Monster Beverage Reports 2024 Fourth Quarter and Full-Year Financial Results

Core Insights - Monster Beverage Corporation reported a record fourth quarter net sales increase of 4.7% to $1.81 billion, with a foreign currency adjusted increase of 7.8% [1][5][22] - The company's gross profit margin improved to 55.5% on a non-GAAP adjusted basis, driven by reduced input costs [1][13][23] - Operating income rose 7.9% to $517.9 million on a non-GAAP adjusted basis, while net income per diluted share was $0.38 on a non-GAAP adjusted basis [1][3][21] Financial Performance - For the fourth quarter of 2024, net sales increased to $1.81 billion from $1.73 billion in the same period last year [5] - The Monster Energy® Drinks segment saw a 4.5% increase in net sales to $1.67 billion, while the Strategic Brands segment increased by 11.1% to $102.0 million [8][9] - The Alcohol Brands segment experienced a slight decline of 0.8% in net sales to $34.9 million [10] Profitability Metrics - Gross profit for the fourth quarter was $1.00 billion, with a gross profit margin of 55.3% compared to 54.2% in the previous year [39] - Operating expenses for the fourth quarter were $621.2 million, representing 34.3% of net sales, up from 29.2% in the prior year [14] - The effective tax rate for the fourth quarter was 29.9%, an increase from 18.5% in the previous year [19] Yearly Overview - For the full year 2024, net sales increased by 4.9% to $7.49 billion, with a foreign currency adjusted increase of 8.4% [28] - Adjusted net income per diluted share for the full year was $1.62, compared to $1.56 in 2023 [32] - The company incurred additional impairments in the Alcohol Brands segment due to financial performance issues [27] Market Trends and Strategies - The company implemented a 5.0% price increase on its brands in the U.S., excluding Bang Energy®, which contributed to strong results [24] - There is a noted resurgence in the energy drink category in the U.S., with growth opportunities in household penetration and per capita consumption [23][24] - The company continues to focus on innovation, launching new products in early 2025 and maintaining a robust innovation pipeline [25]