-- Record First Quarter
-- Gross Margin Percentages Continue to Increase on a Quarterly Sequential Basis --
-- First Quarter Operating Income Increases 21.4 Percent to
The Company achieved record first quarter net sales of
The Company implemented pricing actions in
Gross profit as a percentage of net sales increased on a sequential quarterly basis to 52.8 percent in the 2023 first quarter, from 51.8 percent in the 2022 fourth quarter and 51.3 percent in the 2022 third quarter.
Gross profit as a percentage of net sales, excluding gross profit for the Company’s Alcohol Brands segment, increased on a sequential quarterly basis to 53.6 percent in the 2023 first quarter, from 52.5 percent in the 2022 fourth quarter and 51.9 percent in the 2022 third quarter.
First Quarter Results
Net sales for the 2023 first quarter increased 11.9 percent to
Net sales for the Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks and Reign Storm® Total Wellness energy drinks, increased 11.2 percent to
Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands originally acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands, decreased 6.7 percent to
Net sales for the Alcohol Brands segment which is comprised of The Beast Unleashed™, as well as the various craft beers and hard seltzers purchased as part of the CANarchy transaction on
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 2023 first quarter was 52.8 percent, compared with 51.1 percent in the 2022 first quarter. The increase in gross profit as a percentage of net sales was primarily the result of pricing actions, decreased freight-in costs and decreased aluminum can costs.
Operating expenses for the 2023 first quarter were
Operating expenses as a percentage of net sales for the 2023 first quarter were 24.3 percent, compared with 24.8 percent in the 2022 first quarter.
Distribution expenses for the 2023 first quarter were
Selling expenses for the 2023 first quarter were
General and administrative expenses for the 2023 first quarter were
Operating income for the 2023 first quarter was
The effective tax rate for the 2023 first quarter was 20.1 percent, compared with 25.0 percent in the 2022 first quarter. The decrease in the effective tax rate was primarily attributable to the increase in the stock compensation deduction in the 2023 first quarter.
Net income for the 2023 first quarter increased 35.1 percent to
“Gross profit margin percentages continued to increase on a sequential quarterly basis, primarily as a result of pricing actions, decreased freight-in costs and decreased aluminum can costs, as well as the moderation of certain other challenges in our supply chain. The increases in certain ingredients and other input costs, as well as co-packing fees, remain challenging.
“Internationally, certain price increases were implemented during the 2023 first quarter, with additional price increases planned in a number of other markets during the remainder of the year. In certain markets, such increases are in addition to price increases implemented in 2022. In
“We are proud to record market leadership for our portfolio of brands in a number of international markets.
“We are also planning to transition the Monster brand to the Coca-Cola distribution system in the Philippines,” Schlosberg added.
“During the first quarter, we initially launched our first flavored malt beverage alcohol product, The Beast Unleashed™ in six states. The Beast Unleashed™ contains six percent alcohol by volume and is available in four flavors. We are pleased with the early results of the launch and are continuing to expand distribution into additional markets, with the goal of being national by the end of the year. In addition, towards the end of the first quarter, we commenced our phased launch of Monster® Tour Water™, a pure unflavored water line, in still and sparkling variants, in certain targeted accounts in
“In EMEA, as part of an ongoing pan-EMEA launch, we commenced distribution of Monster Energy® Lewis Hamilton 44 Zero Sugar. We also launched Fury, one of our affordable energy brands, in
“Our innovation pipeline of both alcoholic and non-alcoholic beverages continues to be robust,” Sacks added.
Share Repurchase Program
No shares of the Company’s common stock were repurchased during the 2023 first quarter under previously authorized repurchase programs. As of
Treasury Stock Retirement
Investor Conference Call
The Company will host an investor conference call today,
Caution Concerning Forward-Looking Statements
Certain statements made in this announcement may constitute “forward-looking statements” within the meaning of the
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)
|Cost of sales||801,081||741,907|
|Gross profit as a percentage of net sales||52.8||%||51.1||%|
|Operating expenses as a percentage of net sales||24.3||%||24.8||%|
|Operating income as a percentage of net sales||28.6||%||26.3||%|
|Interest and other income (expense), net||12,496||(7,300||)|
|Income before provision for income taxes¹||497,560||392,189|
|Provision for income taxes||100,116||97,986|
|Income taxes as a percentage of income before taxes||20.1||%||25.0||%|
|Net income as a percentage of net sales||23.4||%||19.4||%|
|Net income per common share3:|
|Weighted average number of shares of common stock and common stock equivalents3:|
|Energy drink case sales (in thousands) (in 192-ounce case equivalents)||182,444||168,793|
|Average net sales per case2||$||9.03||$||8.87|
2Excludes Alcohol Brands segment and Other segment net sales.
3Stock Split - On February 28, 2023, the Company announced a two-for-one stock split of its common stock to be effected in the form of a 100% stock dividend. The stock dividend was issued on
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Par Value) (Unaudited)
|Cash and cash equivalents||$||1,672,660||$||1,307,141|
|Accounts receivable, net||1,190,351||1,016,203|
|Prepaid expenses and other current assets||110,958||109,823|
|Prepaid income taxes||30,889||33,785|
|Total current assets||5,294,609||4,764,897|
|PROPERTY AND EQUIPMENT, net||545,922||516,897|
|DEFERRED INCOME TAXES||177,039||177,039|
|OTHER INTANGIBLE ASSETS, net||1,222,598||1,220,410|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued promotional allowances||308,094||255,631|
|Income taxes payable||55,123||13,317|
|Total current liabilities||1,187,511||1,001,978|
|Common stock -
1,283,688 shares issued and 1,044,600 shares outstanding as of December 31, 2022
|Additional paid-in capital||4,829,301||4,776,804|
|Accumulated other comprehensive loss||(147,911||)||(159,073||)|
|Common stock in treasury, at cost; 70,776 shares and 239,088 shares as of March 31, 2023 and
|Total stockholders' equity||7,395,360||7,025,041|
|Total Liabilities and Stockholders’ Equity||$||8,844,362||$||8,293,105|
1Stock Split - The condensed consolidated balance sheets have been retroactively updated to reflect the Stock Split.
|Chairman and Co-Chief Executive Officer|
|Vice Chairman and Co-Chief Executive Officer|
Source: Monster Beverage Corporation