Monster Beverage Corp (MNST) Q4 2024 Earnings Call Highlights: Record Sales Amidst Rising Costs ...

In This Article:

  • Net Sales: $1.81 billion in Q4 2024, a 4.7% increase from $1.73 billion in Q4 2023.

  • Gross Profit Margin: 55.3% in Q4 2024, up from 54.2% in Q4 2023.

  • Operating Income: Decreased 12.2% to $381.2 million in Q4 2024 from $434 million in Q4 2023.

  • Adjusted Operating Income: Increased 7.9% to $517.9 million in Q4 2024 from $480.1 million in Q4 2023.

  • Net Income: $270.7 million in Q4 2024, down from $367 million in Q4 2023.

  • Adjusted Net Income: $375.7 million in Q4 2024, compared to $402.4 million in Q4 2023.

  • Diluted Earnings Per Share: Decreased to $0.28 in Q4 2024 from $0.35 in Q4 2023.

  • Adjusted Diluted Earnings Per Share: Consistent at $0.38 for both Q4 2024 and Q4 2023.

  • Operating Expenses: $621.2 million in Q4 2024, up from $504.4 million in Q4 2023.

  • Effective Tax Rate: 29.9% in Q4 2024, up from 18.5% in Q4 2023.

  • Net Sales Outside the US: $711.5 million, 39.3% of total net sales in Q4 2024.

  • Foreign Currency Impact: Negative impact of $52.3 million on net sales in Q4 2024.

  • Alcohol Brands Segment Sales: $34.9 million in Q4 2024, a decrease of 0.8% from Q4 2023.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Monster Beverage Corp (NASDAQ:MNST) achieved record fourth quarter net sales of $1.81 billion, a 4.7% increase from the previous year.

  • The energy drink category continues to grow globally, with significant growth in regions such as EMEA (14.4%), APAC (11.8%), and LATAM (20.2%).

  • Gross profit as a percentage of net sales increased to 55.3% in the fourth quarter, up from 54.2% in the previous year.

  • Monster Beverage Corp (NASDAQ:MNST) is expanding its innovation pipeline with new product launches across various regions, including Monster Ultra Peachy Keen in Brazil and Monster Juiced Aussie Lemonade in EMEA.

  • The company is optimistic about the long-term prospects for the Monster brand in China and India, with plans for further expansion of the Predator brand.

Negative Points

  • Operating expenses increased significantly to $621.2 million in the fourth quarter, primarily due to impairment charges and increased payroll expenses.

  • Net income for the fourth quarter decreased to $270.7 million from $367 million in the previous year.

  • The effective tax rate increased to 29.9% in the fourth quarter, up from 18.5% in the previous year, impacting net income.

  • Sales of certain energy drink brands, such as Reign and Full Throttle, experienced declines in the latest reporting periods.

  • The company faced challenges in the alcohol brands segment, with net sales decreasing and impairment charges impacting profitability.