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Monster(MNST) - 2025 Q3 - Earnings Call Transcript
2025-11-06 23:02
Financial Data and Key Metrics Changes - The company reported record quarterly net sales of $2.2 billion for Q3 2025, a 16.8% increase from $1.88 billion in Q3 2024 [11] - Gross profit as a percentage of net sales increased to 55.7% in Q3 2025 from 53.2% in Q3 2024, driven by pricing actions and supply chain optimization [13] - Operating income rose 40.7% to $675.4 million from $479.9 million in the previous year [15] - Net income per diluted share increased 41.1% to 53 cents from 38 cents in Q3 2024 [15] Business Line Data and Key Metrics Changes - Net sales for the Monster Energy Drink segment increased 17.7% to $2.03 billion in Q3 2025 [12] - The Strategic Brand segment saw a 15.9% increase in net sales to $130.5 million [12] - The alcohol brand segment experienced a 17% decrease in net sales to $33 million [12] Market Data and Key Metrics Changes - Net sales to customers outside the U.S. rose to approximately 43% of total reported net sales, the highest percentage recorded by the company for a single quarter [8][20] - In EMEA, net sales increased by 30.3% in dollars and 23.0% on a currency-neutral basis [21] - In Asia Pacific, net sales increased 28.7% in dollars and 26.9% on a currency-neutral basis [23] Company Strategy and Development Direction - The company continues to focus on innovation and has a robust pipeline planned for 2026, including new product launches [18][20] - Marketing efforts are aimed at growing the core business and attracting new consumers, with significant sponsorships enhancing brand visibility [9] - The company is implementing pricing adjustments to optimize revenue growth while maintaining volume [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the energy drink category's growth, citing increasing household penetration and consumer demand for energy [30] - The company anticipates minimal impact on volume from recent price increases, supported by the favorable value proposition of energy drinks [44] - Management remains optimistic about long-term prospects in Asia Pacific, particularly in China and India [25] Other Important Information - The company plans to host an Investor Day in New York City on December 2, 2025 [31] - Tariffs are expected to have a modest impact on operating results in the upcoming quarters [10][11] Q&A Session Summary Question: What is driving the strong category growth in Western Europe? - Management attributed growth to a strong value proposition, brand image, and functionality of energy drinks, with many new consumers entering the category from other beverage types [36][37] Question: How do you see category growth evolving as we look ahead to 2026? - Management noted that while they do not provide guidance, key drivers include the value proposition relative to other beverages and increasing household penetration [42][44] Question: What level of pricing do you expect from the increases in promotional reductions? - Management indicated that pricing adjustments were implemented effective November 1, with minimal expected impact on volumes [48][50] Question: Can affordable energy products help narrow the margin gap internationally? - Management acknowledged that while affordable energy products could positively contribute to margins, the impact may not be significant due to competitive pricing pressures internationally [58]
Monster(MNST) - 2025 Q3 - Earnings Call Transcript
2025-11-06 23:00
Financial Data and Key Metrics Changes - The company reported record quarterly net sales of $2.2 billion for Q3 2025, a 16.8% increase from $1.88 billion in Q3 2024 [12] - Gross profit as a percentage of net sales increased to 55.7% in Q3 2025 from 53.2% in Q3 2024, driven by pricing actions and supply chain optimization [14] - Operating income rose 40.7% to $675.4 million in Q3 2025 from $479.9 million in Q3 2024 [17] - Net income per diluted share increased 41.1% to $0.53 from $0.38 in the same quarter last year [17] Business Line Data and Key Metrics Changes - Net sales for the Monster Energy Drink segment increased 17.7% to $2.03 billion in Q3 2025 from $1.72 billion in Q3 2024 [13] - The Strategic Brand segment saw a 15.9% increase in net sales to $130.5 million in Q3 2025 [13] - The alcohol brand segment experienced a 17% decrease in net sales to $33 million in Q3 2025 from $39.8 million in Q3 2024 [13] Market Data and Key Metrics Changes - Net sales to customers outside the U.S. rose to approximately 43% of total reported net sales in Q3 2025, the highest percentage recorded by the company for a single quarter [9] - In EMEA, net sales increased by 30.3% in dollars and 23.0% on a currency-neutral basis [22] - In APAC, net sales increased 28.7% in dollars and 26.9% on a currency-neutral basis [24] Company Strategy and Development Direction - The company continues to focus on innovation, with a robust pipeline planned for 2026, including new product launches and limited-time offerings [20][21] - Marketing efforts are aimed at growing the core business and attracting new consumers, with significant sponsorships and events enhancing brand exposure [10] - The company is implementing pricing adjustments to optimize revenue growth while maintaining minimal impact on volume [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for the energy drink category, citing increasing household penetration and consumer demand for energy [32] - The company anticipates a modest impact from tariffs in the upcoming quarters but does not expect them to materially affect operating results [11] - Management highlighted the importance of brand image and functionality in driving category growth, particularly in EMEA [36] Other Important Information - The company has approximately $500 million remaining for stock repurchase under its authorized program as of November 5, 2025 [29] - October 2025 sales are estimated to be approximately 14.1% higher than October 2024 sales on a non-foreign currency-adjusted basis [30] Q&A Session Summary Question: What is driving the strong category growth in Western Europe compared to the U.S.? - Management attributed the growth to a strong value proposition, brand image, and functionality of energy drinks, with a significant portion of new consumers coming from other beverage categories [35][36] Question: How does the company see category growth evolving into 2026? - Management noted that while they do not provide guidance, key drivers include the value proposition of energy drinks and increasing household penetration [40][41] Question: What level of pricing is expected from the recent adjustments? - Management indicated that the pricing adjustments are strategic and aimed at optimizing revenue without significantly impacting volumes [44] Question: What contributed to the strong gross margins in the quarter? - The increase in gross margins was attributed to positive pricing actions, supply chain optimization, and a favorable product sales mix [46][47] Question: How will affordable energy products impact international margins? - Management believes that affordable energy products will positively contribute to overall margins internationally, although not significantly [50]
Monster Beverage Sales Climb on Growing Demand for Energy Drinks
WSJ· 2025-11-06 21:51
Core Insights - The energy-drink maker experienced a double-digit sales gain in its latest quarter due to increased demand for energy drinks [1] Company Performance - Sales growth was reported as double-digit, indicating strong market performance [1] Industry Trends - There is a notable increase in demand for energy drinks, suggesting a positive trend in the energy drink sector [1]
Monster(MNST) - 2025 Q3 - Quarterly Results
2025-11-06 21:27
Exhibit 99.1 PondelWilkinson Inc. 2945 Townsgate Road, Suite 200 Westlake Village, CA 91361 Investor Relations T (310) 279 5980 Strategic Public Relations W www.pondel.com CONTACTS: Mark Astrachan SVP, Investor Relations & Corporate Development (951) 739-6200 Roger S. Pondel / Judy Lin NEWS PondelWilkinson Inc. RELEASE (310) 279-5980 MONSTER BEVERAGE REPORTS 2025 THIRD QUARTER FINANCIAL RESULTS 2025 Third Quarter Highlights Corona, CA – November 6, 2025 – Monster Beverage Corporation (NASDAQ: MNST) today re ...
Monster Beverage Reports 2025 Third Quarter Financial Results
Globenewswire· 2025-11-06 21:10
Core Insights - Monster Beverage Corporation reported a 16.8% increase in net sales for Q3 2025, reaching $2.20 billion compared to $1.88 billion in Q3 2024, with favorable foreign currency impacts contributing $31.8 million [2][11] - The company's Monster Energy® Drinks segment saw a 17.7% increase in net sales to $2.03 billion, while the Alcohol Brands segment experienced a decline of 17.0% to $33.0 million [3][6] - Gross profit margin improved to 55.7% from 53.2% year-over-year, driven by pricing actions and supply chain optimization [9][11] Financial Performance - Net income for Q3 2025 increased by 41.4% to $524.5 million, with diluted earnings per share rising to $0.53 from $0.38 [11][16] - Operating income rose 40.7% to $675.4 million, reflecting strong operational efficiency [15][20] - For the nine months ended September 30, 2025, net sales increased 8.5% to $6.16 billion, with net income rising 17.6% to $1.46 billion [18][21] Segment Performance - The Monster Energy® Drinks segment's net sales increased 17.7% to $2.03 billion, while the Strategic Brands segment grew by 15.9% to $130.5 million [3][5] - The Alcohol Brands segment's sales decreased by 17.0% to $33.0 million, indicating challenges in this category [6] - International sales increased by 23.3% to $937.1 million, representing approximately 43% of total net sales for Q3 2025 [8][11] Cost and Expenses - Distribution expenses were $82.6 million, accounting for 3.8% of net sales, a decrease from 4.4% in Q3 2024 [10] - Selling expenses were $214.6 million, or 9.8% of net sales, down from 10.4% in the previous year [12] - General and administrative expenses increased to $251.9 million, but as a percentage of net sales, it decreased to 11.5% from 12.8% [13] Future Outlook - The company plans to launch new products, including a female-focused brand, FLRT, in early 2026, indicating a commitment to innovation [17] - The CEO highlighted the ongoing growth in the global energy drink category, driven by increasing consumer demand [16][17]
Monster Beverage to Report Financial Results for 2025 Third Quarter on November 6, 2025
Globenewswire· 2025-10-30 12:00
Core Points - Monster Beverage Corporation will report its third quarter results for the period ending September 30, 2025, on November 6, 2025, after market close [1] - CEO Hilton Schlosberg will host an investor conference call on the same day at 2 p.m. Pacific Time to discuss the financial results and operations [1] - The conference call will be accessible to all interested investors via a live audio webcast on the company's website, with an archived version available for approximately one year [2] Company Overview - Monster Beverage Corporation is based in Corona, California, and operates primarily through its consolidated subsidiaries [3] - The company's subsidiaries develop and market a wide range of energy drinks, including various brands such as Monster Energy®, Java Monster®, and Reign® [3] - In addition to energy drinks, the company's subsidiaries also produce still and sparkling waters, craft beers, flavored malt beverages, and hard seltzers under multiple brand names [3]
Is Wall Street Bullish or Bearish on Monster Beverage Stock?
Yahoo Finance· 2025-10-30 10:39
Company Overview - Monster Beverage Corporation (MNST) has a market capitalization of $67.7 billion and is a leading U.S. beverage company known for its Monster Energy brand, which is a top global energy drink franchise. The company develops, markets, and distributes various energy drinks and alternative beverages, including Monster Energy, Reign, NOS, and Full Throttle [1] Stock Performance - Over the past 52 weeks, MNST stock has increased by 26.8%, outperforming the S&P 500 Index, which gained 18.1%. Year-to-date, MNST is up 26.6%, compared to the S&P 500's 17.2% return [2] - In contrast, the First Trust Nasdaq Food & Beverage ETF (FTXG) has seen a 14.9% decline over the past 52 weeks and a 9.5% loss year-to-date, highlighting the strength of MNST's performance [3] Financial Results - In Q2 2025, Monster Beverage reported net sales of $2.11 billion, an 11.1% year-over-year increase. Adjusted EPS improved by 23% to $0.52, exceeding estimates. The gross margin also improved to 55.7% from 53.6%, indicating operational strength and pricing power [4] Earnings Expectations - For the current fiscal year ending in December, analysts project MNST's EPS to grow by 17.9% year-over-year to $1.91. The company's earnings surprise history is mixed, with two misses and two beats in the last four quarters [5] Analyst Ratings - Among 23 analysts covering MNST, the consensus rating is a "Moderate Buy," consisting of 11 "Strong Buy," one "Moderate Buy," nine "Hold," and two "Strong Sell" ratings. This is a slight improvement from three months ago, where 10 analysts suggested a "Strong Buy" [5][6] - Bank of America’s Peter Galbo reiterated a "Buy" rating on Monster Beverage with a price target of $75. The mean price target of $68.73 indicates a 3.3% premium from current levels, while the highest target of $79 suggests an upside potential of 18.7% [6]
What to Expect From Monster Beverage's Q3 2025 Earnings Report
Yahoo Finance· 2025-10-23 11:31
Core Insights - Monster Beverage Corporation (MNST) is valued at $67.3 billion and specializes in energy drinks, including various product lines such as Monster Energy and Java Monster [1] - Analysts anticipate MNST will report a profit of $0.48 per share for Q3 2025, reflecting a 20% increase from $0.40 per share in the same quarter last year [2] - For the full fiscal year 2025, EPS is projected to be $1.91, a 17.9% increase from $1.62 in fiscal 2024, with further growth expected to $2.14 in fiscal 2026 [3] Stock Performance - MNST stock has increased by 30.1% over the past 52 weeks, outperforming the S&P 500 Index's 14.5% gain and the Consumer Staples Select Sector SPDR Fund's 2.8% decline [4] - Following the Q2 results announcement, MNST shares rose by 2.2%, with adjusted EPS of $0.52 surpassing expectations of $0.48 and revenue reaching $2.11 billion, exceeding the forecast of $2.08 billion [5] Analyst Ratings - The consensus opinion on MNST stock is moderately bullish, with a "Moderate Buy" rating. Out of 23 analysts, 11 recommend a "Strong Buy," one a "Moderate Buy," nine a "Hold," and two a "Strong Sell" [6] - MNST currently trades above its mean price target of $68.36, with a Street-high price target of $79 indicating a potential upside of 13.3% [6]
Stocks Settle Sharply Higher on Trade Hopes and AI Optimism
Yahoo Finance· 2025-10-13 20:34
Economic Indicators - China's September exports rose by +8.3% year-on-year, exceeding expectations of +6.6% and marking the largest increase in six months [1] - September imports in China increased by +6.4% year-on-year, surpassing expectations of +1.8% and representing the largest rise in 17 months [1] Market Reactions - Stock indexes experienced a sharp rise on Monday, recovering some losses from the previous Friday's plunge, driven by a softening of the Trump administration's rhetoric towards China [5][6] - The S&P 500 Index closed up +1.56%, the Dow Jones Industrials Index rose by +1.29%, and the Nasdaq 100 Index increased by +2.18% [6] Corporate Earnings - More than 22% of S&P 500 companies provided guidance for Q3 earnings that are expected to exceed analysts' expectations, the highest in a year [10] - Q3 profits are projected to rise by +7.2%, the smallest increase in two years, while sales growth is expected to slow to +5.9% from 6.4% in Q2 [10] Sector Performance - Chipmakers and AI infrastructure stocks rallied, with Broadcom's shares jumping over +9% following a multi-year agreement with OpenAI [5][15] - Rare earth stocks surged due to tensions between China and the US, with Critical Metals closing up more than +53% [17] - Mining stocks also increased as gold prices rose more than +3% to an all-time high, benefiting companies like Coeur Mining and Newmont [18] Upcoming Events - The market will focus on trade or tariff news and attempts to reopen the government, with major banks set to release Q3 earnings results [9]
Top 3 Risk Off Stocks That May Fall Off A Cliff This Quarter
Benzinga· 2025-10-13 12:30
Core Insights - Three stocks in the consumer staples sector are identified as potentially overbought, which may signal caution for momentum-focused investors [1][2]. Company Summaries - **Monster Beverage Corp (NASDAQ:MNST)**: - Analyst Filippo Falorni from Citigroup maintained a Buy rating and raised the price target from $76 to $79. - The stock gained approximately 8% over the past month, reaching a 52-week high of $70.06. - The RSI value is reported at 76.1, with the stock closing at $69.62, reflecting a 0.9% increase [3][7]. - **PepsiCo Inc (NASDAQ:PEP)**: - Reported third-quarter adjusted earnings per share of $2.29, surpassing the analyst consensus estimate of $2.26. - Quarterly sales reached $23.937 billion, marking a 2.6% year-over-year increase, exceeding the expected $23.827 billion. - The stock has gained around 6% over the past five days, with a 52-week high of $177.50 and an RSI value of 71.3, closing at $150.08 after a 3.7% rise [4][7]. - **Paranovus Entertainment Technology Ltd (NASDAQ:PAVS)**: - Recently received a bid deficiency notice from Nasdaq. - The stock surged approximately 46% over the past month, achieving a 52-week high of $1.50. - The RSI value stands at 71.1, with shares closing at $1.14 after a 7.6% increase [5][7].