Monster Beverage Corporation reported financial results for the three months ending March 31, 2022.
Highlights include:
- Record first-quarter net sales of $1.52 billion, 22.1% higher than net sales of $1.24 billion in the 2021 comparable period.
- The company completes its acquisition of CANarchy Craft Brewery Collective LLC.
- The company plans price increase in the U.S. effective September 1, 2022.
First-quarter results:
Net sales for the 2022 first quarter increased 22.1% to $1.52 billion from $1.24 billion in the comparable period last year. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2022 first quarter of $32.9 million.
Net sales for the company’s 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 Seltzer energy drinks, increased 20.0% to $1.40 billion for the 2022 first quarter, from $1.17 billion for the 2021 first quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy drinks segment of approximately $29.6 million for the 2022 first quarter.
Net sales for the company’s strategic brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the company’s affordable energy brands, increased 36.6% to $92.6 million for the 2022 first quarter, from $67.8 million in the 2021 first quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the strategic brands segment of approximately $3.3 million for the 2022 first 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 $5.9 million for the 2022 first quarter, from $5.7 million in the 2021 first quarter.
Gross profit, as a percentage of net sales, for the 2022 first quarter was 51.1%, compared with 57.5% in the 2021 first quarter. The decrease in gross profit percentage for the 2022 first quarter was primarily the result of increased freight rates and fuel costs, including costs relating to the importation of aluminum cans, increased aluminum can costs attributable to higher aluminum commodity pricing, increased ingredient and other input costs, including secondary packaging materials, increased co-packing fees, production inefficiencies and geographical sales mix. The decrease in gross profit as a percentage of net sales for the 2022 first quarter was partially offset by pricing actions.
Net income for the 2022 first quarter decreased 6.7% to $294.2 million, from $315.2 million in the 2021 first quarter. Net income per diluted share for the 2022 first quarter decreased 6.8% to $0.55, from $0.59 in the first quarter of 2021.
