Monster Beverages reports 11.8% surge in net sales for Q1 2024
USA – Monster Beverage Corporation has reported an 11.8 percent increase in net sales to US$1.9 billion from US$1.7 billion for the first quarter ended March 31, 2024.
Demand for the company’s energy drinks, including Monster Energy and Tour Water, held as inflation-weary customers stretched their budgets to spend on at-home meals and beverages.
Gross profit as a percentage of net sales for the 2024 first quarter was 54.1 percent, compared with 52.8 percent in the 2023 first quarter.
According to the company, the increase in gross profit as a percentage of net sales was primarily as a result of decreased freight-in costs, pricing actions in certain markets and lower input costs, partially offset by geographical sales mix.
In the energy drinks category, net sales jumped 10.7 percent to US$1.73 billion, up from US$1.56 percent recorded during the previous year.
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “We continue to see growth in the energy drink market globally. In the United States, energy is the only segment of the beverage category currently showing unit growth. We continue to grow our sales in non-Nielsen measured channels.
We achieved another quarter of solid revenue growth, with record first quarter sales. The quarter was again impacted by unfavorable foreign currency exchange rates in certain markets.”
Net sales for the Company’s Strategic Brands segment as well as the Company’s affordable energy brands Predator and Fury, increased 25.6 percent to US$108.4 million for the 2024 first quarter, from US$86.4 million in the 2023 first quarter.
“We are pleased to report gross profit margin improvement in the first quarter, which increased significantly when compared to the 2023 first quarter. This improvement was primarily the result of decreased freight-in costs, pricing actions in certain markets and lower input costs, partially offset by geographical sales mix,” Schlosberg said.
During the quarter, Monster Beverages launched Predator Energy drink in the Philippines. Recently, the company also introduced Predator energy gold strike in a non-carbonated formula in a 500 ml PET bottle format in select provinces in China.
Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said, “Innovation continues to play an important role in our strategy and contributed to our record sales in this quarter. Our innovation pipeline for both our non-alcoholic and alcoholic beverages remains strong.”
Concurrently, the energy drinks giant has also revealed co-CEO Rodney Sacks will be reducing his day-to-day responsibilities at the energy drink company starting next year.
According to company statement, Sacks will continue to “manage certain areas of the company’s business for which he has always been responsible” alongside its opening quarter results.
Current co-CEO Hilton Schlosberg, who has been serving in this role with Sacks since 2021, will become the sole chief executive, while Sacks remains chairman.
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