earnings
confidence high
sentiment negative
materiality 0.70
Monster Beverage Q3 net sales up 13.2% to $1.41B; net income down 3.0% on cost pressures
Monster Beverage Corp
- Record Q3 net sales $1.41B (+13.2% YoY); diluted EPS $0.63 vs $0.65 (-3.5%).
- Gross margin compressed to 55.9% from 59.1% on higher aluminum can costs, freight, and geographic sales mix.
- Operating income down to $444.5M from $458.6M; operating expenses increased to $344.7M from $277.9M.
- Aluminum can shortages and supply chain constraints (port congestion, co-packing capacity) persist; new US can supply agreements start Oct/Dec.
- Mitigating cost inflation via reduced promotions and pricing actions; no share repurchases in Q3; $441.5M buyback capacity remains.