Monster Beverage Corp. Reports Record Sales And Profits In First Quarter

May 11, 2012
Monster Beverage Corp. reported record sales and profits for the first quarter ended March 31, 2012.

Monster Beverage Corp. reported record sales and profits for the first quarter ended March 31, 2012.

Gross sales for the 2012 first quarter increased 26.9 percent to $517.3 million from $407.6 million in the same period last year. Net sales for the three-months ended March 31, 2012 increased 27.5 percent to $454.6 million from $356.4 million a year ago.

For the 2012 first quarter, gross profit as a percentage of net sales was 53.1 percent, compared with 52.1 percent for the comparable 2011 quarter. Operating expenses for the 2012 first quarter increased to $114.9 million from $97.1 million in the same quarter last year.

Distribution costs as a percentage of net sales were 4.3 percent for the 2012 first quarter, compared with 4.1 percent in the same quarter last year.

Selling expenses as a percentage of net sales for the 2012 first quarter were 12.3 percent, compared with 13.7 percent in the same quarter a year ago.

General and administrative expenses as a percentage of net sales for the 2012 first quarter were 8.7 percent, compared with 9.4 percent for the corresponding quarter last year. Stock-based compensation (a non-cash item) was $6.6 million in the first quarter of 2012, compared with $3.8 million for the first quarter of 2011.

Operating income for the 2012 first quarter increased 42.8 percent to $126.3 million from $88.5 million in the comparable 2011 quarter.

The effective tax rate for the 2012 first quarter was 39.9 percent, compared with 38.0 percent in the same quarter last year. 

Net income for the 2012 first quarter increased 38.3 percent to $76.1 million from $55.0 million in the same quarter last year. Net income per diluted share increased 39.7 percent to $0.41 from $0.29 per diluted share in the 2011 comparable quarter.

Net sales for the company's direct store delivery segment for the 2012 first quarter increased 28.8 percent to $431.2 million from $334.7 million for the same period in 2011.

Gross sales to customers outside the United States rose to $100.6 million in the 2012 first quarter, compared with $72.8 million in the corresponding quarter in 2011.

Rodney C. Sacks, chairman and chief executive officer, noted that the energy drink category in general, and the Monster Energy® brand in particular, have continued their positive growth trends. "We are also excited that the growth that we previously reported for our Monster Rehab® line has continued unabated. During the quarter, we launched our fifth product in the Monster Rehab® line," Sacks said in a prepared statement. "We are continuing to expand into new international markets and retail sales of Monster Energy® commenced in Hong Kong and Macau during April and in Japan and Ecuador earlier this week. We are planning launches in additional international markets later this year," Sacks added.