Monster Beverage revenue leaps 13.9% in FY22 boosted by pricing actions and moderating supply chain challenges

US – Energy drinks giant, Monster Beverage Corporation, has posted a revenue surge of 13.9 percent to US$6.31 billion, from US$5.54 billion in 2021 despite getting a hit from net changes in foreign currency exchange rates, cost inflation related to increased energy costs, particularly in EMEA, ingredient and other input costs, and co-packing fees in the full year 2022.

Net sales for the twelve months ended December 31, 2022, increased 13.9 percent to US$6.31 billion from US$5.54 billion in the comparable period last year. Net income shrank 13.5 percent to US$1.19 billion compared to US$1.38 billion in 2021.

Net sales to customers outside the United States grew 6.8% to US$542.5 million, representing 36% of the total net sales.

The net income for the twelve months ended December 31, 2022, decreased 13.5 percent to US$1.19 billion from US$1.38 billion in the comparable period last year. The gross profit as a percentage of net sales stood at 50.3 percent, compared with 56.1 percent in 2021.

Based in Corona, California, Monster Beverage Corporation has successfully expanded the energy drinks category globally.

Rodney C. Sacks, Chairperson, and Co-CEO said: “In EMEA, as part of an ongoing pan-EMEA launch in the first quarter of 2023, we commenced distribution of Monster Energy® Lewis Hamilton 44 Zero Sugar. We also launched Fury, one of our affordable energy brands, in Egypt.”

“We are planning to transition the Monster brand to the Coca-Cola distribution system in the Philippines in the second quarter of 2023. Our innovation pipeline of both alcoholic and non-alcoholic beverages continues to be robust.”

Fourth Quarter Results

Net sales for the 2022 fourth quarter rose 6.2 percent to US$1.51 billion from US$1.43 billion in the same period last year.

The Monster Energy Drinks segment’s net sales increased 2.6% yearly to US$1.4 billion. The segment’s sales included a negative impact of US$76.9 million from adverse currency rates. On a currency-adjusted basis, net sales for the segment grew by 8.3%.

The Strategic Brands segment, which comprises affordable energy drink brands and a range of energy drink brands acquired from Coca-Cola, had a net sales jump of 41.8% year over year to $93 million. However, currency headwinds hurt the segment’s sales by US$5 million. On a currency-adjusted basis, net sales for the segment had a leap of 49.4%.

Net sales for the Alcohol Brands segment, which is comprised of the various craft beers and hard seltzers purchased as part of the CANarchy transaction on February 17, 2022, were US$26.9 million for the 2022 fourth quarter.

The Company’s Other segment, which includes certain products of American Fruits and Flavors, a wholly owned subsidiary of the Company, sold to independent third-party customers (the “AFF Third-Party Products”), declined 23.1 percent to US$4.6 million, from US$6.0 million in the 2021 fourth quarter.

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