10-QPeriod: Q1 FY2011

Monster Beverage Corp Quarterly Report for Q1 Ended Mar 31, 2011

Filed May 10, 2011For Securities:MNST

Summary

Monster Beverage Corporation (Hansen Natural Corporation at the time) reported strong financial performance for the first quarter ended March 31, 2011. Net sales surged by 49.7% year-over-year to $356.4 million, driven primarily by a 97.4% increase in Monster Energy® brand sales. This robust top-line growth translated into a 69.0% increase in net income, which reached $55.0 million, or $0.59 per diluted share. The company demonstrated effective cost management, with operating expenses increasing at a slower pace than revenue, leading to a significant expansion in operating income margin from 21.3% to 24.8%.

Financial Statements
Beta
Revenue$356.42M
Cost of Revenue$170.88M
Gross Profit$185.54M
Operating Expenses$97.08M
Operating Income$88.45M
Net Income$55.04M
EPS (Basic)$0.05
EPS (Diluted)$0.05
Shares Outstanding (Basic)1.07B
Shares Outstanding (Diluted)1.12B

Key Highlights

  • 1Net sales increased by 49.7% to $356.4 million, driven by strong demand for Monster Energy® products.
  • 2Net income grew by 69.0% to $55.0 million, resulting in diluted EPS of $0.59.
  • 3Operating income increased by 74.2%, with operating margin expanding to 24.8% from 21.3%.
  • 4Gross profit increased by 49.0% to $185.5 million, with gross margin remaining stable at 52.1%.
  • 5Case sales volume increased by 43.3%, indicating significant market penetration.
  • 6The company repurchased $38.9 million of its common stock during the quarter under an authorized repurchase program.
  • 7International sales showed strong growth, contributing 15.6% of net sales, up from 12.3% in the prior year period.

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