[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)) The unaudited statements reveal significant growth in revenue and net income, an increase in total assets, and the full repayment of long-term debt [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $8.73 billion, stockholders' equity rose to $7.19 billion, and long-term debt was eliminated by June 30, 2025 Balance Sheet Items (In Thousands) | Balance Sheet Items (In Thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$8,729,888** | **$7,719,089** | | Cash and cash equivalents | $1,926,927 | $1,533,287 | | Total current assets | $4,429,340 | $3,641,504 | | **Total Liabilities** | **$1,538,584** | **$1,761,371** | | Total current liabilities | $1,258,618 | $1,097,519 | | Long-term debt | $— | $373,951 | | **Total Stockholders' Equity** | **$7,191,304** | **$5,957,718** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales and net income increased for both the second quarter and first half of 2025, driving higher diluted earnings per share Income Statement (Q2) | Income Statement (In Thousands, Except EPS) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,111,593 | $1,900,597 | +11.1% | | Gross Profit | $1,176,413 | $1,019,506 | +15.4% | | Operating Income | $631,622 | $527,163 | +19.8% | | Net Income | $488,794 | $425,369 | +14.9% | | Diluted EPS | $0.50 | $0.41 | +22.0% | Income Statement (H1) | Income Statement (In Thousands, Except EPS) | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $3,966,150 | $3,799,695 | +4.4% | | Gross Profit | $2,224,375 | $2,046,634 | +8.7% | | Operating Income | $1,201,367 | $1,069,154 | +12.4% | | Net Income | $931,787 | $867,418 | +7.4% | | Diluted EPS | $0.95 | $0.83 | +14.5% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased, while significant changes in investing and financing activities resulted in a net cash increase for H1 2025 Cash Flow Summary | Cash Flow Summary (In Thousands) | Six-Months Ended June 30, 2025 | Six-Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $973,616 | $848,433 | | Net cash (used in) provided by investing activities | $(357,729) | $903,304 | | Net cash used in financing activities | $(308,972) | $(2,440,475) | | **Net Increase (Decrease) in Cash** | **$393,640** | **$(732,941)** | - Financing activities in H1 2025 included a **$375.0 million repayment of credit facilities**, contrasting with H1 2024 which saw **$750.0 million in borrowings** and over **$3.2 billion in treasury stock purchases**[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance, the full repayment of a term loan, and a new share repurchase program - The company operates four reportable segments: **Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other**[28](index=28&type=chunk)[90](index=90&type=chunk) - The outstanding balance of **$200.0 million on long-term debt was repaid in April 2025**, and the company's **$750.0 million Term Loan was fully repaid**[57](index=57&type=chunk) - The Board of Directors authorized a **$500.0 million share repurchase program** in August 2024, with the full amount remaining available as of August 6, 2025[64](index=64&type=chunk)[65](index=65&type=chunk) Net Sales by Segment (Q2 2025) | Net Sales by Segment (Q2 2025, In Thousands) | Amount | % of Total | | :--- | :--- | :--- | | Monster Energy® Drinks | $1,937,321 | 91.7% | | Strategic Brands | $129,893 | 6.2% | | Alcohol Brands | $37,971 | 1.8% | | Other | $6,408 | 0.3% | | **Total Net Sales** | **$2,111,593** | **100.0%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q2 2025 sales growth driven by volume and pricing, improved margins, and a robust liquidity position - Price increases implemented in late 2024 and into 2025 **positively impacted gross profit margins**[127](index=127&type=chunk) - Net sales to customers outside the United States **grew 15.8% to $864.2 million** in Q2 2025, representing **41% of total net sales**[135](index=135&type=chunk)[114](index=114&type=chunk) - Key customers include **Coca-Cola Europacific Partners (15% of Q2 net sales)**, **Coca-Cola Consolidated, Inc. (11%)**, and **Reyes Holdings, LLC (9%)**[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q2 2025 featured double-digit growth in net sales and operating income, with a 210 basis point expansion in gross margin Key Metrics Comparison (Q2) | Key Metrics Comparison | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $2,111.6M | $1,900.6M | | Gross Profit % | 55.7% | 53.6% | | Operating Income | $631.6M | $527.2M | | Net Income | $488.8M | $425.4M | - The increase in gross profit as a percentage of net sales for Q2 2025 was primarily due to **pricing actions, supply chain optimization, and lower input costs**[157](index=157&type=chunk) - Operating expenses **increased 10.7%** in Q2 2025, mainly due to higher payroll expenses, including **$14.4 million in stock-based compensation**[158](index=158&type=chunk)[160](index=160&type=chunk) [Key Business Metrics](index=51&type=section&id=Key%20Business%20Metrics) Gross billings grew 12.7% in Q2 2025, driven by a 17.5% increase in energy drink case sales Gross Billings Reconciliation (Q2) | Gross Billings Reconciliation (Q2, In Thousands) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Gross Billings | $2,500,676 | $2,218,152 | +12.7% | | Less: Promotional allowances, etc. | (399,064) | (327,533) | +21.8% | | Net Sales | $2,111,593 | $1,900,597 | +11.1% | - Energy drink case sales (192-ounce equivalents) **grew 17.5% YoY** in Q2 2025, reaching **249.3 million cases**[154](index=154&type=chunk) - The average net sales per case for energy drinks **decreased by 5.0% to $8.29** in Q2 2025, primarily due to geographical and product sales mix[154](index=154&type=chunk)[212](index=212&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.93 billion in cash, no long-term debt, and sufficient resources for future needs - As of June 30, 2025, the company had **$1.93 billion in cash and cash equivalents**[215](index=215&type=chunk) - The Term Loan was **fully repaid in April 2025**, and as of June 30, 2025, no borrowings were outstanding under the Credit Facilities[216](index=216&type=chunk) Contractual Commitments | Contractual Commitments (as of June 30, 2025, In Thousands) | Total | Less than 1 year | | :--- | :--- | :--- | | Contractual Obligations | $491,290 | $273,273 | | Leases (Finance & Operating) | $65,483 | $19,809 | | Purchase Commitments | $275,394 | $239,821 | | **Total** | **$832,167** | **$532,903** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes in its market risks during the quarter compared to its most recent Annual Report - There have been **no material changes in market risks** during the quarter ended June 30, 2025, compared with the disclosures in the most recent Form 10-K[239](index=239&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures are adequate and effective**[240](index=240&type=chunk) - **No changes occurred** in the company's internal controls over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[241](index=241&type=chunk) [Part II. OTHER INFORMATION](index=70&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company accrued $30.6 million for loss contingencies related to legal proceedings as of June 30, 2025 - Details on legal proceedings are provided in **Note 10 of the financial statements**[243](index=243&type=chunk)[61](index=61&type=chunk) - As of June 30, 2025, accrued loss contingencies totaled **$30.6 million**, an increase from **$16.8 million** at year-end 2024[62](index=62&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) The company directs investors to the risk factors discussed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - The company refers to the risk factors detailed in its **Annual Report on Form 10-K**, indicating no material updates in this quarterly filing[244](index=244&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased during the quarter, with $500.0 million remaining available under the current repurchase plan - **No shares were repurchased** during the three months ended June 30, 2025[245](index=245&type=chunk)[247](index=247&type=chunk) - As of August 6, 2025, **$500.0 million remained available for repurchase** under all authorized plans[246](index=246&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025 - No directors or officers adopted, modified, or terminated a **Rule 10b5-1 or non-Rule 10b5-1 trading arrangement** during the quarter[250](index=250&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and iXBRL financial data - Exhibits filed include **certifications from the CEO and CFO** pursuant to the Sarbanes-Oxley Act of 2002[253](index=253&type=chunk)

Monster Beverage (MNST) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.33%. A quarter ago, it was expected that this energy drink maker would post earnings of $0.46 per share when it actually produced earnings of $0.47, delivering a surprise of +2.17%. Over the last four quarters ...

Financial Data and Key Metrics Changes - The company reported record net sales of $2,110,000,000 for the second quarter, marking an 11.1% increase compared to the same period in 2024 [5][12] - Gross profit as a percentage of net sales increased to 55.7% from 53.6% year-over-year, driven by pricing actions and lower input costs [15] - Net income for the second quarter rose 14.9% to $488,800,000, with earnings per diluted share increasing 21.1% to $0.50 [18][19] Business Line Data and Key Metrics Changes - Net sales for the Monster Energy Drinks segment increased 11.2% to $1,940,000,000, while the Strategic Brands segment saw an 18.9% increase to $129,900,000 [13][14] - The Alcohol Brands segment experienced an 8.6% decline in net sales to $38,000,000 [15][32] Market Data and Key Metrics Changes - In the U.S., the energy drink category grew by 13.2%, with Monster Energy Ultra family being a significant contributor [7][20] - EMEA region net sales increased by 26.8% in dollars and 23.7% on a currency-neutral basis [24] - Asia Pacific net sales rose 11.6% in dollars and on a currency-neutral basis [26] Company Strategy and Development Direction - The company is focused on innovation and expanding its product offerings, including the introduction of new flavors and strategic brand launches [9][22] - The company plans to implement selective price adjustments in the U.S. market, aiming to optimize trade spend [22] - The company is leveraging its relationship with Coca-Cola bottlers to enhance distribution and market presence [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy drink category's growth, citing increased household penetration and consumer demand for functional beverages [36][56] - The company anticipates modest tariff pressures but believes that planned price increases will help mitigate these impacts [42][43] Other Important Information - The company has a robust innovation pipeline and is excited about upcoming product launches, including new flavors and collaborations [9][55] - The company reported no share repurchases during the quarter, with approximately $500,000,000 remaining available for repurchase under the authorized program [33] Q&A Session Summary Question: Can you discuss the sustainability of gross margin performance and the impact of tariffs? - Management indicated that pricing increases will depend on packaging and channel, with modest tariff pressures expected in Q3 [41][42] Question: What is the status of supply chain optimization efforts? - The company has achieved a good balance between its own production and co-packing, aiming for the lowest delivered price to customers [46][47] Question: Is there any pull forward in sales ahead of pricing discussions? - Management noted that all regions are experiencing growth, driven by competitive pricing and consumer demand for functionality [54][55] Question: Can you elaborate on the visual identity changes for the Ultra line? - The company is establishing a separate identity for the Ultra line with new coolers and promotional strategies to enhance visibility [64][65]

Financial Data and Key Metrics Changes - The company reported record net sales of $2,110,000,000 for the second quarter of 2025, marking an 11.1% increase compared to $1,900,000,000 in the same quarter of 2024 [5][11] - Gross profit as a percentage of net sales increased to 55.7% from 53.6% year-over-year, driven by pricing actions and supply chain optimization [13] - Net income rose by 14.9% to $488,800,000 from $425,400,000 in the previous year [16] - Earnings per diluted share increased by 21.1% to $0.50 from $0.41 in the prior year [17] Business Line Data and Key Metrics Changes - Net sales for the Monster Energy Drinks segment increased by 11.2% to $1,940,000,000 [12] - The Strategic Brands segment saw a significant increase of 18.9% to $129,900,000 [12] - The Alcohol Brands segment experienced a decline of 8.6% to $38,000,000 [13] Market Data and Key Metrics Changes - In the U.S., the energy drink category grew by 13.2% year-over-year, with Monster Energy Ultra family being a key driver [6][18] - EMEA markets reported a growth of approximately 15.4% in the energy drink category [7] - APAC markets saw a growth of 20.9% in the energy drink category [7] - Net sales outside the U.S. accounted for approximately 41% of total net sales, up from 39% in the previous year [22] Company Strategy and Development Direction - The company is focused on innovation and expanding its product offerings, including the introduction of new flavors and products [8][20] - Strategic partnerships, such as with the Coca-Cola bottling system, are emphasized for growth [65] - The company plans to implement selective price adjustments and reduce promotional allowances in the U.S. [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the energy drink category's growth potential, citing increasing household penetration and consumer demand for energy [34][35] - The company remains optimistic about its innovation pipeline and market positioning despite potential tariff pressures [41][54] - Management noted that the energy drink category is becoming more competitive with traditional soft drinks, which is favorable for future growth [48] Other Important Information - The company is planning to launch several new products in the fall, including full sugar flavors and new strategic brands [20][25] - The impact of tariffs on operating results is currently deemed immaterial, but management is monitoring the situation closely [10][11] Q&A Session Summary Question: Sustainability of gross margin performance and pricing adjustments - Management indicated that pricing adjustments will depend on packaging and channel, with modest tariff pressures expected [40][41] Question: Supply chain optimization and category strength - Management highlighted a balanced co-packing model and noted strong sales trends across all regions, driven by innovation and competitive pricing [46][48] Question: Drivers of lower price per case - Management attributed the lower price per case to geographic and product mix, with a significant portion of sales coming from international markets and affordable brands [57][59] Question: Visual identity changes for the Ultra line - Management explained that the new visual identity aims to enhance merchandising and visibility for the Ultra line, which has been performing well [61][62]

[Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) [Q2 2025 Key Financial Results](index=1&type=section&id=Q2%202025%20Key%20Financial%20Results) Monster Beverage reported record quarterly net sales for Q2 2025, surpassing the $2.0 billion threshold for the first time, with net sales increasing by 11.1% to $2.11 billion and net income per diluted share rising by 21.1% to $0.50 - The company achieved **record quarterly net sales**, exceeding the **$2.0 billion threshold** for the first time in its history[6](index=6&type=chunk)[19](index=19&type=chunk) Q2 2025 Financial Highlights (YoY Growth) | Metric | Value | Growth (GAAP) | Growth (Non-GAAP Adjusted) | | :--- | :--- | :--- | :--- | | **Net Sales** | $2.11 billion | 11.1% | 11.4% (FX Adjusted) | | **Operating Income** | $631.6 million | 19.8% | 21.5% | | **Net Income per Diluted Share** | $0.50 | 21.1% | 23.0% | [H1 2025 Key Financial Results](index=3&type=section&id=H1%202025%20Key%20Financial%20Results) For the first six months of 2025, net sales increased by 4.4% to $3.97 billion, with net income growing 7.4% to $931.8 million, resulting in a diluted EPS of $0.95 Six-Months Ended June 30, 2025 Financial Summary | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $3.97 billion | $3.80 billion | +4.4% | | **Operating Income** | $1.20 billion | $1.07 billion | +12.1% | | **Net Income** | $931.8 million | $867.4 million | +7.4% | | **Diluted EPS** | $0.95 | $0.83 | +14.5% | - Net sales on a foreign currency adjusted basis increased by **6.0%** for the six-month period[21](index=21&type=chunk) [Detailed Financial Analysis](index=1&type=section&id=Detailed%20Financial%20Analysis) [Sales Performance by Segment and Geography](index=1&type=section&id=Sales%20Performance%20by%20Segment%20and%20Geography) Sales growth in Q2 2025 was driven by the Monster Energy® Drinks segment (+11.2%) and the Strategic Brands segment (+18.9%), while international sales were a key growth driver, increasing 15.8% and accounting for 41% of total net sales Q2 2025 Net Sales by Segment (in millions) | Segment | Q2 2025 Net Sales | Q2 2024 Net Sales | YoY Growth | | :--- | :--- | :--- | :--- | | **Monster Energy® Drinks** | $1,940 | $1,740 | +11.2% | | **Strategic Brands** | $129.9 | $109.2 | +18.9% | | **Alcohol Brands** | $38.0 | $41.6 | -8.6% | | **Other** | $6.4 | $7.0 | -8.5% | - Net sales to customers outside the United States increased by **15.8%** to **$864.2 million**, representing **41%** of total net sales in Q2 2025, up from **39%** in Q2 2024[10](index=10&type=chunk) [Profitability and Expense Analysis](index=2&type=section&id=Profitability%20and%20Expense%20Analysis) Gross profit margin for Q2 2025 improved to 55.7% from 53.6% YoY, attributed to pricing actions, supply chain optimization, and lower input costs, while operating expenses as a percentage of sales remained stable at 25.8% - Gross profit as a percentage of net sales increased to **55.7%** from **53.6%** in Q2 2024, primarily due to pricing actions, supply chain optimization, and lower input costs[11](index=11&type=chunk) Q2 Operating Expenses as a Percentage of Net Sales | Expense Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Distribution** | 3.9% | 4.6% | | **Selling** | 9.3% | 10.1% | | **General & Administrative** | 12.6% | 11.2% | | **Total Operating Expenses** | 25.8% | 25.9% | - General and administrative expenses included **$13.8 million** of litigation provisions and a **$14.4 million** increase in stock-based compensation compared to the prior year[13](index=13&type=chunk) - Operating income for Q2 2025 increased **19.8%** to **$631.6 million**, with the effective tax rate rising to **24.4%** from **22.9%** in the prior-year quarter[16](index=16&type=chunk)[17](index=17&type=chunk) [Corporate Developments](index=4&type=section&id=Corporate%20Developments) [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) The company did not repurchase any of its common stock during the second quarter of 2025, with approximately $500.0 million remaining available for repurchase under the existing authorization as of August 6, 2025 - **No shares** of the Company's common stock were repurchased during the 2025 second quarter[25](index=25&type=chunk) - As of August 6, 2025, approximately **$500.0 million** remained available for repurchase under the authorized program[25](index=25&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) [CEO Remarks](index=3&type=section&id=CEO%20Remarks) CEO Hilton H. Schlosberg highlighted the record Q2 net sales, attributing the performance to brand strength, product innovations, and global team efforts, while noting positive category trends supporting long-term growth - The CEO emphasized that **record net sales** underscore the strength of the company's brands and the success of product innovations[19](index=19&type=chunk) - Management identified **increased household penetration** and **per capita consumption** of energy drinks as positive trends for the category[20](index=20&type=chunk) - A **robust pipeline of innovative products** is considered central to the company's long-term growth strategy[20](index=20&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement details the company's financial performance for Q2 2025, with net sales growing 11.1% to $2.11 billion and net income increasing 14.9% to $488.8 million, and for the six-month period, net sales rose 4.4% to $3.97 billion with net income up 7.4% to $931.8 million Q2 2025 Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net sales** | $2,111,593 | $1,900,597 | | **Gross profit** | $1,176,413 | $1,019,506 | | **Operating income** | $631,622 | $527,163 | | **Net income** | $488,794 | $425,369 | | **Diluted EPS** | $0.50 | $0.41 | H1 2025 Income Statement Highlights (in thousands) | Line Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net sales** | $3,966,150 | $3,799,695 | | **Gross profit** | $2,224,375 | $2,046,634 | | **Operating income** | $1,201,367 | $1,069,154 | | **Net income** | $931,787 | $867,418 | | **Diluted EPS** | $0.95 | $0.83 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of $8.73 billion, an increase from $7.72 billion at the end of 2024, with key changes including a rise in cash and cash equivalents to $1.93 billion and the elimination of long-term debt Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,926,927 | $1,533,287 | | **Total current assets** | $4,429,340 | $3,641,504 | | **Total Assets** | $8,729,888 | $7,719,089 | | **Total current liabilities** | $1,258,618 | $1,097,519 | | **Long-term debt** | $0 | $373,951 | | **Total stockholders' equity** | $7,191,304 | $5,957,718 | [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Reconciliation of Adjusted Performance Metrics](index=8&type=section&id=Reconciliation%20of%20Adjusted%20Performance%20Metrics) The company provides non-GAAP metrics to offer investors a clearer view of ongoing operations by adjusting for factors like foreign currency impact, the Alcohol Brands segment, litigation provisions, and certain stock-based compensation Q2 2025 Net Sales Reconciliation (in thousands) | Description | Amount | YoY Growth | | :--- | :--- | :--- | | **Net Sales (GAAP)** | $2,111,593 | 11.1% | | Currency Impact | $5,027 | N/A | | **Adjusted Net Sales (FX Neutral)** | $2,116,620 | 11.4% | Q2 2025 Operating Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **Operating Income (GAAP)** | $631,622 | | Alcohol Brands Segment Adj. | $14,632 | | Litigation Provisions | $13,818 | | Stock-Based Compensation Adj. | $7,869 | | **Adjusted Operating Income** | $667,941 | Q2 2025 Diluted EPS Reconciliation | Description | Amount | YoY Growth | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | $0.50 | 21.1% | | Alcohol Brands Segment Adj. | $0.01 | N/A | | Litigation Provisions Adj. | $0.01 | N/A | | **Adjusted Diluted EPS** | $0.52 | 23.0% |

Core Viewpoint - Monster Beverage Corporation reported record net sales for the second quarter of 2025, exceeding $2.0 billion for the first time, driven by strong performance across its energy drink segments and product innovations [10][16]. Financial Performance - Net sales for the second quarter of 2025 increased by 11.1% to $2.11 billion, compared to $1.90 billion in the same period last year [2][10]. - On a foreign currency adjusted basis, net sales increased by 11.4% in the second quarter of 2025 [2][10]. - For the six months ended June 30, 2025, net sales rose by 4.4% to $3.97 billion from $3.80 billion in the comparable period last year [18]. Segment Performance - The Monster Energy® Drinks segment saw net sales increase by 11.2% to $1.94 billion in the second quarter of 2025, up from $1.74 billion in the previous year [4][10]. - The Strategic Brands segment, which includes energy drink brands acquired from The Coca-Cola Company, reported an 18.9% increase in net sales to $129.9 million for the second quarter of 2025 [5][10]. - The Alcohol Brands segment experienced a decline of 8.6% in net sales, totaling $38.0 million for the second quarter of 2025 [6][10]. Profitability Metrics - Gross profit as a percentage of net sales increased to 55.7% in the second quarter of 2025, up from 53.6% in the same quarter of 2024 [9][10]. - Operating income for the second quarter of 2025 rose by 19.8% to $631.6 million, compared to $527.2 million in the second quarter of 2024 [14][10]. - Net income for the second quarter of 2025 increased by 14.9% to $488.8 million, up from $425.4 million in the same quarter of 2024 [15][10]. International Sales - Net sales to customers outside the United States increased by 15.8% to $864.2 million in the second quarter of 2025, compared to $746.0 million in the second quarter of 2024 [8][10]. Cost Management - Distribution expenses for the second quarter of 2025 were $82.0 million, or 3.9% of net sales, down from 4.6% in the same quarter of 2024 [11][10]. - Selling expenses decreased to 9.3% of net sales in the second quarter of 2025, compared to 10.1% in the same quarter of 2024 [11][10]. Shareholder Returns - As of August 6, 2025, approximately $500.0 million remained available for repurchase under the company's previously authorized share repurchase program [22].

Financial Data and Key Metrics Changes - The company reported revenue of €10.3 billion for H1 2025, an increase of 2.5% compared to the previous year [24] - Comparable volumes were marginally ahead, up 0.3%, despite challenges in Indonesia [24] - Operating profit increased by 7.2% to €1.4 billion, with an operating margin expansion of approximately 60 basis points to 13.5% [26] - Comparable diluted earnings per share rose by 3.1% on an FX neutral basis [26] - Comparable free cash flow generation was €425 million for H1, with a target of at least €1.7 billion for the full year [27] Business Line Data and Key Metrics Changes - The core NARTD category grew by more than 5% in the last twelve months, with significant contributions from Monster and other brands [8] - Monster volumes increased nearly 15%, driven by innovation and distribution gains [17] - Fanta Zero volumes grew by around 7%, and Sprite Zero by approximately 13% [18] - The away-from-home business saw a return to volume growth in Q2, supported by better weather and Easter timing [11] Market Data and Key Metrics Changes - The European market returned to volume growth in Q2, contributing positively to overall performance [24] - The Philippines market performed well despite strong comparables from the previous year, with a 10 basis point increase in overall value share [12] - Indonesia faced a weaker consumer backdrop, impacting group volumes by around 1% in Q2 [9] Company Strategy and Development Direction - The company is focused on driving profitable revenue growth while maintaining affordability and relevance for consumers [13] - A multiyear view on promotional and pricing strategies is emphasized to create sustainable value [12] - The company is investing heavily in technology and digital capabilities to enhance productivity and efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the midterm growth objectives, reaffirming full-year profit and cash guidance [40] - The company anticipates volume growth for the full year, particularly in Europe and APS, despite challenges in Indonesia [30] - Management acknowledged the competitive landscape but remains focused on sustainable value creation [70] Other Important Information - The company completed around €460 million in share buybacks and maintained a dividend payout policy of around 50% [7] - The launch of new campaigns, such as "This Is My Taste" for Diet Coke, is expected to drive consumer engagement [32] - The company is transitioning to a partner distributor model in Indonesia to enhance distribution efficiency [37] Q&A Session Summary Question: Guidance on top line and bottom line growth - Management noted that despite a slight change in revenue guidance, they expect acceleration in the second half driven by volume growth and pricing strategies [44][46] Question: Performance in Europe and away-from-home growth - Management highlighted strong performance in Europe, particularly due to favorable weather and increased consumer engagement in away-from-home settings [52][54] Question: Medium-term growth outlook considering Indonesia - Management indicated that while Indonesia presents challenges, it is a small part of the overall business, and they remain optimistic about long-term opportunities [90] Question: Update on COGS and hedging for 2026 - The company is well-hedged for 2025 and has around 60% hedging in place for 2026, with expectations of flat commodity prices [94] Question: Australian margin turnaround - Management expressed confidence in the Australian business's margin recovery, emphasizing ongoing structural changes and efficiency improvements [99]

Financial Data and Key Metrics Changes - The company reported revenue of €10.3 billion for H1 2025, an increase of 2.5% compared to the previous year [23] - Comparable volumes were marginally ahead, up 0.3%, despite challenges in Indonesia [23] - Operating profit increased by 7.2% to €1.4 billion, with an operating margin expansion of 60 basis points to 13.5% [25] - Comparable diluted earnings per share rose by 3.1% to €2, reflecting a higher effective tax rate of 26% [25] Business Line Data and Key Metrics Changes - The core NARTD category grew by more than 5% in the last twelve months, with significant contributions from Monster and other brands [7] - Operating profit growth of 7.2% was driven by strong top-line performance and efficiency programs [13] - The energy category, particularly Monster, saw volumes increase nearly 15%, with retail value share growing by around 140 basis points [16] Market Data and Key Metrics Changes - European markets returned to volume growth in Q2, supported by favorable weather and the Easter holiday [11] - The Philippines market performed well despite strong comparables from the previous year, with overall value share growing by 10 basis points [12] - Indonesia's weaker consumer backdrop impacted total first half volumes, contributing to a 1% decline in group volumes [11] Company Strategy and Development Direction - The company is focused on driving profitable revenue growth while maintaining affordability and relevance for consumers [13] - A multiyear view on promotional and pricing strategies is emphasized to create sustainable value [12] - The company is investing in technology and digital capabilities to enhance productivity and drive future growth [10] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year profit and cash guidance, indicating a revenue growth range of 3% to 4% for the year [8] - The company remains optimistic about long-term opportunities in Indonesia despite current challenges [37] - Management highlighted the importance of digital transformation and technology investments to unlock value [39] Other Important Information - The company completed around €460 million in share buybacks and maintained a dividend payout policy of approximately 50% [6] - The return of the "Share a Coke" campaign was well received, contributing positively to brand performance [15] - The company is recognized for its sustainability efforts, retaining inclusion on CDP's A List for Climate for nine consecutive years [21] Q&A Session Summary Question: Guidance on top line and bottom line growth - Management indicated that despite a slight change in revenue guidance, they expect acceleration in the second half driven by volume growth and pricing strategies [45][46] Question: Performance in Europe and away from home growth - Management noted strong performance in Europe due to favorable weather and increased consumer engagement, with a focus on cooler placements and promotional activities [52][55] Question: Competitiveness in the market - Management acknowledged ongoing competition but emphasized a commitment to sustainable value creation and effective pricing strategies [68][71] Question: Metrics for the "Share a Coke" campaign - Management tracks metrics such as shelf distribution and consumption rates to evaluate the success of the campaign, which has positively impacted volume and price mix [75][76] Question: Acceleration in away from home growth - Management highlighted the return of consumers to public spaces and the impact of weather on away from home sales, indicating a positive trend for the remainder of the year [80][86] Question: Medium-term growth outlook considering Indonesia - Management reiterated that while Indonesia presents challenges, it is not critical to achieving midterm growth objectives, as other markets can offset weaknesses [90][93] Question: Update on COGS and hedging - Management reported being over 90% hedged for 2025 and around 60% for 2026, with expectations of flat commodity prices [96][97] Question: Update on Australian margin turnaround - Management expressed optimism about the Australian business's margin recovery, supported by structural changes and efficiency improvements [101][102]

Wall Street expects a year-over-year increase in earnings on higher revenues when Primo Brands (PRMB) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 7. On ...

-- Company to Conduct Conference Call at 2 p.m. Pacific Time -- CORONA, Calif., July 31, 2025 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) announced today that results for its second quarter ended June 30, 2025, will be reported on Thursday, August 7, 2025, after the close of the market. The company also said that Chief Executive Officer, 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 operations. ...