Monster Beverage Corporation (NASDAQ: MNST) today reported
financial results for the three- and twelve-months ended December
31, 2024.
Items Impacting Profitability
The tables at the end of this press release provide a
reconciliation of non-GAAP financial measures to the Company’s
results, as reported under GAAP. (See “Adjusted Condensed
Consolidated Statements of Income and Other Information” and
“Reconciliation of GAAP and Non-GAAP Information” below).
2024 Fourth Quarter
- $130.7 million adverse impact relating to Alcohol Brands
segment impairment charges.
- $4.1 million adverse impact relating to reserves for excess
inventory in the Alcohol Brands segment.
- $1.8 million adverse impact of the Hansen Litigation (described
in greater detail in the Company’s SEC filings).
2023 Fourth Quarter
- $39.9 million adverse impact relating to Alcohol Brands segment
impairment charges.
- $5.0 million adverse impact relating to Bang inventory
purchased at fair value.
- $1.0 million adverse impact relating to Bang transaction
costs.
- $0.3 million adverse impact of the Hansen Litigation.
Operating income, adjusted for these items (non-GAAP), was
$517.9 million in the 2024 fourth quarter, compared with $480.1
million in the 2023 fourth quarter, an increase of 7.9 percent.
Net income per diluted share, adjusted for these items net of
tax (non-GAAP), was $0.38 per share for both the 2024 and 2023
fourth quarters.
2024 Full Year
- $138.8 million adverse impact relating to Alcohol Brands
segment impairment charges.
- $20.0 million adverse impact of the Hansen Litigation
(described in greater detail in the Company’s SEC filings).
- $14.7 million adverse impact relating to reserves for excess
inventory in the Alcohol Brands segment.
2023 Full Year
- $42.7 million adverse impact relating to Alcohol Brands segment
impairment charges.
- $16.1 million adverse impact relating to Bang transaction
costs.
- $12.8 million adverse impact relating to Bang inventory
purchased at fair value.
- $2.6 million adverse impact of the Hansen Litigation.
- $45.4 million favorable impact relating to the gain on the Bang
transaction.
Net income per diluted share, adjusted for these items net of
tax (non-GAAP), was $1.62 per share for the 2024 full year compared
with $1.56 per share for the 2023 full year.
Fourth Quarter ResultsNet sales for the 2024
fourth quarter increased 4.7 percent to $1.81 billion, from $1.73
billion in the comparable period last year. Net changes in foreign
currency exchange rates had an unfavorable impact on net sales for
the 2024 fourth quarter of $52.3 million. Net sales on a foreign
currency adjusted basis increased 7.8 percent in the 2024 fourth
quarter.
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, Reign Storm®
total wellness energy drinks and Bang Energy® drinks, increased 4.5
percent to $1.67 billion for the 2024 fourth quarter, from $1.60
billion for the 2023 fourth quarter. Net changes in foreign
currency exchange rates had an unfavorable impact on net sales for
the Monster Energy® Drinks segment of approximately $49.0 million
for the 2024 fourth quarter. Net sales on a foreign currency
adjusted basis for the Monster Energy® Drinks segment increased 7.6
percent in the 2024 fourth 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 Predator® and Fury®, increased 11.1 percent to $102.0
million for the 2024 fourth quarter, from $91.8 million in the 2023
fourth 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 2024 fourth quarter. Net
sales on a foreign currency adjusted basis for the Strategic Brands
segment increased 14.7 percent in the 2024 fourth quarter.
Net sales for the Alcohol Brands segment, which is comprised of
The Beast™, Nasty Beast® Hard Tea, as well as various craft beers
and hard seltzers, decreased 0.8 percent to $34.9 million for the
2024 fourth quarter, from $35.2 million in the 2023 fourth
quarter.
Net sales for the Company’s Other segment, which primarily
includes certain products of American Fruits and Flavors, LLC, a
wholly owned subsidiary of the Company, sold to independent
third-party customers, increased 4.6 percent to $5.1 million for
the 2024 fourth quarter, from $4.9 million in the 2023 fourth
quarter.
Net sales to customers outside the United States increased 11.7
percent to $711.5 million in the 2024 fourth quarter, from $637.0
million in the 2023 fourth quarter. Such sales were approximately
39.3 percent of total net sales for the 2024 fourth quarter,
compared with 36.8 percent in the 2023 fourth quarter. Net sales to
customers outside the United States, on a foreign currency adjusted
basis, increased 19.9 percent in the 2024 fourth quarter.
Gross profit as a percentage of net sales for the 2024 fourth
quarter was 55.3 percent, compared with 54.2 percent in the 2023
fourth quarter. Adjusted gross profit as a percentage of net sales
for the 2024 fourth quarter was 55.5 percent, compared with 54.5
percent in the 2023 fourth quarter. (See “Adjusted Condensed
Consolidated Statements of Income and Other Information” and
“Reconciliation of GAAP and Non-GAAP Information” below). The
increase in gross profit as a percentage of net sales for the 2024
fourth quarter was primarily the result of reduced input costs,
partially offset by geographical sales mix.
Operating expenses for the 2024 fourth quarter were $621.2
million, compared with $504.4 million in the 2023 fourth quarter.
Operating expenses as a percentage of net sales for the 2024 fourth
quarter were 34.3 percent, compared with 29.2 percent in the 2023
fourth quarter. Adjusted operating expenses for the 2024 fourth
quarter were $488.7 million, compared with $463.2 million in the
2023 fourth quarter. Adjusted operating expenses as a percentage of
net sales for the 2024 fourth quarter were 27.0 percent, compared
with 26.8 percent in the 2023 fourth quarter. (See “Adjusted
Condensed Consolidated Statements of Income and Other Information”
and “Reconciliation of GAAP and Non-GAAP Information” below).
Distribution expenses for the 2024 fourth quarter were $77.6
million, or 4.3 percent of net sales, compared with $79.6 million,
or 4.6 percent of net sales, in the 2023 fourth quarter.
Selling expenses for the 2024 fourth quarter were $193.4
million, or 10.7 percent of net sales, compared with $176.8
million, or 10.2 percent of net sales, in the 2023 fourth
quarter.
General and administrative expenses for the 2024 fourth quarter
were $350.3 million, or 19.3 percent of net sales, compared with
$248.0 million, or 14.3 percent of net sales, for the 2023 fourth
quarter. Stock-based compensation was $22.2 million for the 2024
fourth quarter, compared with $16.4 million in the 2023 fourth
quarter. Adjusted general and administrative expenses for the 2024
fourth quarter were $217.7 million, or 12.0 percent of net sales,
compared with $206.8 million, or 12.0 percent of net sales, for the
2023 fourth quarter. (See “Adjusted Condensed Consolidated
Statements of Income and Other Information” and “Reconciliation of
GAAP and Non-GAAP Information” below).
Operating income for the 2024 fourth quarter was $381.2 million,
compared with $434.0 million in the 2023 fourth quarter. Adjusted
operating income for the 2024 fourth quarter was $517.9 million,
compared with $480.1 million in the 2023 fourth quarter. (See
“Adjusted Condensed Consolidated Statements of Income and Other
Information” and “Reconciliation of GAAP and Non-GAAP Information”
below).
The effective tax rate for the 2024 fourth quarter was 29.9
percent, compared with 18.5 percent in the 2023 fourth quarter. The
increase in the effective tax rate for the 2024 fourth quarter was
primarily attributable to a decrease in the stock-based
compensation deduction for the 2024 fourth quarter, an adjustment
to the 2024 full year effective tax rate, higher 2024 state income
taxes and the establishment of a state tax valuation allowance
relating to certain net operating losses of the Alcohol Brands
segment.
Net income for the 2024 fourth quarter decreased 26.2 percent to
$270.7 million, from $367.0 million in the 2023 fourth quarter.
Adjusted net income for the 2024 fourth quarter decreased 6.6
percent to $375.7 million from adjusted net income of $402.4
million in the 2023 fourth quarter. (See “Adjusted Condensed
Consolidated Statements of Income and Other Information” and
“Reconciliation of GAAP and Non-GAAP Information” below).
Net income per diluted share for the 2024 fourth quarter
decreased 20.8 percent to $0.28, from $0.35 in the fourth quarter
of 2023. Adjusted net income per diluted share was $0.38 per share
for the 2024 fourth quarter, compared with adjusted net income per
diluted share of $0.38 per share for the 2023 fourth quarter. (See
“Adjusted Condensed Consolidated Statements of Income and Other
Information” and “Reconciliation of GAAP and Non-GAAP Information”
below).
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive
Officer, said, “We recorded strong operating results on an adjusted
basis in the 2024 fourth quarter and for the 2024 full year.
“Our results were again impacted by unfavorable foreign currency
exchange rates in certain markets. On a foreign currency adjusted
basis, net sales increased 7.8 percent in the quarter.
“Adjusted gross profit margins improved to 55.5 percent in the
2024 fourth quarter, compared with adjusted gross profit margins of
54.5 percent in the 2023 fourth quarter.
“We continued to see sustained growth in the global energy drink
category. In the United States, we are seeing a resurgence of
growth in the energy drink category in convenience, as well as in
all measured channels reported by Nielsen. Our non-Nielsen measured
channels continued to grow.
“Growth opportunities in household penetration and per capita
consumption, along with consumers’ growing need for energy are
positive trends for the category.
“We implemented an approximately 5.0 percent price increase on
our brands and packages, excluding Bang Energy®, Reign® and Reign
Storm® in the United States, effective November 1, 2024, which
contributed to our strong results,” Schlosberg added.
Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said,
“Following the successful launch of Monster Energy® Ultra Vice
Guava® in October 2024, we launched a number of new products in the
first two months of 2025. Innovation globally continues to play a
key role in our strategy and we maintain a robust innovation
pipeline.
“We continue to have market share leadership in a number of
countries for our Monster Energy® brand, and I am pleased to report
that in the Republic of Ireland, Monster Energy® has gained market
share leadership in the last 13 weeks, as reported by Nielsen.
“We incurred additional impairments within our Alcohol Brands
segment in the quarter due to financial performance, which is being
addressed. We are exploring opportunities for distribution of our
alcohol products in certain international jurisdictions,” Sacks
said.
2024 Full-Year ResultsNet sales for the year
ended December 31, 2024, increased 4.9 percent to $7.49
billion, from $7.14 billion in 2023. Global pricing actions
positively impacted net sales by approximately $107.3 million for
the year ended December 31, 2024. Net changes in foreign currency
exchange rates had an unfavorable impact of $247.1 million on net
sales for the 2024 full year. Net sales on a foreign currency
adjusted basis increased 8.4 percent for the 2024 full year.
Gross profit, as a percentage of net sales, for the year ended
December 31, 2024, was 54.0 percent, compared with 53.1 percent in
2023. Adjusted gross profit as a percentage of net sales for the
year ended December 31, 2024, was 54.2 percent, compared with 53.3
percent in 2023. (See “Adjusted Condensed Consolidated Statements
of Income and Other Information” and “Reconciliation of GAAP and
Non-GAAP Information” below).
Operating expenses for the year ended December 31, 2024, were
$2.12 billion, compared with $1.84 billion in 2023. Adjusted
operating expenses for the year ended December 31, 2024, were $1.96
billion, compared with $1.78 billion in 2023. (See “Adjusted
Condensed Consolidated Statements of Income and Other Information”
and “Reconciliation of GAAP and Non-GAAP Information” below).
Operating income for the year ended December 31, 2024, was $1.93
billion, compared with $1.95 billion in 2023. Adjusted operating
income for the year ended December 31, 2024, was $2.10 billion,
compared with $2.03 billion in 2023. (See “Adjusted Condensed
Consolidated Statements of Income and Other Information” and
“Reconciliation of GAAP and Non-GAAP Information” below).
The effective tax rate was 24.1 percent for the year ended
December 31, 2024, compared with 21.2 percent in 2023.
Net income for the year ended December 31, 2024, decreased 7.5
percent to $1.51 billion, from $1.63 billion in 2023. Net
income per diluted share for the year ended December 31, 2024,
decreased 3.4 percent to $1.49, from $1.54 in 2023. Adjusted net
income for the year ended December 31, 2024, decreased 0.7 percent
to $1.64 billion from $1.65 billion for 2023. Adjusted net income
per diluted share was $1.62 per share for the year ended December
31, 2024, compared with $1.56 per share for 2023. (See “Adjusted
Condensed Consolidated Statements of Income and Other Information”
and “Reconciliation of GAAP and Non-GAAP Information” below).
Share Repurchase ProgramDuring the
2024 fourth quarter, no shares of the Company common stock were
repurchased. As of February 26, 2025, approximately $500.0 million
remained available for repurchase under the previously authorized
repurchase program.
Investor Conference CallThe
Company will host an investor conference call today, February 27,
2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The
conference call will be open to all interested investors through a
live audio web broadcast via the internet at www.monsterbevcorp.com
in the “Events & Presentations” section. For those who are not
able to listen to the live broadcast, the call will be archived for
approximately one year on the website.
Monster Beverage CorporationBased in Corona,
California, Monster Beverage Corporation is a holding company and
conducts no operating business except through its consolidated
subsidiaries. The Company’s subsidiaries develop and market energy
drinks, including Monster Energy® drinks, Monster Energy Ultra®
energy drinks, Juice Monster® Energy + Juice energy drinks, Java
Monster® non-carbonated coffee + energy drinks, Monster Killer
Brew™ Triple Shot, Rehab® Monster® non-carbonated energy drinks,
Monster Energy® Nitro energy drinks, Reign® Total Body Fuel high
performance energy drinks, Reign Storm® total wellness energy
drinks, NOS® energy drinks, Full Throttle® energy drinks, Bang
Energy® drinks, BPM® energy drinks, BU® energy drinks, Burn® energy
drinks, Live+® energy drinks, Mother® energy drinks, Nalu® energy
drinks, Play® and Power Play® (stylized) energy drinks, Relentless®
energy drinks, Samurai® energy drinks, Ultra Energy® drinks,
Predator® energy drinks and Fury® energy drinks. The Company’s
subsidiaries also develop and market still and sparkling waters
under the Monster Tour Water® brand name. The Company’s
subsidiaries also develop and market craft beers, flavored malt
beverages and hard seltzers under a number of brands, including Jai
Alai® IPA, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin® hard
seltzers, The Beast™ and Nasty Beast® Hard Tea. For more
information visit www.monsterbevcorp.com.
Caution Concerning Forward-Looking
StatementsCertain statements made in this announcement may
constitute “forward-looking statements” within the meaning of the
U.S. federal securities laws, as amended, regarding the
expectations of management with respect to our future operating
results and other future events including revenues and
profitability. The Company cautions that these statements are based
on management’s current knowledge and expectations and are subject
to certain risks and uncertainties, many of which are outside of
the control of the Company, that could cause actual results and
events to differ materially from the statements made herein. Such
risks and uncertainties include, but are not limited to, the
following: our ability to sustain the current level of sales of
and/or achieve growth for our Monster Energy® Reign Total Body
Fuel®, Reign Storm®, Bang Energy® and NOS® brand energy drinks
and/or our other products, including our Strategic Brands and
Alcohol Brands, decreased demand for our products resulting from
changes in consumer preferences; the impact on our business of
competitive products and pricing pressures and our ability to
increase or maintain our market share as a result of actions by
competitors; changes in U.S. trade policies as a result of any
legislation proposed or implemented by the recently inaugurated
U.S. presidential administration or U.S. Congress, which include
tariffs; the impact of military conflicts, including supply chain
disruptions, volatility in commodity prices, increased economic
uncertainty and escalating geopolitical tensions; our extensive
commercial arrangements with The Coca-Cola Company (TCCC) and, as a
result, our future performance’s substantial dependence on the
success of our relationship with TCCC; our ability to implement our
growth strategy, including expanding our business in existing and
new sectors and achieving profitability within our Alcohol Brands
segment; the inherent operational risks presented by the alcoholic
beverage industry that may not be adequately covered by insurance
or lead to litigation relating to the abuse or misuse of our
products; our ability to recognize the anticipated benefits of the
acquisition of Bang Energy® business; exposure to significant
liabilities due to litigation, legal or regulatory proceedings;
intellectual property injunctions; unanticipated litigation
concerning the Company’s products; the current uncertainty and
volatility in the national and global economy and changes in demand
due to such economic conditions, including a slowdown in consumer
spending generally or reduced demand for consumer goods; adverse
publicity surrounding obesity, alcohol consumption and other health
concerns related to our products, product safety and quality;
changes in the price and/or availability of raw materials; other
supply issues, including the availability of products and/or
suitable production facilities including limitations on co-packing
availability including retort production; disruption to our
manufacturing facilities and operations related to climate, labor,
production difficulties, capacity limitations, regulations or other
causes; product distribution and placement decisions by retailers;
the effects of retailer and/or bottler/distributor consolidation on
our business; unilateral decisions by bottlers/distributors, buying
groups, convenience chains, grocery chains, mass merchandisers,
specialty chain stores, e-commerce retailers, e-commerce websites,
club stores and other customers to discontinue carrying all or any
of our products that they are carrying at any time, restrict the
range of our products they carry, impose restrictions or
limitations on the sale of our products and/or the sizes of
containers for our products and/or devote less resources to the
sale of our products; changes in governmental regulation; the
imposition of new and/or increased excise sales and/or other taxes
on our products; our ability to adapt to the changing retail
landscape with the rapid growth in e-commerce retailers and
e-commerce websites; the impact of proposals to limit or restrict
the sale of energy or alcohol drinks to minors and/or persons below
a specified age and/or restrict the venues and/or the size of
containers in which energy or alcohol drinks can be sold; possible
recalls of our products and/or the consequences and costs of
defective production; or our ability to absorb, reduce or pass on
to our bottlers/distributors increases in commodity costs,
including freight costs. For a more detailed discussion of these
and other risks that could affect our operating results, see the
Company’s reports filed with the Securities and Exchange
Commission, including our annual report on Form 10-K for the year
ended December 31, 2023 and our subsequently filed quarterly
reports. The Company’s actual results could differ materially from
those contained in the forward-looking statements. The Company
assumes no obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
(tables below)
|
|
|
MONSTER BEVERAGE CORPORATION AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME AND OTHER INFORMATIONFOR THE THREE- AND
TWELVE-MONTHS ENDED DECEMBER 31, 2024 AND 2023(In
Thousands, Except Per Share Amounts) (Unaudited) |
|
|
|
|
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net sales¹ |
$ |
1,812,041 |
|
|
$ |
1,730,108 |
|
|
$ |
7,492,709 |
|
|
$ |
7,140,027 |
|
| |
|
|
|
|
|
|
|
| Cost of sales |
|
809,596 |
|
|
|
791,736 |
|
|
|
3,443,831 |
|
|
|
3,345,821 |
|
| |
|
|
|
|
|
|
|
| Gross profit¹ |
|
1,002,445 |
|
|
|
938,372 |
|
|
|
4,048,878 |
|
|
|
3,794,206 |
|
| Gross profit as a percentage
of net sales |
|
55.3% |
|
|
|
54.2% |
|
|
|
54.0% |
|
|
|
53.1% |
|
| |
|
|
|
|
|
|
|
| Operating expenses |
|
621,221 |
|
|
|
504,414 |
|
|
|
2,118,584 |
|
|
|
1,840,851 |
|
| Operating expenses as a
percentage of net sales |
|
34.3% |
|
|
|
29.2% |
|
|
|
28.3% |
|
|
|
25.8% |
|
| |
|
|
|
|
|
|
|
| Operating income¹ |
|
381,224 |
|
|
|
433,958 |
|
|
|
1,930,294 |
|
|
|
1,953,355 |
|
| Operating income as a
percentage of net sales |
|
21.0% |
|
|
|
25.1% |
|
|
|
25.8% |
|
|
|
27.4% |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Interest and other income
(expense), net |
|
4,854 |
|
|
|
16,117 |
|
|
|
59,165 |
|
|
|
115,127 |
|
| |
|
|
|
|
|
|
|
| Income before provision for
income taxes¹ |
|
386,078 |
|
|
|
450,075 |
|
|
|
1,989,459 |
|
|
|
2,068,482 |
|
| |
|
|
|
|
|
|
|
| Provision for income
taxes |
|
115,367 |
|
|
|
83,097 |
|
|
|
480,411 |
|
|
|
437,494 |
|
| Income taxes as a percentage
of income before taxes |
|
29.9% |
|
|
|
18.5% |
|
|
|
24.1% |
|
|
|
21.2% |
|
| |
|
|
|
|
|
|
|
| Net income |
$ |
270,711 |
|
|
$ |
366,978 |
|
|
$ |
1,509,048 |
|
|
$ |
1,630,988 |
|
| Net income as a percentage of
net sales |
|
14.9% |
|
|
|
21.2% |
|
|
|
20.1% |
|
|
|
22.8% |
|
| |
|
|
|
|
|
|
|
| Net income per common
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.28 |
|
|
$ |
0.35 |
|
|
$ |
1.50 |
|
|
$ |
1.56 |
|
|
Diluted |
$ |
0.28 |
|
|
$ |
0.35 |
|
|
$ |
1.49 |
|
|
$ |
1.54 |
|
| |
|
|
|
|
|
|
|
| Weighted average number of
shares of common stock and common stock equivalents: |
|
|
|
|
|
|
|
|
Basic |
|
972,742 |
|
|
|
1,040,584 |
|
|
|
1,004,566 |
|
|
|
1,044,887 |
|
|
Diluted |
|
980,942 |
|
|
|
1,052,524 |
|
|
|
1,013,107 |
|
|
|
1,057,981 |
|
| |
|
|
|
|
|
|
|
| Energy Drink Case sales (in
thousands) (in 192-ounce case equivalents) |
|
203,630 |
|
|
|
185,304 |
|
|
|
846,663 |
|
|
|
769,241 |
|
| Average net sales per
case2 |
$ |
8.70 |
|
|
$ |
9.12 |
|
|
$ |
8.62 |
|
|
$ |
9.01 |
|
| |
|
|
|
|
|
|
|
¹Includes $10.0 million for both the
three-months ended December 31, 2024 and 2023, related to the
recognition of deferred revenue. Includes $39.9 million and $40.0
million for the twelve-months ended December 31, 2024 and 2023,
respectively, related to the recognition of deferred revenue.
2Excludes Alcohol Brands segment and Other
segment net sales.
| |
|
MONSTER BEVERAGE CORPORATION AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETSAS OF DECEMBER 31, 2024 AND
2023(In Thousands, Except Par Value)
(Unaudited) |
| |
|
|
|
|
|
|
|
December 31,2024 |
|
December 31,2023 |
|
ASSETS |
|
|
|
|
| CURRENT ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,533,287 |
|
|
$ |
2,297,675 |
|
| Short-term investments |
|
|
- |
|
|
|
955,605 |
|
| Accounts receivable, net |
|
|
1,221,646 |
|
|
|
1,193,964 |
|
| Inventories |
|
|
737,107 |
|
|
|
971,406 |
|
| Prepaid expenses and other
current assets |
|
|
107,262 |
|
|
|
116,195 |
|
| Prepaid income taxes |
|
|
42,202 |
|
|
|
54,151 |
|
|
Total current assets |
|
|
3,641,504 |
|
|
|
5,588,996 |
|
| |
|
|
|
|
| INVESTMENTS |
|
|
- |
|
|
|
76,431 |
|
| PROPERTY AND EQUIPMENT,
net |
|
|
1,047,024 |
|
|
|
890,796 |
|
| DEFERRED INCOME TAXES,
net |
|
|
184,260 |
|
|
|
175,003 |
|
| GOODWILL |
|
|
1,331,643 |
|
|
|
1,417,941 |
|
| OTHER INTANGIBLE ASSETS,
net |
|
|
1,414,252 |
|
|
|
1,427,139 |
|
| OTHER ASSETS |
|
|
100,406 |
|
|
|
110,216 |
|
|
Total Assets |
|
$ |
7,719,089 |
|
|
$ |
9,686,522 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
| Accounts payable |
|
$ |
466,775 |
|
|
$ |
564,379 |
|
| Accrued liabilities |
|
|
220,764 |
|
|
|
183,988 |
|
| Accrued promotional
allowances |
|
|
267,711 |
|
|
|
269,061 |
|
| Deferred revenue |
|
|
45,809 |
|
|
|
41,914 |
|
| Accrued compensation |
|
|
92,454 |
|
|
|
87,392 |
|
| Income taxes payable |
|
|
4,006 |
|
|
|
14,955 |
|
|
Total current liabilities |
|
|
1,097,519 |
|
|
|
1,161,689 |
|
| |
|
|
|
|
| DEFERRED REVENUE |
|
|
179,008 |
|
|
|
204,251 |
|
| OTHER LIABILITIES |
|
|
110,893 |
|
|
|
91,838 |
|
| LONG-TERM DEBT |
|
|
373,951 |
|
|
|
- |
|
| |
|
|
|
|
| STOCKHOLDERS' EQUITY: |
|
|
|
|
| Common stock - $0.005 par
value; 5,000,000 shares authorized;1,126,329 shares issued and
973,079 shares outstanding as of December 31, 2024;1,122,592 shares
issued and 1,041,571 shares outstanding as of December 31,
2023 |
|
|
5,632 |
|
|
|
5,613 |
|
| Additional paid-in
capital |
|
|
5,144,922 |
|
|
|
4,975,115 |
|
| Retained earnings |
|
|
7,448,784 |
|
|
|
5,939,736 |
|
| Accumulated other
comprehensive loss |
|
|
(269,487 |
) |
|
|
(125,337 |
) |
| Common stock in treasury, at
cost; 153,250 shares and 81,021 shares as of December 31, 2024 and
December 31, 2023, respectively |
|
|
(6,372,133 |
) |
|
|
(2,566,383 |
) |
|
Total stockholders' equity |
|
|
5,957,718 |
|
|
|
8,228,744 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
7,719,089 |
|
|
$ |
9,686,522 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
MONSTER BEVERAGE CORPORATION AND
SUBSIDIARIESADJUSTED CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND OTHER INFORMATIONFOR THE
THREE- AND TWELVE-MONTHS ENDED DECEMBER 31, 2024 AND
20231(In Thousands, Except Per
Share Amounts) (Unaudited) |
|
|
|
|
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
1,812,041 |
|
|
$ |
1,730,108 |
|
|
$ |
7,492,709 |
|
|
$ |
7,140,027 |
|
| |
|
|
|
|
|
|
|
| Cost of sales |
|
805,453 |
|
|
|
786,760 |
|
|
|
3,429,101 |
|
|
|
3,333,021 |
|
| |
|
|
|
|
|
|
|
| Gross profit |
|
1,006,588 |
|
|
|
943,348 |
|
|
|
4,063,608 |
|
|
|
3,807,006 |
|
| Gross profit as a percentage
of net sales |
|
55.5% |
|
|
|
54.5% |
|
|
|
54.2% |
|
|
|
53.3% |
|
| |
|
|
|
|
|
|
|
| Operating expenses |
|
488,667 |
|
|
|
463,224 |
|
|
|
1,959,825 |
|
|
|
1,779,404 |
|
| Operating expenses as a
percentage of net sales |
|
27.0% |
|
|
|
26.8% |
|
|
|
26.2% |
|
|
|
24.9% |
|
| |
|
|
|
|
|
|
|
| Operating income |
|
517,921 |
|
|
|
480,124 |
|
|
|
2,103,783 |
|
|
|
2,027,602 |
|
| Operating income as a
percentage of net sales |
|
28.6% |
|
|
|
27.8% |
|
|
|
28.1% |
|
|
|
28.4% |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Interest and other income
(expense), net |
|
4,854 |
|
|
|
16,117 |
|
|
|
59,165 |
|
|
|
69,745 |
|
| |
|
|
|
|
|
|
|
| Income before provision for
income taxes¹ |
|
522,775 |
|
|
|
496,241 |
|
|
|
2,162,948 |
|
|
|
2,097,347 |
|
| |
|
|
|
|
|
|
|
| Provision for income
taxes |
|
147,080 |
|
|
|
93,799 |
|
|
|
521,045 |
|
|
|
444,375 |
|
| Income taxes as a percentage
of income before taxes |
|
28.1% |
|
|
|
18.9% |
|
|
|
24.1% |
|
|
|
21.2% |
|
| |
|
|
|
|
|
|
|
| Net income |
$ |
375,695 |
|
|
$ |
402,442 |
|
|
$ |
1,641,903 |
|
|
$ |
1,652,972 |
|
| Net income as a percentage of
net sales |
|
20.7% |
|
|
|
23.3% |
|
|
|
21.9% |
|
|
|
23.2% |
|
| |
|
|
|
|
|
|
|
| Net income per common
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.39 |
|
|
$ |
0.39 |
|
|
$ |
1.63 |
|
|
$ |
1.58 |
|
|
Diluted |
$ |
0.38 |
|
|
$ |
0.38 |
|
|
$ |
1.62 |
|
|
$ |
1.56 |
|
| |
|
|
|
|
|
|
|
| Weighted average number of
shares of common stock and common stock equivalents: |
|
|
|
|
|
|
|
|
Basic |
|
972,742 |
|
|
|
1,040,584 |
|
|
|
1,004,566 |
|
|
|
1,044,887 |
|
|
Diluted |
|
980,942 |
|
|
|
1,052,524 |
|
|
|
1,013,107 |
|
|
|
1,057,981 |
|
| |
|
|
|
|
|
|
|
1See “Reconciliation of GAAP and non-GAAP Information” below for
excluded items.
| |
|
Reconciliation of GAAP and Non-GAAP Information
($ in Thousands, Except Per Share Amounts,
unaudited) |
| |
Adjusted results are non-GAAP that exclude the following:
(i) Alcohol Brands Inventory Reserves – increased inventory
reserves due to excess inventory levels in the Alcohol Brands
segment.
(ii) Bang Inventory Step-Up – on July 31, 2023, the Company
completed its acquisition of substantially all of the assets of
Vital Pharmaceuticals, Inc. and its debtor affiliates (the “Bang
Transaction”). Inventory purchased as part of the Bang Transaction
was recorded at fair value. Certain of the purchased inventory was
subsequently sold in the 2023 third and fourth quarters and was
recognized through cost of sales at fair value
(iii) Alcohol Brands segment impairment charges – impairment
charges related to the Alcohol Brands segment due to (a) operating
and financial performance not meeting projections and (b) a
decrease in projected ongoing operating and financial performance
of the reporting unit. The impairment charges relate to reporting
unit goodwill, certain non-amortizing intangibles as well as
property and equipment.
(iii) Hansen Litigation – the Company recorded an expense
provision and incurred legal expenses in connection with an
intellectual property claim brought by the descendants of Hubert
Hansen, in relation to the Company’s use of the Hubert Hansen name
prior to the transaction with the Coca-Cola Company, which closed
in 2015.
(iv) Bang Transaction Expenses - during 2023, the Company
incurred acquisition expenses related to the Bang Transaction.
(v) Bang Transaction Gain - during the 2023 third quarter, in
connection with the Bang Transaction, the Company recorded a gain
of $45.4 million included in interest and other income (expense),
net.
The Company believes these non-GAAP items are useful to
investors in evaluating the Company’s ongoing operating and
financial results. The non-GAAP items should be considered in
addition to, and not in lieu of, U.S. GAAP financial measures.
|
|
|
|
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Cost of sales |
$ |
809,596 |
|
|
$ |
791,736 |
|
|
$ |
3,443,831 |
|
|
$ |
3,345,821 |
|
|
|
|
|
|
|
|
|
|
| Alcohol Brands inventory
reserves |
|
(4,143 |
) |
|
|
- |
|
|
|
(14,730 |
) |
|
|
- |
|
| Bang inventory step-up |
|
- |
|
|
|
(4,976 |
) |
|
|
- |
|
|
|
(12,800 |
) |
| |
|
|
|
|
|
|
|
| Cost of sales excluding above
items |
$ |
805,453 |
|
|
$ |
786,760 |
|
|
$ |
3,429,101 |
|
|
$ |
3,333,021 |
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Gross profit |
$ |
1,002,445 |
|
|
$ |
938,372 |
|
|
$ |
4,048,878 |
|
|
$ |
3,794,206 |
|
|
|
|
|
|
|
|
|
|
| Alcohol Brands inventory
reserves |
|
4,143 |
|
|
|
- |
|
|
|
14,730 |
|
|
|
- |
|
| Bang inventory step-up |
|
- |
|
|
|
4,976 |
|
|
|
- |
|
|
|
12,800 |
|
| |
|
|
|
|
|
|
|
| Gross profit excluding above
items |
$ |
1,006,588 |
|
|
$ |
943,348 |
|
|
$ |
4,063,608 |
|
|
$ |
3,807,006 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and Non-GAAP Information
(cont.)($ in Thousands, unaudited) |
|
|
|
|
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Operating expenses |
$ |
621,221 |
|
|
$ |
504,414 |
|
|
$ |
2,118,584 |
|
|
$ |
1,840,851 |
|
|
|
|
|
|
|
|
|
|
| Alcohol Brands segment
impairment charges |
|
(130,711 |
) |
|
|
(39,936 |
) |
|
|
(138,762 |
) |
|
|
(42,736 |
) |
| Hansen Litigation |
|
(1,843 |
) |
|
|
(263 |
) |
|
|
(19,997 |
) |
|
|
(2,617 |
) |
| Bang transaction expenses |
|
- |
|
|
|
(991 |
) |
|
|
- |
|
|
|
(16,094 |
) |
| |
|
|
|
|
|
|
|
| Operating expenses excluding
above items |
$ |
488,667 |
|
|
$ |
463,224 |
|
|
$ |
1,959,825 |
|
|
$ |
1,779,404 |
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Operating income |
$ |
381,224 |
|
|
$ |
433,958 |
|
|
$ |
1,930,294 |
|
|
$ |
1,953,355 |
|
|
|
|
|
|
|
|
|
|
| Alcohol Brands inventory
reserve |
|
4,143 |
|
|
|
- |
|
|
|
14,730 |
|
|
|
- |
|
| Bang inventory step-up |
|
- |
|
|
|
4,976 |
|
|
|
- |
|
|
|
12,800 |
|
| Alcohol Brands segment
impairment charges |
|
130,711 |
|
|
|
39,936 |
|
|
|
138,762 |
|
|
|
42,736 |
|
| Hansen Litigation |
|
1,843 |
|
|
|
263 |
|
|
|
19,997 |
|
|
|
2,617 |
|
| Bang transaction expenses |
|
- |
|
|
|
991 |
|
|
|
- |
|
|
|
16,094 |
|
| |
|
|
|
|
|
|
|
| Operating income excluding
above items |
$ |
517,921 |
|
|
$ |
480,124 |
|
|
$ |
2,103,783 |
|
|
$ |
2,027,602 |
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Interest and other income (expense), net |
$ |
4,854 |
|
|
$ |
16,117 |
|
|
$ |
59,165 |
|
|
$ |
115,127 |
|
|
|
|
|
|
|
|
|
|
| Bang transaction gain |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(45,382 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest and other income
(expense), net, excluding above item |
$ |
4,854 |
|
|
$ |
16,117 |
|
|
$ |
59,165 |
|
|
$ |
69,745 |
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Income before provision for income taxes |
$ |
386,078 |
|
|
$ |
450,075 |
|
|
$ |
1,989,459 |
|
|
$ |
2,068,482 |
|
|
|
|
|
|
|
|
|
|
| Alcohol Brands inventory
reserve |
|
4,143 |
|
|
|
- |
|
|
|
14,730 |
|
|
|
- |
|
| Bang inventory step-up |
|
- |
|
|
|
4,976 |
|
|
|
- |
|
|
|
12,800 |
|
| Alcohol Brands segment
impairment charges |
|
130,711 |
|
|
|
39,936 |
|
|
|
138,762 |
|
|
|
42,736 |
|
| Hansen Litigation |
|
1,843 |
|
|
|
263 |
|
|
|
19,997 |
|
|
|
2,617 |
|
| Bang transaction expenses |
|
- |
|
|
|
991 |
|
|
|
- |
|
|
|
16,094 |
|
| Bang transaction gain |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(45,382 |
) |
| |
|
|
|
|
|
|
|
| Income before provision for
income taxes excluding above items |
$ |
522,775 |
|
|
$ |
496,241 |
|
|
$ |
2,162,948 |
|
|
$ |
2,097,347 |
|
| |
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and Non-GAAP Information
(cont.)($ in Thousands, unaudited) |
|
|
|
|
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Provision for income taxes |
$ |
115,367 |
|
|
$ |
83,097 |
|
|
$ |
480,411 |
|
|
$ |
437,494 |
|
|
|
|
|
|
|
|
|
|
| Alcohol Brands inventory
reserve |
|
961 |
|
|
|
- |
|
|
|
3,555 |
|
|
|
- |
|
| Bang inventory step-up |
|
- |
|
|
|
1,229 |
|
|
|
- |
|
|
|
2,966 |
|
| Alcohol Brands segment
impairment charges |
|
30,325 |
|
|
|
9,185 |
|
|
|
32,193 |
|
|
|
9,807 |
|
| Hansen Litigation |
|
427 |
|
|
|
60 |
|
|
|
4,886 |
|
|
|
602 |
|
| Bang transaction expenses |
|
- |
|
|
|
228 |
|
|
|
- |
|
|
|
3,581 |
|
| Bang transaction gain |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(10,075 |
) |
| |
|
|
|
|
|
|
|
| Provision for income taxes
excluding above items |
$ |
147,080 |
|
|
$ |
93,799 |
|
|
$ |
521,045 |
|
|
$ |
444,375 |
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net income |
$ |
270,711 |
|
|
$ |
366,978 |
|
|
$ |
1,509,048 |
|
|
$ |
1,630,988 |
|
|
|
|
|
|
|
|
|
|
| Alcohol Brands inventory
reserve |
|
3,182 |
|
|
|
- |
|
|
|
11,175 |
|
|
|
- |
|
| Bang inventory step-up |
|
- |
|
|
|
3,747 |
|
|
|
- |
|
|
|
9,834 |
|
| Alcohol Brands segment
impairment charges |
|
100,386 |
|
|
|
30,751 |
|
|
|
106,569 |
|
|
|
32,929 |
|
| Hansen Litigation |
|
1,416 |
|
|
|
203 |
|
|
|
15,111 |
|
|
|
2,015 |
|
| Bang transaction expenses |
|
- |
|
|
|
763 |
|
|
|
- |
|
|
|
12,513 |
|
| Bang transaction gain |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(35,307 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income excluding above
items |
$ |
375,695 |
|
|
$ |
402,442 |
|
|
$ |
1,641,903 |
|
|
$ |
1,652,972 |
|
| |
|
|
|
|
|
|
|
Adjustments in this table are net of tax.
|
|
|
|
|
|
|
Three-Months Ended |
|
Twelve-Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net income per common share – Diluted |
$ |
0.28 |
|
|
$ |
0.35 |
|
|
$ |
1.49 |
|
|
$ |
1.54 |
|
|
|
|
|
|
|
|
|
|
| Cumulative adjustments, net of
tax |
|
0.10 |
|
|
|
0.03 |
|
|
|
0.13 |
|
|
|
0.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per common share –
Diluted, excluding above items |
$ |
0.38 |
|
|
$ |
0.38 |
|
|
$ |
1.62 |
|
|
$ |
1.56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
CONTACTS: |
Rodney C. SacksChairman and Co-Chief Executive Officer(951)
739-6200Hilton H. SchlosbergVice Chairman and Co-Chief Executive
Officer(951) 739-6200Roger S. Pondel / Judy LinPondelWilkinson
Inc.(310) 279-5980 |
|
|
|
Monster Beverage (NASDAQ:MNST)
Gráfico Histórico do Ativo
De Fev 2025 até Mar 2025
Monster Beverage (NASDAQ:MNST)
Gráfico Histórico do Ativo
De Mar 2024 até Mar 2025
