Monster Beverages Corp

Monster Beverage Corporation delivered a mixed result in the recent quarter, with revenues below market expectations, but it managed to surpass the analyst consensus in terms of earnings. Monster Beverage and its management recently acquired assets, notably Bang Energy drinks and a beverage production facility in Phoenix, Arizona. The company achieved the purchased inventory’s fair value, impacting gross profit by approximately $7.8 million during the 2023 third quarter due to the Bang inventory step-up. In connection with the Bang transaction, the company had a gain of $45.4 million. Gross profit was 53%, rising to 53.4% when excluding the Bang inventory step-up. Monster Beverage maintained market share leadership in the US energy drink category and planned additional price increases in certain international markets to counter inflationary pressures. Nielsen reports showed positive trends in energy drink sales, with Monster’s energy brands performing well. The company highlighted successful product launches, such as The Beast Unleashed and plans to introduce Nasty Beast Hard Tea in early 2024. They also collaborated with Activision to introduce three exclusive limited-edition Monster Energy Call of Duty cans, which can be obtained at various retail locations around the country.