NASDAQ$MNST

Monster Beverage Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported record third quarter net sales with a 13.2 percent increase to $1.41 billion.

Monster Beverage Corporation reported record third-quarter net sales, increasing 13.2% to $1.41 billion. The company faced headwinds due to aluminum can shortages and supply chain challenges, leading to increased costs. Measures are being implemented to mitigate these costs through reductions in promotions and other pricing actions.

  • Net sales for the 2021 third quarter increased 13.2 percent to $1.41 billion.
  • Net sales for the Company’s Monster Energy® Drinks segment increased 14.3 percent to $1.33 billion.
  • Net sales to customers outside the United States increased 18.7 percent to $527.4 million.
  • Operating income for the 2021 third quarter decreased to $444.5 million.

Headline financials

Total Revenue

$1.41B

Previous: $1.25B+13.2%
EPS (adj)

$0.32

Previous: $0.33-3.0%
Capital Expenditures

-$28.1M

Previous: -$42.1M+33.1%
Free Cash Flow

$1.03B

Previous: $896M+14.8%
Net Income

$1.06B

Previous: $938M+12.6%
Operating Income

$444M

Previous: $459M-3.1%
Gross Profit

$789M

Previous: $737M+7.1%

Revenue & EPS history

Monster Beverage · Revenue · Quarterly

$1.41B

Q3 2021+13.2%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Monster Beverage · $1.41B total across 3 segments · Q3 2021

  • Monster Energy Drinks
    $1.33B+14.7%
  • Strategic Brands
    $74.4M+0.1%
  • Other
    $6.3M

Forward guidance

The company is addressing increased costs through reductions in promotions and other pricing actions in the United States and EMEA. They have entered into supply agreements with two new aluminum can suppliers in the United States.

Tailwinds

  • Expanded distribution of brands in certain international markets.
  • Launched True North™ Pure Energy Seltzer in the United States in August 2021.
  • Launching Monster® (stylized) Reserve line to the retail trade.
  • Entered into supply agreements with two new aluminum can suppliers in the United States.
  • Deliveries commencing from October and December, respectively.

Headwinds

  • Faced headwinds in keeping up with demand in the United States and in EMEA.
  • Experienced a shortage in aluminum cans.
  • Experienced challenges in the availability of co-packing capacity.
  • Experienced procurement challenges in other inputs.
  • Shortage of shipping containers and global port congestion continue to impact operations.

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 Q3 2021

Historical avgQ3 2021

+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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