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Monster Beverage Q2 Earnings Beat, Higher Sales Across Most Segments Aid
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Key Takeaways
MNST's Q2 EPS rose 23% to $0.52, beating estimates, with net sales up 11.1% year over year.
Product innovation and strong demand boosted growth, with new launches like Ultra Blue Hawaiian leading.
Excluding Alcohol Brands, net sales grew 11.8% FX-adjusted; gross billings rose 6.9% year to date.
Monster Beverage Corporation ((MNST - Free Report) ) delivered solid second-quarter 2025 earnings, wherein the bottom line beat the Zacks Consensus Estimate and increased year over year.
The company has seen growth opportunities in household penetration and per capita consumption, and robust demand for energy drinks. It has introduced several products in the reported quarter. In the United States, Monster Energy Ultra Blue Hawaiian has been among the top-selling products. Innovation has been playing a major role. MNST continues to launch its affordable energy brands, Predator and Fury, in various markets across the world. It remains excited about its innovation pipeline in 2025.
Monster Beverage’s adjusted earnings of 52 cents per share beat the Zacks Consensus Estimate of 48 cents and increased 23% year over year. Net sales came in at $2.11 billion compared with the Zacks Consensus Estimate of $2.08 billion. The top line increased 11.1% year over year. Net changes in foreign currency exchange rates had a negative impact of $5 million on net sales in the reported quarter. Net sales on a foreign-currency adjusted basis rose 11.4%.
Excluding the Alcohol Brands segment, net sales, on a foreign-currency adjusted basis, rose 11.8% in the second quarter. Excluding the Alcohol Brands unit, management estimates that year-to-date gross billings, on a foreign currency adjusted basis, through April 30, 2025, were roughly 6.9% higher and 5.8% higher, including the Alcohol Brands segment.
Driven by solid earnings, MNST’s shares have risen more than 7% in after-hours trading yesterday. Monster Beverage’s shares have gained 27.2% in the past six months compared with the industry’s 4% growth.
A Peek Into MNST’s Q2 Performance
Monster Beverage has been reviewing opportunities for price increases domestically and internationally.
In Europe, the Middle East and Africa (EMEA), net sales increased 26.8%, while in Asia-Pacific (APAC), sales rose 11.6%. Sales in Latin America, including Mexico and the Caribbean, fell 7.8%. Per Nielsen, in the United States, for the reported 30-week period through July 26, 2025, sales in dollars in the energy drink category comprising energy shots, for the entire outlets combined, with convenience, grocery, drug and mass merchandisers, jumped 13.2% year over year.
Trends in the company’s U.S. business have been solid with acceleration from early 2025. In EMEA, the energy drink category for the tracked markets in the 30-week period, which differ from country to country, rose approximately 15.4% on a currency-neutral basis. In APAC, the energy drink category, Circana and INTAGE for MNST’s tracked channels for the 30-week period that differ from country to country, grew 20.9% year over year, FX neutral.
In LATAM, the energy game category for the track markets for the three months ended June 30, 2025, jumped 13.9% year over year. Growth has been solid in local currencies across EMEA, Asia Pacific and Latin America.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Net sales in the US and Canada in the second quarter jumped 8.6% year over year in dollars, thanks to the Monster Energy Ultra family. Per the Nielsen reports for the 30 weeks ended July 19, 2025, in the United States, the Monster Energy Ultra Family came in as the third largest stand-alone energy drink brand in dollar sales in the energy drink category following Red Bull and Monster for the entire outlets combined, like convenience, grocery, drug and mass merchandisers, including energy shots.
Net sales to customers outside the United States climbed 15.8% to $864.2 million, representing about 41% of the total net sales. On a currency-adjusted basis, sales to customers outside the United States jumped 16.5% to $790.5 million.
Insights Into MNST’s Segmental Performance
Monster Energy Drinks: Sales of this segment, which includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks, Reign Storm total wellness energy drinks and Bang Energy drinks, jumped 11.2% to $1.94 billion. The segment’s sales included a negative impact of $4.8 million from adverse currency rates. On a currency-adjusted basis, net sales for the segment rose 11.4%.
Strategic Brands: The segment includes a range of energy drink brands acquired from Coca-Cola, as well as the company’s affordable energy brands, Predator and Fury. The segment’s net sales jumped 18.9% year over year to $129.9 million. Currency headwinds hurt sales by $0.2 million. On a currency-adjusted basis, net sales for the segment increased 19.1%.
Alcohol Brands: Net sales for the segment, which includes several craft beers, flavored malt beverages and hard seltzers, dipped 8.6% year over year to $38 million.
Other: Net sales for the segment, which includes some products of American Fruits & Flavors, LLC, sold to independent third parties (AFF Third-Party Products), dropped 8.5% year over year to $6.4 million.
MNST’s Costs & Margins
The cost of sales was $935.2 million, up 6.1% year over year. The company’s gross margin expanded 210 basis points (bps) year over year to 55.7%, buoyed by pricing, supply-chain optimization and reduced input costs, partly offset by geographical sales mix and increased promotional allowances.
Adjusted operating expenses increased 8.4% to $497.7 million, while the metric, as a percentage of net sales, was 24%, declining 20 bps from the year-earlier quarter. Distribution expenses dipped 6.2% to $82 million and, as a percentage of net sales, contracted 70 bps to 3.9%.
Selling expenses inched up 2.5% to $196.9 million, but fell 80 bps to 9.3% as a percentage of net sales. General and administrative expenses for the second quarter were $265.9 million, up 25% from the year-ago quarter.
Adjusted operating income, exclusive of the Alcohol Brands segment, jumped 21.5% to $667.9 million.
MNST’s Financial Health
This Zacks Rank #3 (Hold) company ended second-quarter 2025 with cash and cash equivalents of $1.93 billion and total stockholders' equity of $7.19 billion.
During the reported quarter, the company did not repurchase any shares under its current share repurchase program. As of Aug. 6, 2025, roughly $500 million was available for buyback under its existing share repurchase program.
NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on average. The Zacks Consensus Estimate for Nomad Foods’ current financial-year earnings per share (EPS) indicates growth of 10.4% from the year-ago number.
Mondelez International ((MDLZ - Free Report) ), which is a leader in the snack food industry, currently carries a Zacks Rank #2 (Buy).
MDLZ delivered a trailing four-quarter earnings surprise of 9%, on average. The Zacks Consensus Estimate for MDLZ’s current financial-year sales indicates growth of 5.4% from the year-ago number.
Ingredion Incorporated ((INGR - Free Report) ), which is a provider of ingredient solutions specialized in nature-based sweeteners, starches and nutrition ingredients, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for INGR’s current financial-year EPS is expected to rise 6.8% from the corresponding year-ago reported figure. INGR delivered a trailing four-quarter earnings surprise of 11.1%, on average.
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Monster Beverage Q2 Earnings Beat, Higher Sales Across Most Segments Aid
Key Takeaways
Monster Beverage Corporation ((MNST - Free Report) ) delivered solid second-quarter 2025 earnings, wherein the bottom line beat the Zacks Consensus Estimate and increased year over year.
The company has seen growth opportunities in household penetration and per capita consumption, and robust demand for energy drinks. It has introduced several products in the reported quarter. In the United States, Monster Energy Ultra Blue Hawaiian has been among the top-selling products. Innovation has been playing a major role. MNST continues to launch its affordable energy brands, Predator and Fury, in various markets across the world. It remains excited about its innovation pipeline in 2025.
Monster Beverage’s adjusted earnings of 52 cents per share beat the Zacks Consensus Estimate of 48 cents and increased 23% year over year. Net sales came in at $2.11 billion compared with the Zacks Consensus Estimate of $2.08 billion. The top line increased 11.1% year over year. Net changes in foreign currency exchange rates had a negative impact of $5 million on net sales in the reported quarter. Net sales on a foreign-currency adjusted basis rose 11.4%.
Excluding the Alcohol Brands segment, net sales, on a foreign-currency adjusted basis, rose 11.8% in the second quarter. Excluding the Alcohol Brands unit, management estimates that year-to-date gross billings, on a foreign currency adjusted basis, through April 30, 2025, were roughly 6.9% higher and 5.8% higher, including the Alcohol Brands segment.
Driven by solid earnings, MNST’s shares have risen more than 7% in after-hours trading yesterday. Monster Beverage’s shares have gained 27.2% in the past six months compared with the industry’s 4% growth.
A Peek Into MNST’s Q2 Performance
Monster Beverage has been reviewing opportunities for price increases domestically and internationally.
In Europe, the Middle East and Africa (EMEA), net sales increased 26.8%, while in Asia-Pacific (APAC), sales rose 11.6%. Sales in Latin America, including Mexico and the Caribbean, fell 7.8%. Per Nielsen, in the United States, for the reported 30-week period through July 26, 2025, sales in dollars in the energy drink category comprising energy shots, for the entire outlets combined, with convenience, grocery, drug and mass merchandisers, jumped 13.2% year over year.
Trends in the company’s U.S. business have been solid with acceleration from early 2025. In EMEA, the energy drink category for the tracked markets in the 30-week period, which differ from country to country, rose approximately 15.4% on a currency-neutral basis. In APAC, the energy drink category, Circana and INTAGE for MNST’s tracked channels for the 30-week period that differ from country to country, grew 20.9% year over year, FX neutral.
In LATAM, the energy game category for the track markets for the three months ended June 30, 2025, jumped 13.9% year over year. Growth has been solid in local currencies across EMEA, Asia Pacific and Latin America.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote
Net sales in the US and Canada in the second quarter jumped 8.6% year over year in dollars, thanks to the Monster Energy Ultra family. Per the Nielsen reports for the 30 weeks ended July 19, 2025, in the United States, the Monster Energy Ultra Family came in as the third largest stand-alone energy drink brand in dollar sales in the energy drink category following Red Bull and Monster for the entire outlets combined, like convenience, grocery, drug and mass merchandisers, including energy shots.
Net sales to customers outside the United States climbed 15.8% to $864.2 million, representing about 41% of the total net sales. On a currency-adjusted basis, sales to customers outside the United States jumped 16.5% to $790.5 million.
Insights Into MNST’s Segmental Performance
Monster Energy Drinks: Sales of this segment, which includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks, Reign Storm total wellness energy drinks and Bang Energy drinks, jumped 11.2% to $1.94 billion. The segment’s sales included a negative impact of $4.8 million from adverse currency rates. On a currency-adjusted basis, net sales for the segment rose 11.4%.
Strategic Brands: The segment includes a range of energy drink brands acquired from Coca-Cola, as well as the company’s affordable energy brands, Predator and Fury. The segment’s net sales jumped 18.9% year over year to $129.9 million. Currency headwinds hurt sales by $0.2 million. On a currency-adjusted basis, net sales for the segment increased 19.1%.
Alcohol Brands: Net sales for the segment, which includes several craft beers, flavored malt beverages and hard seltzers, dipped 8.6% year over year to $38 million.
Other: Net sales for the segment, which includes some products of American Fruits & Flavors, LLC, sold to independent third parties (AFF Third-Party Products), dropped 8.5% year over year to $6.4 million.
MNST’s Costs & Margins
The cost of sales was $935.2 million, up 6.1% year over year. The company’s gross margin expanded 210 basis points (bps) year over year to 55.7%, buoyed by pricing, supply-chain optimization and reduced input costs, partly offset by geographical sales mix and increased promotional allowances.
Adjusted operating expenses increased 8.4% to $497.7 million, while the metric, as a percentage of net sales, was 24%, declining 20 bps from the year-earlier quarter. Distribution expenses dipped 6.2% to $82 million and, as a percentage of net sales, contracted 70 bps to 3.9%.
Selling expenses inched up 2.5% to $196.9 million, but fell 80 bps to 9.3% as a percentage of net sales. General and administrative expenses for the second quarter were $265.9 million, up 25% from the year-ago quarter.
Adjusted operating income, exclusive of the Alcohol Brands segment, jumped 21.5% to $667.9 million.
MNST’s Financial Health
This Zacks Rank #3 (Hold) company ended second-quarter 2025 with cash and cash equivalents of $1.93 billion and total stockholders' equity of $7.19 billion.
During the reported quarter, the company did not repurchase any shares under its current share repurchase program. As of Aug. 6, 2025, roughly $500 million was available for buyback under its existing share repurchase program.
Stocks to Consider in the Consumer Staples Space
Nomad Foods ((NOMD - Free Report) ), which manufactures frozen foods, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on average. The Zacks Consensus Estimate for Nomad Foods’ current financial-year earnings per share (EPS) indicates growth of 10.4% from the year-ago number.
Mondelez International ((MDLZ - Free Report) ), which is a leader in the snack food industry, currently carries a Zacks Rank #2 (Buy).
MDLZ delivered a trailing four-quarter earnings surprise of 9%, on average. The Zacks Consensus Estimate for MDLZ’s current financial-year sales indicates growth of 5.4% from the year-ago number.
Ingredion Incorporated ((INGR - Free Report) ), which is a provider of ingredient solutions specialized in nature-based sweeteners, starches and nutrition ingredients, currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for INGR’s current financial-year EPS is expected to rise 6.8% from the corresponding year-ago reported figure. INGR delivered a trailing four-quarter earnings surprise of 11.1%, on average.