Vending

Monster Energy Q4 2020, FY 2020 sales and earnings soar

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February 26, 2021

Despite the ongoing impact of the COVID-19 pandemic, Monster Beverage Corp. achieved record fourth quarter net sales as well as strong full year sales and earnings.

The company's net sales for the fourth quarter ended Dec. 31, 2020 increased 17.6% to $1.2 billion from $1.02 billion in the same period last year, according to an earnings release.

Net income for the 2020 fourth quarter increased 85% percent to $471.7 million from $255 million in the 2019 fourth quarter.

Net income per diluted share for the 2020 fourth quarter increased 87.5% to 88 cents from 47 cents in the fourth quarter of 2019. Net income per diluted share for the 2020 fourth quarter excluding the non-recurring tax benefit, the impact of the product returns, associated inventory provisions and other related costs increased 30.6% to 62 cents from 47 cents in the fourth quarter of 2019.

The revenue for the quarter surpassed analyst expectations by $79 million, while the Non-GAAP EPS of 62 cents matched expectations and the GAAP EPS of 88 cents beat expectations by 28 cents, according to Seeking Alpha.

Shares traded at $87.74 today against a 52-week range of $50.06-$89.63.

"The company posted record fourth quarter net sales and profits, despite the continuing impact of the COVID-19 pandemic in most of our markets," Rodney C. Sacks, chairman and co-chief executive officer, said in the release.

"According to Nielsen, the energy drink category, as well as our Monster Energy brand, continues to grow in most of our markets, including the United States," he said.

Net sales for the company's Monster Energy drinks segment, which primarily includes the Monster Energy drinks and Reign Total Body Fuel energy drinks, increased 17.7% to $1.12 billion for the 2020 fourth quarter from $953.2 million for the 2019 fourth 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 affordable energy brands, increased 14.8% to $67.9 million for the 2020 fourth quarter from $59.2 million in the 2019 fourth quarter.

Net sales for the company's "other" segment, which includes certain products of American Fruits and Flavors, LLC, a wholly-owned subsidiary of the company sold to independent third party customers, increased to $6.7 million for the 2020 fourth quarter from $4.9 million in the 2019 fourth quarter.

Net sales to customers outside the U.S. increased 20.4% to $384.8 million in the 2020 fourth quarter from $319.5 million in the 2019 fourth quarter. Such sales were approximately 32% of total net sales in the 2020 fourth quarter compared with 31% in the 2019 fourth quarter.

Net sales for the 12 months ended Dec. 31, 2020 increased 9.5% to $4.6 billion from $4.2 billion in the comparable period last year. Net sales were negatively impacted by $15.2 million related to the product returns and changes in foreign currency exchange rates had an unfavorable impact of $48.2 million.

Net income for the 12 months ended Dec. 31, 2020 increased 27.2% to $1.41 billion from $1.11 billion in the comparable period last year.

Net income per diluted share for the 12 months ended Dec, 31, 2020 increased 30% to $2.64, from $2.03 in the comparable period last year.

Net income for 2020 excluding the non-recurring tax benefit, the impact of the product returns, associated inventory provisions and other related costs increased 14.3% to $1.27 billion from $1.11 billion in the comparable period last year.

Net income per diluted share for 2020 excluding the non-recurring tax benefit, the impact of the product returns, associated inventory provisions and other related costs increased 16.8% to $2.37 from $2.03 in the comparable period last year.

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 foodservice on-premise consumption. The company's sales in the 2020 second quarter were initially adversely affected as a result of a decrease in foot traffic in the convenience and gas channel, which is the company's largest channel, but improved sequentially from the latter half of the 2020 second quarter and throughout the 2020 third and fourth quarters.

The company's e-commerce, club store, mass merchandiser and grocery and related business continued to increase in the fourth quarter, while its foodservice on-premise business, which is a small channel for the company, remained challenged.

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