Q2 2024 Monster Beverage Corp Earnings Call Transcript
Key Points
- Monster Beverage Corp (MNST) achieved record second-quarter net sales of $1.9 billion, a 2.5% increase from the previous year.
- Gross profit as a percentage of net sales improved to 53.6% from 52.5% in the same quarter last year.
- Net income increased by 2.8% to $425.4 million compared to the same quarter in 2023.
- The company continues to expand its presence in non-Nielsen measured channels, contributing to overall growth.
- Monster Beverage Corp (MNST) maintains market share leadership in the energy drink category in the United States.
- The energy drink category in the United States experienced lower growth rates, with a reduction in convenience store foot traffic.
- Operating expenses increased to $492.3 million from $450.4 million in the same quarter last year, driven by higher sponsorship, payroll, and warehouse expenses.
- Sales of key brands like Monster and Reign declined by 3% and 0.5%, respectively, in the 13-week period ending July 20, 2024.
- The company's market share in the energy drink category decreased in several international markets, including France, Norway, and Spain.
- Production inefficiencies and higher allowances negatively impacted gross margins, which were 0.5% below the first-quarter margins of 2024.
Good afternoon, everyone, and welcome to the Monster Beverage Company second-quarter 2024 conference call. (Operator Instructions) Please also note this event is being recorded.
At this time, I'd like to turn the floor over to Co-CEOs, Rodney Sacks and Hilton Schlosberg. Please go ahead.
Thank you. Good afternoon, ladies and gentlemen. Thanks for attending this call. I'm Rodney Sacks. Hilton Schlosberg, our Vice Chairman and Co-Chief Executive Officer, is on the call; as is Tom Kelly, our Chief Financial Officer.
Tom Kelly will now read our cautionary statement.
Before we begin, I would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Act of 1934 as amended, and are based on
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