01—Abstract
Summary
Summary of the 10-K filed February 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Monster Beverage (MNST) delivered record 2024 net sales of $7.49 billiona, up 4.9% reported and 8.4% on a foreign-currency-adjusted basis, driven by higher worldwide Monster Energy volumes and the November 2024 price increases.
Energy drink case sales rose 10.1% to 846.7 million cases, though average net sales per energy drink case fell 4.4% to $8.62b on higher promotional allowances and a shift in geographic and product mix. Gross margin improved to 54.0% from 53.1%, but operating income declined 1.2% to $1.93 billion, and net income fell 7.5% to $1.51 billion (diluted EPS $1.49 vs. $1.54). The decline was driven primarily by $138.8 million of Alcohol Brands impairment charges, which includes $86.3 million of goodwill (the Alcohol Brands goodwill is now fully written off) and $40.8 million of indefinite-lived trademarks, plus $8.2 million of property impairments.
Excluding these charges, the core energy business grew profitably: the Monster Energy Drinks segment's operating income rose 5.3% to $2.46 billionc. Capital allocation was the dominant theme in 2024. Monster returned roughly $3.8 billion to shareholders through treasury stock purchases, including a $3.0 billion modified Dutch auction tender offer completed in June at $53.00 per share, funded with $2.25 billion of cash and $750 million of borrowings under a new $1.5 billion credit facility.
Cash and cash equivalents fell to $1.53 billiond from $2.30 billion, and working capital declined to $2.54 billion from $4.43 billion. Operating cash flow was strong at $1.93 billion, and management expects capital expenditures below $500 million through 2025.
Roughly $500 million remained authorized under the August 2024 repurchase plan as of February 2025. Investors should weigh continued dependence on TCCC, which owns about 21% of the stock and is the primary distribution partner, along with the growing international share of sales (about 40%) and ongoing regulatory pressure on energy drinks and caffeine.
02—Key points
Key Highlights
- Record net sales of $7.49B (+4.9% reported, +8.4% FX-adjusted); energy drink case volume up 10.1% to 846.7M cases
- Gross margin expanded to 54.0% from 53.1%, aided by the Pricing Actions, lower freight-in and lower aluminum can costs
- Net income fell 7.5% to $1.51B, primarily due to $138.8M of Alcohol Brands impairment charges; Monster Energy Drinks segment operating income rose 5.3% to $2.46B
- Returned ~$3.8B to shareholders in 2024, including a $3.0B Dutch auction tender offer at $53.00/share, which reduced cash to $1.53B and working capital to $2.54B
- Average net sales per energy drink case declined 4.4% to $8.62 on higher promotional allowances and mix shifts, a key margin-quality watch item
- TCCC owns ~21% of outstanding shares and is the primary global distribution partner, creating concentration and change-of-control considerations
- Operating cash flow rose to $1.93B and the company carries $375M of term loan debt, with $750M of undrawn revolver capacity
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Monster Beverage kept $0.20.
- Revenue$7.49B100.0%
- Cost of revenue−$3.44B46.0%
- Gross profit$4.05B54.0%
- Operating costs−$2.12B28.3%
- Operating income$1.93B25.8%
- Interest, other & tax−$421.2M5.6%
- Net income$1.51B20.1%
Where FY2024 revenue went
$7.49B- Cost of revenue: $3.44B, 46% of revenue
- Operating costs: $2.12B, 28% of revenue
- Net income: $1.51B, 20% of revenue
- Interest, other & tax: $421.2M, 5.6% of revenue
Kept 20% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 28, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.49B$7.14B | +4.9% |
| Cost of Revenue | $3.44B$3.35B | +2.9% |
| Gross Profit | $4.05B$3.79B | +6.7% |
| Operating Expenses | $2.12B$1.84B | +15.1% |
| Operating Income | $1.93B$1.95B | −1.2% |
| Net Income | $1.51B$1.63B | −7.5% |
| EPS (Basic) | $0.75$0.78 | −3.8% |
| EPS (Diluted) | $0.74$0.77 | −3.2% |
| Shares Outstanding (Basic) | 2.01B2.09B | −3.9% |
| Shares Outstanding (Diluted) | 2.03B2.12B | −4.2% |
05—Questions
Frequently Asked Questions
Why did net income decline in 2024 despite record sales and higher gross margins?
Net income fell 7.5% to $1.51 billion mainly because of $138.8 million of impairment charges in the Alcohol Brands segment, including $86.3 million of goodwill and $40.8 million of trademarks, plus $8.2 million of property impairments. Operating expenses rose 15.1%, driven by sponsorships, payroll and those impairments, while the effective tax rate increased to 24.1% from 21.2%.
How much did Monster return to shareholders and how was it funded?
Monster repurchased about $3.8 billion of stock in 2024. This included the $3.0 billion tender offer completed in June 2024 at $53.00 per share, funded with about $2.25 billion of cash on hand and $750 million of borrowings under a new $1.5 billion senior unsecured credit facility. The company also bought back about $500 million under the 2023 plan, and roughly $500 million remained authorized as of February 27, 2025.
How concentrated is Monster's business with TCCC and key bottlers?
The Coca-Cola Company owns about 21% of Monster's common stock and has nominated a director. TCCC's bottler network now distributes Monster products across the U.S. and substantially all international territories. Coca-Cola Europacific Partners, Coca-Cola Consolidated and Reyes Holdings accounted for approximately 14%, 10% and 9% of 2024 net sales, respectively. Management notes that a decision by any large customer to reduce purchases could materially affect results.
What is the outlook for the energy drink category and pricing?
Monster implemented price increases effective November 1, 2024 for core brands and packages, which supported gross margin in 2024. However, competition from new entrants (including CELSIUS, C4, Alani Nu and GHOST), higher promotional spending and regulatory pressures such as age restrictions, excise taxes and caffeine limits could pressure per-case pricing. The filing does not provide numerical guidance, and management states it does not provide earnings guidance.
06—Continue