Companies /Consumer Defensive

Monster Beverage Corp

NASDAQ: MNST Beverages - Non-alcoholic
$42.84
▼ $0.31 (−0.72%) today
Markets closed · 2:04am ET

Q4 2023 Earnings

Reported Feb 28, 2024, 4:28pm ET · SEC source
$0.35
Miss −7.89%
EPS · est. $0.38
$1.7B
Miss −0.00%
Revenue · est. $1.7B
−5.8%
Trailing market
MNST vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Feb 28Feb 29report 4:28pm ETearnings+0.7%+6.1%
0+3%+6%Feb 28Feb 29earnings+0.7%+6.1%
MNST +6.1%S&P 500 +0.7%
0+3%+6%Feb 28Feb 29report 4:28pm ETearnings+1.2%+6.1%
0+3%+6%Feb 28Feb 29earnings+1.2%+6.1%
MNST +6.1%NASDAQ +1.2%
0+2%+4%+6%Feb 27Mar 7report 4:28pm ETearnings+1.9%+6.3%
0+2%+4%+6%Feb 27Mar 7earnings+1.9%+6.3%
MNST +6.3%S&P 500 +1.9%
0+2%+4%+6%Feb 27Mar 7report 4:28pm ETearnings+2.5%+6.3%
0+2%+4%+6%Feb 27Mar 7earnings+2.5%+6.3%
MNST +6.3%NASDAQ +2.5%
+5.82%
Day of report
−0.52%
Next session
+0.47%
One week
−3.72%
30 days

S&P 500 over the same 30 days: +2.12%.

Did MNST Beat Earnings? Q4 2023 Results

Monster Beverage delivered a mixed fourth quarter for 2023, matching Wall Street's revenue target while falling short on the bottom line, as a series of one-time charges weighed on reported earnings. The company posted Q4 revenue of $1.73 billion, in line with consensus and up 14.3% year-over-year, yet GAAP diluted EPS of $0.35 missed the $0.38 consensus estimate by 7.89%, largely due to $39.90 million in impairment charges tied to the struggling Alcohol Brands segment and a $5.00 million Bang inventory step-up cost. Strip those items out, and adjusted EPS climbs back to $0.38, with adjusted net income rising 33.1% to $401.50 million. The core Monster Energy Drinks segment remained the engine of growth, pushing segment net sales up 15.1% to $1.60 billion, while gross margins expanded to 54.2% from 51.8% a year ago on lower freight and input costs. Looking ahead, the company is leaning into innovation with planned launches including Monster Energy Ultra Fantasy Ruby Red and Nasty Beast hard tea formats through 2024.

Key Takeaways
  • 14.4% net sales growth driven by Monster Energy Drinks segment
  • Gross profit margin improved to 54.2% from 51.8% due to pricing actions, lower freight-in costs, and reduced input costs
  • Energy drink case sales increased to 185.3 million from 166.2 million year-over-year
  • International sales grew 17.4% to $637 million
  • Lower effective tax rate of 18.5% versus 23.3% from increased stock option exercise tax benefits
  • Successful integration of Bang Energy acquisition

“We continue to see sound growth in the energy drink market globally. We are pleased to report another quarter of solid revenue growth, with record sales for our fourth quarter and 2023 financial year. The quarter and the 2023 financial year were again impacted by unfavorable foreign currency exchange rates.”

Monster Beverage CEO, on the earnings call

Forward Guidance & Outlook

Monster Beverage outlined plans for new product innovation in 2024, including Monster Energy Ultra Fantasy Ruby Red and Juice Monster Rio Punch in the United States. Monster Energy Zero Sugar is planned for additional launches throughout EMEA in 2024 following initial rollouts in Great Britain, Ireland, and Poland. The company is also rolling out The Beast Unleashed in 24 oz. single serve cans in the convenience and gas channel and launching Nasty Beast hard tea in variety packs and single serve formats.

MNST YoY Financials

Q4 2023 vs Q4 2022 · SEC filings Q4 2022 Q4 2023
$0$500.0M$1.0B$1.5B$1.5B$1.7BRevenue$784.3M$983.4MGross Profit$394.4M$434.0MOperating Income$301.7M$367.0MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

MNST Revenue by Segment

Monster Energy Drinks$1.6B+15.1%
Strategic Brands$91.8M−1.3%
Alcohol Brands$35.2M+30.6%
Other$4.9M+6.2%

MNST Revenue by Geography

United States
Rest of World$637.0M+17.4%

Figures from SEC filings and company reports. Not investment advice.