Monster Beverage Corp
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 28, 2025
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-K
Period ended 2023-12-31; filed 2024-02-29.
0001104659-24-029425
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2024-12-31; filed 2025-02-28.
0001410578-25-000248
Item 7. 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 142 previous paragraphs and 129 current paragraphs.
67 unchanged; 56 reworded; 6 added; 13 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 148 previous and 144 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 (6)
Current report
Net sales for the Alcohol Brands segment were $172.3 million for the year ended December 31, 2024, a decrease of approximately $12.5 million, or 6.8% lower than net sales of $184.9 million for the year ended December 31, 2023. The decrease in net sales for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.
Current report
Operating expenses for the year ended December 31, 2024 included impairment charges of $138.8 million related to the Alcohol Brands segment (the “Alcohol Impairment Charges”). The Alcohol Impairment Charges were primarily the result of operating and financial performance not meeting projections due in part to challenges in the category, as well as a decrease in projected ongoing operating and financial performance. The Alcohol Impairment Charges relate primarily to goodwill and to certain other indefinite lived intangible assets as well as property and equipment.
Current report
Additionally, the increase in operating expenses was primarily due to increased general and administrative expenses of $110.0 million (primarily impairment charges related to the Alcohol Brands segment), increased selling and marketing expenses of $80.5 million (primarily sponsorships and endorsements), increased payroll expenses of $68.7 million and increased distribution expenses (including storage and warehouse) of $18.5 million.
Current report
Gross billings for the Monster Energy® Drinks segment were $8.04 billion for the year ended December 31, 2024, an increase of approximately $452.1 million, or 6.0% higher than gross billings of $7.59 billion for the year ended December 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 $209.7 million for the year ended December 31, 2024. Gross billings for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 8.7% for the year ended December 31, 2024.
Current report
Gross billings for the Alcohol Brands segment were $176.8 million for the year ended December 31, 2024, a decrease of $11.8 million, or 6.3% lower than gross billings of $188.6 million for the year ended December 31, 2023. The decrease in gross billings for the year ended December 31, 2024 was primarily due to decreased sales by volume of craft beers.
Current report
Long-term debt. In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities consist of a $750.0 million term loan (the “Term Loan”) and up to $750.0 million in multicurrency revolving loan commitments (the “Revolving Credit Facility”). The Term Loan matures May 2027, and the Revolving Credit Facility matures May 2029. Borrowings under the Credit Facilities may be repaid at any time during the term of the Credit Facilities and, in the case of the Revolving Credit Facility, may be reborrowed prior to the maturity date. As of December 31, 2024, borrowings of $375.0 million remained outstanding on the Term Loan. As of February 27, 2025, borrowings of $225.0 million remained outstanding on the Term Loan. As of December 31, 2024, the Revolving Credit Facility had remaining availability of $750.0 million.
Removed paragraphs (13)
Previous report
Bang Energy Acquisition
Previous report
On July 31, 2023, we completed the Bang Transaction. The acquired assets primarily include the Bang Energy® drink business and a beverage production facility in Phoenix, AZ.
Previous report
Gross Profit Margins
Previous report
During the year ended December 31, 2023, we experienced an improvement in our gross profit margins as compared to the year ended December 31, 2022. This improvement was primarily attributable to (i) the Pricing Actions, (ii) our decreased reliance on imported cans and (iii) improved finished product inventory levels in closer proximity to our customers, resulting in a reduction of long-distance freight costs.
Previous report
During the COVID-19 pandemic we prioritized ensuring product availability for our customers and consumers. This strategic direction remained in place throughout the global supply chain challenges and disruptions, despite adversely impacting our profitability. We continue to stand by our strategy to ensure product availability and solidify the continued long-term growth of our brands.
Previous report
We continue to address the controllable challenges in our supply chain.
Previous report
Net sales for the Alcohol Brands segment were $184.9 million for the year ended December 31, 2023, an increase of approximately $83.5 million, or 82.3% higher than net sales of $101.4 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Net sales of The Beast Unleashed® FMBs, which launched during the 2023 first quarter in the United States on a rolling state basis, were $86.7 million for the year ended December 31, 2023.
Previous report
The increase in operating expenses was primarily due to increased general and administrative expenses of $80.9 million, including travel and entertainment, professional service fees (including legal and accounting) and depreciation and amortization, increased selling and marketing expenses of $92.2 million, including sponsorships and endorsements, point of sale, premiums and allocated trade development, and increased payroll expenses of $82.4 million. In addition, operating expenses for the year ended December 31, 2023 included $16.1 million of transaction costs related to the acquisition of Bang Energy and $42.7 million of impairment charges related to the Alcohol Brands segment (the “Alcohol Impairment Charges”). The Alcohol Impairment Charges, due in part to the continuing challenges in the craft beer and hard seltzer categories, relate to certain non-amortizing intangibles as well as property and equipment, acquired as part of the CANarchy transaction (as defined below in Note 2, “Acquisitions”).
Previous report
Gross billings for the Monster Energy® Drinks segment were $7.59 billion for the year ended December 31, 2023, an increase of approximately $855.4 million, or 12.7% higher than gross billings of $6.74 billion for the year ended December 31, 2022. 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 price increases in certain markets. Net changes in foreign currency exchange rates had an unfavorable impact on
Previous report
gross billings for the Monster Energy® Drinks segment of approximately $127.8 million for the year ended December 31, 2023.
Previous report
Gross billings for the Alcohol Brands segment were $188.6 million for the year ended December 31, 2023, an increase of $85.6 million, or 83.0% higher than gross billings of $103.0 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022).
Previous report
Cash and cash equivalents, short-term and long-term investments – As of December 31, 2023, we had $2.30 billion in cash and cash equivalents, $955.6 million in short-term investments and $76.4 million in long-term investments. 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 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.
Previous report
Cosmetic Act and regulations or rules made thereunder or in connection therewith by the FDA. In addition, our business may be adversely impacted by changes in other food, drug or similar laws in the United States and internationally as well as laws and regulations or rules made or enforced by the ATF and/or the FTC or their foreign counterparts;
Reworded paragraphs (56)
Previous wording
We implemented pricing actions including (i) price increases effective April 1, 2022 (limited pack sizes), September 1, 2022 and April 1, 2023 (limited pack sizes) in the United States, (ii) price increases at various times in certain international markets during 2022 and 2023 and (iii) decreased promotional allowances as a percentage of net sales in certain markets during 2022 and 2023 (collectively, the “Pricing Actions”). The Pricing Actions positively impacted gross profit margins in 2023.
Current wording
We implemented price increases (i) effective November 1, 2024 (for core brands and packages) and April 1, 2023 (for limited pack sizes) in the United States, and (ii) at various times in certain international markets during 2024 and 2023 (collectively, the “Pricing Actions”). The Pricing Actions positively impacted gross profit margins in 2024 as compared to 2023.
Previous wording
As of the date of this filing, we expect to maintain substantial liquidity as we manage through the current environment as described in the “Liquidity and Capital Resources” section below.
Current wording
As of the date of this filing, we expect to maintain sufficient liquidity as we manage through the current environment as described in the “Liquidity and Capital Resources” section below.
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 TMHard 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® IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep Ellum TM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The Beast TM, Nasty Beast® Hard Tea and a host of other brands.
Previous wording
Our net sales of $7.14 billion for the year ended December 31, 2023 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $146.7 million for the year ended December 31, 2023.
Current wording
Our net sales of $7.49 billion for the year ended December 31, 2024 represented record annual net sales. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024.
Previous wording
The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.8% and 92.4% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Strategic Brands segment represented 5.3% and 5.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Alcohol Brands segment represented 2.6% and 1.6% of our net sales for the years ended December 31, 2023 and 2022, respectively. Our Other segment represented 0.3% and 0.4% of our net sales for the years ended December 31, 2023 and 2022, respectively.
Current wording
The vast majority of our net sales are derived from our Monster Energy® Drinks segment. Our Monster Energy® Drinks segment represented 91.6% and 91.8% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Strategic Brands segment represented 5.8% and 5.3% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Alcohol Brands segment represented 2.3% and 2.6% of our net sales for the years ended December 31, 2024 and 2023, respectively. Our Other segment represented 0.3% of our net sales for both years ended December 31, 2024 and 2023.
Previous wording
Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $22.4 million for the year ended December 31, 2023.
Current wording
Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Monster Energy® Drinks segment of approximately $210.0 million for the year ended December 31, 2024. Net changes in foreign currency exchange rates had an unfavorable impact on net sales in the Strategic Brands segment of approximately $37.1 million for the year ended December 31, 2024.
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 amounted to $2.71 billion and $2.36 billion for the years ended December 31, 2023 and 2022, respectively. Such sales were approximately 38% and 37% of net sales for the years ended December 31, 2023 and 2022, respectively. Net changes in foreign currency exchange rates had an unfavorable impact on net sales to customers outside of the United States of approximately $146.7 million for the year ended December 31, 2023. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 21.2% for the year ended December 31, 2023.
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 amounted to $2.96 billion and $2.71 billion for the years ended December 31, 2024 and 2023, respectively. Such sales were approximately 40% and 38% of net sales for the years ended December 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 $247.1 million for the year ended December 31, 2024. Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 18.5% for the year ended December 31, 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 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 years ended December 31, 2023, 2022 and 2021 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, drug stores, 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 years ended December 31, 2024, 2023 and 2022 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
Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Coca-Cola Bottling, LLC, Coca-Cola Southwest Beverages LLC, The Coca-Cola Bottling Company of Northern New England, Inc., Swire Pacific Holdings, Inc. (USA), Liberty Coca-Cola Beverages, LLC, Coca-Cola Europacific Partners (formerly Coca-Cola European Partners and Coca-Cola Amatil), Coca-Cola Hellenic, Coca-Cola FEMSA, Swire Coca-Cola (China), COFCO Coca-Cola, Coca-Cola Beverages Africa, Coca-Cola İçecek and certain other TCCC network bottlers, Asahi Soft Drinks, Co., Ltd., Wal-Mart, Inc. (including Sam’s Club), Costco Wholesale Corporation and Amazon.com, Inc.
Current wording
Our non-alcohol customers include Coca-Cola Canada Bottling Limited, Coca-Cola Consolidated, Inc., Coca-Cola Bottling Company United, Inc., Reyes Holdings, LLC, Coca-Cola Southwest Beverages LLC, The Coca-Cola Bottling Company of Northern New England, Inc., Swire Pacific Holdings, Inc. (USA), Liberty Coca-Cola Beverages, LLC, Coca-Cola Europacific Partners, Coca-Cola Hellenic, Coca-Cola FEMSA, Swire Coca-Cola (China), COFCO Coca-Cola, Coca-Cola Beverages Africa, Coca-Cola İçecek and certain other TCCC network bottlers, Asahi Soft Drinks, Co., Ltd., Wal-Mart, Inc. (including Sam’s Club), Costco Wholesale Corporation and Amazon.com, Inc.
Previous wording
Our alcohol customers include Reyes Beverage Group, Ben E. Keith Company, J.J. Taylor Distributing, and Sheehan Family Companies.
Current wording
Our alcohol customers include Reyes Beverage Group, Ben E. Keith Company, J.J. Taylor Distributing, and Admiral Beverage Corporation.
Previous wording
A decision by any large customer to decrease amounts purchased from us or to cease carrying our products could have a material adverse effect on our financial condition and consolidated results of operations.
Current wording
A decision by any large customer to decrease amounts purchased from us or to cease carrying our products could have a material adverse effect on our financial condition and results of operations.
Previous wording
Coca-Cola Europacific Partners (formerly Coca-Cola European Partners) accounted for approximately 13%, 13% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.
Current wording
Coca-Cola Europacific Partners accounted for approximately 14%, 13% and 13% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively.
Previous wording
Coca-Cola Consolidated, Inc. accounted for approximately 10%, 11% and 12% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.
Current wording
Coca-Cola Consolidated, Inc. accounted for approximately 10%, 10% and 11% of our net sales for the years ended December 31, 2024, 2023 and 2022, respectively.
Previous wording
Reyes Coca-Cola Bottling, LLC accounted for approximately 9%, 9% and 10% of our net sales for the years ended December 31, 2023, 2022 and 2021, respectively.
Current wording
Reyes Holdings, LLC accounted for approximately 9% of our net sales for the years ended December 31, 2024, 2023 and 2022.
Previous wording
related to the increase in net sales for the year ended December 31, 2023. For the year ended December 31, 2023, our net cash provided by operating activities was approximately $1.72 billion as compared to $887.7 million for the year ended December 31, 2022. Principal uses of cash flows in 2023 were purchases of investments, purchases of treasury stock, the acquisition of Bang Energy, development of our brands internationally and purchases of real property, property and equipment. Except for the acquisition of Bang Energy, these principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See “Part II, Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources”).
Current wording
As of December 31, 2024, the Company had working capital of $2.54 billion compared to $4.43 billion as of December 31, 2023. The decrease in working capital was primarily the result of the decrease in cash and cash equivalents and short-term investments related to treasury stock repurchases for the year ended December 31, 2024. For the year ended December 31, 2024, our net cash provided by operating activities was approximately $1.93 billion as compared to $1.72 billion for the year ended December 31, 2023. Principal uses of cash flows in 2024 were purchases of treasury stock and purchases of real property, property and equipment. These principal uses of cash flows are expected to be and remain our principal recurring use of cash and working capital funds in the future (See “Part II, Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources”).
Previous wording
Our historical success is attributable, in part, to our introduction of different and innovative beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences.
Current wording
Our historical success is attributable, in part, to our introduction of different and innovative energy beverages which have been positively accepted by consumers. Our future success will depend, in part, upon our continued ability to develop and introduce different and innovative beverages that meet consumer preferences, although there can be no assurance of our ability to do so. In order to retain and expand our market share, we must continue to develop and introduce different and innovative beverages and be competitive in the areas of price, quality, method of distribution, brand image and intellectual property protection. The beverage industry is subject to changing consumer preferences that may adversely affect us if we misjudge such preferences.
Previous wording
1Includes $40.0 million, $40.0 million and $41.5 million for the years ended December 31, 2023, 2022 and 2021, respectively, related to the recognition of deferred revenue.
Current wording
1Includes $39.9 million, $40.0 million and $40.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, related to the recognition of deferred revenue.
Previous wording
Net sales were $7.14 billion for the year ended December 31, 2023, an increase of approximately $829.0 million, or 13.1% higher than net sales of $6.31 billion for the year ended December 31, 2022. 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 $146.7 million for the year ended December 31, 2023. Net sales on a foreign currency adjusted basis increased 15.5% for the year ended December 31, 2023.
Current wording
Net sales were $7.49 billion for the year ended December 31, 2024, an increase of approximately $352.7 million, or 4.9% higher than net sales of $7.14 billion for the year ended December 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 $247.1 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis increased 8.4% for the year ended December 31, 2024.
Previous wording
Net sales were $2.53 billion and $2.20 billion for the years ended December 31, 2023 and 2022, respectively, in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.
Current wording
Net sales were $2.77 billion and $2.53 billion for the years ended December 31, 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 $245.2 million for the year ended December 31, 2024. Net sales on a foreign currency adjusted basis in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean increased 19.2% for the year ended December 31, 2024.
Previous wording
Net sales for the Monster Energy® Drinks segment were $6.56 billion for the year ended December 31, 2023, an increase of approximately $721.9 million, or 12.4% higher than net sales of $5.83 billion for the year ended December 31, 2022. 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. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $124.3 million for the year ended December 31, 2023. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 14.5% for the year ended December 31, 2023.
Current wording
Net sales for the Monster Energy® Drinks segment were $6.86 billion for the year ended December 31, 2024, an increase of approximately $309.5 million, or 4.7% higher than net sales of $6.56 billion for the year ended December 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 $210.0 million for the year ended December 31, 2024. Net sales for the Monster Energy® Drinks segment on a foreign currency adjusted basis increased 7.9% for the year ended December 31, 2024.
Previous wording
Net sales for the Strategic Brands segment were $376.6 million for the year ended December 31, 2023, an increase of approximately $23.1 million, or 6.5% higher than net sales of $353.5 million for the year ended December 31, 2022. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our NOS®, Predator® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $22.4 million for the Strategic Brands segment for the year ended December 31, 2023. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 12.9% for the year ended December 31, 2023.
Current wording
Net sales for the Strategic Brands segment were $432.2 million for the year ended December 31, 2024, an increase of approximately $55.6 million, or 14.8% higher than net sales of $376.6 million for the year ended December 31, 2023. Net sales for the Strategic Brands segment increased primarily due to increased worldwide sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks as a result of increased consumer demand. Net changes in foreign currency exchange rates had an unfavorable impact on net sales of approximately $37.1 million for the Strategic Brands segment for the year ended December 31, 2024. Net sales for the Strategic Brands segment on a foreign currency adjusted basis increased 24.6% for the year ended December 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 primarily as a result of bottler production schedules.
Previous wording
Net sales for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of approximately $0.6 million, or 2.4% higher than net sales of $22.9 million for the year ended December 31, 2022.
Current wording
Net sales for the Other segment were $23.6 million for the year ended December 31, 2024, an increase of approximately $0.1 million, or 0.3% higher than net sales of $23.5 million for the year ended December 31, 2023.
Previous wording
Case sales for our energy drink products, in 192-ounce case equivalents, were 769.2 million cases for the year ended December 31, 2023, an increase of approximately 67.6 million cases or 9.6% higher than case sales of 701.7 million cases for the year ended December 31, 2022. The overall average net sales per case for our energy drink products (excluding net sales of Alcohol Brands and Other segments) increased to $9.01 for the year ended December 31, 2023, which was 2.2% higher than the average net sales per case of $8.82 for the year ended December 31, 2022. The increase in the average net sales per case was primarily the result of the Pricing Actions.
Current wording
Case sales for our energy drink products, in 192-ounce case equivalents, were 846.7 million cases for the year ended December 31, 2024, an increase of approximately 77.4 million cases or 10.1% higher than case sales of 769.2 million cases for the year ended December 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 $8.62 for the year ended December 31, 2024, which was 4.4% lower than the average net sales per case of $9.01 for the year ended December 31, 2023. The decrease in overall average net sales per case for our energy drink products for the year ended December 31, 2024 compared to the year ended December 31, 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 13.1 million cases for the year ended December 31, 2023, an increase of approximately 6.6 million cases or 101.3% higher than case sales of 6.5 million cases for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). Barrel sales for our craft beers, hard seltzers and FMBs, in 31 U.S. gallon equivalents, were 0.6 million barrels for the year ended December 31, 2023, an increase of approximately 0.3 million barrels or 101.3% higher than barrel sales of 0.3 million barrels for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022).
Current wording
Case sales for our craft beers, FMBs and hard seltzers in 192-ounce equivalents, were 12.5 million cases for the year ended December 31, 2024, a decrease of approximately 0.7 million cases or 5.0% lower than case sales of 13.1 million cases for the year ended December 31, 2023. Barrel sales for our craft beers, FMBs and hard seltzers in 31 U.S. gallon equivalents, were 0.60 million barrels for the year ended December 31, 2024, a decrease of approximately 0.03 million barrels or 5.0% lower than barrel sales of 0.64 million barrels for the year ended December 31, 2023.
Previous wording
Gross profit was $3.79 billion for the year ended December 31, 2023, an increase of approximately $619.6 million, or 19.5% higher than the gross profit of $3.17 billion for the year ended December 31, 2022.
Current wording
Gross profit was $4.05 billion for the year ended December 31, 2024, an increase of approximately $254.7 million, or 6.7% higher than the gross profit of $3.79 billion for the year ended December 31, 2023. The increase in gross profit was primarily the result of the increase in net sales.
Previous wording
Gross profit as a percentage of net sales increased to 53.1% for the year ended December 31, 2023 from 50.3% for the year ended December 31, 2022. The increase for the year ended December 31, 2023 was primarily the result of the Pricing Actions, decreased freight-in costs as well as decreased aluminum can costs.
Current wording
Gross profit as a percentage of net sales increased to 54.0% for the year ended December 31, 2024 from 53.1% for the year ended December 31, 2023. The increase for the year ended December 31, 2024 was primarily the result of the Pricing Actions, decreased freight-in costs and decreased aluminum can costs, partially offset by production inefficiencies.
Previous wording
Total operating expenses were $1.84 billion for the year ended December 31, 2023, an increase of approximately $251.0 million, or 15.8% higher than total operating expenses of $1.59 billion for the year ended December 31, 2022.
Current wording
Total operating expenses were $2.12 billion for the year ended December 31, 2024, an increase of approximately $277.7 million, or 15.1% higher than total operating expenses of $1.84 billion for the year ended December 31, 2023.
Previous wording
Operating expenses as a percentage of net sales for the years ended December 31, 2023 and 2022 were 25.8% and 25.2%, respectively.
Current wording
Operating expenses as a percentage of net sales for the years ended December 31, 2024 and 2023 were 28.3% and 25.8%, respectively.
Previous wording
Operating income was $1.95 billion for the year ended December 31, 2023, an increase of approximately $368.6 million, or 23.3% higher than operating income of $1.58 billion for the year ended December 31, 2022. Operating income as a percentage of net sales increased to 27.4% for the year ended December 31, 2023 from 25.1% for the year ended December 31, 2022. Operating income for the year ended December 31, 2023 increased primarily due to an increase of $619.6 million in gross profit partially offset by an increase in operating expenses of $368.6 million, which includes the Alcohol Impairment Charges.
Current wording
Operating income was $1.93 billion for the year ended December 31, 2024, a decrease of approximately $23.1 million, or 1.2% lower than operating income of $1.95 billion for the year ended December 31, 2023. Operating income as a percentage of net sales decreased to 25.8% for the year ended December 31, 2024 from 27.4% for the year ended December 31, 2023. Operating income for the year ended December 31, 2024 decreased primarily due to the Alcohol Impairment Charges partially offset by an increase in gross profit.
Previous wording
Operating income was $409.3 million and $316.3 million for the years ended December 31, 2023 and 2022, respectively, for our operations in EMEA, Asia Pacific (including Oceania), Latin America and the Caribbean.
Current wording
Operating income was $536.3 million and $409.3 million for the years ended December 31, 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 $2.34 billion for the year ended December 31, 2023, an increase of approximately $488.7 million, or 26.4% higher than operating income of $1.85 billion for the year ended December 31, 2022. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $572.5 million increase in gross profit.
Current wording
Operating income for the Monster Energy® Drinks segment, exclusive of corporate and unallocated expenses, was $2.46 billion for the year ended December 31, 2024, an increase of approximately $123.7 million, or 5.3% higher than operating income of $2.34 billion for the year ended December 31, 2023. The increase in operating income for the Monster Energy® Drinks segment was primarily the result of a $233.4 million increase in gross profit.
Previous wording
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $207.1 million for the year ended December 31, 2023, an increase of approximately $9.4 million, or 4.8% higher than operating income of $197.7 million for the year ended December 31, 2022. The increase in operating income for the Strategic Brands segment was primarily the result of a $14.6 million increase in gross profit.
Current wording
Operating income for the Strategic Brands segment, exclusive of corporate and unallocated expenses, was $233.8 million for the year ended December 31, 2024, an increase of approximately $26.6 million, or 12.8% higher than operating income of $207.1 million for the year ended December 31, 2023. The increase in operating income for the Strategic Brands segment was primarily the result of a $35.5 million increase in gross profit.
Previous wording
Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $81.1 million for the year ended December 31, 2023, an increase of approximately $49.6 million, or 157.5% higher than operating loss of
Current wording
Operating loss for the Alcohol Brands segment, exclusive of corporate and unallocated expenses, was $200.3 million for the year ended December 31, 2024, an increase of approximately $119.2 million, or 146.9% higher than operating loss of $81.1 million for the year ended December 31, 2023. The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2024 was primarily the result of the Alcohol Impairment Charges.
Previous wording
Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $3.6 million for the year ended December 31, 2023, an increase of approximately $0.5 million, or 17.3% higher than operating income of $3.0 million for the year ended December 31, 2022.
Current wording
Operating income for the Other segment, exclusive of corporate and unallocated expenses, was $4.6 million for the year ended December 31, 2024, an increase of approximately $1.1 million, or 30.4% higher than operating income of $3.6 million for the year ended December 31, 2023. The increase in operating income for the year ended December 31, 2024 was primarily the result of the increase in gross profit.
Previous wording
Interest and other income (expense), net, was $115.1 million for the year ended December 31, 2023, as compared to interest and other income (expense), net, of ($12.8) million for the year ended December 31, 2022. Foreign currency transaction gains (losses) were ($60.2) million and ($37.9) million for the years ended December 31, 2023 and 2022, respectively. Interest income was $130.0 million and $29.7 million for the years ended December 31, 2023 and 2022, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy (“Bang Transaction Gain”) for the year ended December 31, 2023.
Current wording
Interest and other income (expense), net, was $59.2 million for the year ended December 31, 2024, as compared to interest and other income (expense), net, of $115.1 million for the year ended December 31, 2023. Foreign currency transaction gains (losses) were ($26.4) million and ($60.2) million for the years ended December 31, 2024 and 2023, respectively. Interest income was $115.0 million and $130.0 million for the years ended December 31, 2024 and 2023, respectively. The decrease in interest income for the year ended December 31, 2024 was primarily related to lower short- and long-term investment balances as a result of treasury stock repurchases made during the year ended December 31, 2024. Interest expense was $27.9 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively. Interest and other income (expense), net included a gain on transaction of $45.4 million related to the acquisition of Bang Energy (“Bang Transaction Gain”) for the year ended December 31, 2023.
Previous wording
Provision for income taxes was $437.5 million for the year ended December 31, 2023, an increase of $57.2 million, or 15.0% higher than the provision for income taxes of $380.3 million for the year ended December 31, 2022. The effective combined federal, state and foreign tax rate was 21.2% and 24.2% for the years ended December 31, 2023 and 2022, respectively. The decrease in the effective tax rate was primarily attributable to the increase in the stock compensation deduction for the year ended December 31, 2023.
Current wording
Provision for income taxes was $480.4 million for the year ended December 31, 2024, an increase of $42.9 million, or 9.8% higher than the provision for income taxes of $437.5 million for the year ended December 31, 2023. The effective combined federal, state and foreign tax rate was 24.1% and 21.2% for the years ended December 31, 2024 and 2023, respectively. The increase in the effective tax rate was primarily attributable to a decrease in the stock-based compensation deduction for the year ended December 31, 2024.
Previous wording
Net income was $1.63 billion for the year ended December 31, 2023, an increase of $439.4 million, or 36.9% higher than net income of $1.19 billion for the year ended December 31, 2022. The increase in net income for the year ended December 31, 2023 was primarily due to the increase in gross profit.
Current wording
Net income was $1.51 billion for the year ended December 31, 2024, a decrease of $121.9 million, or 7.5% lower than net income of $1.63 billion for the year ended December 31, 2023. The decrease in net income for the year ended December 31, 2024 was primarily due to the Alcohol Impairment Charges.
Previous wording
Gross billings were $8.23 billion for the year ended December 31, 2023, an increase of approximately $968.1 million, or 13.3% higher than gross billings of $7.26 billion for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $149.8 million for the year ended December 31, 2023.
Current wording
Gross billings were $8.74 billion for the year ended December 31, 2024, an increase of approximately $506.0 million, or 6.1% higher than gross billings of $8.23 billion for the year ended December 31, 2023. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings of approximately $246.9 million for the year ended December 31, 2024. Gross billings on a foreign currency adjusted basis increased 9.1% for the year ended December 31, 2024.
Previous wording
Gross billings for the Strategic Brands segment were $425.3 million for the year ended December 31, 2023, an increase of $26.6 million, or 6.7% higher than gross billings of $398.7 million for the year ended December 31, 2022. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $22.0 million for the year ended December 31, 2023.
Current wording
Gross billings for the Strategic Brands segment were $490.8 million for the year ended December 31, 2024, an increase of $65.5 million, or 15.4% higher than gross billings of $425.3 million for the year ended December 31, 2023. Gross billings for the Strategic Brands segment increased primarily due to increased sales by volume of our Burn®, Predator®, NOS® and Fury® brand energy drinks. Net changes in foreign currency exchange rates had an unfavorable impact on gross billings in the Strategic Brands segment of approximately $37.2 million for the year ended December 31, 2024. Gross billings for the Strategic Brands segment on a foreign currency adjusted basis increased 24.2% for the year ended December 31, 2024.
Previous wording
Gross billings for the Other segment were $23.5 million for the year ended December 31, 2023, an increase of $0.6 million, or 2.6% higher than gross billings of $22.9 million for the year ended December 31, 2022.
Current wording
Gross billings for the Other segment were $23.7 million for the year ended December 31, 2024, an increase of $0.2 million, or 0.7% higher than gross billings of $23.5 million for the year ended December 31, 2023.
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Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
As of December 31, 2023, the Company had working capital of $4.43 billion compared to $3.76 billion as of December 31, 2022. The increase in working capital was primarily the result of the increase in cash and cash equivalents,
Previous report — wording carried elsewhere
$31.5 million for the year ended December 31, 2022 (effectively from February 17, 2022 to December 31, 2022). The increase in the operating loss for the Alcohol Brands segment for the year ended December 31, 2023 was primarily as a result of the Alcohol Impairment Charges of $42.7 million.
Previous report — wording carried elsewhere
changes in the sales mix of our products and changes in and/or increased advertising and promotional expenses. (See “Part I, Item 1 – Business – Seasonality”).
Previous report — wording carried elsewhere
We believe that cash available from operations, including our cash resources and access to credit, will be sufficient for our working capital needs, including purchase commitments for raw materials and inventory, increases in accounts receivable, payments of tax liabilities, expansion and development needs, purchases of capital assets, purchases of
Previous report — wording carried elsewhere
For both the years ended December 31, 2023 and 2022, cash provided by investing activities was primarily attributable to sales of available-for-sale investments. For both the years ended December 31, 2023 and 2022, cash used in investing activities was primarily attributable to purchases of available-for-sale investments. For the year ended December
Previous report — wording carried elsewhere
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.