Monster Beverage (MNST) Q1 2019 earnings summary

Executive summary

• Record Q1 net sales of $946.0M, up 11.2% YoY; net income rose 21.0% to $261.5M and diluted EPS increased to $0.48 from $0.38.

• Volume growth, including Reign Total Body Fuel launches, and a North American price increase supported sales; currency movements reduced reported sales.

Financial highlights

• Net sales $946.0M, +11.2% YoY; gross profit $573.5M, +11.3%; operating income $311.5M, +11.3%.

• Net income $261.5M, +21.0%; basic and diluted EPS $0.48, versus $0.38 in Q1 2018.

• Case sales 101.3M, +9.7%; average net sales per case, excluding AFF third-party products, $9.29 versus $9.17.

• Operating cash flow was $123.4M versus $148.9M; net cash decreased $19.2M to $618.3M during the quarter.

Outlook and guidance

• Cash from operations, cash resources and credit access were expected to cover working capital and other needs for at least 12 months.

• Capital expenditures were estimated at less than $100M through March 31, 2020, subject to change with future opportunities.