Monster reports record Q4 sales
Monster Beverage Corporation reported results for the fourth quarter and full year ended 31 December 2022.
The company achieved record fourth quarter net sales of $1.51 billion for the 2022 fourth quarter, 6.2% higher than net sales for the 2021 comparable period.
Monster implemented a price increase effective September 1,2022 in the United States and continued to implement price increases in certain international markets in the fourth quarter of 2022, all of which positively impacted gross profit margins.
Since the beginning of the COVID-19 pandemic and the subsequent global supply chain challenges and disruptions, the company has prioritised product availability for its consumers and customers, despite adversely impacting gross margins and operating income.
CANarchy Craft Brewery Collective LLC was acquired in February 2022 to facilitate the Company’s entry into the alcohol beverage sector. During 2022, CANarchy sustained margin pressures, costs of acquisition and integration, as well as certain other costs in preparation for the launch of the Company’s new alcohol product lines.
Gross profit as a percentage of net sales increased on a sequential quarterly basis to 51.8% in the 2022 fourth quarter, from 51.3% in the 2022 third quarter.
Vice Chairman and Co-Chief Executive Officer Hilton H. Schlosberg said: “We are pleased to report another quarter of continued revenue growth. The energy drink category continues to expand globally. The results from our overseas operations were again overshadowed by the strength of the United States dollar in the quarter. Gross profit margin percentages increased on a sequential quarterly basis as a result of our pricing actions, as well as certain of our supply chain challenges moderating.
“We are continuing to deplete the remaining higher cost imported can inventories in the United States and in EMEA, which should be fully utilised during 2023.
“We believe that some of the increased costs that we have experienced in 2022 are likely to be transitory, although cost inflation, including increases in energy particularly in EMEA, ingredient and other input costs, as well as co-packing fees, remain challenging.
“Certain price increases are being implemented on a phased approach during the first half of 2023, some in addition to price increases or pricing actions already taken in 2022,” Schlosberg added.
2022 Full-Year Results
Net sales for the twelve-months ended 31 December 2022 increased 13.9% to $6.31 billion, from $5.54 billion in the comparable period last year.
Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the twelve-months ended 31 December 2022 of $239.5 million.
Net sales on a foreign currency adjusted basis increased 18.2% for the twelve-months ended 31 December 2022.
Gross profit, as a percentage of net sales, for the twelve-months ended 31 December 31 2022 was 50.3%, compared with 56.1% in the comparable period last year.
Operating expenses for the twelve-months ended 31 December 2022 were $1.59 billion, compared with $1.31 billion in the comparable period last year.
Operating income for the twelve-months ended 31 December 2022 decreased to $1.58 billion, from $1.80 billion in the comparable period last year.
The effective tax rate was 24.2% for the twelve-months ended 31 December 2022, compared with 23.5% in the comparable period last year.
Net income for the twelve-months ended 31 December 2022 decreased 13.5% to $1.19 billion, from $1.38 billion in the comparable period last year. Net income per diluted share for the twelve-months ended 31 December 2022 decreased 13.1% to $2.23, from $2.57 in the comparable period last year.