Vending

Monster Beverage lifts Q2 2022 sales, earnings slide

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August 5, 2022

Monster Beverage Corp. lifted its Q2 2022 sales against the prior year period but suffered an earnings loss as costs continued to increase, according to an earnings release. Highlights include:

• Net sales rose 13.2% from $1.46 billion in Q2 2021 to $1.66 billion for the quarter ending June 30, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2022 second quarter of $53.4 million.
• Net income fell from $403.7 million to $273.4 million in the comparable quarters.
• Net income per common share fell from 76 cents to 52 cents on a basic basis and from 75 cents to 51 cents on a diluted basis.
• 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 12.5% from $1.37 billion to $1.54 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 company's affordable energy brands, decreased 9% to $79.1 million.

Shares traded today at $89.71 against a 52-week range of $71.78-$98.89.

The $1.66 billion in quarterly revenue beat analyst expectations by $50 million, while the non-GAAP EPS of 51 cents missed expectations by 19 cents, according to Seeking Alpha.

"Following many quarters of supply chain challenges, we have been able to rebuild inventories on a global basis, while at the same time meeting strong customer demand, despite operating in an extremely challenging, unprecedented and costly supply chain environment," Hilton Schlosberg, co-CEO and vice chairman, said in the press release. "Significant increases in freight-in and fuel costs, including costs relating to the importation of aluminum cans, as well as other input costs continue to impact costs of sales."