NASDAQ$MNST

Monster Beverage Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Achieved record first quarter net sales and completed the acquisition of CANarchy Craft Brewery Collective LLC.

Monster Beverage Corporation reported a 22.1% increase in net sales for the first quarter of 2022, reaching a record $1.52 billion. The company completed its acquisition of CANarchy Craft Brewery Collective LLC and is planning a price increase in the United States effective September 1, 2022.

  • Net sales increased by 22.1% to a record $1.52 billion in the first quarter of 2022.
  • The company experienced significant increases in costs of sales due to increased freight rates, fuel costs, and aluminum can costs.
  • Completed the acquisition of CANarchy Craft Brewery Collective LLC on February 17, 2022.
  • Planning a market wide increase in pricing effective September 1, 2022, in the United States.

Headline financials

Total Revenue

$1.52B

Previous: $1.24B+22.1%
EPS (adj)

$0.28

Previous: $0.30-6.7%
Capital Expenditures

-$21.5M

Previous: -$8.4M-156.1%
Free Cash Flow

$273M

Previous: $307M-11.1%
Net Income

$294M

Previous: $315M-6.7%
Operating Income

$399M

Previous: $414M-3.5%
Gross Profit

$777M

Previous: $715M+8.6%
Cash & Equivalents

$1.01B

Previous: $1.18B-14.4%

Revenue & EPS history

Monster Beverage · Revenue · Quarterly

$1.52B

Q1 2022+22.1%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Monster Beverage · $1.51B total across 4 segments · Q1 2022

  • Monster Energy Drinks
    $1.4B+19.7%
  • Strategic Brands
    $92.6M+36.6%
  • Alcohol Brands
    $15.2M
  • Other
    $5.9M+3.5%

Forward guidance

The company anticipates continued growth in the global energy drink category and is implementing measures to mitigate the impact of increased costs in their supply chain.

Tailwinds

  • The global energy drink category continues its growth trend.
  • The company is well placed to capitalize on this growth with its Monster Energy family of brands, as well as its Strategic and Affordable energy brands.
  • The company launched a number of new products and expanded distribution of its brands in many international markets in the first quarter of 2022.
  • Inventories were steadily rebuilt in the 2022 first quarter, while at the same time meeting strong customer demand.
  • The company believes that some of the increased costs that they are experiencing are likely to be transitory.

Headwinds

  • Significant increases in freight-in and fuel costs continue to impact costs of sales.
  • Other input costs continue to impact costs of sales.
  • The shortage of shipping containers and global port congestion remain a challenge.
  • There is a need for airfreighting of certain ingredients.
  • Increases in fuel and freight costs continue to adversely impact costs of sales and operating expenses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+15.7%

Q1 2016

Best reaction

-19.9%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.6%+9.6%+16.1%
Q4 2025+1.5%-9.3%-17.1%
Q3 2025+5.1%+6.3%+11.2%
Q2 2025+0.0%-0.8%-2.6%
Q1 2025+1.5%+1.4%+5.4%
Q4 2024+5.3%+6.6%+11.4%
Q3 2024-0.6%+2.9%-4.0%
Q2 2024-11.4%-9.7%-4.2%
Q1 2024+2.7%+2.1%-3.0%
Q4 2023+5.3%+4.3%+5.6%
Q3 2023+7.6%+8.4%+6.9%
Q2 2023-4.4%-0.4%-1.9%
Q1 2023+2.3%+0.6%+1.9%
Q4 2022-3.0%-0.3%+2.6%
Q3 2022+6.8%+6.7%+13.4%
Q2 2022-4.9%-7.5%-8.0%
Q1 2022+0.0%-2.9%+2.5%
Q4 2021+6.5%+4.8%-0.9%
Q3 2021+4.9%+5.1%-4.1%
Q2 2021+5.4%+7.4%+6.1%
Q1 2021-3.4%-3.1%+1.0%
Q4 2020-0.6%-1.5%+3.9%
Q3 2020+0.7%-1.4%+5.7%
Q2 2020+6.8%+6.9%+6.2%
Q1 2020+7.3%+8.0%+17.8%
Q4 2019-5.3%-3.2%-14.4%
Q3 2019+3.9%+4.3%+7.2%
Q2 2019+3.3%-6.1%-5.0%
Q1 2019+8.9%+6.3%+6.8%
Q4 2018+8.7%+10.7%-7.1%
Q3 2018-1.2%-0.1%+4.8%
Q2 2018+2.0%+1.1%+0.9%
Q1 2018-7.9%-7.6%-0.9%
Q4 2017-15.5%-13.1%-10.8%
Q3 2017+1.3%+7.4%+9.2%
Q2 2017-1.6%+1.8%+6.6%
Q1 2017+5.6%+6.8%+14.1%
Q4 2016+14.3%+13.4%+11.4%
Q3 2016-6.3%-5.7%-7.6%
Q2 2016+3.0%+0.9%-2.5%
Q1 2016+15.7%
Q4 2015-1.2%
Q3 2015+13.1%
Q2 2015-3.2%
Q1 2015-8.5%
Q4 2014+14.0%
Q3 2014+9.3%
Q2 2014+5.2%
Q1 2014+2.9%
Q4 2013+4.2%
Q3 2013-4.7%
Q2 2013+2.0%
Q1 2013-5.6%
Q4 2012-1.3%
Q3 2012+1.8%
Q2 2012-19.9%
Q1 2012+9.6%
Q4 2011+0.7%
Q3 2011-4.7%
Q2 2011+11.0%
Q1 2010-0.7%
Q1 2011+1.2%
Q4 2008-3.7%
Q4 2010-3.7%
Q3 2010-2.8%
Q3 2009-2.8%
Q2 2010+1.6%
Q2 2009+1.6%
Q4 2009+1.6%

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