Monster Beverage Corporation has reported 'record' net sales of $1.70 billion (€1.54 billion) in the first quarter of 2023, up 11.9%, from net sales of $1.52 billion (€1.38 billion) in the 2022 comparable period.
Gross profit as a percentage of net sales was 52.8% in the first quarter of 2023, up from 51.1% in the first quarter of 2022, driven by pricing actions, decreased freight-in costs and decreased aluminium can costs, the company said.
Other Quarterly Highlights
The energy drinks firm's net sales to customers outside the United States increased 12.6%, to $622.9 million (€566 million), in the period, up from $553.4 million (€503 million) in the first quarter of 2022.
Net sales to customers outside the United States, on a foreign currency adjusted basis, increased 21.9% year-on-year.
Monster said it implemented pricing actions in the United States and certain other international markets in 2022 and continued to implement price increases in certain international markets in the first quarter of 2023, all of which positively impacted gross profit margins.
“We are pleased to report another quarter of continued revenue growth with record sales for our first fiscal quarter, although the quarter was again adversely impacted by the strength of the United States dollar," said Hilton H Schlosberg, vice chair and co-chief executive officer.
Gross profit as a percentage of net sales, excluding gross profit for the company’s Alcohol Brands segment, increased on a sequential quarterly basis to 53.6% in the first quarter, from 52.5% in the fourth quarter of 2022 and 51.9% in the 2022 third quarter.
Schlosberg added, “Gross profit margin percentages continued to increase on a sequential quarterly basis, primarily as a result of pricing actions, decreased freight-in costs and decreased aluminium can costs, as well as the moderation of certain other challenges in our supply chain. The increases in certain ingredients and other input costs, as well as co-packing fees, remain challenging."