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Can MNST Lead the Next Wave of Global Energy Drink Growth?
ZACKS· 2025-10-02 15:21
Key Takeaways Monster Beverage surpassed $2B in quarterly sales for the first time in its history.More than 40% of MNST's sales now come from international markets, led by EMEA and Asia-Pacific.New products, lifestyle marketing and supply chain moves support Monster Beverage's global growth strategy.Monster Beverage Corporation (MNST) has become one of the strongest players in the global energy drink market, recently crossing the $2 billion quarterly revenue mark for the first time in its history. The compa ...
Monster Beverage Corporation (MNST) Tops $2B in Q2 Sales, Driven by Energy Drink Demand
Yahoo Finance· 2025-09-28 22:54
Core Insights - Monster Beverage Corporation is recognized as one of the best bear market stocks due to its strong performance and market position [2] Financial Performance - The company reported record Q2 fiscal 2025 net sales of $2.11 billion, surpassing the $2 billion mark for the first time and exceeding analyst expectations [2] - The Monster Energy Drinks segment contributed significantly with an 11.2% year-over-year increase, reaching $1.94 billion [2] - Domestic sales grew by 7% to $1.3 billion, while international sales in Europe, the Middle East, and Africa surged by 20% to $474 million [3] Growth Drivers - Global expansion remains a key growth driver for the company, supported by strong demand and effective product innovation [3] - The company continues to prioritize product innovation, launching new affordable energy brands such as Predator and Fury [4] Challenges - The Alcohol Brands segment experienced an 8.6% sales decline, which partially offset gains from energy drinks [4] - Higher costs and pricing dynamics have put some pressure on margins [3] Leadership - Leadership continuity is maintained under CEO Hilton H. Schlosberg, who has guided the company through growth opportunities and cost challenges since June 2025 [5]
Compared to Estimates, Monster Beverage (MNST) Q2 Earnings: A Look at Key Metrics
ZACKS· 2025-08-08 19:30
Core Insights - Monster Beverage reported revenue of $2.11 billion for the quarter ended June 2025, reflecting an 11.1% increase year-over-year and a surprise of +1.35% over the Zacks Consensus Estimate of $2.08 billion [1] - The company's EPS for the quarter was $0.52, up from $0.41 in the same quarter last year, resulting in an EPS surprise of +8.33% compared to the consensus estimate of $0.48 [1] Revenue Breakdown - Geographic Revenue from outside the United States was $864.2 million, exceeding the average estimate of $837.91 million, with a year-over-year increase of +23% [4] - Geographic Revenue from the U.S. and Canada reached $1.3 billion, slightly above the estimated $1.28 billion, marking an 8.6% increase compared to the previous year [4] - Net Sales from Alcohol Brands were $37.97 million, slightly below the average estimate of $38.15 million, showing a year-over-year decline of -8.6% [4] - Net Sales from Strategic Brands amounted to $129.89 million, surpassing the estimated $124.89 million, with an 18.9% increase year-over-year [4] - Net Sales from Monster Energy Drinks were $1.94 billion, exceeding the estimated $1.85 billion, reflecting an 11.2% increase compared to the same quarter last year [4] - Net Sales from Other categories were $6.41 million, below the average estimate of $7.25 million, representing a year-over-year decline of -8.5% [4] Stock Performance - Over the past month, Monster Beverage shares have returned +2.8%, outperforming the Zacks S&P 500 composite's +1.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]
Monster(MNST) - 2025 Q2 - Earnings Call Transcript
2025-08-07 22:02
Financial Data and Key Metrics Changes - The company reported record net sales of $2,110,000,000 for the second quarter, marking an 11.1% increase compared to the same period in 2024 [5][12] - Gross profit as a percentage of net sales increased to 55.7% from 53.6% year-over-year, driven by pricing actions and lower input costs [15] - Net income for the second quarter rose 14.9% to $488,800,000, with earnings per diluted share increasing 21.1% to $0.50 [18][19] Business Line Data and Key Metrics Changes - Net sales for the Monster Energy Drinks segment increased 11.2% to $1,940,000,000, while the Strategic Brands segment saw an 18.9% increase to $129,900,000 [13][14] - The Alcohol Brands segment experienced an 8.6% decline in net sales to $38,000,000 [15][32] Market Data and Key Metrics Changes - In the U.S., the energy drink category grew by 13.2%, with Monster Energy Ultra family being a significant contributor [7][20] - EMEA region net sales increased by 26.8% in dollars and 23.7% on a currency-neutral basis [24] - Asia Pacific net sales rose 11.6% in dollars and on a currency-neutral basis [26] Company Strategy and Development Direction - The company is focused on innovation and expanding its product offerings, including the introduction of new flavors and strategic brand launches [9][22] - The company plans to implement selective price adjustments in the U.S. market, aiming to optimize trade spend [22] - The company is leveraging its relationship with Coca-Cola bottlers to enhance distribution and market presence [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy drink category's growth, citing increased household penetration and consumer demand for functional beverages [36][56] - The company anticipates modest tariff pressures but believes that planned price increases will help mitigate these impacts [42][43] Other Important Information - The company has a robust innovation pipeline and is excited about upcoming product launches, including new flavors and collaborations [9][55] - The company reported no share repurchases during the quarter, with approximately $500,000,000 remaining available for repurchase under the authorized program [33] Q&A Session Summary Question: Can you discuss the sustainability of gross margin performance and the impact of tariffs? - Management indicated that pricing increases will depend on packaging and channel, with modest tariff pressures expected in Q3 [41][42] Question: What is the status of supply chain optimization efforts? - The company has achieved a good balance between its own production and co-packing, aiming for the lowest delivered price to customers [46][47] Question: Is there any pull forward in sales ahead of pricing discussions? - Management noted that all regions are experiencing growth, driven by competitive pricing and consumer demand for functionality [54][55] Question: Can you elaborate on the visual identity changes for the Ultra line? - The company is establishing a separate identity for the Ultra line with new coolers and promotional strategies to enhance visibility [64][65]
Monster(MNST) - 2025 Q2 - Earnings Call Transcript
2025-08-07 22:00
Financial Data and Key Metrics Changes - The company reported record net sales of $2,110,000,000 for the second quarter of 2025, marking an 11.1% increase compared to $1,900,000,000 in the same quarter of 2024 [5][11] - Gross profit as a percentage of net sales increased to 55.7% from 53.6% year-over-year, driven by pricing actions and supply chain optimization [13] - Net income rose by 14.9% to $488,800,000 from $425,400,000 in the previous year [16] - Earnings per diluted share increased by 21.1% to $0.50 from $0.41 in the prior year [17] Business Line Data and Key Metrics Changes - Net sales for the Monster Energy Drinks segment increased by 11.2% to $1,940,000,000 [12] - The Strategic Brands segment saw a significant increase of 18.9% to $129,900,000 [12] - The Alcohol Brands segment experienced a decline of 8.6% to $38,000,000 [13] Market Data and Key Metrics Changes - In the U.S., the energy drink category grew by 13.2% year-over-year, with Monster Energy Ultra family being a key driver [6][18] - EMEA markets reported a growth of approximately 15.4% in the energy drink category [7] - APAC markets saw a growth of 20.9% in the energy drink category [7] - Net sales outside the U.S. accounted for approximately 41% of total net sales, up from 39% in the previous year [22] Company Strategy and Development Direction - The company is focused on innovation and expanding its product offerings, including the introduction of new flavors and products [8][20] - Strategic partnerships, such as with the Coca-Cola bottling system, are emphasized for growth [65] - The company plans to implement selective price adjustments and reduce promotional allowances in the U.S. [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the energy drink category's growth potential, citing increasing household penetration and consumer demand for energy [34][35] - The company remains optimistic about its innovation pipeline and market positioning despite potential tariff pressures [41][54] - Management noted that the energy drink category is becoming more competitive with traditional soft drinks, which is favorable for future growth [48] Other Important Information - The company is planning to launch several new products in the fall, including full sugar flavors and new strategic brands [20][25] - The impact of tariffs on operating results is currently deemed immaterial, but management is monitoring the situation closely [10][11] Q&A Session Summary Question: Sustainability of gross margin performance and pricing adjustments - Management indicated that pricing adjustments will depend on packaging and channel, with modest tariff pressures expected [40][41] Question: Supply chain optimization and category strength - Management highlighted a balanced co-packing model and noted strong sales trends across all regions, driven by innovation and competitive pricing [46][48] Question: Drivers of lower price per case - Management attributed the lower price per case to geographic and product mix, with a significant portion of sales coming from international markets and affordable brands [57][59] Question: Visual identity changes for the Ultra line - Management explained that the new visual identity aims to enhance merchandising and visibility for the Ultra line, which has been performing well [61][62]
How Will Celsius Leverage Its Energy Drink Market Share in 2025?
ZACKS· 2025-07-21 18:16
Core Insights - Evolving consumer lifestyles are driving demand for energy drinks, positioning Celsius Holdings, Inc. (CELH) to capitalize on market trends through strategic acquisitions, product innovations, digital marketing, and global expansion [1][9] Company Developments - The acquisition of Alani Nu, completed in April, is expected to enhance Celsius's position in the modern energy category, contributing to approximately 20% of the overall energy drink category dollar growth in Q1 2025 [2] - Celsius is diversifying its product offerings beyond traditional canned drinks with innovations such as Celsius Essentials and CELSIUS Hydration powder sticks, which help maintain consumer engagement [3][9] - The "LIVE FIT" campaign aims to tap into lifestyle-driven trends, promoting energy drinks that support a balanced lifestyle and targeting the female consumer segment to drive future growth [4] Competitive Landscape - Celsius faces competition from PepsiCo and Monster Beverage, both of which are adapting their product portfolios to meet evolving consumer preferences [5][6][7] - PepsiCo is focusing on zero-sugar offerings and functional hydration products, while Monster Beverage continues to see growth in the energy drink market, with a 2.2% increase in sales in Q1 2025 [6][7] Financial Performance - Celsius shares have increased by 65% year-to-date, contrasting with a 3.3% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 43.99X, significantly higher than the industry average of 16.13X [10] - Zacks Consensus Estimate indicates year-over-year earnings per share (EPS) growth of 17.1% for 2025 and 41.5% for 2026, with recent upward revisions in EPS estimates [11]
Monster Beverage (MNST) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2025-05-09 22:01
Core Insights - Monster Beverage reported $1.85 billion in revenue for Q1 2025, a year-over-year decline of 2.4% and a surprise of -6.40% compared to the Zacks Consensus Estimate of $1.98 billion [1] - The EPS for the same period was $0.47, an increase from $0.42 a year ago, with an EPS surprise of +2.17% against the consensus estimate of $0.46 [1] Revenue Breakdown - Net Sales from Alcohol Brands were $34.70 million, significantly below the estimated $50.18 million, reflecting a year-over-year decline of -38.1% [4] - Net Sales from Strategic Brands totaled $98.33 million, compared to the estimated $101.81 million, marking a year-over-year decrease of -9.3% [4] - Net Sales from Monster Energy Drinks reached $1.72 billion, slightly below the $1.80 billion estimate, with a year-over-year change of -0.8% [4] - Net Sales from Other categories were $5.98 million, slightly above the estimated $5.95 million, showing a year-over-year increase of +8% [4] Stock Performance - Over the past month, Monster Beverage shares returned +4.1%, while the Zacks S&P 500 composite increased by +13.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]
Monster Beverage Gears Up for Q1 Earnings: Here's What You Should Know
ZACKS· 2025-05-05 18:05
Core Viewpoint - Monster Beverage Corporation (MNST) is expected to report first-quarter 2025 results on May 8, with anticipated revenue and earnings growth [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $1.98 billion, reflecting a growth of 4.3% year-over-year [2] - The consensus estimate for earnings is 46 cents per share, indicating a rise of 9.5% from the previous year [2] - The consensus estimates have remained stable over the past 30 days [2] Performance Drivers - The quarterly performance is likely to benefit from strong demand in the energy drinks category, with net sales in this segment estimated at $1.8 billion, showing nearly 4% year-over-year growth [3] - The company is focusing on expanding its distribution network internationally, with net sales outside the U.S. estimated at $730 million, indicating a year-over-year rise of 5.3% [4] - Pricing actions, lower input costs, and improved cost efficiencies are expected to enhance margins [4] Challenges - The company faces high operating expenses due to increased costs related to sponsorships, endorsements, and payroll [5] - Adverse currency rates continue to pose challenges for the company [5] Earnings Prediction Model - The current model does not predict an earnings beat for Monster Beverage, with an Earnings ESP of -1.02% and a Zacks Rank of 3 [6] Valuation Metrics - Monster Beverage stock is trading at a forward 12-month price-to-earnings ratio of 31.38x, above the industry average of 18.73x and its median of 28.08x [7] - The stock has gained 11.3% over the past six months, compared to the industry's growth of 3.1% [7]
Ahead of Monster Beverage (MNST) Q1 Earnings: Get Ready With Wall Street Estimates for Key Metrics
ZACKS· 2025-05-05 14:21
Core Viewpoint - Wall Street analysts expect Monster Beverage to report a quarterly earnings per share (EPS) of $0.46, reflecting a year-over-year increase of 9.5%, with revenues projected at $1.98 billion, a 4.3% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 1% in the last 30 days, indicating a reassessment by covering analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts project 'Net Sales- Alcohol Brands' to reach $50.18 million, indicating a year-over-year decline of 10.5% [5]. - 'Net Sales- Strategic Brands' are expected to be $101.81 million, reflecting a year-over-year decrease of 6.1% [5]. - 'Net Sales- Monster Energy Drinks' are forecasted to reach $1.80 billion, showing a year-over-year increase of 4% [5]. - 'Net Sales- Other' is projected at $5.95 million, indicating a year-over-year increase of 7.5% [6]. Stock Performance - Over the past month, shares of Monster Beverage have returned +5.2%, outperforming the Zacks S&P 500 composite, which changed by +0.4% [7]. - Currently, Monster Beverage holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7].
Short Seller Sees 25% To 40% Downside In Monster Beverage Shares: 'Vulnerable To Escalating Threats'
Benzinga· 2025-04-08 18:30
Core Viewpoint - Spruce Point Capital Management has initiated a short position against Monster Beverage Corp, citing a potential downside risk of 25% to 40% due to concerns over the sustainability of its financial performance and the accuracy of its accounting practices [1][2]. Financial Performance Concerns - A forensic financial review raised issues regarding Monster's recent financial performance and the transparency of its financial reporting [1][2]. - Spruce Point believes that Monster's shares are fully valued, indicating a poor risk/reward ratio from current levels [3]. Market Position and Valuation - The company is trading at a price-to-earnings ratio of approximately 30.8, which is considered an "irrational" premium compared to Coca-Cola's price-to-earnings ratio of about 20 [4]. - More than 50% of analysts do not have a "Buy" rating on Monster's stock, suggesting a lack of confidence in its future performance [3]. Relationship with Coca-Cola - Spruce Point alleges that the relationship between Monster and Coca-Cola is "not healthy," with evidence of financial strain emerging since 2022 [5]. - The potential for a takeover deal between the two companies is deemed unlikely [5]. Revenue Recognition Issues - Concerns were raised regarding Monster's reporting of sales for its Tour Water brand, which is not classified as an energy drink but is reported within the Monster Energy Drinks segment, potentially inflating organic sales figures [6]. - The distribution claims through the Alcohol Brands segment further cast doubt on the soundness of Monster's revenue recognition practices [6]. Competitive Landscape and Market Outlook - Spruce Point highlighted issues such as margins on sales through Amazon, production inefficiencies, increasing competition, and stagnation in social media branding as significant challenges for Monster [7]. - A "Strong Sell" opinion was issued, predicting that Monster will underperform both the food and beverage industry and the broader equity market [7]. Stock Performance - At the time of publication, Monster Beverage shares were down 2.6%, trading at $55.60 [7].