Monster Beverage Corporation Q2 FY2025 earnings call

• Strong financial results: Q2 net sales reached $2.11 billion, a quarterly record, with net sales up 11.1% vs Q2 2024. Gross profit, operating income, etc., growth outpaced net sales growth. • Global energy drink category: Healthy with accelerating growth; household penetration increasing. • U.S. and Canada sales: Net sales up 8.6% in Q2 2025. Led by Monster Energy Ultra family; innovation driving performance. • International sales: Net sales outside U.S. on foreign currency adjusted basis up 16.5% to $869.3 million. EMEA, APAC, LATAM performance details. • Innovation: Plans for new flavors (e.g., Full Sugar Monster Energy Electric Blue, Ultra Wild Passion), product launches (e.g., Monster Energy Lando Norris Zero Sugar in Texas/Nevada/California), and new visual identity for Ultra line. • Supply chain and tariffs: Tariffs had immaterial impact in Q2 2025, but expected to have modest impact in Q3; mitigation strategies in place.

Monster Energy Drinks segment: Net sales increased 11.2% to $1.94 billion in Q2 2025 from $1.74 billion in Q2 2024. Strategic Brands segment: Net sales increased 18.9% to $129.9 million in Q2 2025 from $109.2 million in Q2 2024. Alcohol Brands segment: Net sales decreased 8.6% to $38 million in Q2 2025 from $41.6 million in Q2 2024. Reported net sales outside the U.S. were 41% of total net sales in Q2 2025.

• Planning selective price adjustments in U.S. during Q4 2025. • Launch plans: New Full Sugar Monster Energy flavors (Electric Blue, Orange Dreamsicle), Juiced Monster Bad Apple, Monster Energy Ultra Wild Passion in fall. • International launches: Monster Energy Lando Norris Zero Sugar in Texas/Nevada/California, Reign Storm in Japan Q3 2025.

• Tariff landscape is complicated and dynamic, may have modest impact in Q3 2025. • Market statistics for single months can be materially influenced by promotions/trading factors. • Adverse weather, production challenges in Latin America affecting sales.

Q: Gross margin performance was strong. Discuss sustainability of drivers, tariff pressure, and U.S. pricing.

A: Price increase depends on packaging channel; in discussions with bottlers and customers. Modest tariff pressures in Q3; hedging strategy in place for Midwest premium.

Q: Supply chain optimization and category strength sustainability.

A: Good balance between own production and co-packing; category growth driven by innovation, functionality, and alcohol trends.

Q: Quarter-to-date growth, pull forward, category sustainability.

A: No guidance given; discussed past category dynamics (e.g., pre-election, inflation) and future innovation.

Q: Case growth vs revenue growth, price per case.

A: Geographic mix, product mix, sales mix contributed to lower price per case.

Q: Ultra line visual identity.

A: New visual identity for Ultra line to better merchandise, using viral campaigns for Zero Ultra.