Monster Beverage (MNST) Q3 2024 earnings summary

Executive summary

• Q3 net sales set a record at $1.88B, up 1.3% reported and 4.7% FX-neutral; energy-drink case sales rose 8.0% to 219.4M.

• Q3 net income fell 18.1% to $370.9M; the prior-year comparison included a $45.4M Bang transaction gain.

• International sales increased 3.6% to $760.1M, representing 40.4% of total sales.

• Global energy category growth remained robust, while U.S. growth slowed; October showed signs of improvement.

• Product launches and international rollouts continued across regions.

Financial highlights

• Gross profit was $999.8M, up 1.6%; operating income fell 6.0% to $479.9M, and adjusted operating income was $508.4M.

• Net income was $370.9M, down 18.1%; adjusted net income was $392.4M, down 8.8%.

• Diluted EPS was $0.38, versus $0.43; adjusted diluted EPS was $0.40, versus $0.41.

• Nine-month net sales rose 5.0% to $5.68B; net income declined 2.0% to $1.24B, while adjusted net income rose 1.0% to $1.26B.

• Nine-month operating cash flow was $1.47B, versus $1.28B; cash and cash equivalents were $1.63B at September 30, 2024.

Outlook and guidance

• A ~5% U.S. price increase on core brands and packages, excluding Bang and Reign, took effect November 1, 2024; further international pricing actions were under review.

• October sales were estimated to be 4.8% higher year-over-year, partly reflecting purchases ahead of the price increase.

• Management remained positive on global energy-drink growth and the innovation pipeline.

• Capital expenditures, excluding share repurchases, were estimated at less than $500M through September 30, 2025; cash resources and credit access were expected to cover needs for at least 12 months.