10-KPeriod: FY2023

Monster Beverage Corp Annual Report, Year Ended Dec 31, 2023

Filed February 29, 2024For Securities:MNST

Summary

Monster Beverage Corporation reported record net sales of $7.14 billion for the fiscal year ended December 31, 2023, representing a 13.1% increase over the prior year. This growth was primarily driven by strong performance in its core Monster Energy® Drinks segment, which accounted for over 91% of net sales, supported by increased consumer demand and strategic pricing actions. The company also saw significant growth in its Alcohol Brands segment, more than doubling net sales year-over-year, largely due to the introduction of The Beast Unleashed® FMBs. Key financial highlights include a 19.5% increase in gross profit and a significant improvement in gross profit margins to 53.1%, up from 50.3% in the prior year, attributed to pricing strategies, reduced reliance on imported cans, and improved inventory management. Net income saw a substantial increase of 36.9% to $1.63 billion. The company completed the acquisition of substantially all assets of Bang Energy during the year, which is expected to contribute to future growth, and continues to invest in product innovation and international expansion.

Financial Statements
Beta
Revenue$7.14B
Cost of Revenue$3.35B
Gross Profit$3.79B
Operating Expenses$1.84B
Operating Income$1.95B
Net Income$1.63B
Shares Outstanding (Basic)1.04B
Shares Outstanding (Diluted)1.06B

Key Highlights

  • 1Record net sales of $7.14 billion in fiscal year 2023, a 13.1% increase year-over-year.
  • 2Gross profit increased by 19.5% to $3.79 billion, with gross profit margins improving to 53.1% from 50.3%.
  • 3Net income grew by 36.9% to $1.63 billion.
  • 4Completed the acquisition of Bang Energy assets on July 31, 2023, integrating the brand into its portfolio.
  • 5International net sales reached $2.71 billion, representing 38% of total net sales, with a 21.2% increase on a foreign currency adjusted basis.
  • 6The Alcohol Brands segment experienced robust growth with net sales increasing by 82.3% to $184.9 million.
  • 7Increased operating expenses by 15.8% driven by higher selling, marketing, and general administrative costs, including investments in brand development and transaction costs related to the Bang Energy acquisition.

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