NASDAQ$MNST

Monster Beverage Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported record second quarter with net sales rising 12.1 percent.

Monster Beverage Corporation reported a strong second quarter in 2023, with net sales increasing by 12.1% to $1.85 billion. Net income saw a substantial rise of 51.4% reaching $413.9 million, driven by growth in the energy drink market and improved gross profit margins.

  • Net sales for the second quarter of 2023 increased by 12.1% to $1.85 billion.
  • Net income for the second quarter increased by 51.4% to $413.9 million.
  • Gross profit margins improved due to pricing actions, decreased freight-in costs, and decreased aluminum can costs.
  • The company completed the purchase of Bang Energy on July 31, 2023, and is integrating it into their portfolio.

Headline financials

Total Revenue

$1.85B

Previous: $1.66B+12.1%
EPS (adj)

$0.39

Previous: $0.26+50.0%
Capital Expenditures

-$82.4M

Previous: -$99.4M+17.1%
Free Cash Flow

$729M

Previous: $468M+55.7%
Net Income

$811M

Previous: $568M+42.9%
Operating Income

$524M

Previous: $373M+40.4%
Gross Profit

$974M

Previous: $780M+24.9%
Cash & Equivalents

$1.87B

Previous: $1.13B+65.5%
Total Assets

$9.26B

No prior period

Revenue & EPS history

Monster Beverage · Revenue · Quarterly

$1.85B

Q2 2023+12.1%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Monster Beverage · $1.86B total across 4 segments · Q2 2023

  • Monster Energy Drinks
    $1.69B+9.7%
  • Strategic Brands
    $99.7M+26.0%
  • Alcohol Brands
    $61.1M+88.6%
  • Other
    $7.3M+21.7%

Forward guidance

Monster Beverage Corporation is focused on innovation and expansion in both alcoholic and non-alcoholic beverages, with plans to launch new products and expand distribution.

Tailwinds

  • Continued roll-out of The Beast Unleashed™ in the United States, with the goal of being national by the end of the year.
  • Plans to launch a hard iced tea extension of The Beast Unleashed™, named Nasty Beast™ Hardcore Tea.
  • Robust innovative pipeline of both alcoholic and non-alcoholic beverages.
  • Price increases implemented in certain international markets during the second quarter, with additional increases planned for the remainder of the year.
  • Completed the purchase of Bang Energy and are in the process of integrating this brand into our portfolio.

Headwinds

  • The quarter was impacted by unfavorable foreign currency exchange rates.
  • Uncertainty and volatility in the national and global economy and changes in demand due to such economic conditions.
  • Changes in consumer preferences.
  • Adverse publicity surrounding obesity, alcohol consumption and other health concerns related to our products, product safety and quality.
  • Changes in the price and/or availability of raw materials.

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 Q2 2023

Historical avgQ2 2023

+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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