Monster Beverage Board Authorizes New $500.0 Million Share Repurchase Program

Rhea-AI Summary

Monster Beverage (NASDAQ:MNST) has announced a new $500.0 million share repurchase program authorized by its Board of Directors. This comes as the previously authorized repurchase program has been fully utilized. The company plans to execute these repurchases through various methods, including open market transactions and privately-negotiated deals, subject to applicable regulations.

The timing of the share repurchases will be influenced by market conditions and other factors, with the possibility of suspension or discontinuation at any time. This move demonstrates Monster Beverage's commitment to enhancing shareholder value and confidence in its financial position.

Positive

• Authorization of a substantial $500 million share repurchase program
• Potential increase in earnings per share (EPS) due to reduced share count
• Demonstrates company's confidence in its financial health and future prospects
• Flexible repurchase strategy allowing for optimal timing and methods

Negative

• Reduction in cash reserves that could be used for other strategic initiatives
• Potential limitation on financial flexibility for future investments or acquisitions

CORONA, Calif., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ:MNST) today announced that its Board of Directors has authorized a new share repurchase program for the repurchase of up to an additional $500.0 million of the Company’s outstanding common stock. As of August 19, 2024, no amount remained available for repurchase under the Company’s previously authorized repurchase program. The Company expects to make the share repurchases from time to time in the open market, through privately-negotiated transactions, by block-purchase or through other transactions managed by broker-dealers, or otherwise, subject to applicable laws, regulations and approvals. The timing of the share repurchases will depend on a variety of factors, including market conditions, and the share repurchases may be suspended or discontinued at any time.

Monster Beverage Corporation
Based in Corona, California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries. The Company’s subsidiaries develop and market energy drinks, including Monster Energy® drinks, Monster Energy Ultra® energy drinks, Juice Monster® Energy + Juice energy drinks, Java Monster® non-carbonated coffee + energy drinks, Rehab® Monster® non-carbonated energy drinks, Monster Energy® Nitro energy drinks, Reign® Total Body Fuel high performance energy drinks, Reign Storm® total wellness energy drinks, NOS® energy drinks, Full Throttle® energy drinks, Bang Energy® drinks, BPM® energy drinks, BU® energy drinks, Burn® energy drinks, Gladiator® energy drinks, Live+® energy drinks, Mother® energy drinks, Nalu® energy drinks, Play® and Power Play® (stylized) energy drinks, Relentless® energy drinks, Samurai® energy drinks, Ultra Energy® drinks, Predator® energy drinks and Fury® energy drinks. The Company’s subsidiaries also develop and market still and sparkling waters under the Monster Tour Water® brand name. The Company’s subsidiaries also develop and market craft beers, hard seltzers and flavored malt beverages under a number of brands, including Jai Alai® IPA, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin® hard seltzers, The Beast Unleashed® and Nasty Beast™ Hard Tea. For more information visit www.monsterbevcorp.com.

Caution Concerning Forward-Looking Statements

Certain statements made in this announcement may constitute “forward-looking statements” within the meaning of the U.S. federal securities laws, as amended, regarding the expectations of management with respect to our future operating results and other future events including revenues and profitability. The Company cautions that these statements are based on management’s current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of the Company, that could cause actual results and events to differ materially from the statements made herein. Such risks and uncertainties include, but are not limited to, our ability to implement the share repurchase programs. For a more detailed discussion of these and other risks that could affect our operating results, see the Company’s reports filed with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2023 and our subsequently filed quarterly reports. The Company’s actual results could differ materially from those contained in the forward-looking statements, including with respect to the share repurchase programs. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACTS:	Rodney C. Sacks
	Chairman and Co-Chief Executive Officer
	(951) 739-6200
	Hilton H. Schlosberg
	Vice Chairman and Co-Chief Executive Officer
	(951) 739-6200
	Roger S. Pondel / Judy Lin
	PondelWilkinson Inc.
	(310) 279-5980

                                
                
        

        
       
        

               
                
        

FAQ

What is the size of Monster Beverage's (MNST) new share repurchase program?

Monster Beverage (MNST) has authorized a new share repurchase program for up to $500.0 million of the company's outstanding common stock.

When was Monster Beverage's (MNST) new share repurchase program announced?

Monster Beverage (MNST) announced the new $500.0 million share repurchase program on August 19, 2024.

How will Monster Beverage (MNST) execute its new share repurchase program?

Monster Beverage (MNST) plans to make share repurchases through various methods, including open market transactions, privately-negotiated deals, block-purchases, or other transactions managed by broker-dealers.

Can Monster Beverage (MNST) suspend or discontinue the share repurchase program?

Yes, Monster Beverage (MNST) can suspend or discontinue the share repurchase program at any time, depending on market conditions and other factors.