Vending

Monster Beverage posts record sales for Q4 and FY 2021

Image provided by iStock.

February 25, 2022

Monster Beverage Corp. achieved record fourth quarter and full-year net sales, with annual net sales exceeding the $5.5 billion mark for the first time in the company's history, notwithstanding the impact of the COVID-19 pandemic on the company. Highlights include:

• Net sales increased 19.1% from $1.2 billion in Q4 2020 to $1.43 billion in Q4 2021. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2021 fourth quarter of $2.4 million.
• Net sales for the company's Monster Energy drinks segment increased 20.7% to $1.35 billion for Q4 2021, from $1.12 billion for Q4 2020.
• Net income decreased 31.9% from $471.7 million to $321.3 million in the comparative quarters while net income per diluted share decreased 32.1% from 88 cents to 60 cents.
• Net income excluding the non-recurring tax benefit, the impact of the 2020 product returns, associated inventory provisions and other related costs was $328.6 million, while non-GAAP EPS was 62 cents.
• Net sales for the 12 months ended Dec. 31, 2021 increased 20.5% from $4.6 billion to $5.54 billion. Net income decreased 2.3% from $1.41 billion to $1.38 billion, while net income per diluted share decreased 2.4% from $2.64 to $2.57.

Shares traded at $80.35 Thursday against a 52-week range of $76.37-$99.89.

The $1.43 billion in quarterly revenue beat analyst expectations by $100 million, while the non-GAAP EPS of 62 cents beat expectations by one cent, according to Seeking Alpha.

"We are pleased to report record net sales for the 2021 fourth quarter, despite the ongoing impact of the COVID-19 pandemic, particularly of the omicron variant," Rodney Sacks, chairman and co-CEO, said in the press release. "In the fourth quarter of 2021, we expanded distribution of our brands in certain international markets. In the United States, we launched our Monster (stylized) Reserve line in the 2021 fourth quarter and early in 2022 we launched Juice Monster Aussie Lemonade, Rehab Monster Watermelon, Reign Total Body Fuel, Reignbow Sherbet and Ultra Peachy Keen."

During the 2021 fourth quarter, the company continued to procure additional quantities of aluminum cans from suppliers in the U.S. and abroad in response to increased consumer demand. The company experienced increased aluminum can costs attributable to higher aluminum commodity pricing as well as the costs of importing aluminum cans.

In addition, the company continued to experience additional global supply chain challenges, including freight inefficiencies, shortages of shipping containers, port of entry congestion and delays in the receipt of certain ingredients.

For an update on how the coronavirus pandemic has affected convenience services, click here.