-- Record Fourth Quarter
--
-- Gross Profit as a Percentage of Net Sales Improves to 55.5 Percent on a Non-GAAP Adjusted Basis (55.3 Percent on a Reported Basis) in the 2024 Fourth Quarter –
-- Operating Income Rose 7.9 Percent to
-- Net Income Per Diluted Share was
Items Impacting Profitability
The tables at the end of this press release provide a reconciliation of non-GAAP financial measures to the Company’s results, as reported under GAAP. (See “Adjusted Condensed Consolidated Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below).
2024 Fourth Quarter
$130.7 million adverse impact relating to Alcohol Brands segment impairment charges.$4.1 million adverse impact relating to reserves for excess inventory in the Alcohol Brands segment.$1.8 million adverse impact of the Hansen Litigation (described in greater detail in the Company’sSEC filings).
2023 Fourth Quarter
$39.9 million adverse impact relating to Alcohol Brands segment impairment charges.$5.0 million adverse impact relating to Bang inventory purchased at fair value.$1.0 million adverse impact relating to Bang transaction costs.$0.3 million adverse impact of the Hansen Litigation.
Operating income, adjusted for these items (non-GAAP), was
Net income per diluted share, adjusted for these items net of tax (non-GAAP), was
2024 Full Year
$138.8 million adverse impact relating to Alcohol Brands segment impairment charges.$20.0 million adverse impact of the Hansen Litigation (described in greater detail in the Company’sSEC filings).$14.7 million adverse impact relating to reserves for excess inventory in the Alcohol Brands segment.
2023 Full Year
$42.7 million adverse impact relating to Alcohol Brands segment impairment charges.$16.1 million adverse impact relating to Bang transaction costs.$12.8 million adverse impact relating to Bang inventory purchased at fair value.$2.6 million adverse impact of the Hansen Litigation.$45.4 million favorable impact relating to the gain on the Bang transaction.
Net income per diluted share, adjusted for these items net of tax (non-GAAP), was
Fourth Quarter Results
Net sales for the 2024 fourth quarter increased 4.7 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, Reign Storm® total wellness energy drinks and Bang Energy® drinks, increased 4.5 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 Predator® and Fury®, increased 11.1 percent to
Net sales for the Alcohol Brands segment, which is comprised of The Beast™, Nasty Beast® Hard Tea, as well as various craft beers and hard seltzers, decreased 0.8 percent to
Net sales for the Company’s Other segment, which primarily includes certain products of
Net sales to customers outside
Gross profit as a percentage of net sales for the 2024 fourth quarter was 55.3 percent, compared with 54.2 percent in the 2023 fourth quarter. Adjusted gross profit as a percentage of net sales for the 2024 fourth quarter was 55.5 percent, compared with 54.5 percent in the 2023 fourth quarter. (See “Adjusted Condensed Consolidated Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below). The increase in gross profit as a percentage of net sales for the 2024 fourth quarter was primarily the result of reduced input costs, partially offset by geographical sales mix.
Operating expenses for the 2024 fourth quarter were
Distribution expenses for the 2024 fourth quarter were
Selling expenses for the 2024 fourth quarter were
General and administrative expenses for the 2024 fourth quarter were
Operating income for the 2024 fourth quarter was
The effective tax rate for the 2024 fourth quarter was 29.9 percent, compared with 18.5 percent in the 2023 fourth quarter. The increase in the effective tax rate for the 2024 fourth quarter was primarily attributable to a decrease in the stock-based compensation deduction for the 2024 fourth quarter, an adjustment to the 2024 full year effective tax rate, higher 2024 state income taxes and the establishment of a state tax valuation allowance relating to certain net operating losses of the Alcohol Brands segment.
Net income for the 2024 fourth quarter decreased 26.2 percent to
Net income per diluted share for the 2024 fourth quarter decreased 20.8 percent to
“Our results were again impacted by unfavorable foreign currency exchange rates in certain markets. On a foreign currency adjusted basis, net sales increased 7.8 percent in the quarter.
“Adjusted gross profit margins improved to 55.5 percent in the 2024 fourth quarter, compared with adjusted gross profit margins of 54.5 percent in the 2023 fourth quarter.
“We continued to see sustained growth in the global energy drink category. In
“Growth opportunities in household penetration and per capita consumption, along with consumers’ growing need for energy are positive trends for the category.
“We implemented an approximately 5.0 percent price increase on our brands and packages, excluding Bang Energy®, Reign® and Reign Storm® in
“We continue to have market share leadership in a number of countries for our Monster Energy® brand, and I am pleased to report that in the
“We incurred additional impairments within our Alcohol Brands segment in the quarter due to financial performance, which is being addressed. We are exploring opportunities for distribution of our alcohol products in certain international jurisdictions,” Sacks said.
2024 Full-Year Results
Net sales for the year ended
Gross profit, as a percentage of net sales, for the year ended
Operating expenses for the year ended
Operating income for the year ended
The effective tax rate was 24.1 percent for the year ended
Net income for the year ended
Share Repurchase Program
During the 2024 fourth quarter, no shares of the Company common stock were repurchased. 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- AND TWELVE-MONTHS ENDED (In Thousands, Except Per Share Amounts) (Unaudited) |
|||||||||||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales¹ | $ | 1,812,041 | $ | 1,730,108 | $ | 7,492,709 | $ | 7,140,027 | |||||||
| Cost of sales | 809,596 | 791,736 | 3,443,831 | 3,345,821 | |||||||||||
| Gross profit¹ | 1,002,445 | 938,372 | 4,048,878 | 3,794,206 | |||||||||||
| Gross profit as a percentage of net sales | 55.3% | 54.2% | 54.0% | 53.1% | |||||||||||
| Operating expenses | 621,221 | 504,414 | 2,118,584 | 1,840,851 | |||||||||||
| Operating expenses as a percentage of net sales | 34.3% | 29.2% | 28.3% | 25.8% | |||||||||||
| Operating income¹ | 381,224 | 433,958 | 1,930,294 | 1,953,355 | |||||||||||
| Operating income as a percentage of net sales | 21.0% | 25.1% | 25.8% | 27.4% | |||||||||||
| Interest and other income (expense), net | 4,854 | 16,117 | 59,165 | 115,127 | |||||||||||
| Income before provision for income taxes¹ | 386,078 | 450,075 | 1,989,459 | 2,068,482 | |||||||||||
| Provision for income taxes | 115,367 | 83,097 | 480,411 | 437,494 | |||||||||||
| Income taxes as a percentage of income before taxes | 29.9% | 18.5% | 24.1% | 21.2% | |||||||||||
| Net income | $ | 270,711 | $ | 366,978 | $ | 1,509,048 | $ | 1,630,988 | |||||||
| Net income as a percentage of net sales | 14.9% | 21.2% | 20.1% | 22.8% | |||||||||||
| Net income per common share: | |||||||||||||||
| Basic | $ | 0.28 | $ | 0.35 | $ | 1.50 | $ | 1.56 | |||||||
| Diluted | $ | 0.28 | $ | 0.35 | $ | 1.49 | $ | 1.54 | |||||||
| Weighted average number of shares of common stock and common stock equivalents: | |||||||||||||||
| Basic | 972,742 | 1,040,584 | 1,004,566 | 1,044,887 | |||||||||||
| Diluted | 980,942 | 1,052,524 | 1,013,107 | 1,057,981 | |||||||||||
| Energy Drink Case sales (in thousands) (in 192-ounce case equivalents) | 203,630 | 185,304 | 846,663 | 769,241 | |||||||||||
| Average net sales per case2 | $ | 8.70 | $ | 9.12 | $ | 8.62 | $ | 9.01 | |||||||
¹Includes
2Excludes Alcohol Brands segment and Other segment net sales.
| MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF (In Thousands, Except Par Value) (Unaudited) |
||||||||
2024 |
2023 |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 1,533,287 | $ | 2,297,675 | ||||
| Short-term investments | - | 955,605 | ||||||
| Accounts receivable, net | 1,221,646 | 1,193,964 | ||||||
| Inventories | 737,107 | 971,406 | ||||||
| Prepaid expenses and other current assets | 107,262 | 116,195 | ||||||
| Prepaid income taxes | 42,202 | 54,151 | ||||||
| Total current assets | 3,641,504 | 5,588,996 | ||||||
| INVESTMENTS | - | 76,431 | ||||||
| PROPERTY AND EQUIPMENT, net | 1,047,024 | 890,796 | ||||||
| DEFERRED INCOME TAXES, net | 184,260 | 175,003 | ||||||
| 1,331,643 | 1,417,941 | |||||||
| OTHER INTANGIBLE ASSETS, net | 1,414,252 | 1,427,139 | ||||||
| OTHER ASSETS | 100,406 | 110,216 | ||||||
| Total Assets | $ | 7,719,089 | $ | 9,686,522 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 466,775 | $ | 564,379 | ||||
| Accrued liabilities | 220,764 | 183,988 | ||||||
| Accrued promotional allowances | 267,711 | 269,061 | ||||||
| Deferred revenue | 45,809 | 41,914 | ||||||
| Accrued compensation | 92,454 | 87,392 | ||||||
| Income taxes payable | 4,006 | 14,955 | ||||||
| Total current liabilities | 1,097,519 | 1,161,689 | ||||||
| DEFERRED REVENUE | 179,008 | 204,251 | ||||||
| OTHER LIABILITIES | 110,893 | 91,838 | ||||||
| LONG-TERM DEBT | 373,951 | - | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock - 1,126,329 shares issued and 973,079 shares outstanding as of 1,122,592 shares issued and 1,041,571 shares outstanding as of |
5,632 | 5,613 | ||||||
| Additional paid-in capital | 5,144,922 | 4,975,115 | ||||||
| Retained earnings | 7,448,784 | 5,939,736 | ||||||
| Accumulated other comprehensive loss | (269,487 | ) | (125,337 | ) | ||||
| Common stock in treasury, at cost; 153,250 shares and 81,021 shares as of |
(6,372,133 | ) | (2,566,383 | ) | ||||
| Total stockholders' equity | 5,957,718 | 8,228,744 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 7,719,089 | $ | 9,686,522 | ||||
| MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION FOR THE THREE- AND TWELVE-MONTHS ENDED (In Thousands, Except Per Share Amounts) (Unaudited) |
|||||||||||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 1,812,041 | $ | 1,730,108 | $ | 7,492,709 | $ | 7,140,027 | |||||||
| Cost of sales | 805,453 | 786,760 | 3,429,101 | 3,333,021 | |||||||||||
| Gross profit | 1,006,588 | 943,348 | 4,063,608 | 3,807,006 | |||||||||||
| Gross profit as a percentage of net sales | 55.5% | 54.5% | 54.2% | 53.3% | |||||||||||
| Operating expenses | 488,667 | 463,224 | 1,959,825 | 1,779,404 | |||||||||||
| Operating expenses as a percentage of net sales | 27.0% | 26.8% | 26.2% | 24.9% | |||||||||||
| Operating income | 517,921 | 480,124 | 2,103,783 | 2,027,602 | |||||||||||
| Operating income as a percentage of net sales | 28.6% | 27.8% | 28.1% | 28.4% | |||||||||||
| Interest and other income (expense), net | 4,854 | 16,117 | 59,165 | 69,745 | |||||||||||
| Income before provision for income taxes¹ | 522,775 | 496,241 | 2,162,948 | 2,097,347 | |||||||||||
| Provision for income taxes | 147,080 | 93,799 | 521,045 | 444,375 | |||||||||||
| Income taxes as a percentage of income before taxes | 28.1% | 18.9% | 24.1% | 21.2% | |||||||||||
| Net income | $ | 375,695 | $ | 402,442 | $ | 1,641,903 | $ | 1,652,972 | |||||||
| Net income as a percentage of net sales | 20.7% | 23.3% | 21.9% | 23.2% | |||||||||||
| Net income per common share: | |||||||||||||||
| Basic | $ | 0.39 | $ | 0.39 | $ | 1.63 | $ | 1.58 | |||||||
| Diluted | $ | 0.38 | $ | 0.38 | $ | 1.62 | $ | 1.56 | |||||||
| Weighted average number of shares of common stock and common stock equivalents: | |||||||||||||||
| Basic | 972,742 | 1,040,584 | 1,004,566 | 1,044,887 | |||||||||||
| Diluted | 980,942 | 1,052,524 | 1,013,107 | 1,057,981 | |||||||||||
1See “Reconciliation of GAAP and non-GAAP Information” below for excluded items.
| Reconciliation of GAAP and Non-GAAP Information ($ in Thousands, Except Per Share Amounts, unaudited) |
Adjusted results are non-GAAP that exclude the following:
(i) Alcohol Brands Inventory Reserves – increased inventory reserves due to excess inventory levels in the Alcohol Brands segment.
(ii) Bang Inventory Step-Up – on
(iii) Alcohol Brands segment impairment charges – impairment charges related to the Alcohol Brands segment due to (a) operating and financial performance not meeting projections and (b) a decrease in projected ongoing operating and financial performance of the reporting unit. The impairment charges relate to reporting unit goodwill, certain non-amortizing intangibles as well as property and equipment.
(iii) Hansen Litigation – the Company recorded an expense provision and incurred legal expenses in connection with an intellectual property claim brought by the descendants of
(iv) Bang Transaction Expenses - during 2023, the Company incurred acquisition expenses related to the Bang Transaction.
(v) Bang Transaction Gain - during the 2023 third quarter, in connection with the Bang Transaction, the Company recorded a gain of
The Company believes these non-GAAP items are useful to investors in evaluating the Company’s ongoing operating and financial results. The non-GAAP items should be considered in addition to, and not in lieu of,
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Cost of sales | $ | 809,596 | $ | 791,736 | $ | 3,443,831 | $ | 3,345,821 | |||||||
| Alcohol Brands inventory reserves | (4,143 | ) | - | (14,730 | ) | - | |||||||||
| Bang inventory step-up | - | (4,976 | ) | - | (12,800 | ) | |||||||||
| Cost of sales excluding above items | $ | 805,453 | $ | 786,760 | $ | 3,429,101 | $ | 3,333,021 | |||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
||||||||||||
| Gross profit | $ | 1,002,445 | $ | 938,372 | $ | 4,048,878 | $ | 3,794,206 | |||||||
| Alcohol Brands inventory reserves | 4,143 | - | 14,730 | - | |||||||||||
| Bang inventory step-up | - | 4,976 | - | 12,800 | |||||||||||
| Gross profit excluding above items | $ | 1,006,588 | $ | 943,348 | $ | 4,063,608 | $ | 3,807,006 | |||||||
| Reconciliation of GAAP and Non-GAAP Information (cont.) ($ in Thousands, unaudited) |
|||||||||||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating expenses | $ | 621,221 | $ | 504,414 | $ | 2,118,584 | $ | 1,840,851 | |||||||
| Alcohol Brands segment impairment charges | (130,711 | ) | (39,936 | ) | (138,762 | ) | (42,736 | ) | |||||||
| Hansen Litigation | (1,843 | ) | (263 | ) | (19,997 | ) | (2,617 | ) | |||||||
| Bang transaction expenses | - | (991 | ) | - | (16,094 | ) | |||||||||
| Operating expenses excluding above items | $ | 488,667 | $ | 463,224 | $ | 1,959,825 | $ | 1,779,404 | |||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
||||||||||||
| Operating income | $ | 381,224 | $ | 433,958 | $ | 1,930,294 | $ | 1,953,355 | |||||||
| Alcohol Brands inventory reserve | 4,143 | - | 14,730 | - | |||||||||||
| Bang inventory step-up | - | 4,976 | - | 12,800 | |||||||||||
| Alcohol Brands segment impairment charges | 130,711 | 39,936 | 138,762 | 42,736 | |||||||||||
| Hansen Litigation | 1,843 | 263 | 19,997 | 2,617 | |||||||||||
| Bang transaction expenses | - | 991 | - | 16,094 | |||||||||||
| Operating income excluding above items | $ | 517,921 | $ | 480,124 | $ | 2,103,783 | $ | 2,027,602 | |||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 |
2023 |
2024 |
2023 | ||||||||||||
| Interest and other income (expense), net | $ | 4,854 | $ | 16,117 | $ | 59,165 | $ | 115,127 | |||||||
| Bang transaction gain | - | - | - | (45,382 | ) | ||||||||||
| Interest and other income (expense), net, excluding above item | $ | 4,854 | $ | 16,117 | $ | 59,165 | $ | 69,745 | |||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 |
2023 |
2024 |
2023 | ||||||||||||
| Income before provision for income taxes | $ | 386,078 | $ | 450,075 | $ | 1,989,459 | $ | 2,068,482 | |||||||
| Alcohol Brands inventory reserve | 4,143 | - | 14,730 | - | |||||||||||
| Bang inventory step-up | - | 4,976 | - | 12,800 | |||||||||||
| Alcohol Brands segment impairment charges | 130,711 | 39,936 | 138,762 | 42,736 | |||||||||||
| Hansen Litigation | 1,843 | 263 | 19,997 | 2,617 | |||||||||||
| Bang transaction expenses | - | 991 | - | 16,094 | |||||||||||
| Bang transaction gain | - | - | - | (45,382 | ) | ||||||||||
| Income before provision for income taxes excluding above items | $ | 522,775 | $ | 496,241 | $ | 2,162,948 | $ | 2,097,347 | |||||||
| Reconciliation of GAAP and Non-GAAP Information (cont.) ($ in Thousands, unaudited) |
|||||||||||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 |
2023 |
2024 |
2023 | ||||||||||||
| Provision for income taxes | $ | 115,367 | $ | 83,097 | $ | 480,411 | $ | 437,494 | |||||||
| Alcohol Brands inventory reserve | 961 | - | 3,555 | - | |||||||||||
| Bang inventory step-up | - | 1,229 | - | 2,966 | |||||||||||
| Alcohol Brands segment impairment charges | 30,325 | 9,185 | 32,193 | 9,807 | |||||||||||
| Hansen Litigation | 427 | 60 | 4,886 | 602 | |||||||||||
| Bang transaction expenses | - | 228 | - | 3,581 | |||||||||||
| Bang transaction gain | - | - | - | (10,075 | ) | ||||||||||
| Provision for income taxes excluding above items | $ | 147,080 | $ | 93,799 | $ | 521,045 | $ | 444,375 | |||||||
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
||||||||||||
| Net income | $ | 270,711 | $ | 366,978 | $ | 1,509,048 | $ | 1,630,988 | |||||||
| Alcohol Brands inventory reserve | 3,182 | - | 11,175 | - | |||||||||||
| Bang inventory step-up | - | 3,747 | - | 9,834 | |||||||||||
| Alcohol Brands segment impairment charges | 100,386 | 30,751 | 106,569 | 32,929 | |||||||||||
| Hansen Litigation | 1,416 | 203 | 15,111 | 2,015 | |||||||||||
| Bang transaction expenses | - | 763 | - | 12,513 | |||||||||||
| Bang transaction gain | - | - | - | (35,307 | ) | ||||||||||
| Net income excluding above items | $ | 375,695 | $ | 402,442 | $ | 1,641,903 | $ | 1,652,972 | |||||||
Adjustments in this table are net of tax.
| Three-Months Ended | Twelve-Months Ended | ||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
||||||||||||
| Net income per common share – Diluted | $ | 0.28 | $ | 0.35 | $ | 1.49 | $ | 1.54 | |||||||
| Cumulative adjustments, net of tax | 0.10 | 0.03 | 0.13 | 0.02 | |||||||||||
| Net income per common share – Diluted, excluding above items | $ | 0.38 | $ | 0.38 | $ | 1.62 | $ | 1.56 | |||||||
| 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