4dbae140042752d0a4f76999b9660d0b648965594c744109fdb51118d97c672c

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

5011e8cbc675dc9da51b7910372d71b275f81465fb556bb64cd5b954fbbec54e

Monster Energy Drinks

Strategic Brands

Alcohol Brands

Other

Finished Products

Concentrate

DSD Segment

Warehouse Segment

Energy Drinks

Non-carbonated

Carbonated

Total Revenue

0ea8192cefccb2bcb434c42ff907895cf37aaabe7a1004c1bc673e52b1bbe9f4

0b88dc45ca7a47110c21db803685601c73b9a1bd08549280ac303ada0e8a805d

U.S. and Canada

EMEA

Asia Pacific

Latin America and Caribbean

- Net Sales Outside U.S.

- Gross Sales Outside U.S.

1a68b94c6c208d23cce4fc38d883d1521488c279adfd2fb8ec3978f7bb05ab01

Case Sales for Monster Energy® Drinks (thousands of 192-ounce case equivalents)

Case Sales for Strategic Brands (thousands of 192-ounce case equivalents)

Total Energy Drink Case Sales (thousands of 192-ounce case equivalents)

Average Net Sales per Case for Energy Drinks (USD)

Case Sales for Alcohol Brands (thousands of 192-ounce case equivalents)

Average Net Sales per Case for Alcohol Brands (USD)

900a67f563778ac060d04c2910279d16bf7e4dcafbd6e7f68e2a45e2851ed05f

4a7a60fd9724770518593d2aa1f7c619147e2c853adabcf7d16462ae0169dfca

Net Sales (USD, thousands)

Cost of Sales (USD, thousands)

Gross Profit (USD, thousands)

Operating Expenses (USD, thousands)

Operating Income (USD, thousands)

Interest and Other Income (Expense), Net (USD, thousands)

Income Before Provision for Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Net Income (USD, thousands)

Net Income per Common Share - Basic (USD)

Net Income per Common Share - Diluted (USD)

Weighted Average Number of Shares Outstanding - Basic (thousands)

Weighted Average Number of Shares Outstanding - Diluted (thousands)

a7635b966ac5fbad39a771ac32ce466d9cceb62282287bfa8a7601716c55be08

While overall Q4 2023 net sales increased compared to Q4 2022, a **decline** was noted in specific areas. In particular, the **Strategic Brands segment** saw a **1.3% decline** in reported net sales, and adverse foreign currency exchange rates reduced net sales by **$27.1 million**. These factors contributed to the areas of decline amid broader growth driven by pricing actions and increased international sales.  **[MNST_3375485_1]** **[0001104659-24-028951_tm241011d3_ex99-1.htm:1]** 

What drove the decline in net sales in Q4 2023?

The documents show that operating income was **$510,526 thousand** in Q3 2023  **[0001104659-23-114789_mnst-20230930x10q.htm:3]**  and **$433,959 thousand** in Q4 2023.  **[0001104659-24-029425_mnst-20231231x10k.htm:103]** **[0001104659-24-029425_mnst-20231231x10k.htm:62]**  However, the available information explains Q4 2023 performance primarily by comparing it with Q4 2022 and discussing factors such as increased net sales, improved gross profit margins, and higher operating expenses (including one-time charges like the Alcohol Impairment Charges).  **[0001104659-24-028756_tm241011d2_ex99-1.htm:2]** **[MNST_3375485_1]** **[0001104659-24-028951_tm241011d3_ex99-1.htm:8]** **[0001104659-24-028756_tm241011d2_ex99-1.htm:0]**  They do not provide a definitive explanation for why operating income was lower in Q4 2023 compared to Q3 2023.

Why was operating income lower in Q4 2023?

The available documents do not report a decline in annual EPS in FY 2023. In fact, they indicate that the **Net Income per Common Share - Basic** increased from **$1.13** (or **$2.26** in another document) in FY 2022 to **$1.56** in FY 2023. The documents attribute this increase primarily to a **36.9% rise in net income**, **13.1% higher net sales**, an improvement in the **gross profit margin** from **50.3% to 53.1%**, and a lower **effective tax rate** (declining from **24.2% to 21.2%**).  **[0001104659-24-029425_mnst-20231231x10k.htm:103]** **[0001104659-24-029425_mnst-20231231x10k.htm:62]** **[0001104659-24-028951_tm241011d3_ex99-1.htm:4]** 

What factors contributed to the decline in annual EPS in FY 2023?

The rebound in operating income in Q1 2024 was driven by several factors. **Increased net sales**—which grew by **11.8%** to reach **$1.90 billion**—and an **improved gross profit margin** (from **52.8%** to **54.1%**) were key contributors, largely due to **lower freight-in costs, pricing actions, and reduced input costs**. Furthermore, substantial **segment contributions**, particularly from the **Monster Energy® Drinks segment** (an increase of **$67.3 million**), reinforced the recovery despite higher operating expenses ( **[MNST_3382228_1]** **[0001410578-24-000605_mnst-20240331x10q.htm:27]** **[0001410578-24-000605_mnst-20240331x10q.htm:29]** ).

What led to the rebound in operating income in Q1 2024?

The decline in **net income** in Q3 2024 was driven by several factors. Notably, **operating income fell** as operating expenses increased, and there were unusual charges including a **$16.7 million provision** along with **$1.2 million** in legal expenses related to an intellectual property claim, which together reduced net income by approximately **$21.5 million** net of tax.  **[MNST_3406835_3]** **[0001104659-24-115332_tm2427782d1_ex99-1.htm:11]** **[0001104659-24-115332_tm2427782d1_ex99-1.htm:0]**  Moreover, **unfavorable foreign currency exchange rates** adversely affected net sales by **$62.8 million**  **[MNST_3406835_4]**  and a significant drop in **interest and other income** further contributed to the decline.  **[0001104659-24-115332_tm2427782d1_ex99-1.htm:11]**  These combined factors explain the drop in net income observed in Q3 2024 compared to earlier periods.

Why did net income fall in Q3 2024 compared to earlier in the year?

f6b03ee969b5cb0c5f38e025123eff65a37799e7ce76db9e8e7a5ce012d57482

The significant increase in cash during Q1 2024 was primarily driven by **strong operating cash flow**. The net cash provided by operating activities amounted to **$412,142 thousand**, which was largely supported by a **net income of $442,049 thousand** as well as favorable non-cash adjustments such as depreciation, stock-based compensation, and changes in working capital items (e.g., increases in income taxes payable, promotional allowances, and accrued liabilities). These cash inflows more than offset the outflows from investing and financing activities, resulting in a substantial net spike in cash and cash equivalents.  **[0001104659-24-056492_tm2413295d2_ex99-1.htm:8]** **[0001104659-24-056393_tm2413295d1_ex99-1.htm:8]** 

What drove the significant cash spike in Q1 2024?

The sharp drop in Total Assets in Q2 2024 was primarily due to several factors. The company experienced a significant reduction in cash and cash equivalents by **$732,941 thousand** and completely eliminated its short-term investments which were previously **$955,605 thousand** at the end of 2023. Additionally, there was a decrease in inventories by **$137,002 thousand**, along with minor reductions in other assets. These changes combined led to a total decline of **$1,625,618 thousand** in Total Assets.  **[0001104659-24-086781_tm2421078d1_ex99-1.htm:8]** **[0001410578-24-001239_mnst-20240630x10q.htm:2]** 

Why did Total Assets drop sharply in Q2 2024?

The appearance of long-term debt in Q2 2024 was driven by Monster Beverage Corporation entering into a new credit agreement with JPMorgan Chase Bank, N.A., and other lenders. This agreement provided for **senior unsecured credit facilities totaling $1.50 billion**, which included a **$750.0 million term loan** and up to **$750.0 million in multicurrency revolving loan commitments**. The company drew the full amount of the term loan, leading to the recorded long-term debt in that quarter.  **[0001410578-24-001239_mnst-20240630x10q.htm:18]** **[0001410578-24-001239_mnst-20240630x10q.htm:42]** 

What led to the appearance of long-term debt in Q2 2024?

d1d92bcf2d35da299d96ec6489514d52b4ef9af5b6cb2cc94dbaa797ce714959

Monster Beverage Corp (MNST)

Financials