-- Record First Quarter
-- First Quarter Net Income Increases 13.0 percent to
-- First Quarter Net Income per Diluted Share Increases 14.2 percent to
COVID-19 Pandemic
The Company’s top priority remains the health, safety and well-being of its employees. The Company’s flavor manufacturing facilities, its co-packers, warehouses and shipment facilities, have operated throughout the COVID-19 pandemic. The Company’s bottlers/distributors are operating and the Company’s products remain generally available to consumers. In limited countries, the operations of the Company’s bottlers/distributors have, in part, been negatively affected for varying periods of time.
Despite the ongoing impact of the COVID-19 pandemic, the Company achieved record first quarter net sales. Currently, the Company does not foresee a material impact on the ability of its co-packers to manufacture and its bottlers/distributors to distribute its products as a result of the COVID-19 pandemic. The Company’s supply chain remains largely intact. However, the Company is experiencing shortages in its aluminum can requirements in
As of
First Quarter Results
Net sales for the 2021 first quarter increased 17.1 percent to
Net sales for the Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks and Reign Total Body Fuel® high performance energy drinks, increased 17.9 percent to
Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands, increased 5.1 percent to
Net sales for the Company’s Other segment, which includes certain products of
Net sales to customers outside
Gross profit as a percentage of net sales, for the 2021 first quarter was 57.5 percent, compared with 60.0 percent in the 2020 first quarter. The decrease in gross profit as a percentage of net sales for the 2021 first quarter was primarily the result of increased input costs (mainly increased raw material freight-in costs), geographical sales mix, and higher promotional allowances as a percentage of net sales.
Operating expenses for the 2021 first quarter were
Distribution costs as a percentage of net sales were 4.4 percent for the 2021 first quarter, compared with 3.7 percent in the 2020 first quarter.
Selling expenses as a percentage of net sales for the 2021 first quarter were 9.2 percent, compared with 10.3 percent in the 2020 first quarter.
General and administrative expenses for the 2021 first quarter were
Operating income for the 2021 first quarter increased to
The effective tax rate was 23.8 percent for both the 2021 and 2020 first quarters.
Net income for the 2021 first quarter increased 13.0 percent to
“According to Nielsen, the energy drink category, and in particular our Monster Energy® brand, continues to accelerate in most of our markets, including
“In the first quarter of 2021, we continued with our robust program of product launches in both our domestic and international markets, with plans for additional launches during 2021,” Sacks added.
Vice Chairman and Co-Chief Executive Officer
“We are pleased with the early results for our new energy drinks that were launched in the quarter,” Schlosberg added.
Share Repurchase Program
No shares of the Company’s common stock were repurchased during the 2021 first quarter. As of
Investor Conference Call
The Company will host an investor conference call today,
Based in
Caution Concerning Forward-Looking Statements
Certain statements made in this announcement may constitute “forward-looking statements” within the meaning of the
(tables below)
| MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION | ||||||||
| FOR THE THREE-MONTHS ENDED |
||||||||
| (In Thousands, Except Per Share Amounts) (Unaudited) | ||||||||
| Three-Months Ended | ||||||||
| 2021 | 2020 | |||||||
| Net sales1 | $ | 1,243,816 | $ | 1,062,097 | ||||
| Cost of sales | 528,881 | 424,901 | ||||||
| Gross profit1 | 714,935 | 637,196 | ||||||
| Gross profit as a percentage of net sales | 57.5 | % | 60.0 | % | ||||
| Operating expenses | 300,789 | 272,208 | ||||||
| Operating expenses as a percentage of net sales | 24.2 | % | 25.6 | % | ||||
| Operating income1 | 414,146 | 364,988 | ||||||
| Operating income as a percentage of net sales | 33.3 | % | 34.4 | % | ||||
| Interest and other (expense) income, net | (759 | ) | 872 | |||||
| Income before provision for income taxes1 | 413,387 | 365,860 | ||||||
| Provision for income taxes | 98,193 | 87,025 | ||||||
| Income taxes as a percentage of income before taxes | 23.8 | % | 23.8 | % | ||||
| Net income | $ | 315,194 | $ | 278,835 | ||||
| Net income as a percentage of net sales | 25.3 | % | 26.3 | % | ||||
| Net income per common share: | ||||||||
| Basic | $ | 0.60 | $ | 0.52 | ||||
| Diluted | $ | 0.59 | $ | 0.52 | ||||
| Weighted average number of shares of common stock and common stock equivalents: | ||||||||
| Basic | 528,195 | 536,061 | ||||||
| Diluted | 534,982 | 540,518 | ||||||
| Case sales (in thousands) (in 192-ounce case equivalents) | 138,566 | 115,599 | ||||||
| Average net sales per case2 | $ | 8.94 | $ | 9.14 | ||||
1Includes
2Excludes Other segment net sales of $5.7 million and $5.1 million for the three-months ended March 31, 2021 and 2020, respectively, comprised of net sales of AFF Third-Party Products to independent third-party customers, as these sales do not have unit case equivalents.
| MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| AS OF |
||||||||
| (In Thousands, Except Par Value) (Unaudited) | ||||||||
2021 |
2020 |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 1,178,879 | $ | 1,180,413 | ||||
| Short-term investments | 980,108 | 881,354 | ||||||
| Accounts receivable, net | 802,509 | 666,012 | ||||||
| Inventories | 368,402 | 333,085 | ||||||
| Prepaid expenses and other current assets | 72,803 | 55,358 | ||||||
| Prepaid income taxes | 31,171 | 24,733 | ||||||
| Total current assets | 3,433,872 | 3,140,955 | ||||||
| INVESTMENTS | 63,751 | 44,291 | ||||||
| PROPERTY AND EQUIPMENT, net | 312,155 | 314,656 | ||||||
| DEFERRED INCOME TAXES, net | 241,650 | 241,650 | ||||||
| 1,331,643 | 1,331,643 | |||||||
| OTHER INTANGIBLE ASSETS, net | 1,063,092 | 1,059,046 | ||||||
| OTHER ASSETS | 88,203 | 70,475 | ||||||
| Total Assets | $ | 6,534,366 | $ | 6,202,716 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 334,076 | $ | 296,800 | ||||
| Accrued liabilities | 170,954 | 142,653 | ||||||
| Accrued promotional allowances | 197,380 | 186,658 | ||||||
| Deferred revenue | 45,961 | 45,429 | ||||||
| Accrued compensation | 30,499 | 55,015 | ||||||
| Income taxes payable | 9,991 | 23,433 | ||||||
| Total current liabilities | 788,861 | 749,988 | ||||||
| DEFERRED REVENUE | 257,730 | 264,436 | ||||||
| OTHER LIABILITIES | 28,338 | 27,432 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock - |
3,196 | 3,193 | ||||||
| Additional paid-in capital | 4,562,689 | 4,537,982 | ||||||
| Retained earnings | 6,747,268 | 6,432,074 | ||||||
| Accumulated other comprehensive (loss) income | (24,874 | ) | 3,034 | |||||
| Common stock in treasury, at cost; 110,715 and 110,565 shares as of March 31, 2021 and |
(5,828,842 | ) | (5,815,423 | ) | ||||
| Total stockholders' equity | 5,459,437 | 5,160,860 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 6,534,366 | $ | 6,202,716 | ||||
| CONTACTS: | |
| Chairman and Co-Chief Executive Officer | |
| (951) 739-6200 | |
| Vice Chairman and Co-Chief Executive Officer | |
| (951) 739-6200 | |
| (310) 279-5980 |
Source: Monster Beverage Corporation