Monster Beverage Corp
For the period ended Sep 30, 2024. Filed Nov 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.
Sep 30, 2024 · Filed Nov 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 2024-06-30; filed 2024-08-08.
0001410578-24-001239
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001410578-24-001818
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 145 previous paragraphs and 149 current paragraphs.
51 unchanged; 69 reworded; 27 added; 20 removed; 5 previous and 2 current paragraphs rearranged.
Tables are not compared: 99 previous and 100 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 (27)
Current report
We implemented a previously announced price increase in the United States of approximately 5% on our core brands and packages, effective November 1, 2024.
Current report
Bang Energy*®*
Current report
On July 31, 2023, we completed our acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and its debtor affiliates (collectively, “Bang Energy”) (the “Bang Transaction”). The acquired assets primarily included Bang Energy® drinks and a beverage production facility in Phoenix, AZ.
Current report
The following items impacted the comparative financial results for the three-months ended September 30, 2023.
Current report
Inventory purchased as part of the Bang Transaction was recorded at fair value. Certain of the purchased inventory was subsequently sold in the three-months ended September 30, 2023 and was recognized through cost of sales at fair value (the “Bang Inventory Step-Up”). Gross profit was negatively impacted by approximately $7.8 million during the three-months ended September 30, 2023 as a result.
Current report
During the three-months ended September 30, 2023, in connection with the Bang Transaction, we recorded a gain of $45.4 million in interest and other income (expense), net within the condensed consolidated statements of income and reported within the Corporate and Unallocated segment (the “Bang Transaction Gain”).
Current report
During the three- and nine-months ended September 30, 2023, we incurred approximately $8.0 million and $15.1 million, respectively, of acquisition costs related to the Bang Transaction (the “Bang Transaction Expenses”).
Current report
Net sales were $1.88 billion for the three-months ended September 30, 2024, an increase of approximately $24.9 million, or 1.3% higher than net sales of $1.86 billion for the three-months ended September 30, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $62.8 million ($26.5 million related to Argentina) for the three-months ended September 30, 2024. Net sales on a foreign currency adjusted basis increased 4.7% (3.3% exclusive of Argentina’s impact) for the three-months ended September 30, 2024.
Current report
Net sales for the Monster Energy® Drinks segment were $1.72 billion for the three-months ended September 30, 2024, an increase of approximately $14.5 million, or 0.8% higher than net sales of $1.71 billion for the three-months ended September 30, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $52.8 million ($26.5 million related to Argentina) for the three-months ended September 30, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 3.9% (2.4% exclusive of Argentina’s impact) for the three-months ended September 30, 2024.
Current report
Net sales for the Alcohol Brands segment were $39.8 million for the three-months ended September 30, 2024, a decrease of approximately $2.5 million, or 6.0% lower than net sales of $42.3 million for the three-months ended September 30, 2023. The decrease in net sales for the three-months ended September 30, 2024 was primarily due to decreased sales by volume of craft beers.
Current report
Net sales for the Other segment were $5.9 million for the three-months ended September 30, 2024, a decrease of approximately $0.8 million, or 11.5% lower than net sales of $6.7 million for the three-months ended September 30, 2023.
Current report
The increase in operating expenses was primarily due to increased payroll expenses of $20.7 million ($9.6 million related to stock-based compensation), increased selling and marketing expenses of $18.9 million (primarily sponsorships and endorsements) and a $16.7 million provision in connection with an intellectual property claim brought by the descendants of Hubert Hansen in relation to the Company’s use of the Hubert Hansen name prior to the transaction with TCCC, which closed in 2015 (the “Hansen Expenses”). The increase in stock-based compensation was primarily related to estimated performance share unit vesting levels for our Section 16 officers. Operating expenses as a percentage of net sales for the three-months ended September 30, 2024 were 27.6% as compared to 25.5% for the three-months ended September 30, 2023. Operating expenses for the three-months ended September 30, 2023 included approximately $8.0 million of Bang Transaction Expenses.
Current report
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $60.1 million for the three-months ended September 30, 2024, an increase of approximately $7.4 million, or 14.0% higher than operating income of $52.7 million for the three-months ended September 30, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.
Current report
Interest and Other Income (Expense), net
Current report
Nine-Months Ended September 30, 2024 Compared to the Nine-Months Ended September 30, 2023**.**
Current report
Net sales were $5.68 billion for the nine-months ended September 30, 2024, an increase of approximately $270.7 million, or 5.0% higher than net sales of $5.41 billion for the nine-months ended September 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 $194.8 million ($110.9 million related to Argentina) for the nine-months ended September 30, 2024. Net sales on a foreign currency adjusted basis increased 8.6% (6.6% exclusive of Argentina’s impact) for the nine-months ended September 30, 2024.
Current report
Net sales for the Monster Energy® Drinks segment were $5.19 billion for the nine-months ended September 30, 2024, an increase of approximately $237.8 million, or 4.8% higher than net sales of $4.96 billion for the nine-months ended September 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 $161.0 million ($110.9 million related to Argentina) for the nine-months ended September 30, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 8.0% (5.8% exclusive of Argentina’s impact) for the nine-months ended September 30, 2024.
Current report
Net sales for the Alcohol Brands segment were $137.4 million for the nine-months ended September 30, 2024, a decrease of approximately $12.3 million, or 8.2% lower than net sales of $149.7 million for the nine-months ended September 30, 2023. The decrease in net sales for the nine-months ended September 30, 2024 was primarily due to decreased sales by volume of craft beers.
Current report
Net sales for the Other segment were $18.5 million for the nine-months ended September 30, 2024, a decrease of approximately $0.2 million, or 0.8% lower than net sales of $18.6 million for the nine-months ended September 30, 2023.
Current report
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $183.8 million for the nine-months ended September 30, 2024, an increase of approximately $24.1 million, or 15.1% higher than operating income of $159.6 million for the nine-months ended September 30, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of an increase in net sales.
Current report
Interest and Other Income (Expense), net
Current report
Gross billings for the Monster Energy® Drinks segment were $2.03 billion for the three-months ended September 30, 2024, an increase of approximately $47.2 million, or 2.4% higher than gross billings of $1.99 billion for the three-months ended September 30, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings for the Monster Energy® Drinks segment of approximately $55.2 million ($26.8 million related to Argentina) for the three-months ended September 30, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 5.2% (3.8% exclusive of Argentina’s impact) for the three-months ended September 30, 2024.
Current report
Gross billings for the Strategic Brands segment were $128.5 million for the three-months ended September 30, 2024, an increase of $15.9 million, or 14.2% higher than gross billings of $112.5 million for the three-months ended September 30, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn® 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 $10.0 million for the three-months ended September 30, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 23.1% for the three-months ended September 30, 2024.
Current report
Nine-Months Ended September 30, 2024 Compared to the Nine-Months Ended September 30, 2023.
Current report
Gross billings for the Monster Energy® Drinks segment were $6.08 billion for the nine-months ended September 30, 2024, an increase of approximately $330.3 million, or 5.7% higher than gross billings of $5.75 billion for the nine-months ended September 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 $162.8 million ($111.2 million related to Argentina) for the nine-months ended September 30, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 8.6% (6.6% exclusive of Argentina’s impact) for the nine-months ended September 30, 2024.
Current report
Gross billings for the Other segment were $18.7 million for the nine-months ended September 30, 2024, an increase of $0.1 million, or 0.3% higher than gross billings of $18.6 million for the nine-months ended September 30, 2023.
Current report
For the nine-months ended September 30, 2023, cash provided by operating activities was primarily attributable to net income earned of $1.26 billion and adjustments for certain non-cash expenses, consisting of $50.4 million of depreciation and amortization, $52.5 million of stock-based compensation, $6.5 million of non-cash lease expense and $2.8 million loss on impairment of intangibles, partially offset by the $45.4 million Bang Transaction Gain. For the nine-months ended September 30, 2023, cash provided by operating activities also increased due to a $109.8 million increase in accounts payable, a $69.8 million decrease in inventories, a $42.4 million
Removed paragraphs (20)
Previous report
Stock Repurchase
Previous 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.
Previous report
The Company currently anticipates implementing price increases in the United States, at amounts yet to be determined, on certain of its Monster Energy® brand energy drinks in the fourth quarter of 2024.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Interest and Other Income, net
Previous report
Six-Months Ended June 30, 2024 Compared to the Six-Months Ended June 30, 2023**.**
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Interest and Other Income, net
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (69)
Previous 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.
Current wording
We implemented price increases at various times in certain international markets during the fourth quarter of 2023 as well as the first, second and third quarters of 2024 (collectively, the “Pricing Actions”), all of which positively impacted net sales and gross profit margins in the third quarter of 2024, as compared to the third quarter of 2023.
Previous wording
We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man TM IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum TM IPA, Perrin Brewing Company TM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast Unleashed®, Nasty Beast TM Hard Tea and a host of other brands.
Current wording
We also develop, market, sell and distribute craft beers, FMBs and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man TM IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum TM IPA, Perrin Brewing Company TM Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast TM, Nasty Beast TM Hard Tea and a host of other brands.
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, 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 and Bang Energy® drinks, (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 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:
Current wording
During the three-months ended September 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. During the three-months ended September 30, 2024, we sold the following new products to our customers:
Previous 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.
Current wording
Our net sales of $1.88 billion for the three-months ended September 30, 2024 represented record sales for our third fiscal quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $62.8 million ($26.5 million related to Argentina) for the three-months ended September 30, 2024. Net sales on a foreign currency adjusted basis increased 4.7% (3.3% exclusive of Argentina’s impact) for the three-months ended September 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 $1.74 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.
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 $1.72 billion for the three-months ended September 30, 2024. Net sales of our Strategic Brands segment were $112.6 million for the three-months ended September 30, 2024. Net sales of our Alcohol Brands segment were $39.8 million for the three-months ended September 30, 2024. Net sales of our Other segment were $5.9 million for the three-months ended September 30, 2024.
Previous 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.
Current wording
Our Monster Energy® Drinks segment represented 91.6% and 92.0% of our net sales for the three-months ended September 30, 2024 and 2023, respectively. Our Strategic Brands segment represented 6.0% and 5.3% of our net sales for the three-months ended September 30, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.1% and 2.3% of our net sales for the three-months ended September 30, 2024 and 2023, respectively. Our Other segment represented 0.3% and 0.4% of our net sales for the three-months ended September 30, 2024 and 2023, respectively.
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 $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.
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 $760.1 million for the three-months ended September 30, 2024, an increase of approximately $26.4 million, or 3.6% higher than net sales to customers outside of the United States of $733.7 million for the three-months ended September 30, 2023. Such sales were approximately 40% of net sales for both the three-months ended September 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 $62.8 million ($26.5 million related to Argentina) for the three-months ended September 30, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 12.1% (8.5% exclusive of Argentina’s impact) for the three-months ended September 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- 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
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 nine-months ended September 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 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.
Previous 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.
Current wording
Coca-Cola Europacific Partners accounted for approximately 15% and 14% of our net sales for the three-months ended September 30, 2024 and 2023, respectively. Coca-Cola Europacific Partners accounted for approximately 14% and 13% of our net sales for the nine-months ended September 30, 2024 and 2023, respectively.
Previous 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.
Current wording
Coca-Cola Consolidated, Inc. accounted for approximately 10% of our net sales for both the three-months ended September 30, 2024 and 2023. Coca-Cola Consolidated, Inc. accounted for approximately 10% of our net sales for both the nine-months ended September 30, 2024 and 2023.
Previous 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.
Current wording
Reyes Holdings, LLC accounted for approximately 9% of our net sales for both the three-months ended September 30, 2024 and 2023. Reyes Holdings, LLC accounted for approximately 9% of our net sales for both the nine-months ended September 30, 2024 and 2023.
Previous wording
The following table sets forth key statistics for the three-and six-months ended June 30, 2024 and 2023.
Current wording
The following table sets forth key statistics for the three-and nine-months ended September 30, 2024 and 2023.
Previous 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.
Current wording
1Includes $10.0 million for both the three-months ended September 30, 2024 and 2023, related to the recognition of deferred revenue. Includes $29.9 million and $30.0 million for the nine-months ended September 30, 2024 and 2023, respectively, related to the recognition of deferred revenue.
Previous wording
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 wording
Net sales were $708.8 million for the three-months ended September 30, 2024, an increase of $21.7 million, or 3.2% higher than net sales of $687.1 million for the three-months ended September 30, 2023, 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 $61.4 million ($26.5 million related to Argentina) for the three-months ended September 30, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 12.1% (8.2% exclusive of Argentina’s impact) for the three-months ended September 30, 2024.
Previous 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.
Current wording
Net sales for the Strategic Brands segment were $112.6 million for the three-months ended September 30, 2024, an increase of approximately $13.8 million, or 14.0% higher than net sales of $98.8 million for the three-months ended September 30, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator® and Full Throttle® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $10.0 million for the Strategic Brands segment for the three-months ended September 30, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 24.1% for the three-months ended September 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 primarily as a result of bottler production schedules.
Previous 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.
Current wording
Case sales for our energy drink products, in 192-ounce case equivalents, were 219.4 million cases for the three-months ended September 30, 2024, an increase of approximately 16.3 million cases or 8.0% higher than case sales of 203.1 million cases for the three-months ended September 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 $8.36 for the three-months ended September 30, 2024, which was 6.0% lower than the average net sales per case of $8.90 for the three-months ended September 30, 2023. The decrease in overall average net sales per case for our energy drink products for the three-months ended September 30, 2024 compared to the three-months ended September 30, 2023 was primarily due to higher promotional allowances as a percentage of net sales as well as geographical/product sales mix.
Previous 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.
Current wording
Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 2.8 million cases for the three-months ended September 30, 2024, a decrease of approximately 0.2 million cases or 6.2% lower than case sales of 3.0 million cases for the three-months ended September 30, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.14 million barrels for the three-months ended September 30, 2024, a decrease of approximately 0.01 million barrels or 6.2% lower than barrel sales of 0.15 million barrels for the three-months ended September 30, 2023.
Previous 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.
Current wording
Gross profit was $999.8 million for the three-months ended September 30, 2024, an increase of approximately $16.0 million, or 1.6% higher than the gross profit of $983.8 million for the three-months ended September 30, 2023. Gross profit for the three-months ended September 30, 2024 was adversely impacted by an increase in inventory reserves due to excess inventory levels in the Alcohol Brands segment of $10.6 million (the “Alcohol Brands Inventory Reserves”). The increase in gross profit dollars was primarily the result of the $24.9 million increase in net sales, partially offset by the Alcohol Brands Inventory Reserves for the three-months ended September 30, 2024.
Previous wording
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 wording
Gross profit as a percentage of net sales increased to 53.2% (53.7% exclusive of the Alcohol Brands Inventory Reserves) for the three-months ended September 30, 2024 from 53.0% for the three-months ended September 30, 2023. The increase in gross profit as a percentage of net sales for the three-months ended September 30, 2024 was primarily the result of lower input costs, the Pricing Actions, the Bang Inventory Step-Up (included in the comparative 2023 third quarter) and decreased freight-in costs, partially offset by higher promotional allowances as a percentage of net sales as well as the Alcohol Brands Inventory Reserves.
Previous 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.
Current wording
Total operating expenses were $519.9 million for the three-months ended September 30, 2024, an increase of approximately $46.6 million, or 9.9% higher than total operating expenses of $473.2 million for the three-months ended September 30, 2023.
Previous wording
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 wording
Operating income was $479.9 million for the three-months ended September 30, 2024, a decrease of approximately $30.6 million, or 6.0% lower than operating income of $510.5 million for the three-months ended September 30, 2023. Operating income as a percentage of net sales decreased to 25.5% for the three-months ended September 30, 2024 from 27.5% for the three-months ended September 30, 2023.
Previous 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.
Current wording
Operating income was $135.3 million and $114.1 million for the three-months ended September 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 $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.
Current wording
Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $601.7 million for the three-months ended September 30, 2024, a decrease of approximately $2.0 million, or 0.3% lower than operating income of $603.7 million for the three-months ended September 30, 2023. The decrease in operating income for the Monster Energy® Drinks segment was primarily the result of an increase in operating expenses in excess of an increase in net sales.
Previous wording
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 wording
Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $22.6 million for the three-months ended September 30, 2024, an increase of approximately $10.9 million, or 92.7% higher than the operating loss of $11.7 million for the three-months ended September 30, 2023. The increase in operating loss for the three-months ended September 30, 2024 was primarily due to the Alcohol Brands Inventory Reserves.
Previous 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.
Current wording
Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $1.5 million for the three-months ended September 30, 2024, as compared to operating income of $1.3 million for the three-months ended September 30, 2023. The increase in operating income for the three-months ended September 30, 2024 was primarily the result of an increase in gross profit.
Previous wording
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 wording
Interest and other non-operating income (expense), net, was $(5.8) million for the three-months ended September 30, 2024, as compared to interest and other non-operating income (expense), net, of $71.4 million for the three-months ended September 30, 2023. Foreign currency transaction losses were $10.8 million and $13.2 million for the three-months ended September 30, 2024 and 2023, respectively. Interest income was $18.1 million and $39.3 million for the three-months ended September 30, 2024 and 2023, respectively. The decrease in interest income for the three-months ended September 30, 2024 was primarily related to lower short- and long-term investment balances as a result of treasury stock repurchases made in the second and third quarters of 2024. Interest expense was $12.5 million and $0.1 million for the three-months ended September 30, 2024 and 2023, respectively. Interest and other non-operating income (expense), net, for the three-months ended September 30, 2023 included the Bang Transaction Gain.
Previous wording
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 wording
Provision for income taxes was $103.2 million for the three-months ended September 30, 2024, a decrease of $26.0 million, or 20.1% lower than the provision for income taxes of $129.2 million for the three-months ended September 30, 2023. The effective combined federal, state and foreign tax rate decreased to 21.8% from 22.2% for the three-months ended September 30, 2024 and 2023, respectively. The decrease in the effective tax rate was primarily attributable to an increase in income in lower tax jurisdictions in the three-months ended September 30, 2024, as compared to the three-months ended September 30, 2023.
Previous 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.
Current wording
Net income was $370.9 million for the three-months ended September 30, 2024, a decrease of $81.8 million, or 18.1% lower than net income of $452.7 million for the three-months ended September 30, 2023. The decrease in net income for the three-months ended September 30, 2024 was primarily due to the decrease in interest and other income (expense), net and the increase in operating expenses, which were partially offset by the increase in net sales and the decrease in provision for income taxes. The comparative 2023 third quarter included the Bang Transaction Gain, the Bang Inventory Step-Up and the Bang Transaction Expenses.
Previous wording
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 wording
Net sales were $2.10 billion for the nine-months ended September 30, 2024, an increase of $163.0 million, or 8.4% higher than net sales of $1.94 billion for the nine-months ended September 30, 2023, 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 $193.2 million ($110.9 million related to Argentina) for the nine-months ended September 30, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 18.4% (12.6% exclusive of Argentina’s impact) for the nine-months ended September 30, 2024.
Previous wording
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 wording
Net sales for the Strategic Brands segment were $330.2 million for the nine-months ended September 30, 2024, an increase of approximately $45.4 million, or 15.9% higher than net sales of $284.8 million for the nine-months ended September 30, 2023. Net sales for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, NOS®, Predator® and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $33.8 million for the Strategic Brands segment for the nine-months ended September 30, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 27.8% for the nine-months ended September 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 primarily as a result of bottler production schedules.
Previous wording
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 wording
Case sales for our energy drink products, in 192-ounce case equivalents, were 643.0 million cases for the nine-months ended September 30, 2024, an increase of approximately 59.1 million cases or 10.1% higher than case sales of 583.9 million cases for the nine-months ended September 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 $8.59 for the nine-months ended September 30, 2024, which was 4.3% lower than the average net sales per case of $8.98 for the nine-months ended September 30, 2023. The decrease in overall average net sales per case for our energy drink products for the nine-months ended September 30, 2024 compared to the nine-months ended September 30, 2023 was primarily due to higher promotional allowances as a percentage of net sales as well as geographical/product sales mix.
Previous wording
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 wording
Case sales for our craft beers, hard seltzers and FMBs, in 192-ounce equivalents, were 10.0 million cases for the nine-months ended September 30, 2024, a decrease of approximately 0.6 million cases or 5.8% lower than case sales of 10.6 million cases for the nine-months ended September 30, 2023. Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.48 million barrels for the nine-months ended September 30, 2024, a decrease of approximately 0.03 million barrels or 5.8% lower than barrel sales of 0.51 million barrels for the nine-months ended September 30, 2023.
Previous wording
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 wording
Gross profit was $3.05 billion for the nine-months ended September 30, 2024, an increase of approximately $190.6 million, or 6.7% higher than the gross profit of $2.86 billion for the nine-months ended September 30, 2023. The increase in gross profit dollars was primarily the result of the $270.7 million increase in net sales for the nine-months ended September 30, 2024.
Previous 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.
Current wording
Gross profit as a percentage of net sales increased to 53.6% for the nine-months ended September 30, 2024 from 52.8% for the nine-months ended September 30, 2023. The increase in gross profit as a percentage of net sales for the nine-months ended September 30, 2024 was primarily the result of the Pricing Actions, decreased freight-in costs and lower aluminum can costs, partially offset by higher promotional allowances as a percentage of net sales as well as production inefficiencies.
Previous wording
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 wording
Total operating expenses were $1.50 billion for the nine-months ended September 30, 2024, an increase of approximately $160.9 million, or 12.0% higher than total operating expenses of $1.34 billion for the nine-months ended September 30, 2023.
Previous 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.
Current wording
The increase in operating expenses was primarily due to increased selling and marketing expenses of $63.9 million (primarily sponsorships and endorsements), increased payroll expenses of $55.3 million, increased distribution expenses (including storage and warehouse) of $20.5 million and the Hansen Expenses of $16.7 million. Operating expenses as a percentage of net sales for the nine-months ended September 30, 2024 were 26.4% as compared to 24.7% for the nine-months ended September 30, 2023. Operating expenses for the nine-months ended September 30, 2023, included approximately $15.1 million of Bang Transaction Expenses.
Previous 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.
Current wording
Operating income was $1.55 billion for the nine-months ended September 30, 2024, an increase of approximately $29.7 million, or 2.0% higher than operating income of $1.52 billion for the nine-months ended September 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 27.3% for the nine-months ended September 30, 2024 from 28.1% for the nine-months ended September 30, 2023.
Previous wording
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 wording
Operating income was $419.0 million and $322.0 million for the nine-months ended September 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 $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 wording
Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $1.84 billion for the nine-months ended September 30, 2024, an increase of approximately $79.7 million, or 4.5% higher than operating income of $1.76 billion for the nine-months ended September 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.
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Current report — wording carried from elsewhere
Three-Months Ended September 30, 2024 Compared to the Three-Months Ended September 30, 2023.
Current report — wording carried from elsewhere
***Although the expenditures described in this line item are determined in accordance with GAAP and meet GAAP requirements, the presentation thereof does not conform to GAAP presentation requirements. Additionally, our definition of promotional and other allowances may not be comparable to similar items presented by other companies. Promotional and other allowances for our energy drink products primarily include consideration given to our non-alcohol bottlers/distributors or retail customers including, but not limited to the following: (i) discounts granted off list prices to support price promotions to end-consumers by retailers; (ii) reimbursements given to our bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products; (iii) our agreed share of fees given to
Rearranged previous paragraphs (5)
Previous report — wording carried 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.
Previous report — wording carried elsewhere
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.
Previous report — wording carried 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.
Previous report — wording carried 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.
Previous report — wording carried 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.