Record first quarter results for Monster Energy
Despite the challenges of aluminium can shortages, energy drinks brand Monster have reported record first quarter sales.
Despite the ongoing impact of the Covid-19 pandemic, the Company achieved record first quarter net sales. Currently, the Company does not foresee a material impact on the ability of its co-packers to manufacture and its bottlers/distributors to distribute its products as a result of the Covid-19 pandemic. The Company’s supply chain remains largely intact.
However, the Company is experiencing shortages in its aluminium can requirements in North America and Europe, given the Company’s volume growth and the current supply constraints in the aluminium can industry. The Company has taken steps to source additional quantities of aluminium cans from South America and Asia, however, logistical issues, including ocean freight and port of entry congestion could delay such supply. Logistical issues in relation to the importation of certain other raw materials and ingredients could impact future supply.
Net sales for the 2021 first quarter increased 17.1 percent to $1.24 billion, from $1.06 billion in the same period last year. Net changes in foreign currency exchange rates had a favourable impact on net sales for the 2021 first quarter of $9.3 million.
Rodney C. Sacks, chairman and co-chief executive officer, said: “The Company posted record first quarter net sales and profits, despite the ongoing impact of the Covid-19 pandemic.
“According to Nielsen, the energy drink category, and in particular our Monster Energy brand, continues to accelerate in most of our markets, including the US.
“In the first quarter of 2021, we continued with our robust programme of product launches in both our domestic and international markets, with plans for additional launches during 2021,” Sacks added.
Vice chairman and co-chief executive officer Hilton H. Schlosberg, said: “In order to satisfy increased consumer demand, we are sourcing aluminium cans in excess of our contracted volumes from South America and Asia. In addition, to meet consumer demand, we experienced freight inefficiencies in the US and in Europe in the quarter, which resulted in increased costs of sales as well as increased operating expenses.
“We are pleased with the early results for our new energy drinks that were launched in the quarter,” Schlosberg added.