10-KPeriod: FY2017

Monster Beverage Corp Annual Report, Year Ended Dec 31, 2017

Filed March 1, 2018For Securities:MNST

Summary

Monster Beverage Corporation's 2017 10-K filing highlights robust net sales growth, driven primarily by its core Monster Energy® brand. The company demonstrated strong operational performance, with net sales reaching a record $3.37 billion, a 10.5% increase year-over-year, and net income growing by 15.2%. International expansion continues to be a key value driver, with international gross sales representing 28% of total gross sales, up from 25% in the prior year. The company also benefited from cost management initiatives and the integration of acquired assets, which contributed to stable gross profit margins despite increased operating expenses.

Financial Statements
Beta
Revenue$3.37B
Cost of Revenue$1.23B
Gross Profit$2.14B
Operating Expenses$938.90M
Operating Income$1.20B
Net Income$820.68M
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Record Net Sales: Achieved $3.37 billion in net sales for 2017, representing a 10.5% increase from 2016, primarily driven by the Monster Energy® brand.
  • 2Strong Profitability: Net income increased by 15.2% to $820.7 million, indicating effective cost management and operational efficiency.
  • 3International Growth: International gross sales reached $1.09 billion, accounting for 28% of total gross sales, underscoring the strategic importance of global expansion.
  • 4Strategic Brand Performance: The Strategic Brands segment contributed $299.8 million in net sales, showing a 10.0% increase.
  • 5Product Innovation: Introduced several new products and flavors throughout 2017 across various brands, including Espresso Monster, NOS Nitro Mango, and Juice Monster Mango Loco, supporting continued market relevance.
  • 6Shareholder Returns: Continued share repurchase program, with $249.9 million repurchased in 2017, demonstrating a commitment to returning value to shareholders.
  • 7Operational Efficiency: Maintained a strong gross profit margin of 63.5%, reflecting effective cost of goods sold management and benefits from acquired flavor capabilities.

Frequently Asked Questions