Vending

Monster Beverage reports strong Q2 2021 results despite pandemic

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August 17, 2021

Monster Beverage Corp. reported strong sales and earnings for the second quarter ending June 30, 2021, despite the impact of the coronavirus pandemic, according to an earnings release.

The company's net sales for the 2021 second quarter increased 33.6% from $1.09 billion in Q2, 2020 to $1.46 billion, as net changes in foreign currency exchange rates had a favorable impact on net sales for the 2021 second quarter of $38.6 million.

Net sales for the company's Monster Energy Drinks segment, which primarily includes the company's Monster Energy drinks and Reign Total Body Fuel high performance energy drinks, increased 33% to $1.37 billion for the 2021 second quarter. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy Drinks segment of approximately $35.5 million for the quarter.

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 energy brands, increased 45.9% to $86.9 million for the quarter.

Net sales for the company's "Other" segment, which includes certain products of American Fruits and Flavors LLC, a wholly owned subsidiary sold to independent third-party customers increased to $7.9 million for the 2021 second quarter, from $6.6 million in the 2020 second quarter.

Net sales to customers outside the U.S. increased 66.4% to $546.3 million in the 2021 second quarter. Such sales were approximately 37% of total net sales in the 2021 second quarter, compared with 30% in the 2020 second quarter.

Net income increased 29.7% from $311.4 million to $403.8 million in the comparative quarters.

Net income per share on both a basic and diluted basis increased 28.6% from 59 cents to 75 cents in the comparative quarters.

"We are pleased with our record financial results for the second quarter, despite the impact of the COVID-19 pandemic and particularly of the Delta variant," Rodney C. Sacks, chairman and co-chief executive officer, said in the release. "In the second quarter of 2021, we continued to secure distribution in both our domestic and international markets for our products, including our new products introduced earlier this year."

The $1.46 billion in quarterly revenue beat analyst expectations by $70 million, while the GAAP EPS of 75 cents beat expectations by 8 cents, according to Seeking Alpha.

Shares traded at $98.42 Monday against a 52-week range of $75.45-$99.89.

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