Monster(MNST)2024-11-07 21:22Financial Performance - Third quarter net sales increased 1.3% to $1.88 billion, compared to $1.86 billion in the same period last year[5] - Net sales, excluding the Alcohol Brands segment and adjusted for adverse foreign currency changes of $62.8 million, rose 5.0%[5] - Net income for the third quarter decreased 18.1% to $370.9 million, down from $452.7 million in the prior year[17] - Adjusted net income per diluted share was $0.40 for the third quarter, compared to $0.41 in the same quarter of 2023[18] - Net sales for the Strategic Brands segment increased 14.0% to $112.6 million, with a foreign currency adjusted increase of 24.1%[7] - For the nine months ended September 30, 2024, net sales increased 5.0% to $5.68 billion, with an unfavorable foreign currency impact of $194.8 million[29] - In Q3 2024, Monster Beverage Corporation reported net sales of $1,880.973 million, a 1.3% increase from $1,856.028 million in Q3 2023[38] - Net income for Q3 2024 was $370.919 million, or 19.7% of net sales, compared to 24.4% in Q3 2023[38] - Net income for the nine months ended September 30, 2024, was $1,260,025, or 22.2% of net sales, compared to $1,248,352, or 23.1% in 2023[40] - The nine-month net income for 2024 was reported at $1,238,337,000, compared to $1,264,009,000 for the same period in 2023, showing a slight decline of about 2%[51] Profitability Metrics - Gross profit margin for the third quarter was 53.2%, up from 53.0% in the previous year[11] - Gross profit for Q3 2024 was $999.799 million, with a gross profit margin of 53.2%, compared to 53.0% in Q3 2023[38] - Operating income decreased to $479.916 million in Q3 2024, representing 25.5% of net sales, down from 27.5% in Q3 2023[38] - Operating income for the three months ended September 30, 2024, was $526,794, with an operating margin of 27.0%, down from 28.4% in the same period of 2023[40] - Operating expenses for the nine months ended September 30, 2024, were $1,479,209, representing 26.0% of net sales, compared to 24.4% in 2023[40] Shareholder Actions - The company purchased approximately 11.3 million shares at an average price of $47.32 per share, totaling $534.7 million in Q3 2024[33] - As of November 6, 2024, approximately $500.0 million remained available for share repurchase under the authorized program[33] Expenses and Liabilities - Operating expenses for the third quarter were $519.9 million, representing 27.6% of net sales, compared to 25.5% in the prior year[12] - Operating expenses increased to $519.883 million in Q3 2024, representing 27.6% of net sales, compared to 25.5% in Q3 2023[38] - Total current assets decreased to $3,897,758 as of September 30, 2024, from $5,588,996 as of December 31, 2023[39] - Total liabilities increased to $2,273,061 as of September 30, 2024, compared to $1,458,778 as of December 31, 2023[39] - Cash and cash equivalents decreased to $1,625,339 as of September 30, 2024, from $2,297,675 as of December 31, 2023[39] Market and Product Developments - The company launched Monster Energy® Ultra Vice Guava™ in October 2024, receiving positive consumer feedback[25] - Energy drink case sales reached 219,409 thousand cases in Q3 2024, up from 203,087 thousand cases in Q3 2023[38] - Average net sales per case decreased to $8.36 in Q3 2024 from $8.90 in Q3 2023[38] - The company plans to implement a 5.0% price increase on its brands and packages, excluding Bang Energy®, effective November 1, 2024[24] Risks and Future Outlook - The company cautioned that future performance is dependent on various risks, including supply chain disruptions and economic uncertainties[37] Tax and Other Income - Provision for income taxes for the three months ended September 30, 2024, was $103,177,000, down from $129,190,000 in 2023, indicating a reduction of about 20%[47] - Interest and other (expense) income, net, excluding certain items, was $(5,820,000) for the three months ended September 30, 2024, compared to $25,975,000 in the prior year[46] - The company reported a Bang transaction gain of $(45,382,000) for the three months ended September 30, 2024, which impacted overall income significantly[49] - Total income before provision for income taxes excluding certain items was $502,543,000 for the three months ended September 30, 2024, compared to $552,769,000 in the same period last year, a decrease of approximately 9%[50] - The company incurred Bang transaction expenses of $1,783,000 for the three months ended September 30, 2024, compared to $3,353,000 in the previous year[49] - Cumulative adjustments, net of tax, for the three months ended September 30, 2024, resulted in an increase of $0.02 per share, while the previous year showed a decrease of $(0.02) per share[52]