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Monster Beverage's (MNST) Q1 Earnings Miss, Sales Rise Y/Y
Monster Beverage's (MNST) Q1 Earnings Miss, Sales Rise Y/Y
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Monster Beverage Corporation MNST delivered first-quarter 2024 results, wherein the top and bottom lines came below the Zacks Consensus Estimate. However, both metrics improved year over year on gains from the expansion of the energy drinks category and product launches.Monster Beverage’s adjusted earnings of 42 cents per share missed the Zacks Consensus Estimate of 44 cents. The figure advanced 10.5% year over year.Net sales of $1.90 billion improved 11.8% year over year but lagged the consensus estimate of $1.92 billion. Unfavorable currency translations hurt net sales by $64.4 million. On a currency-adjusted basis, net sales rose 15.6%.Monster Beverage Corporation Price and ConsensusMonster Beverage Corporation price-consensus-chart | Monster Beverage Corporation QuoteNet sales to customers outside the United States rose 19.5% to $744.1 million, representing about 390% of the total net sales. On a currency-adjusted basis, sales to customers outside the United States improved 29.8%.We note that shares of this current Zacks Rank #3 (Hold) company have gained 5.9% in the past three months against the industry’s 4.2% decline.Segmental PerformanceMonster Energy Drinks: The segment includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks and True North Pure Energy Seltzers. The segment’s net sales increased 10.7% year over year to $1.73 billion. The segment’s sales included a negative impact of $54.6 million from adverse currency rates. On a currency-adjusted basis, net sales for the segment rose 14.2%.Strategic Brands: In addition to the affordable energy drink brands, the segment includes a range of energy drink brands acquired from Coca-Cola. The segment’s net sales grew 25.6% year over year to $108.4 million. Currency headwinds hurt the segment’s sales by $9.8 million. On a currency-adjusted basis, net sales for the segment rose 36.9%.Alcohol Brands: Net sales for the segment, which includes The Beast Unleashed, Nasty Beast Hard Tea, as well as several craft beers and hard seltzers, jumped 21.1% year over year to $56.1 million.Other: Net sales for the segment, which includes some products of American Fruits & Flavors sold to independent third parties (AFF Third-Party Products), grew 19.9% year over year to $5.5 million.Costs & MarginsThe cost of sales was $872 million, up 8.9% year over year. The company’s gross margin expande...