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Monster Beverage reports 12.3% gain in Q1 net sales

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May 8, 2020

Monster Beverage Corporation reported net sales for the 2020 first quarter ending March 31, 2020 increased 12.3% to $1.06 billion from $946.0 million in the same period last year, according to a press release. Gross sales for the 2020 first quarter increased 13.4% to $1.24 billion from $1.09 billion in the same period last year. 

Gross profit, as a percentage of net sales, for the 2020 first quarter was 60% percent, compared with 60.6% in the 2019 first quarter.

The impact of the COVID-19 pandemic on the company's net and gross sales for the 2020 first quarter was not material. The company's April sales were materially adversely impacted by the COVID-19 pandemic, however bottler/distributor sales of the company's products to retail in the U.S. were markedly less adversely impacted.

Since mid-March 2020, the company has seen a shift in consumer channel preferences and package configurations, including an increase in at-home consumption and a decrease in immediate consumption.  To date, the company's sales in the second quarter have been adversely affected as a result of a decrease in foot traffic in the convenience and gas channel (which is the company's largest channel) and foodservice on-premise, while the company's e-commerce, club store, mass merchandiser, and grocery and related business remain stable.