809) | (6,600,281) | | **Total Stockholders' Equity** | **7,395,360** | **7,025,041** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's condensed consolidated statements of cash flows for the three months ended March 31, 2023, and 2022 Condensed Consolidated Statements of Cash Flows (For the Three Months Ended March 31, Thousands of USD) | Cash Flow Activity | 2023 | 2022 | | :---------------------- | :----- | :----- | | Net Cash from Operating Activities | 424,475 | (351) | | Net Cash from Investing Activities | (52,766) | (303,630) | | Net Cash from Financing Activities | (6,049) | (4,223) | | Effect of Exchange Rate Changes | (141) | (3,472) | | Net Increase (Decrease) in Cash and Cash Equivalents | 365,519 | (311,676) | | Cash and Cash Equivalents at Beginning of Period | 1,307,141 | 1,326,462 | | Cash and Cash Equivalents at End of Period | 1,672,660 | 1,014,786 | - Operating activities generated **$424 million** in cash flow in Q1 2023, compared to a cash outflow of **$0.351 million** in the prior year, primarily due to increased net income and changes in working capital[21](index=21&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) - Cash outflow from investing activities significantly decreased from **$304 million in Q1 2022** to **$53 million in Q1 2023**, mainly due to the **$330 million cash outflow** for the CANarchy acquisition in the prior year[21](index=21&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, offering further context and breakdowns of financial figures [1. BASIS OF PRESENTATION](index=11&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note outlines the basis of presentation for the financial statements, including significant accounting policies and recent corporate actions - On March 10, 2023, the company retired **170 million shares** (split-adjusted) of treasury stock with a book value of approximately **$4.69 billion**, adjusting common stock and retained earnings according to accounting policies[28](index=28&type=chunk)[102](index=102&type=chunk)[223](index=223&type=chunk) - The company announced a **two-for-one stock split** of its common stock on February 28, 2023, effective March 27, 2023, with all per share amounts, average shares outstanding, shares outstanding, repurchased shares, and stock-based compensation retroactively adjusted[29](index=29&type=chunk)[141](index=141&type=chunk) [2. REVENUE RECOGNITION](index=12&type=section&id=2.%20REVENUE%20RECOGNITION) This note describes the company's revenue recognition policies and provides a breakdown of net sales by geographic market and reportable segment - The company operates four reportable segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other, primarily generating revenue by selling ready-to-drink packaged beverages or concentrates to bottlers/distributors[33](index=33&type=chunk)[123](index=123&type=chunk)[146](index=146&type=chunk) Net Sales by Geographic Market and Reportable Segment (For the Three Months Ended March 31, Thousands of USD) | Segment/Region | 2023 | 2022 | | :---------------- | :----- | :----- | | **Monster Energy® Drinks** | | | | United States and Canada | 1,021,328 | 925,680 | | Europe, Middle East, and Africa | 277,111 | 260,889 | | Asia Pacific | 121,994 | 110,556 | | Latin America and Caribbean | 141,235 | 107,722 | | **Total Monster Energy® Drinks** | **1,561,668** | **1,404,847** | | **Strategic Brands** | | | | United States and Canada | 43,043 | 53,051 | | Europe, Middle East, and Africa | 30,951 | 30,176 | | Asia Pacific | 8,983 | 6,662 | | Latin America and Caribbean | 3,381 | 2,704 | | **Total Strategic Brands** | **86,358** | **92,593** | | **Alcohol Brands** | | | | United States and Canada | 46,290 | 15,207 | | **Total Alcohol Brands** | **46,290** | **15,207** | | **Other** | | | | United States and Canada | 4,614 | 5,927 | | **Total Other** | **4,614** | **5,927** | | **Total Net Sales** | **1,698,930** | **1,518,574** | - As of March 31, 2023, deferred revenue was **$264.2 million**, with **$9.9 million** recognized as net sales during the current period[46](index=46&type=chunk) [3. LEASES](index=15&type=section&id=3.%20LEASES) This note provides details on the company's lease arrangements, including lease costs, right-of-use assets, lease liabilities, and weighted-average terms Composition of Lease Costs (For the Three Months Ended March 31, Thousands of USD) | Lease Type | 2023 | 2022 | | :--------- | :----- | :----- | | Operating Lease Costs | 2,467 | 1,694 | | Short-Term Lease Costs | 979 | 929 | | Variable Lease Costs | 215 | 183 | | Finance Lease Costs | 137 | 130 | | **Total Lease Costs** | **3,798** | **2,936** | Right-of-Use (ROU) Assets and Lease Liabilities (As of March 31, 2023, Thousands of USD) | Lease Type | ROU Assets | Lease Liabilities | | :--------- | :------------------ | :---------------- | | Operating Leases | 36,209 | 35,600 | | Finance Leases | 3,694 | 2,426 | Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (As of March 31, 2023) | Lease Type | Weighted-Average Remaining Lease Term (Years) | Weighted-Average Discount Rate (%) | | :--------- | :---------------------- | :----------------- | | Operating Leases | 6.6 | 3.5 | | Finance Leases | 0.9 | 5.7 | [4. INVESTMENTS](index=20&type=section&id=4.%20INVESTMENTS) This note provides a summary of the company's investment portfolio, including amortized cost, fair value, and unrealized gains and losses Investment Portfolio Summary (As of March 31, 2023, Thousands of USD) | Investment Type | Amortized Cost | Fair Value | Unrealized Gains | Unrealized Losses | | :--------- | :------- | :------- | :--------- | :--------- | | Commercial Paper | 296,708 | 296,708 | 1 | 1 | | Certificates of Deposit | 12,630 | 12,630 | — | — | | Municipal Securities | 129,779 | 129,574 | 3 | 208 | | U.S. Government Agency Securities | 129,605 | 129,308 | 35 | 332 | | U.S. Treasury Securities | 744,403 | 742,379 | 156 | 2,180 | | Corporate Bonds | 72,536 | 72,429 | 15 | 122 | | **Total Short-Term Investments** | **1,385,661** | **1,383,028** | **210** | **2,843** | | **Total Long-Term Investments** | **41,181** | **41,152** | **16** | **45** | | **Total** | **1,426,842** | **1,424,180** | **226** | **2,888** | - As of March 31, 2023, the company's investment portfolio had a fair value of **$1.424 billion**, primarily comprising commercial paper, U.S. Treasury securities, and municipal securities, with all investments holding investment-grade credit ratings[69](index=69&type=chunk)[70](index=70&type=chunk) [5. FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES](index=21&type=section&id=5.%20FAIR%20VALUE%20OF%20CERTAIN%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) This note details the fair value measurements of certain financial assets and liabilities, categorized by fair value hierarchy levels Financial Assets and Liabilities by Fair Value Hierarchy (As of March 31, 2023, Thousands of USD) | Asset/Liability | Level 1 | Level 2 | Level 3 | Total | | :---------- | :------ | :------ | :------ | :----- | | Cash | 886,785 | — | — | 886,785 | | Money Market Funds | 713,009 | — | — | 713,009 | | Certificates of Deposit | — | 41,050 | — | 41,050 | | Commercial Paper | — | 310,774 | — | 310,774 | | Corporate Bonds | — | 74,180 | — | 74,180 | | Municipal Securities | — | 129,574 | — | 129,574 | | U.S. Government Agency Securities | — | 151,678 | — | 151,678 | | U.S. Treasury Securities | — | 789,790 | — | 789,790 | | Foreign Exchange Derivatives | — | 77 | — | 77 | | **Total** | **1,599,794** | **1,497,123** | **—** | **3,096,917** | - All of the company's short-term and long-term investments are classified as Level 1 or Level 2 within the fair value hierarchy, with Level 1 based on active market quotes and Level 2 on observable market data and valuation models[76](index=76&type=chunk) [6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES](index=24&type=section&id=6.%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) This note describes the company's use of derivative instruments, primarily forward foreign exchange contracts, to manage currency risk - The company uses forward foreign exchange contracts to manage foreign currency exchange rate risk, but these are not designated as hedging instruments, with gains and losses recognized in interest and other income (expense), net[80](index=80&type=chunk)[81](index=81&type=chunk) Derivative Instruments Notional Amounts and Fair Values (As of March 31, 2023, Thousands of USD) | Derivative Instrument Type | Notional Amount | Fair Value | Balance Sheet Location | | :------------- | :------- | :------- | :------------- | | **Assets:** | | | | | Foreign Exchange Forward Contracts | 120,883 | 382 | Accounts Receivable, Net | | **Liabilities:** | | | | | Foreign Exchange Forward Contracts | 117,408 | (305) | Accrued Liabilities | - For the three months ended March 31, 2023, net losses recognized on derivative instruments were **$7.852 million**, compared to **$4.019 million** in the prior year period[84](index=84&type=chunk) [7. INVENTORIES](index=25&type=section&id=7.%20INVENTORIES) This note provides a breakdown of the company's inventory composition, including raw materials, work-in-process, and finished goods Composition of Inventories (As of March 31, 2023, and December 31, 2022, Thousands of USD) | Inventory Category | March 31, 2023 | December 31, 2022 | | :--------- | :------------- | :------------- | | Raw Materials | 421,914 | 467,392 | | Work-in-Process | 1,615 | 1,688 | | Finished Goods | 483,194 | 466,551 | | **Total** | **906,723** | **935,631** | - As of March 31, 2023, total inventories were **$907 million**, a slight decrease from **$936 million** as of December 31, 2022[85](index=85&type=chunk) [8. PROPERTY AND EQUIPMENT, NET](index=26&type=section&id=8.%20PROPERTY%20AND%20EQUIPMENT,%20NET) This note details the composition of the company's property and equipment, net, including land, buildings, and machinery, along with depreciation and amortization Property and Equipment, Net (As of March 31, 2023, and December 31, 2022, Thousands of USD) | Category | March 31, 2023 | December 31, 2022 | | :----- | :------------- | :------------- | | Land | 139,922 | 139,798 | | Leasehold Improvements | 31,753 | 31,327 | | Furniture and Fixtures | 9,335 | 9,286 | | Office and Computer Equipment | 22,532 | 22,386 | | Computer Software | 5,310 | 5,906 | | Equipment | 255,991 | 244,739 | | Buildings | 164,821 | 163,885 | | Vehicles | 51,675 | 49,175 | | Construction in Progress | 111,283 | 83,553 | | **Total** | **792,622** | **750,055** | | Less: Accumulated Depreciation and Amortization | (246,700) | (233,158) | | **Net** | **545,922** | **516,897** | - As of March 31, 2023, net property and equipment totaled **$546 million**, an increase from **$517 million** as of December 31, 2022[88](index=88&type=chunk) - Total depreciation and amortization expense for the three months ended March 31, 2023, was **$14.8 million**, up from **$13.1 million** in the prior year period[88](index=88&type=chunk) [9. GOODWILL AND OTHER INTANGIBLE ASSETS](index=26&type=section&id=9.%20GOODWILL%20AND%20OTHER%20INTANGIBLE%20ASSETS) This note provides a breakdown of goodwill by reportable segment and the composition of other intangible assets, both amortizable and non-amortizable Goodwill by Reportable Segment (As of March 31, 2023, and December 31, 2022, Thousands of USD) | Segment | March 31, 2023 | December 31, 2022 | | :----- | :------------- | :------------- | | Monster Energy® Drinks | 693,644 | 693,644 | | Strategic Brands | 637,999 | 637,999 | | Alcohol Brands | 86,298 | 86,298 | | **Total** | **1,417,941** | **1,417,941** | Composition of Intangible Assets (As of March 31, 2023, and December 31, 2022, Thousands of USD) | Category | March 31, 2023 | December 31, 2022 | | :----- | :------------- | :------------- | | Amortizable Intangible Assets | 50,578 | 52,588 | | Non-Amortizable Intangible Assets | 1,172,020 | 1,167,822 | | **Total** | **1,222,598** | **1,220,410** | - Total amortization expense for the three months ended March 31, 2023, was **$2.0 million**, an increase from **$1.5 million** in the prior year period[91](index=91&type=chunk) [10. DISTRIBUTION AGREEMENTS](index=28&type=section&id=10.%20DISTRIBUTION%20AGREEMENTS) This note explains the company's revenue recognition policy for deferred revenue from distribution agreements and the amounts recognized - The company recognizes deferred revenue from distribution agreements proportionally over the expected life of the agreements (typically 20 years), with **$9.9 million** recognized for the three months ended March 31, 2023, compared to **$10.0 million** in the prior year period[92](index=92&type=chunk) [11. COMMITMENTS AND CONTINGENCIES](index=28&type=section&id=11.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's significant contractual commitments, contingent liabilities, and ongoing legal proceedings - As of March 31, 2023, the company had approximately **$336.8 million** in purchase commitments and **$380.6 million** in contractual obligations, primarily for raw material purchases, sponsorships, and other marketing activities[93](index=93&type=chunk) - The company is involved in multiple lawsuits, including a false advertising and trade secret case against Vital Pharmaceuticals, Inc. (VPX), where a jury awarded Monster Energy Company (MEC) approximately **$293 million** in damages[94](index=94&type=chunk)[96](index=96&type=chunk) - MEC and Orange Bang, Inc. were awarded **$175 million** and a **5% royalty** on future sales against VPX in another arbitration, though the timing of the award's realization is uncertain due to VPX's bankruptcy filing[97](index=97&type=chunk)[98](index=98&type=chunk) [12. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=30&type=section&id=12.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) This note details the components and changes in accumulated other comprehensive loss, including foreign currency translation adjustments and unrealized gains/losses on securities Changes in Accumulated Other Comprehensive Loss (For the Three Months Ended March 31, Thousands of USD) | Component | March 31, 2023 | December 31, 2022 | | :--------- | :------------- | :------------- | | Currency Translation Losses | (145,249) | (153,230) | | Unrealized Gains (Losses) on Available-for-Sale Securities | (2,662) | (5,843) | | **Total** | **(147,911)** | **(159,073)** | - As of March 31, 2023, accumulated other comprehensive loss was **$148 million**, a decrease from **$159 million** as of December 31, 2022, primarily due to foreign currency translation adjustments and changes in unrealized gains on available-for-sale securities[102](index=102&type=chunk) [13. TREASURY STOCK](index=30&type=section&id=13.%20TREASURY%20STOCK) This note provides information on the company's treasury stock activities, including share retirements and remaining repurchase authorizations - On March 10, 2023, the company retired **170 million shares** of treasury stock with a book value of approximately **$4.69 billion**[102](index=102&type=chunk)[223](index=223&type=chunk) - As of May 5, 2023, the company had **$682.8 million** remaining under its authorized stock repurchase programs[103](index=103&type=chunk)[104](index=104&type=chunk)[224](index=224&type=chunk) - In Q1 2023, the company repurchased **1.7 million shares** of common stock from employees for **$90.4 million** for option exercises or tax withholdings, which are not part of the authorized repurchase programs[104](index=104&type=chunk)[225](index=225&type=chunk) [14. STOCK-BASED COMPENSATION](index=31&type=section&id=14.%20STOCK-BASED%20COMPENSATION) This note details the company's stock-based compensation expense, tax benefits, and a summary of stock option activity - The company recorded **$16.1 million** in stock-based compensation expense in Q1 2023, compared to **$16.3 million** in the prior year period[107](index=107&type=chunk) - Tax benefits from non-qualified stock option exercises, disqualifying dispositions of incentive stock options, and vesting of restricted stock units and performance stock units were **$25.9 million** in Q1 2023, significantly higher than **$0.4 million** in the prior year period[108](index=108&type=chunk) Summary of Stock Option Activity (As of March 31, 2023, Thousands of Shares) | Stock Option Activity | Number of Shares | Exercise Price Per Share | | :------------- | :------- | :--------- | | Unexercised at January 1, 2023 | 29,710 | 26.38 | | Granted | 3,962 | 50.82 | | Exercised | (3,129) | 11.62 | | Canceled or Forfeited | (73) | 37.39 | | **Unexercised at March 31, 2023** | **30,470** | **31.04** | - As of March 31, 2023, unrecognized compensation expense related to unvested options was **$125.2 million**, expected to be recognized over a weighted-average period of **3.6 years**[113](index=113&type=chunk) [15. INCOME TAXES](index=34&type=section&id=15.%20INCOME%20TAXES) This note provides information on the company's income tax provision, effective tax rate, and changes in unrecognized tax benefits Changes in Unrecognized Tax Benefits (For the Three Months Ended March 31, Thousands of USD) | Category | Amount | | :----- | :--- | | Balance at December 31, 2022 | 3,020 | | Additions for Current Year | — | | Additions for Prior Years | 738 | | Reductions for Prior Years | — | | **Balance at March 31, 2023** | **3,758** | - As of March 31, 2023, the company had approximately **$0.6 million** in accrued interest and penalties related to unrecognized tax benefits[118](index=118&type=chunk) [16. EARNINGS PER SHARE](index=35&type=section&id=16.%20EARNINGS%20PER%20SHARE) This note presents the calculation of basic and diluted earnings per share, including the weighted-average shares outstanding Weighted-Average Shares for Basic and Diluted Earnings Per Share (For the Three Months Ended March 31, Thousands of Shares) | Category | 2023 | 2022 | | :----- | :----- | :----- | | Basic | 1,044,909 | 1,058,810 | | Dilutive | 14,160 | 12,298 | | **Diluted** | **1,059,069** | **1,071,108** | - In Q1 2023, **2.6 million** options and awards were excluded from diluted EPS calculation due to their anti-dilutive effect, compared to **3.2 million** in the prior year period[122](index=122&type=chunk) [17. SEGMENT INFORMATION](index=35&type=section&id=17.%20SEGMENT%20INFORMATION) This note provides financial information by reportable operating segment, including net sales and operating income, and identifies major customers - The company operates four reportable segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other, with the Monster Energy® Drinks segment contributing the vast majority of net sales[123](index=123&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) Net Sales by Reportable Segment (For the Three Months Ended March 31, Thousands of USD) | Segment | 2023 | 2022 | | :---------------- | :----- | :----- | | Monster Energy® Drinks | 1,561,669 | 1,404,847 | | Strategic Brands | 86,357 | 92,593 | | Alcohol Brands | 46,290 | 15,207 | | Other | 4,614 | 5,927 | | **Total** | **1,698,930** | **1,518,574** | Operating Income by Reportable Segment (For the Three Months Ended March 31, Thousands of USD) | Segment | 2023 | 2022 | | :---------------- | :----- | :----- | | Monster Energy® Drinks | 560,819 | 454,563 | | Strategic Brands | 51,771 | 57,195 | | Alcohol Brands | (6,883) | (4,953) | | Other | (293) | 1,127 | | Corporate and Unallocated | (120,350) | (108,443) | | **Total** | **485,064** | **399,489** | - Coca-Cola Europacific Partners, Coca-Cola Consolidated, Inc., and Reyes Coca-Cola Bottling, LLC accounted for approximately **13%**, **10%**, and **9%** of the company's net sales, respectively, in Q1 2023[131](index=131&type=chunk)[154](index=154&type=chunk) [18. RELATED PARTY TRANSACTIONS](index=38&type=section&id=18.%20RELATED%20PARTY%20TRANSACTIONS) This note details transactions with The Coca-Cola Company (TCCC), a related party, including commissions, net sales, and procurement - TCCC controls approximately **19.5%** of the company's voting interest and serves as a distributor for its products in domestic and international markets[132](index=132&type=chunk) Related Party Transactions with TCCC (For the Three Months Ended March 31, Thousands of USD) | Transaction Type | 2023 | 2022 | | :--------- | :----- | :----- | | TCCC Commissions (based on TCCC subsidiary and affiliate sales) | 15,700 | 18,400 | | TCCC Commissions (based on TCCC independent bottler/distributor sales) | 8,800 | 11,000 | | Net Sales to TCCC Subsidiaries | 35,100 | 31,800 | | Concentrate Purchases from TCCC | 6,500 | 8,500 | | Contract Manufacturing Fees from TCCC Subsidiaries | 7,400 | 9,200 | Accounts Receivable/Payable Related to TCCC Subsidiaries (As of Period End, Thousands of USD) | Account Type | March 31, 2023 | December 31, 2022 | | :--------- | :------------- | :------------- | | Accounts Receivable, Net | 128,697 | 88,169 | | Accounts Payable | (36,703) | (35,467) | | Accrued Promotional Allowances | (10,833) | (11,222) | | Accrued Liabilities | (23,569) | (14,733) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This chapter discusses the company's financial condition and operating results for the three months ended March 31, 2023, including business overview, key financial metrics, segment performance, liquidity, capital resources, and risk factors [Our Business](index=40&type=section&id=Our%20Business) This section provides an overview of Monster Beverage Corporation's business, focusing on its primary activities in energy drinks and a smaller portfolio of alcoholic beverages - Monster Beverage Corporation is a holding company primarily engaged in developing and marketing energy drinks through its subsidiaries, along with a smaller portfolio of craft beers, hard seltzers, and flavored malt beverages (FMBs)[140](index=140&type=chunk) [Stock Split](index=40&type=section&id=Stock%20Split) This section details the company's two-for-one common stock split implemented in March 2023 and its retroactive adjustments - The company announced a **two-for-one stock split** of its common stock on February 28, 2023, effective March 27, 2023, with all per share amounts and share numbers retroactively adjusted[141](index=141&type=chunk) [Pricing Actions & Gross Profit Margins](index=40&type=section&id=Pricing%20Actions%20%26%20Gross%20Profit%20Margins) This section discusses the impact of pricing actions in domestic and international markets on the company's gross profit margins - The company implemented price increases in the U.S. on September 1, 2022, and in certain international markets during Q1 2022 and Q1 2023, positively impacting gross margins in Q1 2023[142](index=142&type=chunk) Gross Margin Trends | Period | Gross Margin as a Percentage of Net Sales | | :--- | :----------------------- | | Three Months Ended March 31, 2023 | 52.8% | | Three Months Ended December 31, 2022 | 51.8% | | Three Months Ended September 30, 2022 | 51.3% | - Gross margin improvement was primarily attributed to pricing actions, reduced freight costs, and lower aluminum can costs[143](index=143&type=chunk)[173](index=173&type=chunk) [Overview of Products and Segments](index=40&type=section&id=Overview%20of%20Products%20and%20Segments) This section provides an overview of the company's diverse product portfolio, including energy drinks and alcoholic beverages, and its four reportable operating segments - The company primarily develops, markets, sells, and distributes energy drinks and their concentrates under brands including Monster Energy®, Reign Total Body Fuel®, NOS®, and Full Throttle®[144](index=144&type=chunk) - The company also develops, markets, sells, and distributes craft beers, FMBs, and hard seltzers under brands such as Jai Alai® IPA, Dale's Pale Ale®, and The Beast Unleashed™[145](index=145&type=chunk) - The company operates four reportable segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other, and launched several new products in Q1 2023[146](index=146&type=chunk)[147](index=147&type=chunk) [Net Sales Performance](index=42&type=section&id=Net%20Sales%20Performance) This section analyzes the company's net sales performance, including year-over-year growth, impact of foreign currency exchange rates, and segment-wise breakdown - Net sales for Q1 2023 reached **$1.70 billion**, a new record for the first fiscal quarter, representing an **11.9% year-over-year increase**[148](index=148&type=chunk)[166](index=166&type=chunk) - Foreign currency exchange rate fluctuations had an unfavorable impact of approximately **$52.0 million** on Q1 2023 net sales; adjusted for foreign currency, net sales increased by **15.3%**[148](index=148&type=chunk)[166](index=166&type=chunk) Net Sales by Segment (For the Three Months Ended March 31, Thousands of USD) | Segment | 2023 | 2022 | Year-over-Year Change (%) | | :---------------- | :----- | :----- | :----------- | | Monster Energy® Drinks | 1,561,668 | 1,404,847 | 11.16 | | Strategic Brands | 86,358 | 92,593 | -6.73 | | Alcohol Brands | 46,290 | 15,207 | 204.40 | | Other | 4,614 | 5,927 | -22.24 | | **Total Net Sales** | **1,698,930** | **1,518,574** | **11.88** | - International net sales were **$622.9 million**, an increase of **12.6%** year-over-year, accounting for **37%** of total net sales; adjusted for foreign currency, international sales grew by **21.9%**[151](index=151&type=chunk) [Customer and Distribution Channels](index=44&type=section&id=Customer%20and%20Distribution%20Channels) This section outlines the company's distribution channels and identifies key customers across its non-alcoholic and alcoholic beverage segments Gross Billings Percentage by Customer Type (For the Three Months Ended March 31) | Customer Type | 2023 | 2022 | | :--------- | :----- | :----- | | U.S. Full-Service Bottlers/Distributors | 48% | 49% | | International Full-Service Bottlers/Distributors | 38% | 39% | | Club Stores and E-commerce Retailers | 9% | 9% | | Retail Grocers, Direct-Store-Delivery Convenience Stores, Specialty Chains, and Wholesalers | 2% | 2% | | Alcohol, Discount Stores, and Other | 3% | 1% | - Key non-alcoholic customers include Coca-Cola system bottlers (e.g., Coca-Cola Europacific Partners, Coca-Cola Consolidated, Inc., Reyes Coca-Cola Bottling, LLC) as well as Walmart, Costco, and Amazon[153](index=153&type=chunk) - Key alcoholic customers include J.J. Taylor Distributing, Ben E. Keith, and Reyes Beer Division[153](index=153&type=chunk) [Key Financial Results (Q1 2023 vs Q1 2022)](index=46&type=section&id=Key%20Financial%20Results%20(Q1%202023%20vs%20Q1%202022)) This section provides a comparative analysis of key financial performance indicators for the first quarter of 2023 versus 2022 Key Financial Statistics (For the Three Months Ended March 31, Thousands of USD, except per share amounts) | Indicator | 2023 | 2022 | Year-over-Year Change (%) | | :---------------- | :----- | :----- | :----------- | | Net Sales | 1,698,930 | 1,518,574 | 11.9 | | Cost of Sales | 801,081 | 741,907 | 8.0 | | Gross Profit | 897,849 | 776,667 | 15.6 | | Gross Margin as a Percentage of Net Sales | 52.8% | 51.1% | 1.7 pp | | Operating Expenses | 412,785 | 377,178 | 9.4 | | Operating Expenses as a Percentage of Net Sales | 24.3% | 24.8% | -0.5 pp | | Operating Income | 485,064 | 399,489 | 21.4 | | Operating Income as a Percentage of Net Sales | 28.6% | 26.3% | 2.3 pp | | Interest and Other Income (Expense), Net | 12,496 | (7,300) | -271.2 | | Income Before Income Taxes | 497,560 | 392,189 | 26.9 | | Income Taxes as a Percentage of Income Before Income Taxes | 20.1% | 25.0% | -4.9 pp | | Net Income | 397,444 | 294,203 | 35.1 | | Net Income as a Percentage of Net Sales | 23.4% | 19.4% | 4.0 pp | | Basic Net Income Per Share | 0.38 | 0.28 | 36.9 | | Diluted Net Income Per Share | 0.38 | 0.27 | 36.6 | | Energy Drink Case Sales Volume (Thousands of Cases) | 182,444 | 168,793 | 8.1 | [Gross Profit Analysis](index=48&type=section&id=Gross%20Profit%20Analysis) This section analyzes the drivers behind the company's gross profit and gross margin changes, including pricing, costs, and promotional activities - Gross profit for Q1 2023 was **$897.8 million**, a **15.6% year-over-year increase**, primarily driven by growth in net sales[173](index=173&type=chunk) - Gross margin increased from **51.1% in Q1 2022** to **52.8% in Q1 2023**, mainly due to pricing actions, lower freight costs, and reduced aluminum can costs, partially offset by increased ingredient and other input costs and higher promotional activities in certain markets[173](index=173&type=chunk) [Operating Expenses Analysis](index=48&type=section&id=Operating%20Expenses%20Analysis) This section examines the changes in operating expenses, including sales and marketing, warehousing, and payroll costs, and their impact on net sales percentage - Total operating expenses for Q1 2023 were **$412.8 million**, a **9.4% year-over-year increase**, primarily due to a **$18.7 million increase** in selling and marketing expenses, a **$9.9 million increase** in warehousing costs, and a **$21.9 million increase** in payroll expenses (of which **$6.3 million** related to CANarchy)[174](index=174&type=chunk)[176](index=176&type=chunk) - Operating expenses as a percentage of net sales decreased from **24.8% in Q1 2022** to **24.3% in Q1 2023**, partially offset by a **$16.0 million reduction** in freight and fuel expenses[176](index=176&type=chunk) [Operating Income Analysis](index=50&type=section&id=Operating%20Income%20Analysis) This section analyzes the company's operating income and its percentage of net sales, broken down by reportable segment - Operating income for Q1 2023 was **$485.1 million**, a **21.4% year-over-year increase**, with operating income as a percentage of net sales rising from **26.3% to 28.6%**, primarily driven by growth in net sales and improved gross margin[177](index=177&type=chunk) - Operating income for the Monster Energy® Drinks segment increased by **23.4% to $560.8 million**, while the Strategic Brands segment's operating income decreased by **9.5% to $51.8 million**[178](index=178&type=chunk) - The Alcohol Brands segment's operating loss expanded by **39.0% to $6.9 million**, mainly due to expansion expenses and infrastructure investments within the segment[179](index=179&type=chunk) [Interest and Other Income (Expense), net](index=50&type=section&id=Interest%20and%20Other%20Income%20(Expense),%20net) This section details the components of net interest and other non-operating income (expense), including foreign currency transaction losses and interest income - Net interest and other non-operating income (expense) for Q1 2023 was **$12.5 million**, compared to **($7.3) million** in the prior year period[180](index=180&type=chunk) - Foreign currency transaction losses increased from **$8.4 million in Q1 2022** to **$11.2 million in Q1 2023**, but interest income significantly increased from **$1.5 million to $23.5 million**[180](index=180&type=chunk) [Provision for Income Taxes](index=50&type=section&id=Provision%20for%20Income%20Taxes) This section discusses the company's income tax provision and the factors influencing its effective tax rate - The provision for income taxes for Q1 2023 was **$100.1 million**, a **2.2% year-over-year increase**[181](index=181&type=chunk) - The effective combined federal, state, and foreign tax rate decreased from **25.0% in Q1 2022** to **20.1% in Q1 2023**, primarily due to increased stock-based compensation deductions in Q1 2023[181](index=181&type=chunk) [Net Income](index=52&type=section&id=Net%20Income) This section summarizes the company's net income performance and the key factors contributing to its growth - Net income for Q1 2023 was **$397.4 million**, a **35.1% year-over-year increase**, primarily driven by growth in net sales, improved gross margin, and a lower effective tax rate[182](index=182&type=chunk) [Non-GAAP Financial Measures and Other Key Metrics (Gross Billings)](index=52&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Key%20Metrics%20(Gross%20Billings)) This section presents non-GAAP financial measures, specifically gross billings, and reconciles them to net sales, along with an analysis of promotional allowances - Gross billings for Q1 2023 were **$1.955 billion**, a **12.1% year-over-year increase**, with foreign currency exchange rate fluctuations having an unfavorable impact of approximately **$60.9 million**[184](index=184&type=chunk) Reconciliation of Gross Billings to Net Sales (For the Three Months Ended March 31, Thousands of USD) | Indicator | 2023 | 2022 | Year-over-Year Change (%) | | :---------------- | :----- | :----- | :----------- | | Gross Billings | 1,955,039 | 1,743,927 | 12.1 | | Deferred Revenue | 9,946 | 10,020 | -0.7 | | Less: Promotional Allowances, Commissions, and Other Fees | 266,055 | 235,373 | 13.0 | | **Net Sales** | **1,698,930** | **1,518,574** | **11.9** | - Promotional allowances, commissions, and other fees totaled **$266.1 million**, a **13.0% year-over-year increase**, with their percentage of gross billings slightly increasing from **13.5% to 13.6%**[188](index=188&type=chunk) [Sales Volume](index=53&type=section&id=Sales%20Volume) This section provides an analysis of sales volume for energy drink cases and alcoholic beverage barrels, including year-over-year changes Energy Drink Case Sales Volume by Segment (For the Three Months Ended March 31, Thousands of Cases) | Segment | 2023 | 2022 | | :---------------- | :----- | :----- | | Monster Energy® Drinks | 151,071 | 140,126 | | Strategic Brands | 31,373 | 28,667 | | **Total Case Sales Volume** | **182,444** | **168,793** | - Energy drink product case sales volume increased by **8.1% to 182.4 million cases**, with the average net sales per case increasing by **1.8% to $9.03**[172](index=172&type=chunk)[192](index=192&type=chunk) - Barrel sales volume for craft beers, hard seltzers, and FMBs increased by **224.7% to 0.15 million barrels**[172](index=172&type=chunk)[193](index=193&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity position, including cash, investments, and expected cash flows, and outlines its contractual commitments - As of March 31, 2023, the company held **$1.67 billion** in cash and cash equivalents, **$1.38 billion** in short-term investments, and **$41.2 million** in long-term investments[194](index=194&type=chunk) - The company anticipates that cash generated from operations, existing cash resources, and credit facilities will be sufficient to meet working capital needs, capital expenditures, and stock repurchases over the next 12 months[195](index=195&type=chunk) Summary of Cash Flows (For the Three Months Ended March 31, Thousands of USD) | Cash Flow Activity | 2023 | 2022 | | :------------- | :----- | :----- | | Net Cash from Operating Activities | 424,475 | (351) | | Net Cash from Investing Activities | (52,766) | (303,630) | | Net Cash from Financing Activities | (6,049) | (4,223) | Contractual Commitments and Related Due Dates (As of March 31, 2023, Thousands of USD) | Obligation Type | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :--------- | :--- | :------ | :---- | :---- | :------ | | Contractual Obligations | 380,587 | 291,735 | 81,618 | 7,234 | — | | Finance Leases | 2,493 | 2,459 | 34 | — | — | | Operating Leases | 40,005 | 8,758 | 11,791 | 7,837 | 11,619 | | Purchase Commitments | 336,845 | 332,774 | 4,071 | — | — | | **Total** | **759,930** | **635,726** | **97,514** | **15,071** | **11,619** | [Critical Accounting Policies and Estimates](index=59&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section states that there have been no significant changes to the company's critical accounting policies and estimates since its last annual report - There have been no significant changes to the company's critical accounting policies and estimates since the disclosure in its annual report on Form 10-K as of December 31, 2022[206](index=206&type=chunk) [Recent Accounting Pronouncements](index=59&type=section&id=Recent%20Accounting%20Pronouncements) This section indicates that recently issued or adopted accounting pronouncements have not had a material impact on the company - Recently issued or adopted accounting pronouncements have not had a material impact on the company[207](index=207&type=chunk) [Inflation](index=59&type=section&id=Inflation) This section addresses the negative impact of inflation on the company's operating results, specifically on costs - Inflation negatively impacted Q1 2023 operating results, leading to increased cost of sales and operating expenses[208](index=208&type=chunk) [Forward-Looking Statements and Risk Factors](index=60&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially - This report contains forward-looking statements regarding revenue, profitability, and capital adequacy, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations[209](index=209&type=chunk)[210](index=210&type=chunk)[216](index=216&type=chunk) - Key risk factors include rising costs, economic slowdowns, supply chain disruptions, relationship with TCCC, regulatory changes, litigation risks, shifts in consumer preferences, competitive pressures, and raw material cost fluctuations[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This chapter states that the company's market risk has not materially changed from what was disclosed in its annual report on Form 10-K for the three months ended March 31, 2023 - For the three months ended March 31, 2023, the company's market risk has not materially changed from what was disclosed in its Form 10-K[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) This chapter discloses management's assessment of disclosure controls and procedures and reports on changes in internal control over financial reporting - Management assessed that the company's disclosure controls and procedures were effective as of the end of the reporting period[218](index=218&type=chunk) - There were no changes in internal control over financial reporting that materially affected or are reasonably likely to materially affect internal control during the quarter ended March 31, 2023[219](index=219&type=chunk) [Part II. OTHER INFORMATION](index=68&type=section&id=Part%20II.%20OTHER%20INFORMATION) This section contains additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) This chapter incorporates information regarding legal proceedings into the "Commitments and Contingencies" note to the condensed consolidated financial statements - Information regarding legal proceedings is incorporated into Note 11, 'Commitments and Contingencies,' to the condensed consolidated financial statements[221](index=221&type=chunk) [Item 1A. Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) This chapter advises investors to consider the risk factors disclosed in the company's annual report on Form 10-K and acknowledges that the listed risks are not exhaustive - Investors should carefully consider the risks discussed in the 'Risk Factors' section of the annual report on Form 10-K, as well as other risks and uncertainties mentioned in this report[222](index=222&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This chapter details the retirement of treasury stock, remaining authorized share repurchase amounts, and employee stock purchases - On March 10, 2023, the company retired **170 million shares** (split-adjusted) of treasury stock with a book value of approximately **$4.69 billion**[223](index=223&type=chunk) - As of May 5, 2023, the company had **$682.8 million** remaining under its authorized stock repurchase programs[224](index=224&type=chunk) - In Q1 2023, the company purchased **1.7 million shares** of common stock from employees for **$90.4 million** for option exercises or tax withholdings, which are not part of the authorized repurchase programs[225](index=225&type=chunk) [Item 3. Defaults Upon Senior Securities](index=68&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This chapter states that there were no defaults upon senior securities - No defaults upon senior securities[226](index=226&type=chunk) [Item 4. Mine Safety Disclosures](index=68&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This chapter states that mine safety disclosures are not applicable to the company - Not applicable[226](index=226&type=chunk) [Item 5. Other Information](index=68&type=section&id=Item%205.%20Other%20Information) This chapter states that there is no other information requiring disclosure - No other information[226](index=226&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This chapter lists all exhibits filed with the quarterly report, including certifications and financial information in iXBRL format - Exhibits include certifications by the Chief Executive Officer and Chief Financial Officer filed pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[227](index=227&type=chunk) - Exhibits also include condensed consolidated financial statements and notes filed in iXBRL format[227](index=227&type=chunk)[228](index=228&type=chunk) [Signatures](index=71&type=section&id=Signatures) This section provides the signatures of the company's co-Chief Executive Officers for the report - This report was signed on May 5, 2023, by Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, and Rodney C. Sacks, Chairman and Co-Chief Executive Officer[230](index=230&type=chunk)[231](index=231&type=chunk)

Financial Data and Key Metrics Changes - The company achieved record fourth quarter net sales of $1.51 billion in Q4 2022, a 6.2% increase from $1.43 billion in Q4 2021, and an 11.9% increase on a foreign currency adjusted basis [5] - Gross profit as a percentage of net sales for Q4 2022 was 51.8%, down from 53.9% in Q4 2021, primarily due to increased ingredient costs and logistical expenses [6][7] - Operating income for Q4 2022 decreased 4.5% to $394.4 million from $412.9 million in Q4 2021, and net income decreased 6.1% to $301.7 million [11] - Diluted earnings per share for Q4 2022 decreased 4.9% to $0.57 from $0.60 in Q4 2021 [11] Business Line Data and Key Metrics Changes - Sales of the company's energy brands, including Reign, were up 12.1% in the 13-week period ending February 11, 2023 [12] - Sales of Monster increased by 11.3%, while Reign sales increased by 15.6% [13] - The company continues to experience significant increases in distribution expenses, primarily due to higher warehousing expenses [9] Market Data and Key Metrics Changes - Net sales to customers outside the US were $542.5 million, accounting for 35.9% of total net sales in Q4 2022, compared to $508.1 million or 35.7% in Q4 2021 [22] - In EMEA, net sales decreased 2.3% in dollars but increased 14.7% in local currencies over the same period in 2021 [23] - In Latin America, net sales increased 45.2% in dollars and 57.7% in local currencies over the same period in 2021 [25] Company Strategy and Development Direction - The company plans to implement price increases in various international markets to mitigate inflationary pressures [12] - The company is focusing on product availability and solidifying long-term growth despite supply chain challenges [5] - The company is optimistic about its innovation pipeline, including new product launches in both alcoholic beverages and energy drinks [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted that some cost pressures are expected to be transitory, while others remain challenging [40] - The company is seeing improvements in gross profit margins on a sequential basis due to supply chain normalization [36] - Management expressed optimism about the future of the company and its growth strategy, particularly in capitalizing on relationships with bottling partners [66] Other Important Information - The company announced a 2-for-1 stock split effective March 27, 2023 [35] - The company purchased approximately 2.3 million shares of its common stock for a total amount of $201.6 million during Q4 2022 [35] Q&A Session Summary Question: Can you frame how much of the drag on gross margin is still a result of these imported cans? - Management indicated that the impact from imported cans is not significant and will be resolved as they cycle through existing inventories [42] Question: Would you expect sequential gross margin improvement from here? - Management did not provide specific guidance but noted that pricing increases and decreasing commodity costs could support margin recovery [44][46] Question: How do you think about the relative affordability of Monster and energy drinks broadly in the US after the price increase? - Management highlighted that Monster's pricing remains competitive compared to other beverage categories and plans to monitor opportunities for further price increases [55] Question: Can you talk about your expectations for your innovation pipeline in 2023? - Management expressed confidence in a robust innovation pipeline, with positive initial responses to new products and plans for increased shelf space [58][59]

Market Overview - The alternative beverage category in the U.S. reached approximately $72.9 billion in wholesale sales in 2022, marking a 10.4% increase from $66.1 billion in 2021[10]. - Net sales outside the United States reached $2.36 billion in 2022, up from $2.04 billion in 2021 and $1.51 billion in 2020, indicating strong international growth[46]. - U.S. full service bottlers/distributors accounted for 48% of gross billings in 2022, down from 51% in 2021 and 56% in 2020[74]. - International full service bottlers/distributors represented 39% of gross billings in 2022, consistent with 2021, and up from 34% in 2020[74]. - Club stores and e-commerce retailers contributed 9% to gross billings in 2022, an increase from 8% in 2021 and 2020[74]. Product Segments - The company has four operating segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other, each contributing to its overall revenue[11]. - The Monster Energy® Drinks segment generates higher per case net operating revenues but lower per case gross profit margin percentages compared to the Strategic Brands segment[14]. - The Alcohol Brands segment primarily generates revenues from kegged and ready-to-drink canned beers, hard seltzers, and flavored malt beverages[14]. - The Strategic Brands segment generates revenues by selling concentrates and beverage bases to authorized bottling operations[13]. - The company’s alcohol brands segment includes craft beers and hard seltzers, expanding its product offerings in the beverage market[30]. Product Development and Innovation - In 2022, the company introduced several new products, including Java Monster® Cold Brew Latte and Monster Energy® Ultra Peachy Keen®, enhancing its energy drink portfolio[17]. - The company continues to develop and market a wide range of energy drinks, including new flavors and product lines to meet consumer demand[17]. - The company continues to evaluate and introduce additional products and flavors to complement existing product lines[33]. - The company has discontinued certain products in 2022, but these did not materially impact its financial position or results[17]. - In 2022, new product introductions included 15 new energy drink variants, such as Java Monster® Cold Brew Latte and Reign Total Body Fuel® Reignbow Sherbet[17]. Distribution and Supply Chain - The company continues to expand distribution agreements for Monster Energy® products, with initial terms of up to twenty years[47]. - The company has entered into various distribution agreements with TCCC network bottlers for both domestic and international markets[51]. - The company is actively seeking additional co-packing facilities globally to mitigate production risks and transportation costs[45]. - The company has established purchase agreements with key suppliers to ensure an adequate supply of packaging and ingredients for the next one to four years[58]. - The principal raw materials include aluminum cans, PET plastic bottles, and various flavor ingredients, with costs subject to fluctuations[54]. Marketing and Sales - The company increased expenditures for sales and marketing programs by approximately 11.4% for the twelve months ended December 31, 2022, compared to the previous year[73]. - Coca-Cola Consolidated, Inc. accounted for approximately 11% of net sales in 2022, down from 12% in both 2021 and 2020[75]. - The energy drink category appears to be less seasonal than traditional beverages, with the second and third quarters accounting for the highest sales volumes[77]. Competition - The company competes with numerous brands in the energy drink category, including Red Bull, Rockstar, and various local brands[66]. - The company’s Java Monster® product line competes directly with Starbucks coffee drinks and other coffee brands[68]. - The company’s Reign Total Body Fuel® and Reign Inferno® compete in the performance energy category against brands like VPX Bang and C4[67]. - The company’s CANarchy family of products competes within the FMB, hard seltzer, and craft beer categories against major producers like Molson Coors and AB InBev[69]. Regulatory Environment - The company is subject to various regulations regarding product formulation, labeling, and advertising, including California Proposition 65[85]. - New labeling requirements are being considered in several countries, which may necessitate changes to product labels[88]. - Legislation imposing excise taxes on sweetened beverages has been proposed in the U.S., with taxes generally ranging from $0.01 to $0.02 per ounce[91]. - The company faces increasing regulatory issues in new international markets, which may impact its competitive position[64]. - Specific energy drink standards in markets like Tanzania restrict certain ingredients, which may lead to additional costs for compliance[89]. Workforce and Diversity - As of December 31, 2022, the company has a total of 5,296 employees across 72 countries, with 3,611 in North America and 1,043 in Europe, the Middle East, and Africa (EMEA)[103]. - Approximately 43% of U.S. employees belong to underrepresented groups, and 36% are female[104]. - The company has established an Equality, Diversity and Inclusion (EDI) Leadership Advisory Group to enhance diversity and inclusion efforts[104]. - The company offers various training and development programs, including a mid-level manager development program and a leadership development platform[105]. - Compensation packages are designed to attract and retain talent, with multiple short-term and long-term incentive programs[106].

Monster Beverage Corporation (NASDAQ:MNST) Q3 2022 Results Conference Call November 3, 2022 5:00 PM ET Company Participants Rodney Sacks - Chief Executive Officer Hilton Schlosberg - Vice Chairman and Co-CEO Tom Kelly - Chief Financial Officer Conference Call Participants Andrea Teixeira - JPMorgan Dara Mohsenian - Morgan Stanley Bonnie Herzog - Goldman Sachs Kevin Grundy - Jefferies Mark Astrachan - Stifel Peter Galbo - Bank of America Operator Good afternoon, everyone, and welcome to the Monster Beverage ...