NASDAQ$MNST

Monster Beverage Corp · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported record first quarter net sales with gross profit margin improvement.

Monster Beverage Corporation reported an 11.8% increase in net sales for the first quarter of 2024, reaching $1.90 billion. Net income increased by 11.2% to $442.0 million, with earnings per diluted share rising to $0.42. The company intends to commence a tender offer to repurchase up to $3.0 billion of common stock.

  • Net sales for the first quarter increased by 11.8% to $1.90 billion.
  • Net income for the first quarter increased by 11.2% to $442.0 million.
  • Gross profit as a percentage of net sales improved to 54.1%.
  • The company intends to commence a tender offer to repurchase up to $3.0 billion of common stock.

Headline financials

Total Revenue

$1.9B

Previous: $1.7B+11.8%
EPS

$0.42

Previous: $0.38+10.5%
Gross Margin

54.1%

No prior period
Operating Expenses

$485M

No prior period
OpEx % of Sales

25.5%

No prior period
Operating Margin

28.5%

No prior period
Interest & Other Income

$35.8M

No prior period
Income Before Taxes

$578M

No prior period
Income Tax Provision

$136M

No prior period
Effective Tax Rate

23.5%

No prior period
Net Margin

23.3%

No prior period
Basic EPS

$0.42

No prior period
Weighted Avg Basic Shares

1.0B

No prior period
Weighted Avg Diluted Shares

1.1B

No prior period
Energy Drink Case Sales

211.4M

No prior period
Avg Net Sales per Case

$8.69

No prior period
Distribution Expenses

$94.4M

No prior period
Distribution % of Sales

5.0%

No prior period
Selling Expenses

$174M

No prior period
Selling % of Sales

9.2%

No prior period
G&A Expenses

$216M

No prior period
G&A % of Sales

11.4%

No prior period
Stock-Based Compensation

$22.5M

No prior period
Capital Expenditures

-$66M

Previous: -$40.1M-64.7%
Free Cash Flow

$376M

Previous: $357M+5.2%
Net Income

$442M

Previous: $397M+11.2%
Operating Income

$542M

Previous: $485M+11.7%
Gross Profit

$1.03B

Previous: $898M+14.4%
Cash & Equivalents

$2.58B

No prior period
Total Assets

$10.1B

No prior period

Revenue & EPS history

Monster Beverage · Revenue · Quarterly

$1.9B

Q1 2024+11.8%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Monster Beverage · $1.86B total across 4 segments · Q3 2023

  • Monster Energy Drinks
    $1.71B+14.0%
  • Strategic Brands
    $98.8M+11.3%
  • Alcohol Brands
    $42.3M+57.8%
  • Other
    $6.7M+4.7%

Forward guidance

The company expects to fund the tender offer with approximately $2.0 billion of cash on hand and approximately $1.0 billion in combined borrowings. Mr. Sacks is considering reducing his day-to-day management responsibilities starting in 2025, while continuing to manage certain areas of the Company's business.

Tailwinds

  • Innovation continues to play an important role in our strategy and contributed to our record sales in this quarter.
  • We launched a number of new innovation products in the quarter, including Monster Energy® Ultra Fantasy Ruby Red™, Juice Monster® Rio Punch™ and Java Monster® Irish Créme in the United States.
  • Predator Energy®, our affordable energy brand, was launched in the Philippines during the quarter.
  • Initial response to Predator Energy® Gold Strike has been positive.
  • Early response to our hard tea line has been positive.

Headwinds

  • The intended commencement of the tender offer.
  • The intended $1.0 billion in combined borrowings, consisting of a new revolving credit facility and a new delayed draw term loan facility.
  • The impact of the military conflict in Ukraine, including supply chain disruptions, volatility in commodity prices, increased economic uncertainty and escalating geopolitical tensions.
  • Our extensive commercial arrangements with The Coca-Cola Company (TCCC) and, as a result, our future performance’s substantial dependence on the success of our relationship with TCCC.
  • Our ability to implement our growth strategy, including expanding our business in existing and new sectors.

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 2024

Historical avgQ1 2024

+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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