Our Business

Monster Beverage Corporation is a holding company that conducts no operating business except through its consolidated subsidiaries. The company’s subsidiaries primarily develop and market energy drinks, and to a lesser extent, craft beers, hard seltzers and flavored malt beverages.

Overview

Monster Beverage Corporation develops, markets, sells and distributes energy drink beverages and concentrates for energy drink beverages under various brand names, including Monster Energy®, Burn®, Monster Energy Ultra®, Mother®, Rehab Monster®, and many others. The company also develops, markets, sells and distributes craft beers, flavored malt beverages (FMBs) and hard seltzers under a number of brands.

The company has four operating and reportable segments:

1. Monster Energy® Drinks
2. Strategic Brands
3. Alcohol Brands
4. Other

During the first quarter of 2025, the company continued to expand its existing drink portfolio by adding new products in several countries and further developed its distribution markets.

The company’s net sales were $1.85 billion for the first quarter of 2025, a decrease of 2.3% compared to the same period in 2024. The Monster Energy® Drinks segment represented 92.5% of net sales, the Strategic Brands segment represented 5.3%, the Alcohol Brands segment represented 1.9%, and the Other segment represented 0.3%.

Net sales to customers outside the United States were $733.2 million, or 40% of total net sales, for the first quarter of 2025. The company’s non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. The company’s alcohol customers are primarily beer distributors.

Results of Operations

The following table summarizes the company’s key financial results for the first quarter of 2025 and 2024:

Metric	Q1 2025	Q1 2024	% Change
Net Sales	$1,854,558	$1,899,098	(2.3)%
Gross Profit	$1,047,962	$1,027,129	2.0%
Gross Profit Margin	56.5%	54.1%	-
Operating Expenses	$478,217	$485,138	(1.4)%
Operating Income	$569,745	$541,991	5.1%
Operating Margin	30.7%	28.5%	-
Net Income	$442,993	$442,049	0.2%
Diluted EPS	$0.45	$0.42	7.4%

Net Sales Net sales decreased 2.3% to $1.85 billion in the first quarter of 2025 compared to the same period in 2024. This was primarily due to unfavorable foreign currency exchange rates, decreased sales in the Alcohol Brands segment, and other factors like bottler/distributor ordering patterns, adverse weather, and one less selling day.

The Monster Energy® Drinks segment represented 92.5% of net sales in Q1 2025, with net sales of $1.72 billion. The Strategic Brands segment had net sales of $98.3 million, the Alcohol Brands segment had net sales of $34.7 million, and the Other segment had net sales of $6.0 million.

Gross Profit Gross profit increased 2.0% to $1.05 billion in Q1 2025 compared to Q1 2024. Gross profit margin increased to 56.5% from 54.1%, primarily due to the company’s pricing actions and supply chain optimization.

Operating Expenses Operating expenses decreased 1.4% to $478.2 million in Q1 2025, primarily due to lower distribution expenses, partially offset by higher general administrative expenses. Operating expenses as a percentage of net sales increased slightly to 25.8%.

Operating Income Operating income increased 5.1% to $569.7 million in Q1 2025, with the operating margin increasing to 30.7% from 28.5% in the prior year period. This was driven by the increase in gross profit.

Net Income and EPS Net income was $443.0 million in Q1 2025, a 0.2% increase compared to Q1 2024. Diluted earnings per share increased 7.4% to $0.45.

Liquidity and Capital Resources The company had $1.90 billion in cash and cash equivalents as of March 31, 2025. It has access to a $1.50 billion credit facility, with $750 million in remaining availability on the revolving credit facility as of that date. The company believes it has sufficient cash and access to credit to meet its working capital and other cash needs for at least the next 12 months.

Outlook The company continues to focus on expanding its domestic and international business, as well as growing into new sectors like the alcohol beverage market. However, it faces various risks and uncertainties, including changes in consumer preferences, competition, regulatory changes, supply chain disruptions, and economic conditions. The company will need to navigate these challenges to sustain its growth and profitability going forward.