Monster Beverage Corporation (MNST) Bundle
A Brief History of Monster Beverage Corporation
Overview
As of 2024, Monster Beverage Corporation continues to be a leading player in the energy drink market, showcasing significant growth and strategic expansions. The company's financial performance reflects its robust operational strategies and market positioning.
Financial Performance
For the three-months ended September 30, 2024, Monster Beverage reported net sales of $1.88 billion, an increase of 1.3% compared to $1.86 billion in 2023. The gross profit for this period was $999.8 million, representing a gross profit margin of 53.2%.
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1,880,973,000 | $1,856,028,000 | 1.3% |
| Gross Profit | $999,799,000 | $983,763,000 | 1.6% |
| Operating Income | $479,916,000 | $510,527,000 | (6.0%) |
| Net Income | $442,049,000 | $413,871,000 | 6.8% |
Operating expenses increased by 9.9% to $519.9 million in 2024, driven by higher payroll expenses and increased marketing costs. The operating income was reported at $479.9 million, down 6.0% from the previous year.
Share Repurchase Programs
Monster Beverage's Board of Directors has been active in share repurchase programs to enhance shareholder value. In the three-months ended September 30, 2024, the company repurchased approximately 10.6 million shares at an average price of $47.16, totaling $500 million, which exhausted the availability under the November 2023 Repurchase Plan.
| Program | Shares Repurchased | Average Price per Share | Total Amount |
|---|---|---|---|
| November 2022 Plan | 0.7 million | $49.83 | $34.7 million |
| November 2023 Plan | 10.6 million | $47.16 | $500 million |
| August 2024 Plan | 0 | N/A | $500 million available |
Market Position and Strategy
Monster Beverage has strategically positioned itself in the energy drink market through innovative marketing and product diversification. The company continues to explore new segments, including alcoholic beverages, which have shown promising growth.
Stock Performance
As of September 30, 2024, Monster Beverage's stock options outstanding were 27.8 million, with a weighted average exercise price of $38.75. The intrinsic value of options exercised during the quarter was $8.2 million.
| Stock Options Data | Outstanding Options | Average Exercise Price | Intrinsic Value |
|---|---|---|---|
| As of September 30, 2024 | 27,818,000 | $38.75 | $407,665,000 |
The company's strong performance metrics and strategic initiatives position it favorably within the competitive landscape of the beverage industry.
A Who Owns Monster Beverage Corporation (MNST)
Major Shareholders
As of 2024, the ownership structure of Monster Beverage Corporation is characterized by a mix of institutional investors and individual stakeholders. The Coca-Cola Company (TCCC) holds approximately 21.0% of the voting interests of Monster Beverage Corporation. This significant stake allows TCCC to influence corporate decisions, particularly in distribution and marketing strategies.
Institutional Ownership
Institutional investors comprise a substantial portion of Monster Beverage's ownership. Here are some key institutional shareholders as of early 2024:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Coca-Cola Company | 21.0% | Approximately 70 million shares |
| Vanguard Group | 8.5% | Approximately 28 million shares |
| BlackRock, Inc. | 7.2% | Approximately 24 million shares |
| State Street Corporation | 4.8% | Approximately 16 million shares |
| Fidelity Investments | 3.2% | Approximately 11 million shares |
Individual Stakeholders
Key executives and board members also hold shares in Monster Beverage Corporation. The Co-CEO and Chairman, Rodney C. Sacks, is a notable individual stakeholder, holding a significant number of shares through various trusts and direct ownership.
Stock Performance and Market Capitalization
As of March 31, 2024, Monster Beverage Corporation's stock price was approximately $59.00 per share, leading to a market capitalization of around $31 billion. This reflects a stable growth trajectory, influenced by strong sales performance in the energy drink market.
Recent Financial Highlights
For the nine-month period ending September 30, 2024, Monster Beverage reported:
- Net sales of $5.68 billion, a 5.0% increase from the previous year.
- Operating income of $1.55 billion, up 2.0% year-over-year.
- Net income of $1.24 billion, representing a decrease of 2.0% from the prior year.
Future Outlook and Strategy
Monster Beverage Corporation aims to expand its market presence through strategic partnerships and product development, particularly in international markets and the alcohol beverage sector. The ongoing collaboration with TCCC is expected to enhance distribution channels and brand visibility.
Ownership Summary
The ownership of Monster Beverage Corporation is a blend of institutional and individual stakeholders, with TCCC playing a pivotal role. Below is a summary of ownership as of 2024:
| Ownership Type | Percentage of Ownership |
|---|---|
| Institutional Investors | Approximately 55.0% |
| Individual Stakeholders (including executives) | Approximately 10.0% |
| TCCC | 21.0% |
| Public Float | Approximately 14.0% |
Monster Beverage Corporation (MNST) Mission Statement
Monster Beverage Corporation aims to be the world's leading brand of energy drinks by providing innovative products that energize and inspire consumers around the globe. The mission statement emphasizes their commitment to quality, performance, and the relentless pursuit of excellence in the beverage industry.
Financial Performance Overview
As of September 30, 2024, Monster Beverage Corporation reported net sales of $5.68 billion for the nine-month period, an increase of approximately $270.7 million, or 5.0% compared to $5.41 billion for the same period in 2023.
Segment Performance
The financial performance of Monster Beverage's segments for the nine-month period ended September 30, 2024, is detailed below:
| Segment | Net Sales (2024) | Net Sales (2023) | Increase (Decrease) | Percentage Change |
|---|---|---|---|---|
| Monster Energy® Drinks | $5.19 billion | $4.96 billion | $237.8 million | 4.8% |
| Strategic Brands | $330.2 million | $284.8 million | $45.4 million | 15.9% |
| Alcohol Brands | $137.4 million | $149.7 million | ($12.3 million) | (8.2%) |
| Other | $18.5 million | $18.6 million | ($0.2 million) | (0.8%) |
Gross Profit and Operating Income
For the nine-months ended September 30, 2024, Monster Beverage reported a gross profit of $3.05 billion, representing an increase of approximately $190.6 million, or 6.7% from $2.86 billion in the prior year.
Operating income for the same period was $1.55 billion, up by approximately $29.7 million, or 2.0% from $1.52 billion.
Operating Expenses
Total operating expenses for the nine-months ended September 30, 2024 were $1.50 billion, an increase of approximately $160.9 million, or 12.0% compared to $1.34 billion in 2023.
Net Income and Earnings Per Share
Net income for the nine-months ended September 30, 2024 was $1.24 billion, a decrease of 2.0% compared to $1.26 billion for the same period in 2023.
Earnings per share (EPS) for the nine-months ended September 30, 2024 was $1.22, compared to $1.21 for the same period in 2023.
Market Position and Strategy
Monster Beverage Corporation's strategy includes further developing domestic markets, expanding international business, and venturing into new sectors, particularly the alcohol beverage sector.
As of September 30, 2024, net sales to customers outside the United States were $760.1 million, representing approximately 40% of total net sales.
How Monster Beverage Corporation (MNST) Works
Financial Performance
For the nine-months ended September 30, 2024, Monster Beverage Corporation reported net sales of $5.68 billion, an increase of approximately $270.7 million or 5.0% compared to $5.41 billion for the same period in 2023. The growth was driven primarily by increased worldwide sales volume of Monster Energy® brand energy drinks, attributed to heightened consumer demand and pricing actions.
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Sales | $5.68 billion | $5.41 billion | +$270.7 million (5.0%) |
| Gross Profit | $3.05 billion | $2.86 billion | +$190.6 million (6.7%) |
| Operating Income | $1.55 billion | $1.52 billion | +$29.7 million (2.0%) |
| Net Income | $1.24 billion | $1.26 billion | - $81.8 million (-6.5%) |
| Operating Expenses | $1.50 billion | $1.34 billion | +$160.9 million (12.0%) |
Segment Performance
The Monster Beverage Corporation operates through various segments, including Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other. The following table summarizes the net sales by segment for the nine-months ended September 30, 2024.
| Segment | Net Sales (2024) | Net Sales (2023) | Change |
|---|---|---|---|
| Monster Energy® Drinks | $5.19 billion | $4.96 billion | +$237.8 million (4.8%) |
| Strategic Brands | $330.2 million | $284.8 million | +$45.4 million (15.9%) |
| Alcohol Brands | $137.4 million | $149.7 million | - $12.3 million (-8.2%) |
| Other | $18.5 million | $18.6 million | - $0.2 million (-0.8%) |
Sales Volume and Pricing
For the nine-months ended September 30, 2024, Monster Beverage reported case sales of energy drink products at 643.0 million cases, a rise of approximately 59.1 million cases or 10.1% compared to 583.9 million cases in 2023. The average net sales per case decreased to $8.59, down 4.3% from $8.98.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Case Sales (Million Cases) | 643.0 | 583.9 | +59.1 (10.1%) |
| Average Net Sales per Case | $8.59 | $8.98 | - $0.39 (-4.3%) |
Operating Expenses
Operating expenses for the nine-months ended September 30, 2024, totaled $1.50 billion, reflecting a 12.0% increase from $1.34 billion in 2023. This increase was attributed to heightened selling and marketing expenses, payroll costs, and distribution expenses.
| Expense Type | 2024 | 2023 | Change |
|---|---|---|---|
| Selling and Marketing | $63.9 million | — | — |
| Payroll Expenses | $55.3 million | — | — |
| Distribution Expenses | $20.5 million | — | — |
| Hansen Expenses | $16.7 million | — | — |
Net Income and Earnings Per Share
Net income for the three-months ended September 30, 2024, was reported at $370.9 million, down 18.1% from $452.7 million in 2023. The diluted earnings per share for the same period was $0.38, compared to $0.43 in the prior year.
| Metric | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Net Income | $370.9 million | $452.7 million | - $81.8 million (-18.1%) |
| Diluted Earnings per Share | $0.38 | $0.43 | - $0.05 (-11.7%) |
Tax Provision
The provision for income taxes for the three-months ended September 30, 2024, was $103.2 million, a decrease of 20.1% from $129.2 million in 2023. The effective tax rate decreased to 21.8% from 22.2% in the same period.
How Monster Beverage Corporation (MNST) Makes Money
Revenue Segments
Monster Beverage Corporation generates revenue through four main segments: Monster Energy® Drinks, Strategic Brands, Alcohol Brands, and Other. The following table presents the net sales for each segment for the nine-month period ended September 30, 2024.
| Segment | Net Sales (in thousands) |
|---|---|
| Monster Energy® Drinks | $5,194,552 |
| Strategic Brands | $330,232 |
| Alcohol Brands | $137,417 |
| Other | $18,467 |
| Total Net Sales | $5,680,668 |
Monster Energy® Drinks Segment
The Monster Energy® Drinks segment is the largest contributor to the company's revenue, accounting for approximately 91.6% of total net sales in the third quarter of 2024. For the nine-month period ending September 30, 2024, this segment reported net sales of $5.19 billion, an increase of 4.8% compared to the same period in 2023.
Strategic Brands Segment
The Strategic Brands segment includes energy drink brands acquired from The Coca-Cola Company, contributing 6.0% to total net sales in the third quarter of 2024. Net sales for this segment reached $330.2 million for the nine-month period ended September 30, 2024, reflecting a growth compared to the previous year.
Alcohol Brands Segment
The Alcohol Brands segment, which includes various craft beers and hard seltzers, accounted for 2.1% of total net sales in the third quarter of 2024. Net sales for this segment for the nine-month period were $137.4 million, although it reported a loss of $51.2 million in operating income for the same period.
International Sales
Sales to customers outside the United States amounted to $760.1 million for the three-months ended September 30, 2024, approximately 40% of total net sales. This segment has been growing, with net sales outside the U.S. increasing 3.6% year-over-year.
Net Income and Operating Performance
For the nine-month period ending September 30, 2024, Monster Beverage Corporation reported a net income of $1.60 billion, with total operating income reaching $1.55 billion. The operating income for the Monster Energy® Drinks segment was $1.84 billion, indicating strong profitability in this core area of the business.
Cost of Sales
The cost of sales for the nine-month period ending September 30, 2024, was $2.63 billion, resulting in a gross profit margin of approximately 53.69%. The gross profit for the Monster Energy® segment alone was reported at $1.84 billion.
Distribution Agreements
Monster Beverage Corporation utilizes a range of distribution agreements, with major partners like Coca-Cola Europacific Partners accounting for about 15% of net sales in the third quarter of 2024. The company has also entered into new distribution contracts that help bolster revenue through deferred revenue recognized over the life of the contracts.
Recent Developments
On May 1, 2024, the company launched a modified Dutch auction tender offer to repurchase up to $3.0 billion of its outstanding shares, which reflects strong cash flow management and shareholder return strategies.
Financial Summary
The following table summarizes key financial metrics for Monster Beverage Corporation for the nine-month period ended September 30, 2024.
| Metric | Value |
|---|---|
| Total Net Sales | $5,680,668,000 |
| Net Income | $1,603,381,000 |
| Operating Income | $1,549,070,000 |
| Cost of Sales | $2,634,235,000 |
| Gross Profit Margin | 53.69% |
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Resources:
- Monster Beverage Corporation (MNST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Monster Beverage Corporation (MNST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Monster Beverage Corporation (MNST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.