Summary
Monster Beverage Corporation's 2018 10-K filing highlights a year of record net sales, reaching $3.81 billion, driven primarily by strong performance in its core Monster Energy® Drinks segment. The company demonstrated continued growth in both domestic and international markets, with international sales representing a significant and increasing portion of overall revenue. Despite an increase in cost of sales and operating expenses, Monster Beverage managed to grow its operating income and net income year-over-year. The company also continued its commitment to returning value to shareholders through an active share repurchase program. However, investors should note the company's substantial reliance on The Coca-Cola Company (TCCC) for distribution, the ongoing arbitration with TCCC regarding potential product launches, and increasing regulatory scrutiny around energy drinks as key risks to monitor.
Financial Highlights
48 data points| Revenue | $3.81B |
| Cost of Revenue | $1.51B |
| Gross Profit | $2.30B |
| Operating Expenses | $1.01B |
| Operating Income | $1.28B |
| Net Income | $993.00M |
| Shares Outstanding (Basic) | 1.11B |
| Shares Outstanding (Diluted) | 1.13B |
Key Highlights
- 1Record net sales of $3.81 billion for the year ended December 31, 2018, a 13.0% increase from 2017.
- 2Monster Energy® Drinks segment remains the dominant revenue driver, accounting for 91.7% of net sales in 2018.
- 3International net sales continued to grow, representing 31% of gross sales in 2018, up from 28% in 2017.
- 4Operating income increased by 7.1% to $1.28 billion, while net income rose by 21.0% to $993.0 million.
- 5The company actively engaged in share repurchases, exhausting multiple authorized programs throughout 2018.
- 6A significant portion of sales, 61% domestically and 31% internationally, are through full-service bottlers/distributors, with a substantial portion of these being TCCC network bottlers.
- 7The company is actively managing risks related to its significant commercial arrangements with TCCC, including an ongoing arbitration process.