Monster Beverage Corporation has reported financial results for the three-months ended 31 March 2023.

The company achieved record first quarter net sales of $1.70 billion in the 2023 first quarter, up 11.9%, from net sales of $1.52 billion in the 2022 comparable period. 

Net changes in foreign currency exchange rates had an unfavourable impact on net sales for the 2023 first quarter of $52.0 million. Net sales on a foreign currency adjusted basis increased 15.3% for the 2023 first quarter.

The company implemented pricing actions in the United States and certain other international markets in 2022 and continued to implement price increases in certain international markets in the first quarter of 2023, all of which positively impacted gross profit margins.

Gross profit as a%age of net sales increased on a sequential quarterly basis to 52.8% in the 2023 first quarter, from 51.8% in the 2022 fourth quarter and 51.3% in the 2022 third quarter.

Gross profit as a percentage of net sales, excluding gross profit for the Company’s Alcohol Brands segment, increased on a sequential quarterly basis to 53.6% in the 2023 first quarter, from 52.5% in the 2022 fourth quarter and 51.9% in the 2022 third quarter.

Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said: “The energy drink market continues to expand on a global basis. We are pleased to report another quarter of continued revenue growth with record sales for our first fiscal quarter, although the quarter was again adversely impacted by the strength of the United States dollar.

“Gross profit margin percentages continued to increase on a sequential quarterly basis, primarily as a result of pricing actions, decreased freight-in costs and decreased aluminium can costs, as well as the moderation of certain other challenges in our supply chain. The increases in certain ingredients and other input costs, as well as co-packing fees, remain challenging. 

“Internationally, certain price increases were implemented during the 2023 first quarter, with additional price increases planned in a number of other markets during the remainder of the year. In certain markets, such increases are in addition to price increases implemented in 2022. In the United States, we took an additional price increase on our 18.6 oz and 24 oz energy drinks, effective April 1, 2023.

“We are proud to record market leadership for our portfolio of brands in a number of international markets.

“We are also planning to transition the Monster brand to the Coca-Cola distribution system in the Philippines,” Schlosberg added. 

Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said: “We had a very active first quarter with new product innovation launches.  In the United States, we launched Monster Energy Zero Sugar nationally at retail in January, as well as Monster Energy Ultra Strawberry Dreams, Monster Reserve Kiwi Strawberry, Monster Energy Nitro Cosmic Peach and Java Monster Caffe Latte in the quarter. In March, we launched Reign Storm, which is positioned as a total wellness energy drink, in 12 oz sleek cans at retail in four flavours, to address a compelling opportunity in the energy drink category. 

“During the first quarter, we initially launched our first flavoured malt beverage alcohol product, The Beast Unleashed in six states. The Beast Unleashed contains 6% alcohol by volume and is available in four flavours. We are pleased with the early results of the launch and are continuing to expand distribution into additional markets, with the goal of being national by the end of the year. 

“In addition, towards the end of the first quarter, we commenced our phased launch of Monster® Tour Water, a pure unflavoured water line, in still and sparkling variants, in certain targeted accounts in the United States.  

“In EMEA, as part of an ongoing pan-EMEA launch, we commenced distribution of Monster Energy Lewis Hamilton 44 Zero Sugar. We also launched Fury, one of our affordable energy brands, in Egypt in the quarter. 

 “Our innovation pipeline of both alcoholic and non-alcoholic beverages continues to be robust,” Sacks added.”