Vending

Monster Energy achieves record Q3 2021 sales despite COVID, supply chain issues

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November 5, 2021

Monster Energy Corp. achieved record sales for the third quarter of 2021, despite ongoing impact from the COVID-19 pandemic and supply chain issues, according to an earnings release.

The company boosted sales 13.2% from $1.25 billion in Q3 2020 to $1.41 billion for the quarter ending Sept. 30, 2021.

Net income decreased 3% from $347.7 to $337.2 million in the comparative quarters.

Net income per basic share fell from 66 cents to 64 cents while net income per diluted share decreased 3.5% from 65 cents to 63 cents.

During the 2021 third quarter, the company continued to experience shortages in its aluminum can requirements in the U.S. and Europe, the Middle East and Afrcia.

In addition, the company continued to experience additional supply chain challenges, including freight inefficiencies, trucking availability, shortages of shipping containers, port of entry congestion, insufficient co-packing capacity and delays in the receipt of certain ingredients. As a result, the company was not able to fully satisfy increased demand for its products in these regions in the 2021 third quarter.

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 and True North Pure Energy Seltzers, increased 14.3% to $1.33 billion from $1.16 billion in the comparative quarters.

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 affordable energy brands, increased 0.2% to $74.4 million from $74.3 million.

Shortages of concentrate negatively impacted net sales for the 2021 third 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, decreased to $6.3 million from $8.6 million.

The 63 cents diluted income per share missed analyst expectations by two cents, according to Zacks.

Shares traded Thursday at $87.78 against a 52-week range of $80.51-$99.89.

"In the third quarter of 2021, we expanded distribution of our brands in certain international markets," Rodney Sacks, chairman and CEO, said in the press release. "In the United States, we launched our line of True Nort Pure Energy Seltzer in August 2021 and are currently in the process of launching our Monster (stylized) Reserve line to the retail trade."

Net sales for the nine-months ended Sept. 30, 2021 increased 21% to $4.12 billion from $3.4 billion in the comparable period last year.

Net income for the nine-months increased 12.6% to $1.06 billion from $937.9 million in the comparable period last year while net income per diluted share increased 12.5% to $1.97 from $1.75.

For an update on how the coronavirus pandemic is affecting convenience services, click here.