Monster Beverage Reports 2025 Second Quarter Financial Results

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].