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Monster(MNST) - 2024 Q4 - Annual Results
MNSTMonster(MNST)2025-02-27 21:19

Financial Performance - Fourth quarter net sales increased 4.7 percent to 1.81billion,withaforeigncurrencyadjustedincreaseof7.8percent[6]−Grossprofitasapercentageofnetsalesimprovedto55.5percentonanon−GAAPadjustedbasisforthefourthquarter[12]−Operatingincomerose7.9percentto1.81 billion, with a foreign currency adjusted increase of 7.8 percent[6] - Gross profit as a percentage of net sales improved to 55.5 percent on a non-GAAP adjusted basis for the fourth quarter[12] - Operating income rose 7.9 percent to 517.9 million on a non-GAAP adjusted basis for the fourth quarter[3] - Net income per diluted share was 0.38onanon−GAAPadjustedbasisforthefourthquarter,unchangedfromthepreviousyear[20]−NetsalesfortheMonsterEnergy®Drinkssegmentincreased4.5percentto0.38 on a non-GAAP adjusted basis for the fourth quarter, unchanged from the previous year[20] - Net sales for the Monster Energy® Drinks segment increased 4.5 percent to 1.67 billion for the fourth quarter[7] - Net sales for the Strategic Brands segment increased 11.1 percent to 102.0millionforthefourthquarter[8]−NetsalestocustomersoutsidetheUnitedStatesincreased11.7percentto102.0 million for the fourth quarter[8] - Net sales to customers outside the United States increased 11.7 percent to 711.5 million, representing 39.3 percent of total net sales for the fourth quarter[11] - Full-year net sales increased 4.9 percent to 7.49billion,withaforeigncurrencyadjustedincreaseof8.4percent[27]−Adjustednetincomeforthefullyeardecreased0.7percentto7.49 billion, with a foreign currency adjusted increase of 8.4 percent[27] - Adjusted net income for the full year decreased 0.7 percent to 1.64 billion, with adjusted net income per diluted share at 1.62[33]QuarterlyResults−NetsalesforQ42024reached1.62[33] Quarterly Results - Net sales for Q4 2024 reached 1,812,041,000, a 4.7% increase from 1,730,108,000inQ42023[40]−GrossprofitforQ42024was1,730,108,000 in Q4 2023[40] - Gross profit for Q4 2024 was 1,002,445,000, representing a gross profit margin of 55.3%, up from 54.2% in Q4 2023[40] - Operating income for Q4 2024 decreased to 381,224,000,withanoperatingmarginof21.0381,224,000, with an operating margin of 21.0%, down from 25.1% in Q4 2023[40] - Net income for Q4 2024 was 270,711,000, a decline of 26.2% compared to 366,978,000inQ42023[40]−EnergydrinkcasesalesforQ42024were203,630,000,anincreasefrom185,304,000inQ42023[40]−Averagenetsalespercasedecreasedto366,978,000 in Q4 2023[40] - Energy drink case sales for Q4 2024 were 203,630,000, an increase from 185,304,000 in Q4 2023[40] - Average net sales per case decreased to 8.70 in Q4 2024 from 9.12inQ42023[40]AssetsandEquity−TotalassetsasofDecember31,2024,were9.12 in Q4 2023[40] Assets and Equity - Total assets as of December 31, 2024, were 7,719,089,000, down from 9,686,522,000in2023[42]−Cashandcashequivalentsdecreasedto9,686,522,000 in 2023[42] - Cash and cash equivalents decreased to 1,533,287,000 in 2024 from 2,297,675,000in2023[42]−Totalstockholders′equitydecreasedto2,297,675,000 in 2023[42] - Total stockholders' equity decreased to 5,957,718,000 in 2024 from 8,228,744,000in2023[42]ChallengesandStrategicActions−Thecompanyanticipateschallengesinsustainingsalesgrowthduetocompetitivepressuresandchangingconsumerpreferences[38]−Thecompanyimplementeda5.0percentpriceincreaseonitsbrandsintheU.S.effectiveNovember1,2024,contributingtostrongresults[23]ImpairmentsandAcquisitions−ThecompanycompletedtheacquisitionofVitalPharmaceuticals,Inc.onJuly31,2023,impactinginventoryvaluationandrelatedcosts[46]−ThecompanyrecordedimpairmentchargesrelatedtotheAlcoholBrandssegment,totaling8,228,744,000 in 2023[42] Challenges and Strategic Actions - The company anticipates challenges in sustaining sales growth due to competitive pressures and changing consumer preferences[38] - The company implemented a 5.0 percent price increase on its brands in the U.S. effective November 1, 2024, contributing to strong results[23] Impairments and Acquisitions - The company completed the acquisition of Vital Pharmaceuticals, Inc. on July 31, 2023, impacting inventory valuation and related costs[46] - The company recorded impairment charges related to the Alcohol Brands segment, totaling 130,711 for Q4 2024[51] Tax and Operating Expenses - The company reported a provision for income taxes of 147,080forQ42024,whichis28.1147,080 for Q4 2024, which is 28.1% of income before taxes, compared to 18.9% in Q4 2023[43] - Operating expenses for the twelve months ended December 31, 2024, were 1,959,825, representing 26.2% of net sales, compared to 24.9% in 2023[43] Yearly Performance - For the twelve months ended December 31, 2024, net sales totaled 7,492,709,anincreaseof4.97,492,709, an increase of 4.9% from 7,140,027 in 2023[43] - The diluted net income per share for Q4 2024 was 0.38,unchangedfromQ42023,whilethetwelve−monthdilutednetincomepersharewas0.38, unchanged from Q4 2023, while the twelve-month diluted net income per share was 1.62, up from $1.56 in 2023[54]