Monster Beverage Corp [MNST] Filings

10-Q 1 mnst-20240930x10q.htm 10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2024

Commission File Number 001-18761

MONSTER BEVERAGE CORPORATION

(Exact name of registrant as specified in its charter)


Delaware		47-1809393
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1 Monster Way

Corona, California 92879

(Address of principal executive offices) (Zip code)

(951) 739 - 6200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNST	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No __

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes X No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒		Accelerated filer ☐
Non-accelerated filer ☐		Smaller reporting company ☐
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes __ No X

The registrant had 972,519,659 shares of common stock, par value $0.005 per share, outstanding as of October 31, 2024.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

SEPTEMBER 30, 2024

INDEX


Part I.	FINANCIAL INFORMATION	Page No.

Item 1.	Condensed Consolidated Financial Statements (Unaudited)

	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	3

	Condensed Consolidated Statements of Income for the Three-and Nine-Months Ended September 30, 2024 and 2023	4

	Condensed Consolidated Statements of Comprehensive Income for the Three-and Nine-Months Ended September 30, 2024 and 2023	5

	Condensed Consolidated Statements of Stockholders’ Equity for the Three-and Nine-Months Ended September 30, 2024 and 2023	6

	Condensed Consolidated Statements of Cash Flows for the Nine-Months Ended September 30, 2024 and 2023	8

	Notes to Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	51

Item 4.	Controls and Procedures	51

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	52

Item 1A.	Risk Factors	52

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52

Item 3.	Defaults Upon Senior Securities	53

Item 4.	Mine Safety Disclosures	53

Item 5.	Other Information	53

Item 6.	Exhibits	54

	Signatures	55

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

(In Thousands, Except Par Value) (Unaudited)


	September 30,		December 31,
	2024		2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	1,625,339	$	2,297,675
Short-term investments		—		955,605
Accounts receivable, net		1,285,397		1,193,964
Inventories		770,338		971,406
Prepaid expenses and other current assets		124,656		116,195
Prepaid income taxes		92,028		54,151
Total current assets		3,897,758		5,588,996

INVESTMENTS		—		76,431
PROPERTY AND EQUIPMENT, net		1,006,788		890,796
DEFERRED INCOME TAXES, net		183,430		175,003
GOODWILL		1,417,941		1,417,941
OTHER INTANGIBLE ASSETS, net		1,442,426		1,427,139
OTHER ASSETS		104,958		110,216
Total Assets	$	8,053,301	$	9,686,522

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	549,028	$	564,379
Accrued liabilities		259,088		183,988
Accrued promotional allowances		301,973		269,061
Deferred revenue		45,627		41,914
Accrued compensation		81,787		87,392
Income taxes payable		7,641		14,955
Total current liabilities		1,245,144		1,161,689

DEFERRED REVENUE		186,135		204,251
DEFERRED INCOME TAXES		28,896		—
OTHER LIABILITIES		64,884		91,838
LONG-TERM DEBT		748,842		—
COMMITMENTS AND CONTINGENCIES (Note 12)

STOCKHOLDERS’ EQUITY:

Common stock - $0.005 par value; 5,000,000 shares authorized; 1,125,699 shares issued and 972,450 shares outstanding as of September 30, 2024; 1,122,592 shares issued and 1,041,571 shares outstanding as of December 31, 2023		5,628		5,613
Additional paid-in capital		5,105,957		4,975,115
Retained earnings		7,178,073		5,939,736
Accumulated other comprehensive loss		(137,842)		(125,337)
Common stock in treasury, at cost; 153,249 shares and 81,021 shares as of September 30, 2024 and December 31, 2023, respectively		(6,372,416)		(2,566,383)
Total stockholders’ equity		5,779,400		8,228,744
Total Liabilities and Stockholders’ Equity	$	8,053,301	$	9,686,522

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE- AND NINE-MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(In Thousands, Except Per Share Amounts) (Unaudited)


	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

NET SALES	$	1,880,973	$	1,856,028	$	5,680,668	$	5,409,919

COST OF SALES		881,174		872,265		2,634,235		2,554,086

GROSS PROFIT		999,799		983,763		3,046,433		2,855,833

OPERATING EXPENSES		519,883		473,236		1,497,363		1,336,437

OPERATING INCOME		479,916		510,527		1,549,070		1,519,396

INTEREST and OTHER INCOME (EXPENSE), net		(5,820)		71,357		54,311		99,010

INCOME BEFORE PROVISION FOR INCOME TAXES		474,096		581,884		1,603,381		1,618,406

PROVISION FOR INCOME TAXES		103,177		129,190		365,044		354,397

NET INCOME	$	370,919	$	452,694	$	1,238,337	$	1,264,009

NET INCOME PER COMMON SHARE:
Basic	$	0.38	$	0.43	$	1.22	$	1.21
Diluted	$	0.38	$	0.43	$	1.21	$	1.19

WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:
Basic		975,841		1,047,015		1,015,252		1,046,337
Diluted		983,171		1,059,966		1,023,912		1,059,809

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE- AND NINE-MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(In Thousands) (Unaudited)


	Three-Months Ended				Nine-Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Net income, as reported	$	370,919	$	452,694	$	1,238,337	$	1,264,009
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustment		47,846		(48,280)		(13,953)		(46,074)
Change in net unrealized gain (loss) on available-for-sale investments		—		1,272		758		3,680
Change in net gain (loss) on commodity derivatives		(3,384)		4,700		690		3,434
Other comprehensive income (loss)		44,462		(42,308)		(12,505)		(38,960)
Comprehensive income	$	415,381	$	410,386	$	1,225,832	$	1,225,049

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE- AND NINE-MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(In Thousands) (Unaudited)


								Accumulated Other					Total
	Common stock			Additional		Retained		Comprehensive (Loss)		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		Income		Shares	Amount		Equity
Balance, December 31, 2023	1,122,592	$	5,613	$	4,975,115	$	5,939,736	$	(125,337)	(81,021)	$	(2,566,383)	$	8,228,744

Stock-based compensation	—		—		21,452		—		—	—		—		21,452
Stock options/awards	2,278		11		38,381		—		—	—		—		38,392
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		223	—		—		223
Repurchase of common stock	—		—		—		—		—	(2,151)		(120,245)		(120,245)
Foreign currency translation	—		—		—		—		(30,695)	—		—		(30,695)
Net gain (loss) on commodity derivatives	—		—		—		—		(2,131)	—		—		(2,131)
Net income	—		—		—		442,049		—	—		—		442,049
Balance, March 31, 2024	1,124,870	$	5,624	$	5,034,948	$	6,381,785	$	(157,940)	(83,172)	$	(2,686,628)	$	8,577,789

Stock-based compensation	—		—		19,645		—		—	—		—		19,645
Stock options/awards	460		3		13,698		—		—	—		—		13,701
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		535	—		—		535
Repurchase of common stock	—		—		—		—		—	(58,778)		(3,145,817)		(3,145,817)
Foreign currency translation	—		—		—		—		(31,104)	—		—		(31,104)
Net gain (loss) on commodity derivatives	—		—		—		—		6,205	—		—		6,205
Net income	—		—		—		425,369		—	—		—		425,369
Balance, June 30, 2024	1,125,330	$	5,627	$	5,068,291	$	6,807,154	$	(182,304)	(141,950)	$	(5,832,445)	$	5,866,323

Stock-based compensation	—		—		27,659		—		—	—		—		27,659
Stock options/awards	369		1		10,007		—		—	—		—		10,008
Repurchase of common stock	—		—		—		—		—	(11,299)		(539,971)		(539,971)
Foreign currency translation	—		—		—		—		47,846	—		—		47,846
Net gain (loss) on commodity derivatives	—		—		—		—		(3,384)	—		—		(3,384)
Net income	—		—		—		370,919		—	—		—		370,919
Balance, September 30, 2024	1,125,699	$	5,628	$	5,105,957	$	7,178,073	$	(137,842)	(153,249)	$	(6,372,416)	$	5,779,400

See accompanying notes to condensed consolidated financial statements.

Table of Contents

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE- AND NINE-MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(In Thousands) (Unaudited) (Continued)


								Accumulated Other					Total
	Common stock			Additional		Retained		Comprehensive (Loss)		Treasury stock			Stockholders’
	Shares	Amount		Paid-in Capital		Earnings		Income		Shares	Amount		Equity
Balance, December 31, 2022	1,283,688	$	6,418	$	4,776,804	$	9,001,173	$	(159,073)	(239,088)	$	(6,600,281)	$	7,025,041

Stock-based compensation	—		—		15,743		—		—	—		—		15,743
Stock options/awards	3,704		19		36,329		—		—	—		—		36,348
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		3,181	—		—		3,181
Repurchase of common stock	—		—		—		—		—	(1,688)		(90,378)		(90,378)
Retirement of treasury stock	(170,000)		(850)		425		(4,692,425)		—	170,000		4,692,850		—
Foreign currency translation	—		—		—		—		7,981	—		—		7,981
Net income	—		—		—		397,444		—	—		—		397,444
Balance, March 31, 2023	1,117,392	$	5,587	$	4,829,301	$	4,706,192	$	(147,911)	(70,776)	$	(1,997,809)	$	7,395,360

Stock-based compensation	—		—		17,176		—		—	—		—		17,176
Stock options/awards	877		4		23,314		—		—	—		—		23,318
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		(773)	—		—		(773)
Repurchase of common stock	—		—		—		—		—	(8)		(447)		(447)
Foreign currency translation	—		—		—		—		(5,775)	—		—		(5,775)
Net gain (loss) on commodity derivatives	—		—		—		—		(1,266)	—		—		(1,266)
Net income	—		—		—		413,871		—	—		—		413,871
Balance, June 30, 2023	1,118,269	$	5,591	$	4,869,791	$	5,120,063	$	(155,725)	(70,784)	$	(1,998,256)	$	7,841,464

Stock-based compensation	—		—		17,605		—		—	—		—		17,605
Stock options/awards	229		1		5,893		—		—	—		—		5,894
Unrealized gain (loss), net on available-for-sale securities	—		—		—		—		1,272	—		—		1,272
Repurchase of common stock	—		—		—		—		—	(7,294)		(402,200)		(402,200)
Foreign currency translation	—		—		—		—		(48,280)	—		—		(48,280)
Net gain (loss) on commodity derivatives	—		—		—

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10-Q	[2016-08-05]
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10-Q	[2015-11-06]
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