10-KPeriod: FY2024

Monster Beverage Corp Annual Report, Year Ended Dec 31, 2024

Filed February 28, 2025For Securities:MNST

Summary

Monster Beverage Corporation (MNST) reported record annual net sales of $7.49 billion for the fiscal year ended December 31, 2024, marking a 4.9% increase compared to the prior year. This growth was primarily driven by increased global volume sales of their core Monster Energy® brand drinks and successful pricing actions implemented in the United States and international markets. The company's international business continues to be a significant growth driver, with net sales outside the U.S. reaching $2.96 billion, representing 40% of total net sales. Despite revenue growth, net income saw a decrease of 7.5% to $1.51 billion, largely impacted by $138.8 million in impairment charges related to the Alcohol Brands segment. The company also executed a substantial $3.0 billion share repurchase program in the first half of 2024, funded by cash on hand and borrowings, demonstrating a commitment to returning capital to shareholders. Management expresses confidence in maintaining sufficient liquidity for upcoming operational needs and capital expenditures.

Financial Highlights

50 data points
Beta

Revenue

$7.49B

54.0% Gross Margin

Net Income

$1.51B

20.1% Net Margin

Total Assets

$7.72B

Cash & Equivalents

$1.53B

Free Cash Flow

$1.66B

Financial Statements
Beta
Revenue$7.49B
Cost of Revenue$3.44B
Gross Profit$4.05B
Operating Expenses$2.12B
Operating Income$1.93B
Net Income$1.51B
Shares Outstanding (Basic)1.00B
Shares Outstanding (Diluted)1.01B

Key Highlights

  • 1Record annual net sales of $7.49 billion, a 4.9% increase year-over-year, driven by volume growth and pricing actions.
  • 2International net sales reached $2.96 billion (40% of total), with a strong foreign currency adjusted growth of 18.5%.
  • 3Significant $3.0 billion share repurchase program completed in June 2024, funded by cash and debt.
  • 4Net income decreased by 7.5% to $1.51 billion, primarily due to $138.8 million in impairment charges in the Alcohol Brands segment.
  • 5Monster Energy® Drinks segment remains the dominant revenue driver, accounting for 91.6% of net sales.
  • 6Increased operating expenses by 15.1% to $2.12 billion, largely due to impairment charges and increased selling and marketing expenses.
  • 7Expanded credit facilities to $1.50 billion, consisting of a $750 million term loan and a $750 million revolving credit facility.

Frequently Asked Questions

Monster Beverage Corporation reported record annual net sales of $7.49 billion for the fiscal year ended December 31, 2024, representing a 4.9% increase compared to $7.14 billion in 2023. This growth was primarily attributed to higher sales volumes for its Monster Energy® brand drinks and the impact of implemented pricing actions.

In 2024, Monster Beverage executed a significant $3.0 billion 'Dutch auction' tender offer to repurchase its common stock, funded by $2.25 billion in cash and $750 million in borrowings. The company also repurchased an additional $739.6 million through other repurchase plans during the year. As of February 27, 2025, $500.0 million remained available under its August 2024 repurchase plan.

The primary driver of Monster Beverage's profitability is its Monster Energy® Drinks segment, which accounted for 91.6% of net sales in 2024. While gross profit increased by 6.7% due to higher net sales and improved gross margin to 54.0% (driven by pricing actions and lower freight/aluminum costs), operating income decreased by 1.2% to $1.93 billion. This decline was primarily due to a significant increase in operating expenses, largely stemming from $138.8 million in impairment charges related to the Alcohol Brands segment and increased selling and marketing expenditures.

International net sales were strong, reaching $2.96 billion, which is 40% of total net sales. On a foreign currency adjusted basis, international net sales increased by 18.5% for the year ended December 31, 2024. The company continues to focus on international growth as a key value driver.