Vending

Monster Beverage lifts sales, earnings on expanding energy drink market

Image: iStock.

November 3, 2023

Monster Beverage Corp. lifted its Q3 2023 sales and earnings over the prior year period, boosted by an expanding energy drink market, according to an earnings release. Highlights include:

• Net sales increased 14.3% from $1.62 billion in Q3 2022 to $1.86 billion in the quarter ending Sept. 30, 2023.
• Net income increased 40.4% from $322.4 million to $452.7 million in the comparative quarters.
• Net income per diluted share increased 41.3% from 30 cents to 43 cents.
• Net income per diluted share adjusted for the Bang transaction gain, the Bang inventory step up and the Bang transaction expenses was 41 cents.
• Net sales for the 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 13.7% from $1.5 billion to $1.71 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 11.2% from $88.8 million to $98.8 million.
• Net sales for the alcohol brands segment, which is comprised of The Beast Unleashed which was launched in the 2023 first quarter, as well as the various craft beers and hard seltzers purchased as part of the CANarchy transaction on Feb. 17, 2022, increased 57.8% from $26.8 million to $42.3 million.
• Net sales for the company's "other segment," which primarily includes certain products of American Fruits and Flavors LLC, a wholly owned subsidiary of the company sold to independent third-party customers, increased 3.9% from $6.4 million $6.7 million.

Shares traded today at $52.66 against a 52-week range of $45.06 to $60.47.

The $1.86 billion in quarterly revenue missed analyst expectations by $10 million while the non-GAAP EPS of 41 cents beat expectations by one cent, according to Seeking Alpha.

"The energy drink market in the United States, as well as internationally, continues to grow," Hilton Schlosberg, chairman and co-CEO, said in the press release. "We are pleased to report another quarter of solid revenue growth, with record sales for our third quarter. The quarter was again impacted by unfavorable foreign currency exchange rates."