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Monster’s Global Sales Give Q1 Some Kick
Monster Beverage rallied Friday after a first-quarter report that made global growth look like the strongest ingredient in the can. The company reported net sales of $2.35 billion, up 26.9% from a year earlier, while diluted earnings rose 27.6% to $0.58 per share. Shares climbed about 13% Friday after the release, as investors looked past the usual mature-brand worries and focused on a company still opening new coolers around the world.
The biggest signal came from outside the United States, where Monster’s international business looked especially energized. Net sales to customers outside the U.S. rose 44.9% to $1.06 billion, representing roughly 45% of total reported net sales, up from 40% a year earlier. The company is not just squeezing more sales out of familiar shelves at home. It is finding fresh audiences, wider distribution, and a longer runway for the brand abroad. Operating income climbed 28.1% to $730 million, while net income rose 28.6% to $569.5 million. Gross margin did slip to 55.0% from 56.5%, pressured by geographic sales mix, higher aluminum-can costs, and increased freight-in costs, but pricing actions helped soften the hit. The can got pricier to ship and sell, but the profit line still had plenty of fizz. Monster’s side bets were more mixed, but the core brand still carried the quarter with adequate force. Strategic Brands sales rose 28.9% to $126.7 million, while Alcohol Brands sales fell 5.9% to $32.7 million, leaving the main energy-drink business to do most of the talking. For Monster, the quarter came down to a familiar formula. The company sold more drinks, sold more of them abroad, and kept enough pricing power to make the growth show up below the sales line. That is a pretty simple recipe — and on Friday, investors were more than happy to drink it. SPONSORED CONTENT
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