Monster Beverage Reports 2024 Third Quarter Financial Results
Monster Beverage (MNST) reported Q3 2024 financial results with net sales increasing 1.3% to $1.88 billion. Net income decreased 18.1% to $370.9 million, with diluted EPS of $0.38 compared to $0.43 in Q3 2023. The Monster Energy Drinks segment saw a 0.8% increase to $1.72 billion, while Strategic Brands grew 14% to $112.6 million. Foreign currency exchange rates negatively impacted results by $62.8 million. The company implemented a 5% price increase on most brands effective November 1, 2024. Gross profit margin improved to 53.2%, though operating expenses increased to $519.9 million, partly due to Hansen Expenses of $17.9 million.
Monster Beverage (MNST) ha riportato i risultati finanziari del terzo trimestre 2024, con un aumento delle vendite nette dell'1,3%, raggiungendo 1,88 miliardi di dollari. L'utile netto è diminuito del 18,1%, attestandosi a 370,9 milioni di dollari, con un utile per azione diluito di 0,38 dollari rispetto a 0,43 dollari nel terzo trimestre 2023. Il segmento delle bevande energetiche Monster ha registrato un aumento dello 0,8%, arrivando a 1,72 miliardi di dollari, mentre i Marchi Strategici sono cresciuti del 14%, raggiungendo 112,6 milioni di dollari. I tassi di cambio delle valute estere hanno avuto un impatto negativo sui risultati, per un totale di 62,8 milioni di dollari. L'azienda ha implementato un aumento dei prezzi del 5% sulla maggior parte dei marchi, a partire dal 1 novembre 2024. Il margine di profitto lordo è migliorato al 53,2%, anche se le spese operative sono aumentate a 519,9 milioni di dollari, in parte a causa delle spese Hansen di 17,9 milioni di dollari.
Monster Beverage (MNST) reportó los resultados financieros del tercer trimestre de 2024, con un aumento del 1,3% en las ventas netas, alcanzando 1,88 mil millones de dólares. El ingreso neto disminuyó un 18,1% hasta 370,9 millones de dólares, con un EPS diluido de 0,38 dólares en comparación con 0,43 dólares en el tercer trimestre de 2023. El segmento de Bebidas Energéticas Monster vio un aumento del 0,8%, alcanzando 1,72 mil millones de dólares, mientras que las Marcas Estratégicas crecieron un 14%, alcanzando 112,6 millones de dólares. Las tasas de cambio de divisas impactaron negativamente los resultados en 62,8 millones de dólares. La compañía implementó un aumento del precio del 5% en la mayoría de las marcas, efectivo el 1 de noviembre de 2024. El margen de utilidad bruta mejoró al 53,2%, aunque los gastos operativos aumentaron a 519,9 millones de dólares, en parte debido a los gastos de Hansen de 17,9 millones de dólares.
몬스터 음료 (MNST)는 2024년 3분기 재무 결과를 발표했으며, 순매출이 1.3% 증가하여 18억 8천만 달러에 이릅니다. 순이익은 18.1% 감소하여 3억 7천 9백만 달러에 달했고, 희석 주당순이익(EPS)은 0.38달러로 2023년 3분기 0.43달러에 비해 감소했습니다. 몬스터 에너지 음료 부문은 0.8% 증가하여 17억 2천만 달러에 도달했으며, 전략 브랜드는 14% 성장하여 1억 1천 2백 6십만 달러에 이르렀습니다. 외환 환율은 결과에 6천 2백 8십만 달러의 부정적 영향을 미쳤습니다. 회사는 2024년 11월 1일부터 대부분의 브랜드에 대해 5% 가격 인상을 시행했습니다. 총 이익률은 53.2%로 개선되었으나 운영비용은 5억 1천 9백 9십만 달러로 증가했으며, 이는 한센 비용 1천 7백 9십만 달러 때문입니다.
Monster Beverage (MNST) a annoncé les résultats financiers du troisième trimestre 2024, avec une augmentation des ventes nettes de 1,3% à 1,88 milliard de dollars. Le bénéfice net a diminué de 18,1% pour atteindre 370,9 millions de dollars, avec un BPA dilué de 0,38 dollar par rapport à 0,43 dollar au troisième trimestre 2023. Le segment des boissons énergétiques Monster a connu une augmentation de 0,8% à 1,72 milliard de dollars, tandis que les Marques Stratégiques ont crû de 14% pour atteindre 112,6 millions de dollars. Les taux de change des devises ont eu un impact négatif sur les résultats de 62,8 millions de dollars. L'entreprise a mis en œuvre une augmentation de prix de 5% sur la plupart des marques, à compter du 1er novembre 2024. La marge brute de profit s'est améliorée à 53,2%, bien que les dépenses d'exploitation aient augmenté à 519,9 millions de dollars, en partie en raison des frais Hansen de 17,9 millions de dollars.
Monster Beverage (MNST) hat die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben, wobei die Nettoumsätze um 1,3% auf 1,88 Milliarden Dollar gestiegen sind. Der Nettogewinn fiel um 18,1% auf 370,9 Millionen Dollar, mit einem verwässerten EPS von 0,38 Dollar im Vergleich zu 0,43 Dollar im 3. Quartal 2023. Das Segment der Monster-Energie-Getränke verzeichnete einen Anstieg von 0,8% auf 1,72 Milliarden Dollar, während die Strategischen Marken um 14% auf 112,6 Millionen Dollar wuchsen. Die Wechselkurse hatten einen negativen Einfluss auf die Ergebnisse von 62,8 Millionen Dollar. Das Unternehmen hat eine Preiserhöhung von 5% für die meisten Marken mit Wirkung zum 1. November 2024 umgesetzt. Die Bruttogewinnmarge verbesserte sich auf 53,2%, während die Betriebsausgaben auf 519,9 Millionen Dollar stiegen, teilweise aufgrund von Hansen-Spesen in Höhe von 17,9 Millionen Dollar.
- Net sales increased 1.3% to $1.88 billion
- Strategic Brands segment grew 14% to $112.6 million
- Gross profit margin improved to 53.2% from 53.0% year-over-year
- International sales increased 3.6% to $760.1 million
- Net income decreased 18.1% to $370.9 million
- EPS declined 11.7% to $0.38 from $0.43
- Operating expenses increased to $519.9 million from $473.2 million
- Alcohol Brands segment sales decreased 6.0% to $39.8 million
Insights
Monster Beverage's Q3 results show mixed performance with some concerning trends. Net sales grew marginally by
Key concerns include slower category growth in U.S. convenience channels, foreign currency headwinds impacting earnings by
The company's aggressive share buyback of
The energy drink category dynamics reveal important market shifts. While U.S. convenience channel growth has slowed, other retail channels are showing stronger performance. The company's strategic focus on innovation and international expansion, particularly in China with Predator Energy® Gold Strike, indicates potential growth vectors.
Consumer behavior trends suggest resilience in energy drink demand despite economic pressures. The company's household penetration strategy and per capita consumption growth initiatives are well-aligned with market opportunities. The recent price increase and restructuring of the alcohol segment demonstrate proactive management of market challenges.
-- Record Third Quarter Net Sales Rise 1.3 Percent to
-- Net Sales, Excluding the Alcohol Brands Segment, Adjusted for Adverse Changes in Foreign Currency
of
-- Net Income Per Diluted Share was
-- Adjusted Net Income Per Diluted Share was
CORONA, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three- and nine-months ended September 30, 2024.
Items Impacting Profitability
Items impacting profitability in the 2024 third quarter: Gross profit for the 2024 third quarter was adversely impacted by an increase in inventory reserves due to excess inventory levels in the Alcohol Brands segment of
Items impacting profitability in the 2023 third quarter: On July 31, 2023, the Company completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc. and its debtor affiliates (the “Bang Transaction”). Inventory purchased as part of the Bang Transaction was recorded at fair value (the “Bang Inventory Step-Up”). Certain of the purchased inventory was subsequently sold in the 2023 third quarter and was recognized through cost of sales at fair value. As a result of the Bang Inventory Step-Up, gross profit was adversely impacted by approximately
The tables at the end of this press release summarize the income statement impact of the selected items discussed above for the three and nine-months ended September 30, 2024 and 2023. (See “Adjusted Condensed Consolidated Statements of Income and Other Information” and “Reconciliation of GAAP and Non-GAAP Information” below).
Third Quarter Results
Net sales for the 2024 third quarter increased 1.3 percent to
Net sales for the Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, increased 0.8 percent to
Net sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Company, as well as the Company’s affordable energy brands Predator® and Fury®, increased 14.0 percent to
Net sales for the Alcohol Brands segment, which is comprised of The BeastTM, Nasty Beast™ Hard Tea, as well as various craft beers and hard seltzers, decreased 6.0 percent to
Net sales for the Company’s Other segment, which primarily includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary of the Company, sold to independent third-party customers, decreased 11.5 percent to
Net sales to customers outside the United States increased 3.6 percent to
Gross profit as a percentage of net sales for the 2024 third quarter was 53.2 percent, compared with 53.0 percent in the 2023 third quarter. Gross profit for the 2024 third quarter was adversely impacted by the Alcohol Brands Inventory Reserves. Gross profit as a percentage of net sales for the 2024 third quarter, exclusive of the Alcohol Brands Inventory Reserves was 53.7 percent. The increase in gross profit as a percentage of net sales for the 2024 third quarter was primarily the result of lower input costs, pricing actions in certain international markets and the Bang Inventory Step-Up (included in the comparative 2023 third quarter), partially offset by higher promotional allowances as a percentage of net sales, mainly to drive trial and awareness of the Bang Energy® brand in the United States, as well as the Alcohol Brands Inventory Reserves.
Operating expenses for the 2024 third quarter were
Distribution expenses for the 2024 third quarter were
Selling expenses for the 2024 third quarter were
General and administrative expenses for the 2024 third quarter were
Operating income for the 2024 third quarter was
The effective tax rate for the 2024 third quarter was 21.8 percent, compared with 22.2 percent in the 2023 third quarter.
Net income for the 2024 third quarter decreased 18.1 percent to
Net income per diluted share for the 2024 third quarter decreased 11.7 percent to
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, said, “The energy drink category continues to grow globally and has demonstrated resilience. In the United States, the energy drink category continued to experience slower growth rates. However, in all measured channels excluding convenience, the energy drink category is growing at a faster rate. In the United States, the energy drink category in the convenience channel is beginning to show some improvement in October. A number of other consumer packaged goods companies have also seen a tighter consumer spending environment for certain income groups and weaker demand in the quarter.
“We believe growth opportunities in household penetration and per capita consumption, along with consumers’ growing need for energy are positive trends for the category.
“Our sales in non-Nielsen measured channels continued to grow.
“Our third quarter financial results were again impacted by unfavorable foreign currency exchange rates in certain markets. On a foreign currency adjusted basis excluding the Alcohol Brands segment, net sales increased 5.0 percent in the quarter. We estimate that diluted earnings per share were adversely impacted by approximately
“Gross profit margins improved in the 2024 third quarter, compared with the 2023 third quarter, both on a reported and adjusted basis and were higher on an adjusted basis compared with the 2024 second quarter.
“As previously reported, we have implemented an approximately 5.0 percent price increase on our brands and packages, excluding Bang Energy®, Reign® and Reign Storm® in the United States, effective November 1, 2024,” Schlosberg added.
Rodney C. Sacks, Chairman and Co-Chief Executive Officer, said, “Innovation continues to play a key role in our strategy. Globally our innovation has been generally well received by our bottlers/distributors, wholesalers, retailers and consumers. We launched Monster Energy® Ultra Vice Guava™ in the United States in October, with positive consumer response.
“Predator Energy® Gold Strike, launched in April 2024 in selected provinces in China, continues to perform and plans are underway to accelerate its rollout into further markets in China.
“Our Alcohol Brands segment has now been restructured under new management and we remain positive for the prospects of alcohol products within our broader portfolio. In the 2024 third quarter, we launched a second variety pack of The BeastTM in a 12-pack of slim 12-oz cans, comprising of Mean Green, Pink Poison, Gnarly Grape and Killer Sunrise. We are currently exploring opportunities for distribution of our alcohol products in certain international jurisdictions.
“Our innovation pipeline for both our non-alcoholic and alcoholic beverages remains robust,” Sacks said.
2024 Nine-Months Results
Net sales for the nine-months ended September 30, 2024 increased 5.0 percent to
Gross profit, as a percentage of net sales, for the nine-months ended September 30, 2024 was 53.6 percent, compared with 52.8 percent in the comparable period last year.
Operating expenses for the nine-months ended September 30, 2024 were
Operating income for the nine-months ended September 30, 2024 increased to
The effective tax rate was 22.8 percent for the nine-months ended September 30, 2024, compared with 21.9 percent in the comparable period last year.
Net income for the nine-months ended September 30, 2024 decreased 2.0 percent to
Share Repurchase Program
During the 2024 third quarter, the Company purchased approximately 11.3 million shares of its common stock at an average purchase price of
Investor Conference Call
The Company will host an investor conference call today, November 7, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will be open to all interested investors through a live audio web broadcast via the internet at www.monsterbevcorp.com in the “Events & Presentations” section. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.
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 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 BeastTM 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, the following: the impact of military conflicts, including supply chain disruptions, volatility in commodity prices, increased economic uncertainty and escalating geopolitical tensions; our extensive commercial arrangements with The Coca-Cola Company (TCCC) and, as a result, our future performance’s substantial dependence on the success of our relationship with TCCC; our ability to implement our growth strategy, including expanding our business in existing and new sectors and achieving profitability within our Alcohol Brands segment; the inherent operational risks presented by the alcoholic beverage industry that may not be adequately covered by insurance or lead to litigation relating to the abuse or misuse of our products; our ability to successfully integrate Bang Energy® businesses and assets, transition the acquired beverages to the Company’s primary distributors, and retain and increase sales of the acquired beverages; exposure to significant liabilities due to litigation, legal or regulatory proceedings; intellectual property injunctions; unanticipated litigation concerning the Company’s products; the current uncertainty and volatility in the national and global economy and changes in demand due to such economic conditions, including a slowdown in consumer spending generally or reduced demand for consumer goods; changes in consumer preferences; adverse publicity surrounding obesity, alcohol consumption and other health concerns related to our products, product safety and quality; activities and strategies of competitors, including the introduction of new products and competitive pricing and/or marketing of similar products; changes in the price and/or availability of raw materials; other supply issues, including the availability of products and/or suitable production facilities including limitations on co-packing availability including retort production; disruption to our manufacturing facilities and operations related to climate, labor, production difficulties, capacity limitations, regulations or other causes; product distribution and placement decisions by retailers; the effects of retailer and/or bottler/distributor consolidation on our business; unilateral decisions by bottlers/distributors, buying groups, convenience chains, grocery chains, mass merchandisers, specialty chain stores, e-commerce retailers, e-commerce websites, club stores and other customers to discontinue carrying all or any of our products that they are carrying at any time, restrict the range of our products they carry, impose restrictions or limitations on the sale of our products and/or the sizes of containers for our products and/or devote less resources to the sale of our products; changes in governmental regulation; the imposition of new and/or increased excise sales and/or other taxes on our products; our ability to adapt to the changing retail landscape with the rapid growth in e-commerce retailers and e-commerce websites; the impact of proposals to limit or restrict the sale of energy or alcohol drinks to minors and/or persons below a specified age and/or restrict the venues and/or the size of containers in which energy or alcohol drinks can be sold; possible recalls of our products and/or the consequences and costs of defective production; or our ability to absorb, reduce or pass on to our bottlers/distributors increases in commodity costs, including freight costs. 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. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
(tables below)
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION
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 sales¹ | $ | 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 profit¹ | 999,799 | 983,763 | 3,046,433 | 2,855,833 | |||||||||||
| Gross profit as a percentage of net sales | 53.2 | % | 53.0 | % | 53.6 | % | 52.8 | % | |||||||
| Operating expenses | 519,883 | 473,236 | 1,497,363 | 1,336,437 | |||||||||||
| Operating expenses as a percentage of net sales | 27.6 | % | 25.5 | % | 26.4 | % | 24.7 | % | |||||||
| Operating income¹ | 479,916 | 510,527 | 1,549,070 | 1,519,396 | |||||||||||
| Operating income as a percentage of net sales | 25.5 | % | 27.5 | % | 27.3 | % | 28.1 | % | |||||||
| Interest and other (expense) income, net | (5,820 | ) | 71,357 | 54,311 | 99,010 | ||||||||||
| Income before provision for income taxes¹ | 474,096 | 581,884 | 1,603,381 | 1,618,406 | |||||||||||
| Provision for income taxes | 103,177 | 129,190 | 365,044 | 354,397 | |||||||||||
| Income taxes as a percentage of income before taxes | 21.8 | % | 22.2 | % | 22.8 | % | 21.9 | % | |||||||
| Net income | $ | 370,919 | $ | 452,694 | $ | 1,238,337 | $ | 1,264,009 | |||||||
| Net income as a percentage of net sales | 19.7 | % | 24.4 | % | 21.8 | % | 23.4 | % | |||||||
| 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 | |||||||||||
| Energy Drink Case sales (in thousands) (in 192-ounce case equivalents) | 219,409 | 203,087 | 643,033 | 583,937 | |||||||||||
| Average net sales per case2 | $ | 8.36 | $ | 8.90 | $ | 8.59 | $ | 8.98 | |||||||
¹Includes
2Excludes Alcohol Brands segment and Other segment net sales.
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, 2024 | December 31, 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 | - | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock - 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 | ||||
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES
ADJUSTED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION
FOR THE THREE- AND NINE-MONTHS ENDED SEPTEMBER 30, 2024 AND 20231
(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 | 870,587 | 864,440 | 2,623,648 | 2,546,261 | |||||||||||
| Gross profit | 1,010,386 | 991,588 | 3,057,020 | 2,863,658 | |||||||||||
| Gross profit as a percentage of net sales | 53.7 | % | 53.4 | % | 53.8 | % | 52.9 | % | |||||||
| Operating expenses | 502,023 | 464,794 | 1,479,209 | 1,318,981 | |||||||||||
| Operating expenses as a percentage of net sales | 26.7 | % | 25.0 | % | 26.0 | % | 24.4 | % | |||||||
| Operating income | 508,363 | 526,794 | 1,577,811 | 1,544,677 | |||||||||||
| Operating income as a percentage of net sales | 27.0 | % | 28.4 | % | 27.8 | % | 28.6 | % | |||||||
| Interest and other (expense) income, net | (5,820 | ) | 25,975 | 54,311 | 53,628 | ||||||||||
| Income before provision for income taxes¹ | 502,543 | 552,769 | 1,632,122 | 1,598,305 | |||||||||||
| Provision for income taxes | 110,163 | 122,729 | 372,097 | 349,953 | |||||||||||
| Income taxes as a percentage of income before taxes | 21.9 | % | 22.2 | % | 22.8 | % | 21.9 | % | |||||||
| Net income | $ | 392,380 | $ | 430,040 | $ | 1,260,025 | $ | 1,248,352 | |||||||
| Net income as a percentage of net sales | 20.9 | % | 23.2 | % | 22.2 | % | 23.1 | % | |||||||
| Net income per common share: | |||||||||||||||
| Basic | $ | 0.40 | $ | 0.41 | $ | 1.24 | $ | 1.19 | |||||||
| Diluted | $ | 0.40 | $ | 0.41 | $ | 1.23 | $ | 1.18 | |||||||
| 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 | |||||||||||
1See “Reconciliation of GAAP and non-GAAP Information” below for excluded items.
Reconciliation of GAAP and Non-GAAP Information
($ in Thousands, Except Per Share Amounts, unaudited)
Adjusted results are non-GAAP items that exclude (i) the Alcohol Brands Inventory Reserves, (ii) the Bang Inventory Step-Up, (iii) the Hansen Expenses, (iv) the Bang Transaction Expenses and (v) the Bang Transaction Gain. The Company believes that these non-GAAP items are useful to investors in evaluating the Company’s ongoing operating and financial results. The non-GAAP items should be considered in addition to, and not in lieu of, U.S. GAAP financial measures.
| Three-Months Ended | Nine-Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Cost of sales | $ | 881,174 | $ | 872,265 | $ | 2,634,235 | $ | 2,554,086 | |||||||
| Alcohol brands inventory reserve | (10,587 | ) | - | (10,587 | ) | - | |||||||||
| Bang inventory step-up | - | (7,825 | ) | - | (7,825 | ) | |||||||||
| Cost of sales excluding above items | $ | 870,587 | $ | 864,440 | $ | 2,623,648 | $ | 2,546,261 | |||||||
| Three-Months Ended | Nine-Months Ended | ||||||||||
| September 30, | September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Gross profit | $ | 999,799 | $ | 983,763 | $ | 3,046,433 | $ | 2,855,833 | |||
| Alcohol brands inventory reserve | 10,587 | - | 10,587 | - | |||||||
| Bang inventory step-up | - | 7,825 | - | 7,825 | |||||||
| Gross profit excluding above items | $ | 1,010,386 | $ | 991,588 | $ | 3,057,020 | $ | 2,863,658 | |||
| Three-Months Ended | Nine-Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating expenses | $ | 519,883 | $ | 473,236 | $ | 1,497,363 | $ | 1,336,437 | |||||||
| Hansen Expenses | (17,860 | ) | (409 | ) | (18,154 | ) | (2,354 | ) | |||||||
| Bang transaction expenses | - | (8,033 | ) | - | (15,102 | ) | |||||||||
| Operating expenses excluding above items | $ | 502,023 | $ | 464,794 | $ | 1,479,209 | $ | 1,318,981 | |||||||
| Three-Months Ended | Nine-Months Ended | ||||||||||
| September 30, | September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Operating income | $ | 479,916 | $ | 510,527 | $ | 1,549,070 | $ | 1,519,396 | |||
| Alcohol brands inventory reserve | 10,587 | - | 10,587 | - | |||||||
| Bang inventory step-up | - | 7,825 | - | 7,825 | |||||||
| Hansen Expenses | 17,860 | 409 | 18,154 | 2,354 | |||||||
| Bang transaction expenses | - | 8,033 | - | 15,102 | |||||||
| Operating income excluding above items | $ | 508,363 | $ | 526,794 | $ | 1,577,811 | $ | 1,544,677 | |||
| Reconciliation of GAAP and Non-GAAP Information (cont.) ($ in Thousands, unaudited) | ||||||||||||||
| Three-Months Ended | Nine-Months Ended | |||||||||||||
| September 30, | September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Interest and other (expense) income, net | $ | (5,820 | ) | $ | 71,357 | $ | 54,311 | $ | 99,010 | |||||
| Bang transaction gain | - | (45,382 | ) | - | (45,382 | ) | ||||||||
| Interest and other (expense) income, net, excluding above item | $ | (5,820 | ) | $ | 25,975 | $ | 54,311 | $ | 53,628 | |||||
| Three-Months Ended | Nine-Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Income before provision for income taxes | $ | 474,096 | $ | 581,884 | $ | 1,603,381 | $ | 1,618,406 | |||||
| Alcohol brands inventory reserve | 10,587 | - | 10,587 | - | |||||||||
| Bang inventory step-up | - | 7,825 | - | 7,825 | |||||||||
| Hansen Expenses | 17,860 | 409 | 18,154 | 2,354 | |||||||||
| Bang transaction expenses | - | 8,033 | - | 15,102 | |||||||||
| Bang transaction gain | - | (45,382 | ) | - | (45,382 | ) | |||||||
| Income before provision for income taxes excluding above items | $ | 502,543 | $ | 552,769 | $ | 1,632,122 | $ | 1,598,305 | |||||
| Three-Months Ended | Nine-Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Provision for income taxes | $ | 103,177 | $ | 129,190 | $ | 365,044 | $ | 354,397 | |||||
| Alcohol brands inventory reserve | 2,594 | - | 2,594 | - | |||||||||
| Bang inventory step-up | - | 1,737 | - | 1,737 | |||||||||
| Hansen Expenses | 4,392 | 94 | 4,459 | 541 | |||||||||
| Bang transaction expenses | - | 1,783 | - | 3,353 | |||||||||
| Bang transaction gain | - | (10,075 | ) | - | (10,075 | ) | |||||||
| Provision for income taxes excluding above items | $ | 110,163 | $ | 122,729 | $ | 372,097 | $ | 349,953 | |||||
| Three-Months Ended | Nine-Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income | $ | 370,919 | $ | 452,694 | $ | 1,238,337 | $ | 1,264,009 | |||||
| Alcohol brands inventory reserve | 7,993 | - | 7,993 | - | |||||||||
| Bang inventory step-up | - | 6,088 | - | 6,088 | |||||||||
| Hansen Expenses | 13,468 | 315 | 13,695 | 1,813 | |||||||||
| Bang transaction expenses | - | 6,250 | - | 11,749 | |||||||||
| Bang transaction gain | - | (35,307 | ) | - | (35,307 | ) | |||||||
| Net income excluding above items | $ | 392,380 | $ | 430,040 | $ | 1,260,025 | $ | 1,248,352 | |||||
Adjustments in this table are net of tax.
| Reconciliation of GAAP and Non-GAAP Information (cont.) ($ in Thousands, unaudited) | |||||||||||||
| Three-Months Ended | Nine-Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income per common share – Diluted | $ | 0.38 | $ | 0.43 | $ | 1.21 | $ | 1.19 | |||||
| Cumulative adjustments, net of tax | 0.02 | (0.02 | ) | 0.02 | (0.01 | ) | |||||||
| Net income per common share – Diluted, excluding above items | $ | 0.40 | $ | 0.41 | $ | 1.23 | $ | 1.18 | |||||
| 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 |
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