Monster Beverage Reports 2025 First Quarter Results

Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three-months ended March 31, 2025.

Net sales for the 2025 first quarter were negatively impacted by bottler/distributor ordering patterns in the United States and EMEA, adverse changes in foreign currency exchange rates, decreased sales in the Alcohol Brands segment, adverse weather, one less selling day in the 2025 first quarter, as well as uncertain economic conditions.

Net sales, excluding the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), increased 1.9 percent in the 2025 first quarter.

Reported net sales for the 2025 first quarter decreased 2.3 percent to $1.85 billion, from $1.90 billion in the comparable period last year.

The Company estimates that year-to-date gross billings, excluding the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), through April 30, 2025 were approximately 6.9 percent higher (5.8 percent higher including the Alcohol Brands segment) than the comparable period in the previous year.

Net sales for the Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, decreased marginally to $1.72 billion for the 2025 first quarter, from $1.73 billion for the 2024 first quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $50.8 million for the 2025 first quarter. Net sales on a foreign currency adjusted basis (non-GAAP) for the Monster Energy® Drinks segment increased 2.2 percent in the 2025 first quarter.

Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands Predator® and Fury®, decreased 9.3 percent to $98.3 million for the 2025 first quarter, from $108.4 million in the 2024 first quarter, primarily due to timing differences in concentrate sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Strategic Brands segment of approximately $6.6 million for the 2025 first quarter. Net sales on a foreign currency adjusted basis (non-GAAP) for the Strategic Brands segment decreased 3.3 percent in the 2025 first quarter.

Net sales for the Alcohol Brands segment decreased 38.1 percent to $34.7 million for the 2025 first quarter, from $56.1 million in the 2024 first quarter. The decrease in net sales was primarily related to the launch of the Nasty Beast® Hard Tea product line in the comparable 2024 first quarter as well as decreased sales by volume of The Beast™ product line.

Net sales for the Company’s Other segment, which primarily includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary of the Company, sold to independent third-party customers, increased 8.0 percent to $6.0 million for the 2025 first quarter, from $5.5 million in the 2024 first quarter.

Net sales to customers outside the United States marginally decreased 1.5 percent to $733.2 million in the 2025 first quarter, from $744.1 million in the 2024 first quarter, primarily due to adverse changes in foreign currency exchange rates. Net sales to customers outside the United States, on a foreign currency adjusted basis (non-GAAP), increased 6.2 percent to $790.5 million in the 2025 first quarter. Such sales were approximately 40 percent and 39 percent of total reported net sales for the 2025 and 2024 first quarters, respectively.

Gross profit as a percentage of net sales for the 2025 first quarter increased to 56.5 percent from 54.1 percent in the 2024 first quarter. The increase in gross profit as a percentage of net sales for the 2025 first quarter was primarily the result of pricing actions as well as supply chain optimization.

Operating expenses for the 2025 first quarter decreased to $478.2 million from $485.1 million in the 2024 first quarter. Operating expenses as a percentage of net sales for the 2025 first quarter were 25.8 percent, compared with 25.5 percent in the 2024 first quarter.

Distribution expenses for the 2025 first quarter were $77.6 million, or 4.2 percent of net sales, compared with $94.4 million, or 5.0 percent of net sales in the 2024 first quarter.

Selling expenses for the 2025 first quarter were $172.3 million, or 9.3 percent of net sales, compared with $174.4 million, or 9.2 percent of net sales in the 2024 first quarter.

General and administrative expenses for the 2025 first quarter were $228.4 million, or 12.3 percent of net sales, compared with $216.3 million, or 11.4 percent of net sales, for the 2024 first quarter. Stock-based compensation was $20.7 million for the 2025 first quarter, compared with $22.5 million in the 2024 first quarter.  

Operating income for the 2025 first quarter increased 5.1 percent to $569.7 million, from $542.0 million in the 2024 first quarter. Operating income for the 2025 first quarter, exclusive of the Alcohol Brands segment (non-GAAP), increased 7.9 percent to $591.2 million, from $548.0 million in the 2024 first quarter.

The effective tax rate for the 2025 first quarter was 23.4 percent, compared with 23.5 percent in the 2024 first quarter.

Net income for the 2025 first quarter increased 0.2 percent to $443.0 million, from $442.0 million in the 2024 first quarter. Net income per diluted share for the 2025 first quarter increased 7.4 percent to $0.45, from $0.42 in the first quarter of 2024. Net income per diluted share for the 2025 first quarter, exclusive of the Alcohol Brands segment (non-GAAP), increased 10.2 percent to $0.47, from $0.42 in the first quarter of 2024.

Here are the Monster Beverage Corporation and Subsidiaries’ full financial statements for Q1, 2025:

Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “Our first quarter revenues were impacted by a number of headwinds including bottler/distributor ordering patterns, unfavorable foreign currency exchange rates in certain markets, adverse weather in certain geographies as well as overall global economic uncertainties. Despite these headwinds, net sales excluding the Alcohol Brands segment, on a foreign currency adjusted basis, increased 1.9 percent in the quarter.

“Consumer retail sales both for the energy drink category and for the Company’s energy drink brands, as measured by Nielsen, were strong and accelerated in the 2025 first quarter in most geographies. Furthermore, the Company’s April 2025 sales were robust.

“Gross profit margins improved to 56.5 percent in the 2025 first quarter and were higher on a sequential basis, primarily the result of pricing actions and supply chain optimization. In addition, distribution expenses as a percentage of net sales decreased to 4.2 percent in the 2025 first quarter.

“We were able to deliver solid percentage increases in both operating income and diluted earnings per share during the quarter.

“Growth opportunities in household penetration and per capita consumption, along with consumers’ growing demand for energy drinks, remain positive trends for the category,” Schlosberg added.

Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said, “We launched a number of new products in the first quarter. In the United States, Monster Energy® Ultra Blue Hawaiian has rapidly become one of our top selling products. Innovation globally continues to play a key role in our strategy and we maintain a robust innovation pipeline.

“The Alcohol Brands segment continued to put negative pressure on our financial results. We remain focused on optimizing our personnel and facilities to support the current demand of our Monster Brewing portfolio and innovation pipeline.

“We are continuing to launch our affordable energy brands, Predator® and Fury®, in a number of markets worldwide.

“We have market share leadership in a number of countries for our brands,” Sacks said.

Share Repurchase Program

During the 2025 first quarter, no shares of the Company’s common stock were repurchased. As of May 8, 2025, approximately $500.0 million remained available for repurchase under the previously authorized repurchase program.

Company Borrowings

During the 2025 first quarter, the Company repaid $175.0 million on its term loan facility and subsequently repaid $200.0 million in April 2025, which satisfied all outstanding borrowings under such facility. As of May 8, 2025, the Company’s revolving credit facility remained unused and fully available.

Investor Conference Call

The Company will host an investor conference call today, May 8, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will be open to all interested investors through a live audio web broadcast via the internet at www.monsterbevcorp.com in the “Events & Presentations” section. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.

About Monster Beverage Corporation

Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries develop and market energy drinks, including Monster Energy® drinks, Monster Energy Ultra® energy drinks, Juice Monster® Energy + Juice energy drinks, Java Monster® non-carbonated coffee + energy drinks, Monster Killer Brew™ Triple Shot, Rehab® Monster® non-carbonated energy drinks, Monster Energy® Nitro energy drinks, Reign® Total Body Fuel high performance energy drinks, Reign Storm® total wellness energy drinks, NOS® energy drinks, Full Throttle® energy drinks, Bang Energy® drinks, BPM® energy drinks, BU® energy drinks, Burn® energy drinks, Live+® energy drinks, Mother® energy drinks, Nalu® energy drinks, Play® and Power Play® (stylized) energy drinks, Relentless® energy drinks, Samurai® energy drinks, Ultra Energy® drinks, Predator® energy drinks and Fury® energy drinks. The Company’s subsidiaries also develop and market still and sparkling waters under the Monster Tour Water® brand name. The Company’s subsidiaries also develop and market craft beers, flavored malt beverages and hard seltzers under a number of brands, including Jai Alai® IPA, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin® hard seltzers, The Beast™ and Nasty Beast® hard tea. For more information visit www.monsterbevcorp.com.