Monster Beverage (MNST) reported earnings on Thur 6 May 21 (a/h)

 

Monster Beverage misses by $0.02, beats on revs 

Reports Q1 (Mar) earnings of $0.59 per share, $0.02 worse than the S&P Capital IQ Consensus of $0.61; revenues rose 17.1% year/year to $1.24 bln vs the $1.22 bln S&P Capital IQ Consensus.

Q1 case volume +20% yr/yr to 138.6 mln.

Q1 gross profit of 57.5%, down 25 bps yr/yr. Mgmt said the decrease in gross profit as a percentage of net sales for the 2021 first quarter was primarily the result of increased input costs (mainly increased raw material freight-in costs), geographical sales mix, and higher promotional allowances as a percentage of net sales.

"Currently, the Company does not foresee a material impact on the ability of its co-packers to manufacture and its bottlers/distributors to distribute its products as a result of the COVID-19 pandemic. The Company's supply chain remains largely intact. However, the Company is experiencing shortages in its aluminum can requirements in North America and Europe, given the Company's volume growth and the current supply constraints in the aluminum can industry. The Company has taken steps to source additional quantities of aluminum cans from South America and Asia, however, logistical issues, including ocean freight and port of entry congestion could delay such supply. Logistical issues in relation to the importation of certain other raw materials and ingredients could impact future supply."