NASDAQ$MNST

Monster Beverage Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported record second quarter net sales with a rise of 2.5 percent.

Monster Beverage Corporation reported a 2.5% increase in net sales for the second quarter of 2024, reaching $1.90 billion. Despite unfavorable foreign currency exchange rates, the company saw growth in its Monster Energy Drinks and Strategic Brands segments. Gross profit margins improved due to decreased freight costs and lower aluminum can costs. The company is planning a price increase in the United States effective November 1, 2024.

  • Net sales increased by 2.5% to $1.90 billion in the second quarter of 2024.
  • Monster Energy Drinks segment net sales rose by 3.3% to $1.74 billion.
  • Strategic Brands segment net sales increased by 9.6% to $109.2 million.
  • Net income per diluted share increased 5.0% to $0.41.

Headline financials

Total Revenue

$1.9B

Previous: $1.85B+2.5%
EPS

$0.41

Previous: $0.39+5.1%
Gross Margin

53.6%

No prior period
Operating Expenses

$492M

No prior period
OpEx % of Sales

25.9%

No prior period
Operating Margin

27.7%

No prior period
Interest & Other Income

$24.4M

No prior period
Income Before Taxes

$552M

No prior period
Income Tax Provision

$126M

No prior period
Effective Tax Rate

22.9%

No prior period
Net Margin

22.4%

No prior period
Basic EPS

$0.41

No prior period
Weighted Avg Basic Shares

1.0B

No prior period
Weighted Avg Diluted Shares

1.0B

No prior period
Energy Drink Case Sales

212.2M

No prior period
Avg Net Sales per Case

$8.73

No prior period
Distribution Expenses

$87.4M

No prior period
Distribution % of Sales

4.6%

No prior period
Selling Expenses

$192M

No prior period
Selling % of Sales

10.1%

No prior period
G&A Expenses

$213M

No prior period
G&A % of Sales

11.2%

No prior period
Stock-Based Compensation

$18.8M

No prior period
Capital Expenditures

-$126M

Previous: -$82.4M-52.6%
Free Cash Flow

$742M

Previous: $729M+1.7%
Net Income

$867M

Previous: $811M+6.9%
Operating Income

$527M

Previous: $524M+0.6%
Gross Profit

$1.02B

Previous: $974M+4.6%
Cash & Equivalents

$1.56B

Previous: $1.87B-16.3%
Total Assets

$8.06B

Previous: $9.26B-13.0%

Revenue & EPS history

Monster Beverage · Revenue · Quarterly

$1.9B

Q2 2024+2.5%vs Q2 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

Monster Beverage plans to implement a 5% price increase on core brands and packages in the United States, effective November 1, 2024. They also plan to launch Monster Energy® Ultra Vice Guava™ in the United States in October. Predator Energy® Gold Strike, launched in April 2024 in selected provinces in China, has been well received and plans are underway to continue its rollout into more markets in China later this year and in 2025.

Tailwinds

  • Innovation continues to play a key role in strategy.
  • Innovation has been well received by bottlers/distributors, wholesalers, retailers and consumers.
  • Planning to launch Monster Energy® Ultra Vice Guava™ in the United States in October.
  • Response to Predator Energy® Gold Strike, launched in April 2024 in selected provinces in China, has been positive.
  • The Beast Unleashed® is now available in all 50 states.

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 2024

Historical avgQ2 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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