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Monster Beverage's (MNST) Growth Strategies Progress Well
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Monster Beverage Corporation (MNST - Free Report) has been doing well, thanks to its robust business strategies. The company has been gaining from the expansion of the energy drinks category and product launches. It has launched many products and expanded distribution in the international markets.
Buoyed by such strengths, shares of this energy drinks and alternative beverages’ marketer have risen 18% compared with the industry’s 4.9% growth over the past year. A Momentum Score of A further adds strength to this currently Zacks Rank #3 (Hold) company.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share is currently pegged at $1.93 billion and 44 cents, respectively. These estimates show corresponding growth of 13.3% and 15.8% year over year.
Delving Deeper
Monster Beverage is experiencing strength in its energy drinks category, which has been driving performance for a while now. The company offers a wide range of energy drinks brands such as Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, Reign Inferno Thermogenic Fuel, Reign Storm, True North, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator and Fury.
Image Source: Zacks Investment Research
In fourth-quarter 2023, the Monster Energy Drinks segment's net sales increased 15.1% year over year to $1.60 billion. On a currency-adjusted basis, net sales for the segment rose 16.5%. It continues to have market share leadership in the energy drinks category for all outlets combined in the United States in both the 13-week and four-week periods ended Feb 17, 2024.
Product innovation plays a significant role in the company's success. Monster Beverage launched Monster Aussie Lemonade in Japan, Monster Ultra Paradise in Malaysia, Monster Mango Loco and Pipeline Punch in Kazakhstan, and Monster Mango Loco in the Philippines. In February this year, the company introduced Predator Gold Strike in Azerbaijan and the Philippines. It had earlier rolled out its first flavored malt beverage alcohol product, The Beast Unleashed, in the United States and received positive feedback. This marked the expansion of the distribution of The Beast Unleashed into additional markets, with plans for nationwide distribution ahead.
Management expressed satisfaction with its 2023 product innovations, including Monster Energy Zero-Sugar, Ultra Strawberry Dreams and Rainstorm in the United States, along with Monster Energy Lewis Hamilton 44 Zero-Sugar in EMEA.
Additionally, the company continues to benefit from its pricing actions across various regions to negate the impacts of rising commodity costs and inflation. MNST continued to implement price hikes in the fourth quarter of 2023, with additional price hikes planned in several other markets ahead. Monster Beverage has implemented price increases in the first quarter of 2024 across certain international markets. It is continuing to monitor opportunities for further pricing actions across the United States and internationally. In fourth-quarter 2023, Monster Beverage’s gross margin expanded 240 basis points to 54.2%, driven by pricing actions, lower freight-in costs and reduced input costs.
To wrap up, Monster Beverage seems to be a decent investment bet given all the aforementioned positives.
Stocks to Consider
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Church & Dwight Co. (CHD - Free Report) , Colgate-Palmolive (CL - Free Report) and Inter Parfums (IPAR - Free Report) .
Church & Dwight, offering a broad range of household, personal care and specialty products, currently carries a Zacks Rank #2 (Buy). CHD has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Church & Dwight’s current financial year’s sales and earnings suggests growth of 8.7% and 6.4%, respectively, from the year-ago numbers.
Colgate, a leading consumer goods company, currently carries a Zacks Rank of 2. CL has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for CL’s current financial-year sales and earnings suggests growth of 3.5% and 7.7%, respectively, from the year-ago reported figures.
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and earnings indicates advancements of 20.9% and 20.2%, respectively, from the prior-year figures. It has a trailing four-quarter earnings surprise of 45.7%, on average.
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Monster Beverage's (MNST) Growth Strategies Progress Well
Monster Beverage Corporation (MNST - Free Report) has been doing well, thanks to its robust business strategies. The company has been gaining from the expansion of the energy drinks category and product launches. It has launched many products and expanded distribution in the international markets.
Buoyed by such strengths, shares of this energy drinks and alternative beverages’ marketer have risen 18% compared with the industry’s 4.9% growth over the past year. A Momentum Score of A further adds strength to this currently Zacks Rank #3 (Hold) company.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share is currently pegged at $1.93 billion and 44 cents, respectively. These estimates show corresponding growth of 13.3% and 15.8% year over year.
Delving Deeper
Monster Beverage is experiencing strength in its energy drinks category, which has been driving performance for a while now. The company offers a wide range of energy drinks brands such as Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, Reign Inferno Thermogenic Fuel, Reign Storm, True North, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator and Fury.
Image Source: Zacks Investment Research
In fourth-quarter 2023, the Monster Energy Drinks segment's net sales increased 15.1% year over year to $1.60 billion. On a currency-adjusted basis, net sales for the segment rose 16.5%. It continues to have market share leadership in the energy drinks category for all outlets combined in the United States in both the 13-week and four-week periods ended Feb 17, 2024.
Product innovation plays a significant role in the company's success. Monster Beverage launched Monster Aussie Lemonade in Japan, Monster Ultra Paradise in Malaysia, Monster Mango Loco and Pipeline Punch in Kazakhstan, and Monster Mango Loco in the Philippines. In February this year, the company introduced Predator Gold Strike in Azerbaijan and the Philippines. It had earlier rolled out its first flavored malt beverage alcohol product, The Beast Unleashed, in the United States and received positive feedback. This marked the expansion of the distribution of The Beast Unleashed into additional markets, with plans for nationwide distribution ahead.
Management expressed satisfaction with its 2023 product innovations, including Monster Energy Zero-Sugar, Ultra Strawberry Dreams and Rainstorm in the United States, along with Monster Energy Lewis Hamilton 44 Zero-Sugar in EMEA.
Additionally, the company continues to benefit from its pricing actions across various regions to negate the impacts of rising commodity costs and inflation. MNST continued to implement price hikes in the fourth quarter of 2023, with additional price hikes planned in several other markets ahead. Monster Beverage has implemented price increases in the first quarter of 2024 across certain international markets. It is continuing to monitor opportunities for further pricing actions across the United States and internationally. In fourth-quarter 2023, Monster Beverage’s gross margin expanded 240 basis points to 54.2%, driven by pricing actions, lower freight-in costs and reduced input costs.
To wrap up, Monster Beverage seems to be a decent investment bet given all the aforementioned positives.
Stocks to Consider
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Church & Dwight Co. (CHD - Free Report) , Colgate-Palmolive (CL - Free Report) and Inter Parfums (IPAR - Free Report) .
Church & Dwight, offering a broad range of household, personal care and specialty products, currently carries a Zacks Rank #2 (Buy). CHD has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Church & Dwight’s current financial year’s sales and earnings suggests growth of 8.7% and 6.4%, respectively, from the year-ago numbers.
Colgate, a leading consumer goods company, currently carries a Zacks Rank of 2. CL has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for CL’s current financial-year sales and earnings suggests growth of 3.5% and 7.7%, respectively, from the year-ago reported figures.
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and earnings indicates advancements of 20.9% and 20.2%, respectively, from the prior-year figures. It has a trailing four-quarter earnings surprise of 45.7%, on average.