Monster Beverage Corp
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
MNST$45.72-4.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-07.
0001410578-24-000605
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001410578-24-001239
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 145 current paragraphs.
48 unchanged; 47 reworded; 43 added; 10 removed; 1 previous and 7 current paragraphs rearranged.
Tables are not compared: 112 previous and 99 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (43)
Current report
Stock Repurchase
Current report
On May 1, 2024, the Board of Directors authorized the Company to execute a modified “Dutch auction” tender offer to repurchase up to $3.0 billion of its outstanding shares of common stock. On May 8, 2024, the Company commenced the tender offer, with such offer expiring on June 5, 2024. On June 10, 2024, the Company accepted for purchase a total of approximately 56.6 million shares of common stock at a purchase price of $53.00 per share, for an aggregate purchase price of approximately $3.0 billion. The repurchase was funded with approximately $2.25 billion of cash on hand and approximately $750 million in borrowings. The cost of these shares and the fees relating to the tender offer are included in common stock in treasury in the accompanying condensed consolidated balance sheet at June 30, 2024.
Current report
Net sales were $702.4 million and $670.5 million for the three-months ended June 30, 2024 and 2023, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean of approximately $67.3 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 14.8% (9.7% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.
Current report
Net sales for the Monster Energy® Drinks segment were $1.74 billion for the three-months ended June 30, 2024, an increase of approximately $55.9 million, or 3.3% higher than net sales of $1.69 billion for the three-months ended June 30, 2023. Net sales for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $53.6 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 6.5% (4.5% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.
Current report
Net sales for the Alcohol Brands segment were $41.6 million for the three-months ended June 30, 2024, a decrease of approximately $19.5 million, or 31.9% lower than net sales of $61.1 million for the three-months ended June 30, 2023. The decrease in net sales for the three-months ended June 30, 2024 was primarily due to decreased sales by volume of FMBs.
Current report
Net sales for the Other segment were $7.0 million for the three-months ended June 30, 2024, a decrease of approximately $0.3 million, or 4.2% lower than net sales of $7.3 million for the three-months ended June 30, 2023.
Current report
Operating income was $527.2 million for the three-months ended June 30, 2024, an increase of approximately $3.4 million, or 0.6% higher than operating income of $523.8 million for the three-months ended June 30, 2023. Operating income as a percentage of net sales decreased to 27.7% for the three-months ended June 30, 2024 from 28.2% for the three-months ended June 30, 2023.
Current report
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $61.7 million for the three-months ended June 30, 2024, an increase of approximately $6.5 million, or 11.8% higher than operating income of $55.1 million for the three-months ended June 30, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.
Current report
Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $22.6 million for the three-months ended June 30, 2024, an increase of approximately $16.0 million, or 243.0% higher than the operating loss of $6.6 million for the three-months ended June 30, 2023. The increase in operating losses for the three-months ended June 30, 2024 was primarily due to a decrease in net sales as well as an $8.1 million loss on impairment and disposal of property and equipment.
Current report
Six-Months Ended June 30, 2024 Compared to the Six-Months Ended June 30, 2023**.**
Current report
Net Sales
Current report
Net sales were $3.80 billion for the six-months ended June 30, 2024, an increase of approximately $245.8 million, or 6.9% higher than net sales of $3.55 billion for the six-months ended June 30, 2023. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand, as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $132.0 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Net sales on a foreign currency adjusted basis increased 10.6% (8.3% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.
Current report
Net sales were $1.40 billion and $1.25 billion for the six-months ended June 30, 2024 and 2023, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean of approximately $131.9 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 21.8% (15.1% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.
Current report
Net sales for the Monster Energy® Drinks segment were $3.47 billion for the six-months ended June 30, 2024, an increase of approximately $223.3 million, or 6.9% higher than net sales of $3.25 billion for the six-months ended June 30, 2023. Net sales for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $108.2 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 10.2% (7.6% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.
Current report
Net sales for the Alcohol Brands segment were $97.6 million for the six-months ended June 30, 2024, a decrease of approximately $9.7 million, or 9.1% lower than net sales of $107.4 million for the six-months ended June 30, 2023. The decrease in net sales for the six-months ended June 30, 2024 was primarily due to decreased sales by volume of FMBs.
Current report
Net sales for the Other segment were $12.5 million for the six-months ended June 30, 2024, an increase of approximately $0.6 million, or 5.2% higher than net sales of $11.9 million for the six-months ended June 30, 2023.
Current report
Case sales for our energy drink products, in 192-ounce case equivalents, were 423.6 million cases for the six-months ended June 30, 2024, an increase of approximately 42.8 million cases or 11.2% higher than case sales of 380.8 million cases for the six-months ended June 30, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.71 for the six-months ended June 30, 2024, which was 3.4% lower than the average net sales per case of $9.02 for the six-months ended June 30, 2023. The decrease in overall average net sales per case for our energy drink products for the six-months ended June 30, 2024 compared to the six-months ended June 30, 2023 was primarily due to geographical/product sales mix.
Current report
Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 7.1 million cases for the six-months ended June 30, 2024, a decrease of approximately 0.4 million cases or 5.6% lower than case sales of 7.5 million cases for the six-months ended June 30, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.34 million barrels for the six-months ended June 30, 2024, a decrease of approximately 0.03 million barrels or 5.6% lower than barrel sales of 0.37 million barrels for the six-months ended June 30, 2023.
Current report
Gross Profit
Current report
Gross profit was $2.05 billion for the six-months ended June 30, 2024, an increase of approximately $174.6 million, or 9.3% higher than the gross profit of $1.87 billion for the six-months ended June 30, 2023. The increase in gross profit dollars was primarily the result of the $245.8 million increase in net sales for the six-months ended June 30, 2024.
Current report
Gross profit as a percentage of net sales increased to 53.9% for the six-months ended June 30, 2024 from 52.7% for the six-months ended June 30, 2023. The increase in gross profit as a percentage of net sales for the six-months ended June 30, 2024 was primarily the result of decreased freight-in costs, the Pricing Actions and lower aluminum can costs, partially offset by geographical/product sales mix.
Current report
Operating Expenses
Current report
Total operating expenses were $977.5 million for the six-months ended June 30, 2024, an increase of approximately $114.3 million, or 13.2% higher than total operating expenses of $863.2 million for the six-months ended June 30, 2023.
Current report
The increase in operating expenses was primarily due to increased selling and marketing expenses of $45.0 million (primarily sponsorships and endorsements), increased payroll expenses of $34.6 million, as well as increased distribution expenses (including storage and warehouse) of $23.5 million. Operating expenses as a percentage of net sales for the six-months ended June 30, 2024 were 25.7% as compared to 24.3% for the six-months ended June 30, 2023.
Current report
Operating Income
Current report
Operating income was $283.7 million and $207.9 million for the six-months ended June 30, 2024 and 2023, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.
Current report
Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $1.24 billion for the six-months ended June 30, 2024, an increase of approximately $81.6 million, or 7.0% higher than operating income of $1.16 billion for the six-months ended June 30, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in net sales as well as an increase in gross profit as a percentage of net sales.
Current report
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $123.7 million for the six-months ended June 30, 2024, an increase of approximately $16.8 million, or 15.7% higher than operating income of $106.9 million for the six-months ended June 30, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.
Current report
Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $2.4 million for the six-months ended June 30, 2024, as compared to operating income of $1.4 million for the six-months ended June 30, 2023. The operating income for the six-months ended June 30, 2024 was primarily the result of an increase in net sales.
Current report
Interest and Other Income, net
Current report
Interest and other non-operating income, net, was $60.1 million for the six-months ended June 30, 2024, as compared to interest and other non-operating income, net, of $27.7 million for the six-months ended June 30, 2023. Foreign currency transaction losses were $14.0 million and $25.4 million for the six-months ended June 30, 2024 and 2023, respectively. Interest income was $79.4 million and $52.8 million for the six-months ended June 30, 2024 and 2023, respectively. Interest expense was $5.0 million and $0.2 million for the six-months ended June 30, 2024 and 2023, respectively.
Current report
Provision for Income Taxes
Current report
Net Income
Current report
Gross billings were $2.22 billion for the three-months ended June 30, 2024, an increase of approximately $76.1 million, or 3.6% higher than gross billings of $2.14 billion for the three-months ended June 30, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $68.6 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Gross billings on a foreign currency adjusted basis increased 6.8% (5.2% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.
Current report
Gross billings for the Monster Energy® Drinks segment were $2.05 billion for the three-months ended June 30, 2024, an increase of approximately $84.1 million, or 4.3% higher than gross billings of $1.96 billion for the three-months ended June 30, 2023. Gross billings for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $54.6 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.1% (5.3% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.
Current report
Gross billings for the Alcohol Brands segment were $42.9 million for the three-months ended June 30, 2024, a decrease of approximately $19.3 million, or 31.0% lower than gross billings of $62.2 million for the three-months ended June 30, 2023. The decrease in gross billings for the three-months ended June 30, 2024 was primarily due to decreased sales by volume of FMBs.
Current report
Gross billings for the Other segment were $7.0 million for the three-months ended June 30, 2024, a decrease of $0.3 million, or 4.0% lower than gross billings of $7.3 million for the three-months ended June 30, 2023.
Current report
Gross billings were $4.41 billion for the six-months ended June 30, 2024, an increase of approximately $310.0 million, or 7.6% higher than gross billings of $4.10 billion for the six-months ended June 30, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $131.4 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Gross billings on a foreign currency adjusted basis increased 10.8% (8.7% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.
Current report
Gross billings for the Monster Energy® Drinks segment were $4.05 billion for the six-months ended June 30, 2024, an increase of approximately $283.1 million, or 7.5% higher than gross billings of $3.77 billion for the six-months ended June 30, 2023. Gross billings for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $107.7 million ($84.4 million related to Argentina) for the six-months ended June 30, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 10.4% (8.1% exclusive of Argentina’s impact) for the six-months ended June 30, 2024.
Current report
Gross billings for the Strategic Brands segment were $245.6 million for the six-months ended June 30, 2024, an increase of $35.4 million, or 16.8% higher than gross billings of $210.3 million for the six-months ended June 30, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, Burn®, NOS® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $23.7 million for the six-months ended June 30, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 28.1% for the six-months ended June 30, 2024.
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Removed paragraphs (10)
Previous report
Net sales were $693.0 million and $583.7 million for the three-months ended March 31, 2024 and 2023, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.
Previous report
Net sales for the Monster Energy® Drinks segment were $1.73 billion for the three-months ended March 31, 2024, an increase of approximately $167.4 million, or 10.7% higher than net sales of $1.56 billion for the three-months ended March 31, 2023. Net sales for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $54.6 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 14.2% (11.0% exclusive of Argentina’s impact) for the three-months ended March 31, 2024.
Previous report
Net sales for the Alcohol Brands segment were $56.1 million for the three-months ended March 31, 2024, an increase of approximately $9.8 million, or 21.1% higher than net sales of $46.3 million for the three-months ended March 31, 2023. Net sales of Nasty Beast TM Hard Tea, launched during the 2024 first quarter, were $16.9 million for the three-months ended March 31, 2024.
Previous report
Net sales for the Other segment were $5.5 million for the three-months ended March 31, 2024, an increase of approximately $0.9 million, or 19.9% higher than net sales of $4.6 million for the three-months ended March 31, 2023.
Previous report
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $62.0 million for the three-months ended March 31, 2024, an increase of approximately $10.2 million, or 19.8% higher than operating income of $51.8 million for the three-months ended March 31, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.
Previous report
Gross billings were $2.19 billion for the three-months ended March 31, 2024, an increase of approximately $233.9 million, or 12.0% higher than gross billings of $1.96 billion for the three-months ended March 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $62.8 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024.
Previous report
Gross billings for the Monster Energy® Drinks segment were $2.00 billion for the three-months ended March 31, 2024, an increase of approximately $199.0 million, or 11.0% higher than gross billings of $1.80 billion for the three-months ended March 31, 2023. Gross billings for the Monster Energy® Drinks segment increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $53.1 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024.
Previous report
Gross billings for the Alcohol Brands segment were $57.0 million for the three-months ended March 31, 2024, an increase of approximately $10.0 million, or 21.4% higher than net sales of $47.0 million for the three-months ended March 31, 2023. Gross billings of Nasty Beast TM Hard Tea, launched during the 2024 first quarter, were $17.3 million for the three-months ended March 31, 2024.
Previous report
Gross billings for the Other segment were $5.6 million for the three-months ended March 31, 2024, an increase of $1.0 million, or 21.9% higher than gross billings of $4.6 million for the three-months ended March 31, 2023.
Previous report
*Cash and cash equivalents, short-term and long-term investments.*At March 31, 2024, we had $2.58 billion in cash and cash equivalents, $984.2 million in short-term investments and $8.2 million in long-term investments, including certificates of deposit, commercial paper, U.S. government agency securities, U.S. treasuries and corporate bonds. We maintain our investments for cash management purposes and not for purposes of speculation. Our risk management policies emphasize credit quality (primarily based on short-term ratings by nationally recognized statistical rating organizations) in selecting and maintaining our investments. We regularly assess the market risk of our investments and believe our current policies and investment practices adequately limit those risks. However, certain of these investments are subject to general credit, liquidity, market and interest rate risks. These market risks associated with our investment portfolio may have an adverse effect on our future results of operations, liquidity and financial condition.
Reworded paragraphs (47)
Previous wording
We implemented pricing actions including (i) price increases effective April 1, 2023 (limited pack sizes) in the United States and (ii) price increases at various times in certain international markets during the second, third and fourth quarters of 2023 as well as the first quarter of 2024 (collectively, the “Pricing Actions”), all of which positively impacted net sales and gross profit margins in the first quarter of 2024 as compared to the first quarter of 2023.
Current wording
We implemented price increases at various times in certain international markets during the third and fourth quarters of 2023 as well as the first and second quarters of 2024 (collectively, the “Pricing Actions”), all of which positively impacted net sales and gross profit margins in the second quarter of 2024 as compared to the second quarter of 2023.
Previous wording
We have four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as our affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors LLC (“AFF”), a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).
Current wording
We have four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of our Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks, Bang Energy® drinks and Monster Tour Water®, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as our affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, hard seltzers and FMBs and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).
Previous wording
During the three-months ended March 31, 2024, we continued to expand our existing drink portfolio by adding additional products to our portfolio in a number of countries and further developed our distribution markets. During the three-months ended March 31, 2024, we sold the following new products to our customers:
Current wording
During the three-months ended June 30, 2024, we continued to expand our existing drink portfolio by adding additional products to our portfolio in a number of countries and further developed our distribution markets. Due to the planned timing of product innovations, there were no new products launched during the three-months ended June 30, 2024. In the third quarter of 2024, we plan to launch the following new products to our customers:
Previous wording
Our net sales of $1.90 billion for the three-months ended March 31, 2024 represented record sales for our first fiscal quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $64.4 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024.
Current wording
Our net sales of $1.90 billion for the three-months ended June 30, 2024 represented record sales for our second fiscal quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $67.7 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales on a foreign currency adjusted basis increased 6.1% (4.3% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.
Previous wording
The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Net sales of our Monster Energy® Drinks segment were $1.73 billion for the three-months ended March 31, 2024. Net sales of our Strategic Brands segment were $108.4 million for the three-months ended March 31, 2024. Net sales of our Alcohol Brands segment were $56.1 million for the three-months ended March 31, 2024. Net sales of our Other segment were $5.5 million for the three-months ended March 31, 2024.
Current wording
The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Net sales of our Monster Energy® Drinks segment were $1.74 billion for the three-months ended June 30, 2024. Net sales of our Strategic Brands segment were $109.2 million for the three-months ended June 30, 2024. Net sales of our Alcohol Brands segment were $41.6 million for the three-months ended June 30, 2024. Net sales of our Other segment were $7.0 million for the three-months ended June 30, 2024.
Previous wording
Our Monster Energy® Drinks segment represented 91.0% and 91.9% of our net sales for the three-months ended March 31, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.7% and 5.1% of our net sales for the three-months ended March 31, 2024 and 2023, respectively. Our Alcohol Brands Segment represented 3.0% and 2.7% of our net sales for the three-months ended March 31, 2024 and 2023, respectively. Our Other segment represented 0.3% of our net sales for both the three-months ended March 31, 2024 and 2023.
Current wording
Our Monster Energy® Drinks segment represented 91.7% and 90.9% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.7% and 5.4% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.2% and 3.3% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Our Other segment represented 0.4% of our net sales for both the three-months ended June 30, 2024 and 2023.
Previous wording
Our growth strategy includes further developing our domestic markets, expanding our international business and growing our business into new sectors, such as the alcohol beverage sector. Net sales to customers outside the United States were $744.1 million for the three-months ended March 31, 2024, an increase of approximately $121.2 million, or 19.5% higher than net sales to customers outside of the United States of $622.9 million for the three-months ended March 31, 2023. Such sales were approximately 39% and 37% of net sales for the three-months ended March 31, 2024 and 2023, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $64.4 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 29.8% (21.7% exclusive of Argentina’s impact) for the three-months ended March 31, 2024.
Current wording
Our growth strategy includes further developing our domestic markets, expanding our international business and growing our business into new sectors, such as the alcohol beverage sector. Net sales to customers outside the United States were $746.0 million for the three-months ended June 30, 2024, an increase of approximately $30.7 million, or 4.3% higher than net sales to customers outside of the United States of $715.4 million for the three-months ended June 30, 2023. Such sales were approximately 39% of net sales for both the three-months ended June 30, 2024 and 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $67.7 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 13.7% (9.0% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.
Previous wording
Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, value stores, e-commerce retailers and the military. Our alcohol customers are primarily beer distributors who in turn sell to retailers within the alcohol distribution system. Percentages of our gross billings to our various customer types for the three-months ended March 31, 2024 and 2023 are reflected below. Such information includes sales made by us directly to the customer types concerned, which include our full service beverage bottlers/distributors in the United States. Such full service beverage bottlers/distributors in turn sell certain of our products to some of the same customer types listed below. We limit our description of our customer types to include only our sales to our full service bottlers/distributors without reference to such bottlers/distributors’ sales to their own customers.
Current wording
Our non-alcohol customers are primarily full service beverage bottlers/distributors, retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, value stores, e-commerce retailers and the military. Our alcohol customers are primarily beer distributors who in turn sell to retailers within the alcohol distribution system. Percentages of our gross billings to our various customer types for the three- and six-months ended June 30, 2024 and 2023 are reflected below. Such information includes sales made by us directly to the customer types concerned, which include our full service beverage bottlers/distributors in the United States. Such full service beverage bottlers/distributors in turn sell certain of our products to some of
Previous wording
Coca-Cola Europacific Partners accounted for approximately 14% and 13% of our net sales for the three-months ended March 31, 2024 and 2023, respectively.
Current wording
Coca-Cola Europacific Partners accounted for approximately 14% of our net sales for both the three-months ended June 30, 2024 and 2023. Coca-Cola Europacific Partners accounted for approximately 14% and 13% of our net sales for the six-months ended June 30, 2024 and 2023, respectively.
Previous wording
Coca-Cola Consolidated, Inc. accounted for approximately 10% of our net sales for both the three-months ended March 31, 2024 and 2023.
Current wording
Coca-Cola Consolidated, Inc. accounted for approximately 11% and 10% of our net sales for the three-months ended June 30, 2024 and 2023, respectively. Coca-Cola Consolidated, Inc. accounted for approximately 10% of our net sales for both the six-months ended June 30, 2024 and 2023.
Previous wording
Reyes Holdings, LLC accounted for approximately 9% of our net sales for both the three-months ended March 31, 2024 and 2023.
Current wording
Reyes Holdings, LLC accounted for approximately 10% of our net sales for both the three-months ended June 30, 2024 and 2023. Reyes Holdings, LLC accounted for approximately 9% and 10% of our net sales for the six-months ended June 30, 2024 and 2023, respectively.
Previous wording
The following table sets forth key statistics for the three-months ended March 31, 2024 and 2023.
Current wording
The following table sets forth key statistics for the three-and six-months ended June 30, 2024 and 2023.
Previous wording
1Includes $9.9 million for both the three-months ended March 31, 2024 and 2023, related to the recognition of deferred revenue.
Current wording
1Includes $10.0 million for both the three-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue. Includes $19.9 million for both the six-months ended June 30, 2024 and 2023, related to the recognition of deferred revenue.
Previous wording
Net Sales. Net sales were $1.90 billion for the three-months ended March 31, 2024, an increase of approximately $200.2 million, or 11.8% higher than net sales of $1.70 billion for the three-months ended March 31, 2023. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand, as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $64.4 million ($50.4 million related to Argentina) for the three-months ended March 31, 2024. Net sales on a foreign currency adjusted basis increased 15.6% (12.6% exclusive of Argentina’s impact) for the three-months ended March 31, 2024. The difference between reported net sales and net sales on a foreign currency adjusted basis was largely due to the impact of inflation related local currency price increases in Argentina, as well as the significant decrease in the Argentine Peso relative to the U.S. Dollar.
Current wording
Net sales were $1.90 billion for the three-months ended June 30, 2024, an increase of approximately $45.6 million, or 2.5% higher than net sales of $1.85 billion for the three-months ended June 30, 2023. Net sales increased primarily due to increased worldwide sales by volume of our Monster Energy® brand energy drinks as a result of increased consumer demand, as well as due to the Pricing Actions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $67.7 million ($34.0 million related to Argentina) for the three-months ended June 30, 2024. Net sales on a foreign currency adjusted basis increased 6.1% (4.3% exclusive of Argentina’s impact) for the three-months ended June 30, 2024.
Previous wording
Net sales for the Strategic Brands segment were $108.4 million for the three-months ended March 31, 2024, an increase of approximately $22.1 million, or 25.6% higher than net sales of $86.4 million for the three-months ended March 31, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, NOS®, Burn® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $9.8 million for the Strategic Brands segment for the three-months ended March 31, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 36.9% for the three-months ended March 31, 2024. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment.
Current wording
Net sales for the Strategic Brands segment were $109.2 million for the three-months ended June 30, 2024, an increase of approximately $9.5 million, or 9.6% higher than net sales of $99.7 million for the three-months ended June 30, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our NOS®, Burn® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $14.0 million for the Strategic Brands segment for the three-months ended June 30, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 23.6% for the three-months ended June 30, 2024. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment.
Previous wording
Case sales for our energy drink products, in 192-ounce case equivalents, were 211.4 million cases for the three-months ended March 31, 2024, an increase of approximately 29.0 million cases or 15.9% higher than case sales of 182.4 million cases for the three-months ended March 31, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.69 for the three-months ended March 31, 2024, which was 3.8% lower than the average net sales per case of $9.03 for the three-months ended March 31, 2023.
Current wording
Case sales for our energy drink products, in 192-ounce case equivalents, were 212.2 million cases for the three-months ended June 30, 2024, an increase of approximately 13.8 million cases or 6.9% higher than case sales of 198.4 million cases for the three-months ended June 30, 2023. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) decreased to $8.73 for the three-months ended June 30, 2024, which was 3.1% lower than the average net sales per case of $9.00 for the three-months ended June 30, 2023. The decrease in overall average net sales per case for our energy drink products for the three-months ended June 30, 2024 compared to the three-months ended June 30, 2023 was primarily due to geographical/product sales mix.
Previous wording
Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 4.1 million cases for the three-months ended March 31, 2024, an increase of approximately 1.0 million cases or 31.0% higher than case sales of 3.1 million cases for the three-months ended March 31, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.20 million barrels for the three-months ended March 31, 2024, an increase of approximately 0.05 million barrels or 31.0% higher than barrel sales of 0.15 million barrels for the three-months ended March 31, 2023.
Current wording
Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 3.0 million cases for the three-months ended June 30, 2024, a decrease of approximately 1.4 million cases or 31.6% lower than case sales of 4.4 million cases for the three-months ended June 30, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.15 million barrels for the three-months ended June 30, 2024, a decrease of approximately 0.07 million barrels or 31.6% lower than barrel sales of 0.21 million barrels for the three-months ended June 30, 2023.
Previous wording
Gross profit was $1.03 billion for the three-months ended March 31, 2024, an increase of approximately $129.3 million, or 14.4% higher than the gross profit of $897.8 million for the three-months ended March 31, 2023. The increase in gross profit dollars was primarily the result of the $200.2 million increase in net sales for the three-months ended March 31, 2024.
Current wording
Gross profit was $1.02 billion for the three-months ended June 30, 2024, an increase of approximately $45.3 million, or 4.6% higher than the gross profit of $974.2 million for the three-months ended June 30, 2023. The increase in gross profit dollars was primarily the result of the $45.6 million increase in net sales for the three-months ended June 30, 2024.
Previous wording
Gross profit as a percentage of net sales increased to 54.1% for the three-months ended March 31, 2024 from 52.8% for the three-months ended March 31, 2023. The increase in gross profit as a percentage of net sales for the three-months ended March 31, 2024 was primarily the result of decreased freight-in costs, the Pricing Actions and lower input costs, partially offset by geographical sales mix.
Current wording
Gross profit as a percentage of net sales increased to 53.6% for the three-months ended June 30, 2024 from 52.5% for the three-months ended June 30, 2023. The increase in gross profit as a percentage of net sales for the three-months ended June 30, 2024 was primarily the result of decreased freight-in costs, the Pricing Actions and lower aluminum can costs, partially offset by production inefficiencies.
Previous wording
Total operating expenses were $485.1 million for the three-months ended March 31, 2024, an increase of approximately $72.4 million, or 17.5% higher than total operating expenses of $412.8 million for the three-months ended March 31, 2023.
Current wording
Total operating expenses were $492.3 million for the three-months ended June 30, 2024, an increase of approximately $41.9 million, or 9.3% higher than total operating expenses of $450.4 million for the three-months ended June 30, 2023.
Previous wording
The increase in operating expenses was primarily due to increased selling and marketing expenses of $25.4 million, including sponsorship and endorsements and social and digital marketing, increased payroll expenses of $22.6 million, as well as increased distribution expenses of $18.1 million. Operating expenses as a percentage of net sales for the three-months ended March 31, 2024 were 25.5% as compared to 24.3% for the three-months ended March 31, 2023.
Current wording
The increase in operating expenses was primarily due to increased selling and marketing expenses of $19.6 million (primarily sponsorships and endorsements), increased payroll expenses of $12.0 million and increased distribution expenses (including storage and warehouse) of $5.4 million. Operating expenses as a percentage of net sales for the three-months ended June 30, 2024 were 25.9% as compared to 24.3% for the three-months ended June 30, 2023.
Previous wording
Operating income was $138.0 million and $93.7 million for the three-months ended March 31, 2024 and 2023, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.
Current wording
Operating income was $145.8 million and $114.2 million for the three-months ended June 30, 2024 and 2023, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.
Previous wording
Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $628.1 million for the three-months ended March 31, 2024, an increase of approximately $67.3 million, or 12.0% higher than operating income of $560.8 million for the three-months ended March 31, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in net sales as well as an increase in gross profit as a percentage of net sales.
Current wording
Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $612.3 million for the three-months ended June 30, 2024, an increase of approximately $14.3 million, or 2.4% higher than operating income of $597.9 million for the three-months ended June 30, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in net sales as well as an increase in gross profit as a percentage of net sales.
Previous wording
Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $1.0 million for the three-months ended March 31, 2024, as compared to operating loss of ($0.3) million for the three-months ended March 31, 2023. The operating income for the three-months ended March 31, 2024 was primarily the result of an increase in net sales.
Current wording
Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $1.4 million for the three-months ended June 30, 2024, as compared to operating income of $1.7 million for the three-months ended June 30, 2023. The decrease in operating income for the three-months ended June 30, 2024 was primarily the result of a decrease in net sales.
Previous wording
Interest and other non-operating income, net, was $35.8 million for the three-months ended March 31, 2024, as compared to interest and other non-operating income, net, of $12.5 million for the three-months ended March 31, 2023. Foreign currency transaction losses were $6.0 million and $11.2 million for the three-months ended March 31, 2024 and 2023, respectively. Interest income was $41.2 million and $23.5 million for the three-months ended March 31, 2024 and 2023, respectively.
Current wording
Interest and other non-operating income, net, was $24.4 million for the three-months ended June 30, 2024, as compared to interest and other non-operating income, net, of $15.2 million for the three-months ended June 30, 2023. Foreign currency transaction losses were $8.0 million and $14.2 million for the three-months ended June 30, 2024 and 2023, respectively. Interest income was $38.2 million and $29.4 million for the three-months ended June 30, 2024 and 2023, respectively. Interest expense was $4.9 million and $0.1 million for the three-months ended June 30, 2024 and 2023, respectively.
Previous wording
Net income was $442.0 million for the three-months ended March 31, 2024, an increase of $44.6 million, or 11.2% higher than net income of $397.4 million for the three-months ended March 31, 2023. The increase in net income for the three-months ended March
Current wording
Net income was $425.4 million for the three-months ended June 30, 2024, an increase of $11.5 million, or 2.8% higher than net income of $413.9 million for the three-months ended June 30, 2023. The increase in net income for the three-months ended June 30, 2024 was primarily due to the increase in net sales and the increase in the gross profit percentage of net sales, which was partially offset by the increase in operating expenses.
Previous wording
Operating income was $542.0 million for the three-months ended March 31, 2024, an increase of approximately $56.9 million, or 11.7% higher than operating income of $485.1 million for the three-months ended March 31, 2023. Operating income as a percentage of net sales decreased to 28.5% for the three-months ended March 31, 2024 from 28.6% for the three-months ended March 31, 2023. The increase in operating income was primarily the result of an increase in net sales, as well as an increase in gross profit as a percentage of net sales, partially offset by an increase in operating expenses.
Current wording
Operating income was $1.07 billion for the six-months ended June 30, 2024, an increase of approximately $60.3 million, or 6.0% higher than operating income of $1.01 billion for the six-months ended June 30, 2023. The increase in operating income was primarily the result of an increase in net sales, as well as an increase in gross profit as a percentage of net sales, partially offset by an increase in operating expenses. Operating income as a percentage of net sales decreased to 28.1% for the six-months ended June 30, 2024 from 28.4% for the six-months ended June 30, 2023.
Previous wording
Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $6.0 million for the three-months ended March 31, 2024, a decrease of approximately $0.9 million, or 12.6% lower than operating loss of $6.9 million for the three-months ended March 31, 2023. The operating losses for the three-months ended March 31, 2024 were primarily due to continued expenses, infrastructure investments and the optimization of the Alcohol Brands segment.
Current wording
Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $28.6 million for the six-months ended June 30, 2024, an increase of approximately $15.1 million, or 112.3% higher than operating loss of $13.5 million for the six-months ended June 30, 2023. The operating losses for the six-months ended June 30, 2024 were primarily due to a decrease in net sales as well as an $8.1 million loss on impairment and disposal of property and equipment.
Previous wording
Provision for income taxes was $135.7 million for the three-months ended March 31, 2024, an increase of $35.6 million, or 35.5% higher than the provision for income taxes of $100.1 million for the three-months ended March 31, 2023. The effective combined federal, state and foreign tax rate increased to 23.5% from 20.1% for the three-months ended March 31, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to the decrease in the stock-based compensation deduction in the three-months ended March 31, 2024 as compared to the three-months ended March 31, 2023.
Current wording
Provision for income taxes was $261.9 million for the six-months ended June 30, 2024, an increase of $36.7 million, or 16.3% higher than the provision for income taxes of $225.2 million for the six-months ended June 30, 2023. The effective combined federal, state and foreign tax rate increased to 23.2% from 21.7% for the six-months ended June 30, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to the decrease in the stock-based compensation deduction in the six-months ended June 30, 2024 as compared to the six-months ended June 30, 2023.
Previous wording
31, 2024 was primarily due to the increase in net sales and the increase in the gross profit percentage of net sales, which was partially offset by the increase in operating expenses and the increase in the provision for income taxes.
Current wording
Net income was $867.4 million for the six-months ended June 30, 2024, an increase of $56.1 million, or 6.9% higher than net income of $811.3 million for the six-months ended June 30, 2023. The increase in net income for the six-months ended June 30, 2024 was primarily due to the increase in net sales and the increase in the gross profit percentage of net sales, which was partially offset by the increase in operating expenses and the increase in the provision for income taxes.
Previous wording
Gross billings for the Strategic Brands segment were $122.6 million for the three-months ended March 31, 2024, an increase of $23.9 million, or 24.2% higher than gross billings of $98.7 million for the three-months ended March 31, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, Burn®, NOS® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $9.7 million for the three-months ended March 31, 2024.
Current wording
Gross billings for the Strategic Brands segment were $123.1 million for the three-months ended June 30, 2024, an increase of $11.5 million, or 10.3% higher than gross billings of $111.6 million for the three-months ended June 30, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, NOS® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $14.0 million for the three-months ended June 30, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 22.9% for the three-months ended June 30, 2024.
Previous wording
Promotional allowances, commissions and other expenses, as described in the footnote below, were $299.7 million for the three-months ended March 31, 2024, an increase of $33.7 million, or 12.6% higher than promotional allowances, commissions and other expenses of $266.1 million for the three-months ended March 31, 2023. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 13.7% from 13.6% for the three-months ended March 31, 2024 and 2023, respectively.
Current wording
Promotional allowances, commissions and other expenses, as described in the footnote below, were $327.5 million for the three-months ended June 30, 2024, an increase of $30.4 million, or 10.2% higher than promotional allowances, commissions and other expenses of $297.1 million for the three-months ended June 30, 2023. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 14.8% from 13.9% for the three-months ended June 30, 2024 and 2023, respectively.
Previous wording
**Gross Billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.
Current wording
**Gross Billings represent amounts invoiced to customers net of cash discounts, returns and excise taxes. Gross billings are used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and is useful to investors in evaluating overall Company performance. The use of gross billings allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross billings provides a useful measure of our operating performance. The use of gross billings is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross billings may not be comparable to similarly titled measures used by other companies, as gross billings has been
Previous wording
The table below discloses selected quarterly data regarding sales for the three-months ended March 31, 2024 and 2023, respectively. Data from any one or more quarters or periods is not necessarily indicative of annual results or continuing trends.
Current wording
The table below discloses selected quarterly data regarding sales for the three- and six-months ended June 30, 2024 and 2023, respectively. Data from any one or more quarters or periods is not necessarily indicative of annual results or continuing trends.
Previous wording
Net changes in foreign currency exchange rates had an unfavorable impact on the overall average net sales per case for the three-months ended March 31, 2024.
Current wording
Net changes in foreign currency exchange rates had an unfavorable impact on the overall average net sales per case for the three- and six-months ended June 30, 2024.
Previous wording
See Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” for additional information related to the increase in sales.
Current wording
See Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” for additional information related to net sales.
Previous wording
Of our $2.58 billion of cash and cash equivalents held at March 31, 2024, $961.5 million was held by our foreign subsidiaries. No short-term or long-term investments were held by our foreign subsidiaries at March 31, 2024.
Current wording
*Cash and cash equivalents.*At June 30, 2024, we had $1.56 billion in cash and cash equivalents. Of our $1.56 billion of cash and cash equivalents held at June 30, 2024, $954.9 million was held by our foreign subsidiaries.
Previous wording
The following summarizes our cash flows for the three-months ended March 31, 2024 and 2023 (in thousands):
Current wording
The following summarizes our cash flows for the six-months ended June 30, 2024 and 2023 (in thousands):
Previous wording
Cash flows provided by operating activities. Cash provided by operating activities was $412.1 million for the three-months ended March 31, 2024, as compared with cash provided by operating activities of $424.5 million for the three-months ended March 31, 2023.
Current wording
*Cash flows provided by operating activities.*Cash provided by operating activities was $848.4 million for the six-months ended June 30, 2024, as compared with cash provided by operating activities of $763.2 million for the six-months ended June 30, 2023.
Previous wording
For the three-months ended March 31, 2024, cash provided by operating activities was primarily attributable to net income earned of $442.0 million and adjustments for certain non-cash expenses, consisting primarily of $23.7 million of depreciation and amortization and non-cash lease expense and $22.5 million of stock-based compensation. For the three-months ended March 31, 2024, cash provided by operating activities also increased due to a $60.5 million increase in income taxes payable, a $52.8 million increase in accrued promotional allowances, a $28.3 million increase in accrued liabilities, a $22.7 million decrease in inventories and an $11.8 million decrease in prepaid income taxes. For the three-months ended March 31, 2024, cash used in operating activities was primarily attributable to a $195.1 million increase in accounts receivable, a $35.7 million decrease in accrued compensation, a $9.5 million increase in prepaid expenses and other assets, a $9.1 million decrease in accounts payable and a $3.0 million decrease in deferred revenue.
Current wording
For the six-months ended June 30, 2024, cash provided by operating activities was primarily attributable to net income earned of $867.4 million and adjustments for certain non-cash expenses, consisting primarily of $46.5 million of depreciation and amortization and non-cash lease expense and $41.3 million of stock-based compensation. For the six-months ended June 30, 2024, cash provided by operating activities also increased due to a $123.5 million decrease in inventories, a $54.2 million increase in accrued promotional allowances, an $11.3 million increase in income taxes payable and a $2.7 million increase in accrued liabilities. For the six-months ended June 30, 2024, cash used in operating activities was primarily attributable to a $197.2 million increase in accounts receivable, a $33.5 million decrease in accounts payable, a $27.0 million decrease in accrued compensation, a $14.0 million increase in prepaid expenses and other assets, a $12.3 million increase in prepaid income taxes and a $7.7 million decrease in deferred revenue.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
the same customer types listed below. We limit our description of our customer types to include only our sales to our full service bottlers/distributors without reference to such bottlers/distributors’ sales to their own customers.
Current report — wording carried from elsewhere
Provision for income taxes was $126.2 million for the three-months ended June 30, 2024, an increase of $1.1 million, or 0.9% higher than the provision for income taxes of $125.1 million for the three-months ended June 30, 2023. The effective combined federal, state and foreign tax rate decreased to 22.9% from 23.2% for the three-months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate was primarily attributable to an increase in deductible interest expense in the three-months ended June 30, 2024 as compared to the three-months ended June 30, 2023.
Current report — wording carried from elsewhere
Net sales for the Strategic Brands segment were $217.7 million for the six-months ended June 30, 2024, an increase of approximately $31.6 million, or 17.0% higher than net sales of $186.0 million for the six-months ended June 30, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Fury®, NOS®, Burn® and Predator® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $23.8 million for the Strategic Brands segment for the six-months ended June 30, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 29.8% for the six-months ended June 30, 2024. Net sales of concentrates within the Strategic Brands segment tend to have more pronounced fluctuations from period to period as compared to net sales of our finished goods within the Monster Energy® Drinks segment.
Current report — wording carried from elsewhere
Promotional allowances, commissions and other expenses, as described in the footnote below, were $627.2 million for the six-months ended June 30, 2024, an increase of $64.1 million, or 11.4% higher than promotional allowances, commissions and other expenses of $563.2 million for the six-months ended June 30, 2023. Promotional allowances, commissions and other expenses as a percentage of gross billings increased to 14.2% from 13.7% for the six-months ended June 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
defined by our internal reporting practices. In addition, gross billings may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.
Current report — wording carried from elsewhere
financing activities for the six-months ended June 30, 2023 was primarily attributable to the issuance of our common stock under our stock-based compensation plans.
Current report — wording carried from elsewhere
and results of operations, including statements related to new products, volume growth and statements encompassing general optimism about future operating results and non-historical information, are forward-looking statements within the meaning of the Exchange Act. Without limiting the foregoing, the words “believes,” “thinks,” “anticipates,” “plans,” “expects,” “estimates” and similar expressions are intended to identify forward-looking statements.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
to develop our brand in international markets and for other corporate purposes. From time to time, we may also use cash to purchase additional real property related to our beverage business and/or acquire compatible businesses.