Monster Beverage Corp (MNST, Financial) released its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company reported a 14.3% increase in net sales to $1.86 billion, up from $1.62 billion in the same period last year. Net income for the quarter also saw a significant increase of 40.4% to $452.7 million, up from $322.4 million in Q3 2022.
Financial Performance
The company's Monster Energy® Drinks segment, which includes Monster Energy® drinks, Reign® Total Body Fuel high performance energy drinks, Reign Storm™ total wellness energy drinks, and Bang Energy® drinks, reported a 13.7% increase in net sales to $1.71 billion for the third quarter. The Strategic Brands segment reported an 11.2% increase in net sales to $98.8 million, while the Alcohol Brands segment reported a 57.8% increase in net sales to $42.3 million.
Gross profit as a percentage of net sales for the third quarter was 53.0%, compared with 51.3% in the same period in 2022. The increase in gross profit as a percentage of net sales was primarily due to pricing actions in certain markets, decreased freight-in costs, and decreased aluminum can costs. Operating income for the third quarter increased 22.2% to $510.5 million, up from $417.9 million in Q3 2022.
Acquisition of Bang Energy®
On July 31, 2023, Monster Beverage Corp (MNST, Financial) completed its acquisition of Bang Energy®. The acquired assets primarily include Bang Energy® drinks and a beverage production facility in Phoenix, Arizona. The company recorded a gain of $45.4 million in connection with the Bang Transaction.
Executive Commentary
Commenting on the results, Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said,
The energy drink market in the United States, as well as internationally, continues to grow. We are pleased to report another quarter of solid revenue growth, with record sales for our third quarter."
Rodney C. Sacks, Chairman and Co-Chief Executive Officer, added,
We are pleased with our new product innovation launches this year."
Share Repurchase Program
During the third quarter, the company repurchased approximately 7.3 million shares of its common stock at an average purchase price of $54.83 per share, for a total amount of $400.0 million.
Explore the complete 8-K earnings release (here) from Monster Beverage Corp for further details.
