Monster report record third quarter net sales
Monster Beverage Corporation reported financial results for the three months ending September 30, 2021, including an update on the impact of the COVID-19 pandemic.
Despite the ongoing impact of the COVID-19 pandemic, the company achieved record third quarter net sales.
During the 2021 third quarter, the company procured additional quantities of aluminium cans from suppliers in the United States, South America and Asia in response to increased consumer demand.
However, the company continued to experience shortages in its aluminium can requirements in the United States and EMEA during the 2021 third quarter.
In addition, the company continued to experience additional supply chain challenges, including, freight inefficiencies, trucking availability, shortages of shipping containers, port of entry congestion, insufficient co-packing capacity and delays in the receipt of certain ingredients, in the United States and EMEA.
As a result, the company was not able to fully satisfy increased demand for its products in these regions in the 2021 third quarter.
During the 2021 third quarter, the company continued to experience increased aluminium can costs, attributable to higher aluminium commodity pricing as well as the costs of importing aluminium cans.
In addition, the company experienced increased ingredient and other input costs, including shipping and freight, labor, trucking, fuel, co-packing fees, secondary packaging materials and increased outbound freight costs, which resulted in increased costs of sales and increased operating costs, in the 2021 third quarter.
As of September 30, 2021, the company had $1.71 billion in cash and cash equivalents, $1.22 billion in short-term investments and $28.3 million in long-term investments.
Third Quarter Results
Net sales for the 2021 third quarter increased 13.2 percent to $1.41 billion from $1.25 billion in the same period last year. Net changes in foreign currency exchange rates had a favourable impact on net sales for the 2021 third quarter of $16.4 million.
Net sales for the company’s Monster Energy Drinks segment which primarily includes the company’s Monster Energy drinks, Reign Total Body Fuel high performance energy drinks and True North Pure Energy Seltzers, increased 14.3 percent to $1.33 billion for the 2021 third quarter, from $1.16 billion for the 2020 third quarter.
Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said: “We are pleased to report record sales for the third quarter, despite the ongoing impact of the COVID-19 pandemic.
“The energy drink category, and in particular our Monster Energy brand, continues to demonstrate resilience and growth in most of our markets.
“In the third quarter of 2021, we expanded distribution of our brands in certain international markets. In the United States, we launched our line of True North™ Pure Energy Seltzer in August 2021 and are currently in the process of launching our Monster (stylised) Reserve line to the retail trade,” Sacks added.