Vending

Monster Beverage reports record Q4 2022 sales, earnings slide

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March 1, 2023

Monster Beverage Corp. reached record Q4 2022 sales boosted by price hikes, but suffered an earnings decline, according to a press release. Full year results were also mixed.

Highlights include:

• The company achieved record fourth quarter sales, rising 6.2%, from $1.43 billion in Q4 2021 to $1.51 billion for the quarter ending Dec. 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2022 fourth quarter of $81.9 million. Net sales on a foreign currency adjusted basis increased 11.9% for the 2022 fourth quarter.
• The company implemented a price increase effective Sept. 1, 2022 in the U.S. and continued to implement price increases in certain international markets in the fourth quarter of 2022, all of which positively impacted gross profit margins.
• Net income decreased 6.1%, from $321.3 million to $301.7 million in the comparable quarters.
• Net income per diluted share decreased from 60 cents to 57 cents.
• Net sales for the company's 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, increased 41.8%, from $65.6 million to $93 million in the comparative quarters.
• 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 $26.9 million for the 2022 fourth quarter.
• Net sales for the company's other segment, which includes certain products of American Fruits and Flavors LLC sold to independent third-party customers, decreased 23.1%, from $6 million to $4.6 million in the comparative quarters.
• Net sales increased 13.9%, from $5.54 billion to $6.31 billion in the comparative years. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 12 months of $239.5 million. Net sales on a foreign currency adjusted basis increased 18.2% for the year.
• Net income decreased 13.5%, from $1.38 billion to $1.19 billion in the comparative years.
• Net income per diluted share decreased 13.1%, from $2.57 to $2.23, in the comparative years.

Shares traded Tuesday at $101.76 against a 52-week range of $71.78-$105.45.

The $1.51 billion in quarterly revenue missed analyst expectations by $90 million while the non-GAAP EPS of 57 cents missed expectations by 5 cents, according to Seeking Alpha.

"We are pleased to report another quarter of continued revenue growth," Hilton H. Schlosberg, vice chairman and co-CEO, said in the press release. "The energy drink category continues to expand globally."