Monster(US:MNST)2025-11-06 23:48Financial Performance - Net sales for the three-months ended September 30, 2025, were $2.20 billion, an increase of approximately $316.2 million, or 16.8% compared to $1.88 billion for the same period in 2024[127][143] - Gross profit for the three-months ended September 30, 2025, was $1.22 billion, a 22.5% increase from $999.8 million in 2024, with a gross profit margin of 55.7%[141] - Operating income for the three-months ended September 30, 2025, was $675.4 million, a 40.7% increase compared to $479.9 million in 2024[141] - Net income for the three-months ended September 30, 2025, was $524.5 million, a 41.4% increase from $370.9 million in 2024[141] - Net sales for the nine-months ended September 30, 2025 were $6.16 billion, an increase of approximately $482.6 million, or 8.5% higher than the same period in 2024[162] - Gross profit for the nine-months ended September 30, 2025 was $3.45 billion, an increase of approximately $402.4 million, or 13.2% higher than the same period in 2024[169] - Operating income for the nine-months ended September 30, 2025 was $1.88 billion, an increase of approximately $327.7 million, or 21.2% higher than $1.55 billion for the same period in 2024[174] - Net income for the nine-months ended September 30, 2025 was $1.46 billion, an increase of $217.9 million, or 17.6% higher than $1.24 billion for the same period in 2024[183] Sales Breakdown - The Monster Energy® Drinks segment generated $2.03 billion in net sales for the three-months ended September 30, 2025, representing 92.3% of total net sales[128][129] - Net sales for the Monster Energy® Drinks segment were $2.03 billion for the three-months ended September 30, 2025, an increase of approximately $304.1 million, or 17.7% higher than the same period in 2024[144] - Net sales for the Strategic Brands segment were $130.5 million for the three-months ended September 30, 2025, an increase of approximately $17.9 million, or 15.9% higher than the same period in 2024[146] - Net sales for the Alcohol Brands segment were $33.0 million for the three-months ended September 30, 2025, a decrease of approximately $6.8 million, or 17.0% lower than the same period in 2024[147] - Total case sales for energy drinks reached 720,823 unit cases for the nine-months ended September 30, 2025, up from 643,033 unit cases in 2024, marking a growth of 12.1%[201] Expenses and Taxation - Total operating expenses for the nine-months ended September 30, 2025 were $1.57 billion, an increase of approximately $74.8 million, or 5.0% higher than the same period in 2024[172] - The effective tax rate increased to 23.9% for the three-months ended September 30, 2025 from 21.8% for the same period in 2024[160] - Provision for income taxes was $458.0 million for the nine-months ended September 30, 2025, an increase of $93.0 million from $365.0 million for the same period in 2024[182] Cash Flow and Debt - Cash provided by operating activities was $1.72 billion for the nine-months ended September 30, 2025, compared to $1.47 billion in 2024, reflecting an increase of 17.1%[209] - The company held $2.29 billion in cash and cash equivalents as of September 30, 2025, with $1.15 billion held by foreign subsidiaries[204][205] - Long-term debt facilities were reduced to $500 million following the repayment of a $750 million term loan in April 2025[206] - Cash used in investing activities was $719.2 million for the nine-months ended September 30, 2025, compared to cash provided of $843 million in 2024[213] - Cash used in financing activities for the nine months ended September 30, 2025, was $312.6 million, a significant decrease from $2.97 billion for the same period in 2024[215] Market and Operational Risks - Risks include the ability to sustain sales levels and adapt to the rapid growth of e-commerce, as well as potential impacts from U.S. trade policies and proposed legislation on energy drinks[223][225] - The company reported no significant impact from inflation on its results of operations for the three and nine months ended September 30, 2025[221] - Management's forward-looking statements include expectations regarding revenues and profitability, with a focus on adapting to changing consumer preferences and competitive pressures[222] - There have been no material changes in market risks compared to previous disclosures in the Form 10-K[226]