Total Revenue

+1% " "

Stable Monster Energy® brand demand and successful pricing actions led to modest top-line growth, while foreign currency headwinds and slower Alcohol segment performance tempered the overall increase. The company’s focus on core energy drink offerings helped offset weaker segments. " "

Strategic Brands

+14% " "

Higher sales volumes of NOS®, Burn®, and Predator® brands drove segment growth, aided by expanded distribution and promotional activities. Despite some FX headwinds, pricing adjustments and effective brand positioning boosted revenue from these strategic product lines. " "

Alcohol Brands

-6% " "

Volume declines in flavored malt beverages (FMBs) weighed on results. Shifting consumer preferences in select markets and increased competition within the alcohol category contributed to the drop, despite new product introductions in previous quarters. " "

EMEA

+7% " "

Incremental product launches (e.g., non-sugar variants) and expanded distribution underpinned growth. However, supply chain inefficiencies in key markets and currency fluctuations partially offset gains. Increased marketing spend helped drive brand awareness in the region. " "

Operating Income

-6% " "

While gross profit remained strong, increased operating expenses (e.g., marketing, distribution) and cost inflation reduced margins. Management’s strategic investments in new segments (notably Alcohol) also elevated overhead, pressuring operating income despite revenue gains. " "

Net Income

-18% " "

Lower operating income and rising expenses, including infrastructure and marketing costs, impacted bottom-line performance. Also, unfavorable FX movements and an uptick in effective tax rates versus some prior quarters weighed on net income, despite continued sales expansion. " "

Basic EPS

-12% " "

The reduction in net income flowed through to EPS, offset slightly by share buybacks (if any) or stable share count. Investment initiatives to drive long-term growth added short-term cost pressures, thus diminishing earnings per share relative to the prior year. " "

Price Increases

Discussed ongoing U.S. and international price adjustments in Q2 2024, Q1 2024, and Q4 2023 to offset rising costs. " " " " " " "

Implemented a 5% price increase in the U.S. effective November 1, 2024; continuing to monitor international actions; difficulty gauging distributor buy-ins. " " " "

Continuing as a key strategy to offset costs

Promotional spending

Q2 2024: Noted increased sponsorship and overhead. " Q1 2024: Marketing and social media expenses rose. " " Q4 2023: Nonrecurring promotional true-ups mentioned. "

Used higher promotional allowances in the U.S. for Bang, partially offsetting lower input costs. "

Increasing focus on promotions, particularly for new/acquired brands

Margins in EMEA region

Progressively improving in Q2 2024 (34.7%), Q1 2024 (34%), and mixed performance in Q4 2023 (32.7%). " " "

Improved to 35.4% from 31.1% YoY, helped by price increases, Ireland facility support, and upcoming juice plant. " " "

Improving with operational efficiencies and pricing

Commodity costs (aluminum)

Q2 2024: Favorable YoY, Q1 2024: Monitored aluminum for pricing moves, Q4 2023: Midwest premium trending down. " " " "

Emphasized hedging strategy and concern over tariffs; overall manageable commodity climate excluding aluminum spikes. "

Stable due to ongoing hedging approach

Production inefficiencies & new facilities

Q2 2024: Ramping new plants (Norwalk, Phoenix), Q1 2024: AFF facility in Ireland mentioned, Q4 2023: No specific discussion. " "

Noted $10.6M in inventory reserves, management restructure in alcohol division; AFF flavor facility aiding efficiency. " " "

Addressing inefficiencies; new plants expected to reduce costs

U.S. energy drink category performance

Q2 2024: Retail slowdown in convenience traffic, Q1 2024: Slight category slowdown, Q4 2023: Steady category growth. " " "

Category growth slower than global; slight improvement in convenience channel in October; Monster sales down 0.6%. " " " "

Mixed but showing signs of rebounding in convenience

Innovation pipeline & new products

Q2 2024: Successful launches but distribution below targets, Q1 2024: Robust global rollouts, Q4 2023: Several new lines (Hard Tea, new flavors). " " " "

Launched multiple new SKUs globally; limited immediate sales impact; more expansions planned. " " " "

Sustained expansion despite short-term limited impact

Non-measured channels

Q2 2024: Big part of sales, Q1 2024: Strong performance in channels like club stores, Q4 2023: Noted major club chain outside Nielsen coverage. " " " "

Continued expansion and direct management to meet demand; no significant inventory overhang. " "

Growing portion of overall sales strategy

International expansion (China, India...)

Q2 2024: Strong gains in China, continuing expansions in India, Q1 2024: Launches in Philippines, Azerbaijan, and partial China. " " "

Predator Gold Strike expanded to more provinces in China and additional states in India; optimistic on long-term growth. " "

Accelerating rollout of key affordable brands (Predator)

Operating expenses

Q2 2024: $492.3M, Q1 2024: $485.1M, Q4 2023: Included alcohol impairment charges. " " "

$519.9M, up from $473.2M, driven by payroll, sponsorship, IP claims; 27.6% of net sales vs. 25.5% last year. "

Increasing as the company invests in growth

Bang brand reintroduction & acquisitions

Q2 2024: New innovation set for 2025, Q1 2024: Began reintroduction, Q4 2023: Retailers adding shelf space. " " "

Bang sales accelerating post-acquisition; brand integration driving optimism. " "

Integration boosting category presence

Foot traffic in convenience stores

Q2 2024: Reduction observed, Q1 2024: Slight slowdown, Q4 2023: No mention. " "

Showing modest improvement, crucial for energy category since it represents 62% of measured channels. " " "

Recovering after previous declines

Juice plant coming online

Q2 2024: Completion set for late 2024, Q1 2024: Under construction, Q4 2023: Ongoing build. " " "

Facility construction completed, production begins early 2025, improving EMEA margins. " "

Near launch, expected to enhance margins

Sales trends in measured channels

Q2 2024: Slight growth or declines by brand, Q1 2024: Some softness, Q4 2023: Generally positive but mixed by channel. " " "

Category up 4.9% excluding convenience; Monster down 0.6% overall; varied metrics by brand and region. " " "

Mixed performance; share fluctuating across channels