Monster Beverage (MNST) Q2 2024 earnings summary

Executive summary

• Record Q2 net sales of $1.90B, up 2.5% YoY and 6.1% on a foreign-currency-adjusted basis; growth was 7.4% excluding FX and Alcohol Brands.

• Net income rose 2.8% to $425.4M and diluted EPS increased 5% to $0.41; energy drink case sales grew 6.9% to 212.2M.

• Gross margin improved to 53.6% from 52.5%, supported by lower freight and aluminum can costs.

• H1 net sales increased 6.9% to $3.80B and net income rose 6.9% to $867.4M.

• U.S. category growth slowed amid reduced convenience-store traffic and tighter spending; international performance was mixed, with strong growth in select markets.

Financial highlights

• Q2 gross profit rose 4.6% to $1.02B; operating income increased 0.6% to $527.2M.

• Operating expenses were $492.3M, or 25.9% of sales, versus $450.4M and 24.3% a year earlier.

• Q2 effective tax rate was 22.9%, versus 23.2% a year earlier.

• H1 operating cash flow was $848.4M versus $763.2M; cash and cash equivalents totaled $1.56B at June 30, 2024.

Outlook and guidance

• U.S. price increase of ~5% on core brands and packages effective Nov. 1, 2024; additional international pricing actions under review.

• July 2024 sales were estimated up 5.9% YoY, or 6.1% excluding Alcohol Brands; FX-adjusted growth was 9.4%.

• Planned launches include Monster Energy Ultra Vice Guava and three The Beast Unleashed flavors; innovation and international expansion remain growth priorities.

• Capital expenditures, excluding share repurchases, were estimated at less than $500M through June 30, 2025; available cash and expected funding sources were expected to cover needs for at least 12 months.