USA – Monster Beverages has reported a 2.5 percent increase in net sales for the second quarter of 2024, reaching US$1.90 billion compared to US$1.85 billion in the same period last year.  

Despite the increase, the company fell short of market expectations as economic uncertainty and budget-conscious consumer behavior impacted demand for its premium energy drinks. 

For the second quarter, the company’s gross profit margin stood at 53.6 percent, a result of decreased freight-in costs, strategic pricing actions, and lower aluminum can costs. However, production inefficiencies partially offset these gains. 

The Monster Energy drinks segment saw a 3.3 percent rise in net sales, totaling US$1.74 billion for Q2 2024, up from US$1.69 billion in Q2 2023.  

In contrast, the strategic brands segment experienced a notable increase of 9.6 percent, with net sales rising to US$109.2 million from US$99.7 million year-over-year. 

Conversely, the alcohol brands segment, which includes products like Nasty Beast and Hard tea, reported a 31.9 percent decline in net sales to US$41.6 million, attributed to reduced sales volumes of flavored malt beverages. 

Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer of Monster Beverages, stated, “The energy drink category in the United States and in certain other countries experienced lower growth rates in the second quarter. Retailers have reported reduced foot traffic in convenience stores, and we have observed a shift towards mass and dollar channels.  

Despite a tighter consumer spending environment and weaker demand, the energy category globally continues to grow and remains resilient, as consumers view energy drinks as an ‘affordable luxury.’” 

Internationally, net sales increased by 4.3 percent to US$746.0 million in the second quarter, up from $715.4 million a year earlier.  

For the first half of 2024, net sales grew by 6.9 percent to US$3.80 billion, compared to US$3.55 billion in the same period of 2023. 

In response to the economic pressures, the company plans to implement a 5 percent price increase on its core brands in the U.S., effective November 1, 2024.  

Additionally, Monster Beverages recently completed a US$3.0 billion modified “Dutch auction” tender offer, purchasing approximately 56.6 million shares of common stock at US$53.00 per share. 

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