Monster Beverage Corp. Reports 28.7 Percent Second Quarter Sales Gain

Aug. 10, 2012

Monster Beverage Corp. reported financial results for the second quarter ended June 30, 2012.

Gross sales for the 2012 second quarter increased 28.7 percent to $678.9 million from $527.5 million in the same period last year. Net sales for the three-months ended June 30, 2012 increased 28.2 percent to $592.6 million from $462.1 million in the same quarter a year ago.

Gross profit, as a percentage of net sales, for the 2012 second quarter was 51.8 percent, compared with 52.8 percent for the comparable 2011 second quarter. Operating expenses for the 2012 second quarter increased to $137.2 million from $111.7 million in the same quarter last year.

Distribution costs as a percentage of net sales were 4.1 percent for both the 2012 and 2011 second quarters.

Selling expenses as a percentage of net sales were 11.6 percent for the 2012 second quarter, compared with 12.9 percent in the same quarter a year ago.

General and administrative expenses as a percentage of net sales for the 2012 second quarter were 7.5 percent, compared with 7.2 percent for the corresponding quarter last year. Stock-based compensation (a non-cash item) was $7.1 million in the second quarter of 2012, compared with $4.1 million for the same period in 2011.

Operating income for the 2012 second quarter increased 28.1 percent to $169.8 million from $132.5 million in the 2011 comparable quarter.

The effective tax rate for the 2012 second quarter was 35.3 percent compared with 36.5 percent in the same quarter last year.

Net income for the 2012 second quarter increased 30.3 percent to $109.8 million from $84.2 million in the same quarter last year. Net income per diluted share increased 31.0 percent to $0.59, from $0.45 per diluted share in the 2011 comparable quarter.

Net sales for the Company's DSD segment for the 2012 second quarter increased 30.1 percent to $568.0 million from $436.7 million for the same period in 2011.

Gross sales to customers outside the U.S. rose to $153.4 million in the 2012 second quarter from $102.6 million in the corresponding quarter in 2011.

Rodney C. Sacks, chairman and chief executive officer, said that both the energy drink category in the U.S. and Europe and the Monster Energy® brand in particular, continue to experience positive growth, with the Monster Energy® brand increasing in excess of category growth in both the U.S. and Europe. On the company's global expansion, Sacks said: "We are continuing to expand into new international markets with retail sales of Monster Energy® commencing in Ecuador, Hong Kong, Japan, Macau and Slovenia in the second quarter. We are planning launches in additional international markets later this year and in 2013."

For the first half of 2012, gross sales rose to $1,196.2 million from $935.1 million for the comparable period a year earlier. Net sales for the first six months of 2012 increased to $1,047.2 million from $818.6 million in the same period in 2011.

Gross profit as a percentage of net sales was 52.3 percent for the first six months of 2012, compared with 52.5 percent for the same period in 2011.

Operating expenses for the six-months ended June 30, 2012, increased to $252.1 million from $208.8 million in the same period last year. Operating income rose to $296.1 million, from $220.9 million in the first six months of 2011.

Net income for the first half of 2012 was $185.9 million, or $1.00 per diluted share, compared with $139.3 million, or $0.74 per diluted share, for the same period last year.

Related

Keurig Dr Pepper
Coffee Service

Keurig Dr Pepper announces new brewer and K-Cup pod innovations

March 15, 2024
The company's near-term vision includes the new Keurig brewer and K-Cup pod offerings, including new QuickChill technology that delivers the coldest coffee from a Keurig to-date...
Grabango
Management

Grabango adds finance veteran John Hyun as CFO

March 15, 2024
Hyun joins Grabango, a provider of checkout-free technology for large-scale chains, as the provider expands globally.
Photo 57408583 © Aliaksandr Halai | Dreamstime.com
Management

Nayax launches Nayax U platform for customers

March 15, 2024
Nayax U provides easy access to information about Nayax products, features and more for Nayax customers.
PepsiCo
Management

PepsiCo Greenhouse Accelerator Juntos Crecemos Edition returns with renewed focus on food and beverage startups

March 15, 2024
PepsiCo invites businesses to apply for its mentorship program and a chance to receive up to $120,000 in business grants.