What was the primary driver of Monster Beverage's revenue growth in the reported period?

The primary driver of revenue growth was the strong performance of the Monster Energy® brand energy drinks, which saw increased sales by volume due to rising domestic and international consumer demand. The Strategic Brands segment also contributed positively to the overall revenue increase.

How did the AFF Transaction impact the company's financial results?

The acquisition of American Fruits & Flavors (AFF) in April 2016 provided significant raw material cost savings, contributing approximately $27.5 million to gross profit in Q2 2017 and $50.8 million in the first six months of 2017. These savings positively impacted the gross profit margin and overall profitability.

What is the company's outlook for liquidity and capital resources?

Monster Beverage expects its operating cash flow, existing cash reserves, and access to credit to be sufficient for its working capital needs, capital expenditures, and share repurchase program for at least the next 12 months. Estimated capital expenditures are expected to be less than $150.0 million through June 30, 2018.

Are there any significant legal proceedings that could materially impact the company?

The company is involved in numerous personal injury lawsuits related to its energy drinks and is subject to an inquiry from the New York State Attorney General. However, the company believes these proceedings are without merit and does not expect them to have a material adverse effect on its financial position or results of operations. As of June 30, 2017, the company had accrued loss contingencies of approximately $1.5 million.

MNST 10-Q Quarterly Report Q2 FY2017 — Revenue, Net Income, EPS

Summary

Monster Beverage Corporation reported strong financial performance for the second quarter and the first half of 2017, demonstrating significant year-over-year growth in net sales and net income. Net sales increased by 9.6% to $907.1 million for the three months ended June 30, 2017, and by 9.4% to $1.65 billion for the six months ended June 30, 2017. This growth was primarily driven by the core Monster Energy® brand, with substantial contributions also coming from the Strategic Brands segment. The company also saw improvements in gross profit margin due to cost savings from the AFF transaction and favorable sales mix, leading to a notable increase in operating income and net income.

Financial Highlights

46 data points

Beta

Revenue

$907.07M

64.3% Gross Margin

Net Income

$222.63M

24.5% Net Margin

Total Assets

$4.68B

Cash & Equivalents

$777.65M

Free Cash Flow

$318.87M

Financial Statements

Beta

Revenue	$907.07M
Cost of Revenue	$323.57M
Gross Profit	$583.50M
Operating Expenses	$233.46M
Operating Income	$350.04M
Net Income	$222.63M
Shares Outstanding (Basic)	1.14B
Shares Outstanding (Diluted)	1.16B

Key Highlights

1Net sales grew by 9.6% to $907.1 million in Q2 2017 compared to Q2 2016.
2Net income increased by 20.9% to $222.6 million in Q2 2017 compared to Q2 2016.
3Gross profit margin improved to 64.3% in Q2 2017 from 62.6% in Q2 2016, driven by cost savings and sales mix.
4Case sales increased by 11.0% in Q2 2017 compared to the prior year period.
5The Monster Energy® Drinks segment continues to be the primary revenue driver, representing approximately 90% of net sales.
6The company generated significant operating cash flow of $533.2 million for the six months ended June 30, 2017.
7The company announced a new share repurchase program of up to $500.0 million.

Monster Beverage Corp Quarterly Report for Q2 Ended Jun 30, 2017

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions