Vending

Monster Beverage achieves record sales for Q1 2022

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May 6, 2022

Monster Beverage Corp. achieved record first quarter sales of $1.52 billion in 2022 over the prior year period, although income declined on account of rising costs, according to an earnings release. Highlights include:

• Net sales increased 22.1% from $1.24 billion in Q1 2021 to $1.52 billion for the quarter ending March 31, 2022.
• Net income for the 2022 first quarter decreased 6.7% from $315.2 million to $294.2 million in the comparative quarters.
• Net income per diluted share decreased 6.8% from 59 cents to 55 cents while net income per basic share decreased from 60 cents to 56 cents.
• Net sales for the Monster Energy drinks segment, which primarily includes the Monster Energy drinks, Reign Total Body Fuel high performance energy drinks and True North Pure Energy Seltzer energy drinks, increased 20% from $1.17 billion to $1.40 billion.
• Net sales for the strategic brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Co., as well as the affordable energy brands, increased 36.6% to $92.6 million.
• Net sales for the alcohol brands segment which is comprised of the various craft beers and hard seltzers purchased as part of the CANarchy transaction on Feb. 17, 2022, were $15.2 million.
• Net sales for the "other" segment, which includes certain products of American Fruits and Flavors LLC sold to independent third-party customers increased from $5.7 million to $5.9 million.

In the first quarter of 2022, the company experienced significant increases in costs of sales relative to the comparative 2021 first quarter, primarily due to increased freight rates and fuel costs, including costs relating to the importation of aluminum cans as well as aluminum can costs attributable to higher aluminum commodity pricing.

The company also experienced significant increases in ingredients and other input costs, including secondary packaging materials, co-packing fees and production inefficiencies. Furthermore, the company experienced significant increases in distribution expenses including increased fuel, freight and warehousing costs.

Shares traded Thursday at $83.04 against a 52-week range of $71.78-$99.89.

The $1.52 billion in quarterly revenue beat analyst expectations by $90 million while the GAAP EPS of 55 cents missed expectations by 6 cents, according to Seeking Alpha.

"We launched a number of new products and expanded distribution of our brands in many international markets in the first quarter of 2022," Rodney Sacks, chairman and co-CEO, said in the press release. "The global energy drink category continues its growth trend, and we remain well placed to capitalize on this growth with our Monster Energy family of brands, as well as our strategic and affordable energy brands."