Q1 2025 Monster Beverage Corp Earnings Call
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Speaker Change: Good day and welcome to the Monster Beverage Corporation first quarter 2025 financial results Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.
Unknown Executive: Good day and welcome to the Monster Beverage Corporation First Quarter 2025 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero.
Unknown Executive: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded.
Speaker Change: Ask a question you May press Star then one on the Touchtone phone to withdraw your question. Please press Star then two please note. This event is being recorded I would like now to turn the conference over to Mr. Rodney sacks, and Mr. Hilton Schlosberg co Ceos. Please go ahead.
Unknown Executive: I would like now to turn the conference over to Mr. Rodney Sacks and Mr. Hilton Schlosberg, co-CEOs. Please go ahead. Good afternoon ladies and gentlemen. Thank you for attending this call.
Speaker Change: Good afternoon, ladies and gentlemen, thank you for attending the school I'm Rodney Sachs Hilton Schlosberg, Vice Chairman and co Chief Executive Officer is on the call as is Tom Kelly, Our Chief Financial Officer, Tom Kelly will now read our cautionary statement.
Rodney Sacks: I'm Rodney Sacks, Hilton Schlosberg, our Vice Chairman and Co-Chief Executive Officer is on the call, as is Tom Kelly, our Chief Financial Officer.
Tom Kelly: Tom Kelly will now read our cautionary statements. Before we begin, I would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended. and are based on currently available information regarding the expectations of management with respect to revenues, profitability, future business, future events, financial performance, and trends.
Tom Kelly: Before we begin I would like to remind listeners that certain statements made during this call may constitute forward looking statements within the meaning of section 27, a of the Securities Act of $19 33, as amended and section 21 E of the Securities Exchange Act of $19 34 as amended.
Tom Kelly: And are based on currently available information regarding the expectations of management with respect to revenues profitability future business future events financial performance and trends.
Tom Kelly: Management cautions that these statements are based on our current knowledge and expectations and are subdued to certain risks and uncertainties, many of which are outside the control of the company that may cause actual results to differ materially from the forward-looking statements made during this call.
Tom Kelly: expectations and are subdued to certain risk and uncertainties, many of which are outside the control of the company that may cause actual results to differ materially from the forward looking statements made during this call.
Tom Kelly: Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, filed on February 28, 2025, including the sections contained therein, entitled, Risk Factors and Forward-Looking Statements for Discussion on Specific Risk and Uncertainties that May Affect Our Performance. The company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Tom Kelly: Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10K, filed on February 28, 2025.
including the sections contained therein and titled Rift Fectors and...
Tom Kelly: Forward-looking statements for discussion on specific risk and uncertainties that may affect our performance.
Tom Kelly: The company assumes no obligation to update any four-looking statements, whether as a result of new information, future events or otherwise
Tom Kelly: I would also like to note that an explanation of the non-GAAP measures, which may be mentioned during the course of this call, is provided in the notes and the condensed, consolidated statements of income and other information attached to the earnings release dated May 8, 2025. A copy of this information is also available on our website www.monsterbevcorp.com in the financial information section.
Tom Kelly: I would also like to note that an explanation of the non-GAAP measures which may be mentioned during the course of this call is provided in the notes and the condensed consolidated statements of income and other information attached to the earnings release dated May 8, 2025.
Tom Kelly: A copy of this information is also available on our website www.monsterbevcork.com in the financial information section.
Rodney Sacks: I would now like to hand the call over to Rodney. Thanks, Tom. Trends in our Nielsen measured categories have been accelerating since early 2025. Consumer purchases in our non-Nielsen measured categories are following the same trend. Growth opportunities in household penetration and per capita consumption, along with consumers' growing need for energy, are positive trends for the category. In the United States, the energy category, according to Nielsen, for the recently reported 13 weeks through April 26, 2025, grew at 10% versus the same period last year.
Rodney Sacks: I would now like to hand the call over to Rodney Sacks.
Rodney Sacks: Thanks Tom. Trends in our Nielsen Measured Categories have been accelerating since early 2025. Consumer purchases in our non-Nielsen Measured Categories are following the same trend.
Rodney Sacks: Growth opportunities in household penetration and per capita consumption, along with consumers growing need for energy or positive trends for the category.
Rodney Sacks: In the United States, the energy category, according to Nielsen, for the recently reported 13 weeks through April 26, 2025, grew at 10% versus the same period last year.
Rodney Sacks: in EMEA. The energy drink category, according to Nielsen, for our tracked markets for the recently reported 13-week period, which differs from country to country, grew at approximately 13.7% versus the same period last year on an FX-neutral basis. In APAC, the energy drink category, according to Nielsen and Intage, for the recently reported 13-week period, which differs from country to country, grew at approximately 13.6% versus the same period last year, also on an FX neutral basis. In LATAM, the energy drink category, according to Nielsen, for our tracked markets for the recently reported 13-week period, which differs from country to country, grew at approximately 15.7% versus the same period last year, FX neutral.
Rodney Sacks: In EMEI, the Energy Drink category, according to Nielsen, for our tracked markets for the recently reported 13-week period, which differs from country to country, grew at approximately 13.7% versus the same period last year on an FX neutral basis.
Rodney Sacks: In APEC, the energy drink category, according to Neilson and in Taj, for the recently reported 13-week period, which differ from country to country, grew at approximately 13.6% versus the same period last year also on an FX neutral basis.
Rodney Sacks: In letter, the energy drink category according to Nielsen for our track markets for the recently reported 13 week period
Rodney Sacks: versus the same period last year, FX Neutral. This does not include Argentina and Chile.
Rodney Sacks: This does not include Argentina and Chile. Net sales for the 2025 first quarter were negatively impacted by bottler distributor ordering patents, specifically in the United States and EMEA. Adverse changes in foreign currency exchange rates decreased sales in the alcohol brand segment, adverse weather, one less selling day in the 2025 first quarter, as well as uncertain economic conditions. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2025 first quarter of $57.3 million. On a foreign currency adjusted basis, net sales for the 2025 first quarter increased 0.7% or 1.9% excluding the alcohol segment.
Rodney Sacks: Ned Sales for the 2025 First Quarter were negatively impacted by Butler Distributor Ordering Patents, Specifically in the United States and EMIA.
Rodney Sacks: Adverse changes in foreign currency exchange rates, decreased sales in the alcohol brand segment, Adverse weather, one less selling day in the 2025 first quarter, as well as uncertain economic conditions.
Rodney Sacks: Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2025
Rodney Sacks: Reported net sales were $1.85 billion in the 2025 first quarter, or 2.3% lower than net sales of $1.9 billion in the comparable 2024 first quarter. Gross profit as a percentage of net sales for the 2025 first quarter was 56.5%, compared with 54.1% in the 2024 first quarter. The increase in gross profit as a percentage of net sales for the 2025 first quarter was primarily the result of pricing actions as well as supply chain optimisation in the quarter. Operating expenses for the 2025 first quarter were $478.2 million, compared with $485.1 million in the 2024 first quarter.
Rodney Sacks: The 20 to 25 first quarter was primarily the result of pricing actions as well as supply chain optimization in the quarter operating expenses for the 2025 first quarter with $478 2 million compared with $485 1 million in the 2020 full first quarter.
Rodney Sacks: As a percentage of net sales, operating expenses for the 2025 first quarter were 25.8%, compared with 25.5% in the 2024 first quarter. Distribution and warehouse expenses for the 2025 first quarter were $77.6 million, or 4.2% of net sales, compared to $94.4 million, or 5% of net sales in the 2024 first quarter. Operating income for the 2025 first quarter increased 5.1% to $569.7 million, from $542 million in the 2024 comparative quarter. Operating income for the 2025 first quarter exclusive of the alcohol brand segment increased 7.9% to $591.2 million, from $548 million in the 2024 first quarter.
Rodney Sacks: As a percentage of net sales operating expenses for the 2025 first quarter with 25, 8% compared with 25, 5% into 2020 full first quarter distribution and warehouse expenses for the 2025 first quarter with $77 6 million or four 2%.
Rodney Sacks: Net sales compared to $94 4 million or 5% of net sales into 2020 full first quarter operating income for the 2025 first quarter increased five 1% to 569 7 million from $542 million in the 2020 full comparative quarter operator.
Rodney Sacks: Income for the 2025 first quarter exclusive of the alcohol brands segment increased seven 9% to $591 2 million from $548 million in the 2020 full first quarter.
Rodney Sacks: The effective tax rate for the 2025 first quarter was 23, 4% compared with 23, 5% in the 2020 full first quarter net income in the 2025 first quarter was $443 million as compared to $442 million in the 2020 full comparable quarter diluted.
Rodney Sacks: The effective tax rate for the 2025 first quarter was 23.4% compared with 23.5% in the 2024 first quarter. Net income in the 2025 first quarter was $443 million as compared to $442 million in the 2024 comparable quarter. Diluted earnings per share for the 2025 first quarter increased 7.4% to $0.45 from $0.42 in the first quarter of 2024. Diluted earnings per share for the 2025 first quarter exclusive of the alcohol brand segment increased 10.2% to $0.47 from $0.42 in the first quarter of 2024. During the first quarter of 2025, the impact of tariffs on our operating results was immaterial.
Rodney Sacks: Earnings per share for the 2025 first quarter increased seven 4% to 45 cents from 42 cents in the first quarter of 2024 diluted earnings per share for the 2025 first quarter exclusive of the alcohol brands segment increased 10, 2% to 40.
Rodney Sacks: Seven from 42 cents in the first quarter of 2024.
Rodney Sacks: During the first quarter of 2025, the impact of tariffs on our operating results was immaterial in general while our concentrates are manufactured both in the U S and I alluded. The prison time production of our finished products takes place locally in our respective markets. The tariff landscape is complicated and dynamic we import.
Rodney Sacks: In general, while our concentrates are manufactured both in the US and Ireland at the present time, production of our finished products takes place locally in our respective markets. The tariff landscape is complicated and dynamic. We import some raw materials into the United States, export certain raw materials for local markets, and export limited quantities of finished products. We do not believe, based on our business model, that the current tariffs will have a material impact on the company's operating results. We will recognize tariffs on aluminum through the Higher Midwest Premium and are reviewing mitigation strategies across the business.
Rodney Sacks: Some raw materials into the United States exports sit in raw materials for local markets and the export limited quantities of finished products. We do not believe based on a business model that the current tariffs will have a material impact on the company's operating results, we will recognize tariffs on aluminum through the higher Midwest premium.
Rodney Sacks: And are reviewing mitigation strategies across the business for instance, Aaas are flavor and concentrate subsidiary is planning to establish a facility in Brazil, which should be operational later in 2026.
Rodney Sacks: For instance, AAF, our flavor and concentrate subsidiary, is planning to establish a facility in Brazil, which should be operational later in 2026. According to the Nielsen reports for the 13 weeks ended April 26, 2025, for all outlets combined excluding convenience and gas, sales in dollars in the energy drink category, including energy shots, increased by 13.8% versus the same period a year ago. According to the Nielsen reports, for the 13 weeks ended April 26, 2025, for all outlets combined, namely convenience, grocery, drug, mass merchandisers, sales in dollars in the energy drink category, including energy shots, increased by 10% versus the same period a year ago.
Speaker Change: According to the Nielsen reports for the 13 weeks ended April 26, 2020 funds for all outlets combined excluding convenience and gas sales in dollars in the energy drink category, including energy shots increased by 13, 8% versus the same period a year ago.
Speaker Change: According to the Nielsen reports for the 13 weeks ended April 26, 2025 for all outlets combined, namely convenience grocery drug mass merchandisers sales in dollars in the energy drink category, including energy shots increased by 10% versus the same period, a year ago sales of the company's energy drink brands, including <unk>.
Rodney Sacks: Sales of the company's energy drink brands, including Bang, were up 6.9% in the 13-week period. Sales of Monster increased 8.7%, sales of Rain were down 9.9%, sales of Nozz increased 0.8% and sales of Full Throttle decreased 1.5%. Sales of Red Bull increased 15.6%. According to Nielsen, for the four weeks ended April 26, 2025, sales in dollars in the energy drink category in the convenience and gas channel, including energy shots, increased According to Nielsen, for the four weeks ended April 26, 2025, the company's market share of the energy drink category in the convenience and gas channel, including energy shots, in dollars, decreased from 37.1% to 36.4%, including Bang.
Speaker Change: Bank were up six 9% in the 13 week period sales of Monster increased eight 7% sales of reign were down nine 9% sales of nausea increased four 8% and sells a full throttle decreased one 5% sales of Red Bull increased 15, 6%.
Speaker Change: According to Nielsen for the four weeks ended April 26, 2000, $25000 in the energy drink category in the convenience and gas channel, including energy shots increased eight 9% over the same period the previous year sales of the company's energy drink brands, including bank were up six 8% in the latest full.
Speaker Change: A weak period in the convenience and gas channel sales of Monster increased by eight 2% over the same period versus the previous year range sales decreased 6% North was up one 9% and full throttle was down one 7% sales of Red Bull were up 15, 2% According to Nielsen.
Speaker Change: For the four weeks ended April 26, 2025, the company's market share of the energy drink category in the convenience and gas channel, including energy shots in dollars decreased from 37, 1% to 36, 4%, including Bang Monster share decreased from 29, 2% to 29%.
Rodney Sacks: Monster's share decreased from 29.2% to 29%. Rain's share decreased 0.4 of a share point to 2.6%. Nozz's share decreased 0.1 of a share point to 2.5% and Full Throttle's share decreased from 0.7% to 0.6%. Bang's share was 1.7%. Red Bull's share increased two share points to 36.8%.
Speaker Change: Ryan's shares share decreased <unk> four of a share point to two 6% nauseated decreased <unk> one of a share point to two 5% and full throttle share decreased from <unk>, 7% to 6% Bank share was one 7% Red Bull share increased two share points to 30.
Speaker Change: $6 eight market share of certain competitors were as follows Celsius, seven 8% CFO three 5% goes to 9% five hour, 2.8%, allowing you to 7% and rock stars to 4%.
Rodney Sacks: Market share of certain competitors were as follows. According to Nielsen, for the four weeks ended April 26, 2025, sales in dollars of the coffee plus energy drink category, which includes our Java, Monster, and Killer Brew lines in the convenience and gas channel, decreased 1.2% over the same period the previous year. Sales of Java, Monster, including Killer Brew, were 4.4% higher in the same period versus the previous year. Sales of Starbucks Energy Coffee were 11.7% lower. Monster Coffee's share of the coffee plus energy drink category for the four weeks ended April 26, 2025, was 62.1%, up 3.4 points, while Starbucks Energy Coffee's share was 36.6%, down 4.4 points.
Speaker Change: According to Nielsen for the four weeks ended April 26, 2000, $25000 of the coffee plus energy drink category, which includes our Java Monster and killebrew lines in the convenience and gas channel decreased one 2% over the same period the previous year sales of Java Monster, including Killebrew were four 4%.
Speaker Change: We're in the same period versus the previous year sales of Starbucks energy coffee were 11, 7% lower monster coffees share of the coffee plus energy drink category for the full weeks ended April 26, 2025 was 62, 1% up three four points while Starbucks.
Speaker Change: Energy coffee share was 36, 6% down four four points.
Rodney Sacks: According to Nielsen, in all major channels in Canada, for the 12 weeks ended March 22, 2025, the energy drink category increased 9.4% in dollars. Sales of the company's energy drink brands increased 11.4% versus a year ago. The market share of the company's energy drink brands increased 0.7 of a point to 40.9%. Monster's sales increased 8.5% and its market share decreased 0.3 of a share point to 36.1%. Nasdaq's sales increased 12.4% and its market share increased 0.1 of a point to 1.2%. Full Throttle's sales increased 6.2% and its market share remained at 0.5 of a percent.
Speaker Change: What is your Nielsen.
Speaker Change: Major channels in Canada for the 12 weeks ended March 22, 2025, the energy drink category increased nine 4% in dollars.
Speaker Change: Sales of the company's energy drink brands increased 11, 4% versus a year ago the market share of the company's energy drink brands increased <unk> seven of a point to 49% Monster sales increased eight 5% and its market share decreased <unk> three of a share points to $36 one nauseous sale.
Speaker Change: Increased 12, 4% and its market share increased <unk>, one of a point to one 2% full throttle sales increased six 2% and its market share remained at 5% Cogent.
Rodney Sacks: According to Nielsen, for all outlets combined in Mexico, the energy drink category increased 9% for the month of March 2025. Monster's sales increased 15.3%. Monster's market share in value increased 1.7 points to 31.3% against the comparable period the previous year. Sales of Predator increased 22.2% and its market share increased 0.7 of a share point to 6.4%.
Speaker Change: According to Nielsen for all outlets combined in Mexico, the energy drink category increased 9% for the month of March 2020 for Monster sales increased 15, 3% monsters market share in value increased one seven points to 31, 3% against the comparable period the previous year sells a creditor increase.
Speaker Change: <unk> 22, 2% and its market share increased <unk> seven of a share point to six 4% the Nielsen statistics for Mexico cover single months, which is a short period that may often be materially influenced positively <unk> negatively by sales in the OXXO convenience chain, which dominates the market.
Rodney Sacks: The Nielsen statistics for Mexico cover single months, which is a short period that may often be materially influenced, positively and or negatively, by sales in the OXXO convenience chain which dominates the market. Sales in the OXXO convenience chain, in turn, can be materially influenced by promotions that may be undertaken in that chain by one or more energy drink brands during a particular month. Consequently, such activities could have a significant impact on the monthly Nielsen statistics for Mexico. According to Nielsen, for all outlets combined in Brazil, the energy drink category increased 33.7% for the month of March 2025.
Speaker Change: All in the OXXO convenience chain in turn can be materially influenced by promotions that may be undertaken in that chain by one or more energy drink brands. During a particular month. Consequently, such activities could have a significant impact on the monthly Nielsen statistics for Mexico. According to Nielsen for all outlets combined in Brazil the energy.
Speaker Change: Drink category increased 33, 7% for the month of March 2020 for Monster sales increased 26, 5% monsters market share in value decreased two six points to 45, 2% compared to March 2024, According to Nielsen for all outlets combined in Chile the energy.
Rodney Sacks: Monster's sales increased 26.5%. Monster's market share in value decreased 2.6 points to 45.2% compared to March 2024. According to Nielsen, for all outlets combined in Chile, the energy drink category increased 1.6% for the month of March 2025. Monster's sales decreased 3.5%. Monster's market share in value decreased 2.2 points to 40.7% compared to March 2024. According to Nielsen, for all outlets combined in Argentina, in March 2025, Monster's market share in value decreased 6.5 points to 52% compared to March 2024.
Speaker Change: Drink category increased one 6% for the month of March 2025 months of sales decreased three 5% monsters market share in value decreased two two points to 47% compared to March 2024, According to Nielsen for all outlets combined in Argentina in March 2025.
Speaker Change: Monsters market share in value decreased six five points to 52% compared to March 2024, we are the market share leader in Brazil, Chile and Argentina.
Rodney Sacks: We are the market share leader in Brazil, Chile and Argentina. I would like to point out that the Nielsen numbers in EMEA should only be used as a guide because the channels read by Nielsen in EMEA vary from country to country and are reported on varying dates within the month referred to from country to country. According to Nielsen, in the 13-week period ending March 30, 2025, Monster's retail market share in value, as compared to the same period the previous year, grew from 16.2% to 18% in Belgium, from 22.6% to 24.4% in the Czech Republic, from 26.9% to 27.7% in Denmark, from 32.1% to 33.2% in Great Britain, from 15.8% to 18.1% in Germany, from 6.6% to 11.1% in the Netherlands, from 32.8% to 36.9% in Norway, from 18.6% to 21.3% in Poland, and from 30.2% to 33.4% in the Republic of Ireland.
Speaker Change: I'd like to point out the Nielsen numbers in EMEA should only be used as a guide because the channels read by Nielsen in EMEA vary from country to country and are reported on varying dates within the month referred to from country to country. According to Nielsen in the 13 week period, ending March 32025 monsters retail market.
Speaker Change: Market share in value as compared to the same period. The previous year grew from 16, 2% to 18% in Belgium from 22, 6% to 24, 4% in the Czech Republic from 26, 9% to 27, 7% in Denmark from 32, 1% to 33.
Speaker Change: <unk>, 2% in Great Britain from 15, 8% to 18, 1% in Germany from six 6% to 11, 1% in the Netherlands for 32, 8% to 36, 9% in Norway from 18, 6% to 21, 3% in Poland and from 32.
Speaker Change: <unk> to 33, 4% in the Republic of Ireland.
Rodney Sacks: According to Nielsen, in the 13-week period ending March 30, 2025, Monster's retail market share in value, as compared to the same period the previous quarter, remained flat at 40.7% in Spain and 14.7% in Sweden. According to Nielsen, in the 13-week period ending March 30, 2025, Monster's retail market share in value, as compared to the same period from the previous year, declined from 32.2% to 27.4% in France and from 19.9% to 18.2% in South Africa. According to Nielsen, in the 13-week period ending February 28, 2025, Monster's retail market share in value, as compared to the same period the previous year, grew from 34.9% According to Nielsen, in the 13-week period ending February 28, 2025, the retail market share in value of Predator, also branded Fury in certain markets, as compared to the same period the previous year, grew from 9.8% to 11.9% in Egypt, from 34.3% to 42.1% in Kenya, and from 20.8% to 23.9% in Nigeria.
Speaker Change: According to Nielsen in the 13 week period, ending March 32024, monsters retail market share in value as compared to the same period the previous quarter remained flat at 47% in spine and 14, 7% in Sweden.
Speaker Change: According to Nielsen in the 13 week period, ending March 30, <unk> 2025 months of retail market share in value as compared to the same periods from the previous year declined from 32, 2% to 27, 4% in France and from 19, 9% to 18, 2% in South Africa. According to Nielsen in the 13 week period.
Speaker Change: Ending February 28, 2025 monsters retail market share in value as compared to the same period. The previous year grew from 34, 9% to 35, 9% in Greece and from 33.
Speaker Change: 3% to 31, 1% in Italy.
Speaker Change: According to Nielsen in the 13 week period, ending February 28, 2020 for the retail market share.
Speaker Change: In value a predator also branded fury in certain markets as compared to the same period. The previous year grew from nine 8% to 11, 9% in Egypt from 34, 3% to 42, 1% in Kenya and from 28% to $23 nine.
Rodney Sacks: We are pleased that in the 2025 first quarter, Monster gained market share in Belgium, the Czech Republic, Denmark, Great Britain, Germany, Greece, Italy, the Netherlands, Norway, Poland, and the Republic of Ireland. According to Cercana, for all outlets combined in Australia, the energy drink category increased 8.1% for the four weeks ending April 20, 2025. Monster's sales increased 22.2%. Monster's market share in value increased 2.8 points to 24.7% against the comparable period the previous year. Sales of Mother decreased 11.2% and its market share decreased two share points to 9.2%. According to Nielsen, for all outlets combined in New Zealand, the energy drink category increased 17.1% for the four weeks ending April 27, 2025.
Speaker Change: Sent in Nigeria, we're pleased that in the 2025 first quarter Monster gained market share in Belgium, Czech Republic, Denmark, Great Britain, Germany, Greece, Italy, the Netherlands, Norway, Poland, and the Republic of Ireland.
Speaker Change: According to Sukarna full outlets combined in Australia, the energy drink category increased eight 1% for the four weeks ending April 22025 Monster sales increased 22, 2% monsters market share in value increased two eight points to 24, 7% against the comparable period.
Speaker Change: The previous year sales of mother decreased 11, 2% and its market share decreased <unk> two share points to nine 2%.
Speaker Change: According to Nielsen for all outlets combined in New Zealand the energy drink category increased 17, 1% for the four weeks ending April 27, 2025 Monster sales increased 23, 9% monsters market share in value increased <unk> eight of a share point to 15, 5% against the comparable peer.
Rodney Sacks: Monster's sales increased 23.9%. Monster's market share in value increased 0.8 of a share point to 15.5% against the comparable period the previous year. Sales of Mother decreased 9.3% and its market share decreased 1.6 share points to 5.3%. Sales of Live Plus decreased 4.5% and its market share decreased 1 share point to 4.4%. According to Intaj in the Convenience Channel in Japan, the energy drink category increased 6.6% for the month of March 2025. Monster's sales increased 0.6 of a percent. Monster's market sharing value decreased 3.4 points to 56.1% against the comparable period the previous year. According to Nielsen, for all outlets combined in South Korea, the energy drink category increased 18.3% for the month of March 2025.
Speaker Change: The previous year sales of mother decreased nine 3% and its market share decreased one six share points to five 3% sells of lift plus decreased four 5% and its market share decreased one share points to four 4%. According.
Speaker Change: I'm going to indulge in the convenience channel in Japan, the energy drink category increased six 6% for the month of March 2020 for Monster sales increased six of 8% monsters market share in value decreased three four points to 56, 1% against the comparable period the previous year.
Speaker Change: According to Nielsen for all outlets combined in South Korea, the energy drink category increased 18, 3% for the month of March 2025 Monster sales increased 24, 8% monsters market share in value increased two eight points to 54, 7% against the comparable period the previous.
Rodney Sacks: Monster's sales increased 24.8%. Monster's market sharing value increased 2.8 points to 54.7% against the comparable period the previous year. Monster remains the market leader in Japan and South Korea.
Mark: Sure Mark.
Mark: <unk> remains the market leader in Japan, and South Korea.
Rodney Sacks: We again point out that certain market statistics that cover single months or four-week periods may often be materially influenced, positively and or negatively, by promotions or other trading factors during those periods. Net sales to customers outside the United States on a foreign currency adjusted basis increased 6.2% to $790.5 million in the 2025 first quarter. Reported net sales to customers outside the U.S. was $733.2 million, 35.9% of total net sales in the 2025 first quarter, compared to $744.1 million, or 39.2% of total net sales in the corresponding quarter in 2024. Foreign currency exchange rates had a negative impact on net sales in U.S.
Mark: We again point out that certain market statistics that cover single months or four week periods may often be materially influenced positively <unk> negatively by promotions or other trading factors during those periods knits.
Mark: Net sales to customers outside the United States on a foreign currency adjusted basis increased six 2% to $790 5 million in the 2025 first quarter reported net sales to customers outside the U S was $733 2 million 35, 9% of total net sales.
Mark: In the 2025 first quarter compared to $744 1 million or 39, 2% of total net sales in the corresponding quarter in 2020 for foreign currency exchange rates had a negative impact on net sales in U S dollars by approximately $57 3 million in the 2025 first quarter.
Rodney Sacks: dollars by approximately $57.3 million in the 2025 first quarter. In EMEA, net sales for the 2025 first quarter decreased by 2.6% in dollars but increased 2.1% on a currency neutral basis over the same period in 2024. Gross profit in this region as a percentage of net sales for the 2025 first quarter was 35.1% versus 34% in the same period in 2024. In Asia Pacific, net sales in the 2025 first quarter increased 10.4% in dollars and increased 16% on a currency neutral basis over the same period in 2024. Gross profit in this region as a percentage of net sales for the 2025 first quarter was 42.4% versus 42.6% in the same period in 2024.
Mark: Uh huh.
Mark: In EMEA net sales for the 2025 first quarter decreased by two 6% in dollars, but increased two 1% on a currency neutral basis over the same period in 2024 gross profit in this region as a percentage of net sales for the 2025 first quarter was 35, 1%.
Mark: This is 34% in the same period in 2024 in Asia Pacific net sales in the 2025 first quarter increased 10, 4% in dollars and increased 16% on a currency neutral basis over the same period in 2024 gross profit in this region as a percentage of net sales for the 2020 for first quarter.
Mark: Was 42, 4% versus 42, 6% in the same period in 2024 net sales in Japan in the 2025 first quarter decreased three 5% in dollars, but increased one 3% on a currency neutral basis in South Korea net sales in the 2025 first.
Rodney Sacks: Net sales in Japan in the 2025 first quarter decreased 3.5% in dollars but increased 1.3% on a currency neutral basis. In South Korea, net sales in the 2025 first quarter decreased 2.5% in dollars and increased 6.8% on a currency neutral basis as compared to the same quarter in 2024. In China, net sales in the 2025 first quarter increased 40.1% in dollars and increased 43.2% on a currency-neutral basis as compared to the same quarter in 2024. We remain optimistic about the long-term prospects for the Monster brand in China and are excited about Predator which is being rolled out to additional markets in China.
Mark: <unk> decreased two 5% in dollars and increased six 8% on a currency neutral basis as compared to the same quarter in 2024 in China net sales in the 2025 first quarter increased 41% in dollars and increased 43, 2% on a currency neutral.
Mark: This is compared to the same quarter in 2024, we remain optimistic about the long term prospects for the Monster brand in China and are excited about predator, which is being rolled out to additional markets in China.
Rodney Sacks: In Oceania, which includes Australia, New Zealand, Tahiti, French Polynesia, New Caledonia, Papua New Guinea and Guam, net sales increased 21.6% in dollars and increased 28.8% on a currency-neutral basis. In Latin America, including Mexico and the Caribbean, net sales in the 2025 first quarter decreased 3.1% in dollars, but increased 14.4% on a currency-neutral basis over the same period in 2024. Gross profit in this region as a percentage of net sales was 44.6% for the 2025 first quarter versus 42.8% in the 2024 first quarter. In Brazil, net sales in the 2025 first quarter decreased 5.3% in dollars and increased 13.4% on a currency neutral basis.
Mark: You know she Ana which includes Australia, New Zealand, Tahiti, French Polynesia, New Caledonia, Papua New Guinea, and Guam net sales increased 21, 6% in dollars and increased.
Mark: <unk> increased 28, 8% on a currency neutral basis.
Mark: In Latin America, including Mexico, and the Caribbean net sales into 2025 first quarter decreased three 1% in dollars, but increased 14, 4% on a currency neutral basis over the same period in 2024 gross profit in this region as a percentage of net sales was 44, 6%.
Mark: For the 2025 first quarter versus 42, 8% in the 2020 for first quarter.
Mark: In Brazil net sales in the 2025 first quarter decreased five 3% in dollars and increased 13, 4% on a currency neutral basis net sales in Mexico decreased four 7% in dollars and increased 14, 1% on a currency neutral basis in the 2025 first quarter.
Rodney Sacks: Net sales in Mexico decreased 4.7% in dollars and increased 14.1% on a currency neutral basis in the 2025 first quarter. Net sales in Chile decreased 24.2% in dollars and decreased 18.5% on a currency neutral basis in the 2025 first quarter. Net sales in Argentina increased 20.7% in dollars and increased 65.7% on a currency neutral basis in the 2025 first quarter.
Mark: Sales in Chile decreased 24, 2% in dollars and decreased 18, 5% on a currency neutral basis in the 2025 first quarter net sales in Argentina increased 27% in dollars and increased 65, 7% on a currency neutral basis in the 2025 first quarter.
Rodney Sacks: Monster Brewing continued to face challenges in the first quarter. We remain focused on optimising our personnel and facilities to support the current demand for our Monster Brewing portfolio and innovation pipeline. Net sales for the alcohol brand segment were $34.7 million in the 2025 first quarter, a decrease of approximately $21.4 million, or 38.1% lower than the 2024 comparable quarter, largely as a result of the launch of Nasty Beast Hard Tea in the first quarter of 2024. As planned, Michi, our newest flavoured beer innovation, is being shipped to distributors and retailers and is in the process of a national launch in two 24-ounce flavours, Michi Lime Gelada and Michi Tomato Michelada.
Mark: Monster Brewing continued to face challenges in the first quarter, we remain focused on optimizing our personnel and facilities to support the current demand for our monster brand portfolio and innovation pipeline niche cells for alcohol brands segment with $34 7 million in the 2025 first quarter a decrease of approximately.
Mark: The $21 4 million or 38, 1% lower than the 2024 comparable quarter largely as a result of the launch of Nasty Beast Hot tea in the first quarter of 2024 as planned meet our newest flavored via innovation is being shipped to distributors and retailers and he's in the process of a.
Mark: A national launch in 224 ounce flavors Michie launch Lauder and Mickey to monitor Mitchell order.
Rodney Sacks: We are planning to launch the beast in certain international markets, subject to regulatory approvals. We are planning for further innovation in Monster Brewing in the coming months. In the United States, in January, we launched Rainstorm Tropical, Bang Sour Ropes, and Monster Ultra Blue Hawaiian at retail. In February, we launched Juice Monster Viking Berry, Killer Brew Mean Bean, Killer Brew Loco Mocha, and Rain Total Body Fuel White Haze. In March, we launched Bang Any Means Orange. In Canada, during the first quarter of 2025, we launched Monster Energy Ultra Fantasy Ruby Red, Monster Rio Punch. Monster Java Irish Cream, Rain Total Body Fuel Sour Gummy Worm, Monster Reserve Peaches and Cream, Monster Rehab Green Tea, Rainstorm Guava Strawberry and Citrus Zest, and Bang Cotton Candy.
Mark: We are planning to launch the Beast in certain international markets subject to regulatory approvals.
Mark: We are planning for further innovation in months to brewing in the coming months.
Mark: In the United States in January we launched reign, Trumping Redstone tropical bank salad, Rubs and Monster Ultra Blue Hawaiian at retail in February we launched juice Monster Viking Berry, Killebrew mean, bean killebrew Loca Moca and reign total body fuel why ties in March we launched Bang.
Mark: Any means orange in Canada during the first quarter of 2025, we launched Monster energy Ultra fantasy Ruby Red Monster Rio Punch.
Mark: Monster Java Irish cream reign, total body fuel cell, a gummy worm Monster reserve Peaches, and cream monster rehab Green tea, rainstorm, guava, strawberry and citrus assist and bank cotton candy.
Rodney Sacks: In Latin America, during the first quarter of 2025, we launched a series of innovations within the ULTRA family. In January, we launched ULTRA Peach Equine in Chile. This was followed in March by the launch of ULTRA Fiesta in Brazil. In Puerto Rico, we launched Rain Tropical Storm, Rain Sour Gummy, and Java Caffe Latte. Lastly, we launched Pipeline Punch in Peru. In EMEA, in the first quarter of 2025, we launched Monster Green ULTRA. Sugar, Juiced Bad Apple, Juiced Rio Punch, Ultra Fantasy Ruby Red, Ultra Peach Aquene, Ultra Strawberry Dreams, Burn Guava, and Burn Orange Fire in certain countries in EMEA.
Mark: In Latin America during the first quarter of 2025, we launched a series of innovations within the Ultra family in January we launched Ultra Peachy-keen. Chile. This was followed in March by the launch of Ultra Fiesta in Brazil, and Puerto Rico, We launched reign tropical storm reign sell a gummy and Cafe Java Cafe Latte.
Mark: Lastly, we launched pipeline punch in Peru in EMEA in the first quarter of 2025, we launched Monster Green Altra.
Mark: Sugar.
Mark: <unk> bad Apple juice, Rio Punch Ultra fantasy Ruby Red Ultra Peachy-keen Ultra Strawberry dreams burn guava, and burn Orange fire in certain countries in EMEA additional launches are planned throughout EMEA and 2025 of various products in different countries.
Rodney Sacks: Additional launches are planned throughout EMEA in 2025 of various products in different countries. In Australia, during the month of March, we launched Monster Ultra Fantasy Ruby Red. During the first quarter of 2025, we launched Monster Ultra Fantasy Ruby Red in Japan, Monster Ultra Strawberry Dreams in South Korea, Monster Aussie Lemonade in Hong Kong and Taiwan, and Monster Pipeline Punch in Vietnam. Additionally, we remain optimistic about the long-term prospect for the Monster brand in China and India, and are excited about the incremental expansion of the Predator brand in these two countries. Notably, in China, we implemented the national rollout of Predator brand in all provinces.
Mark: In Australia during the month of March we launched month Monster Ultra fantasy Ruby Red during the first quarter of 2025, we launched Monster Ultra fantasy really in Japan Monster Ultra Strawberry Dreams in South Korea Monster also eliminate in Hong Kong, and Taiwan, and Monster pipeline punch in Vietnam.
Mark: Additionally, we remain optimistic about the long term prospects for the Monster brand in China, and India and are excited about the incremental expansion of the privilege of brand in these two countries, notably in China, we implemented the national rollout of credits a brand in all provinces during the 2025 first quarter.
Rodney Sacks: During the 2025 first quarter, no shares of the company's common stock were repurchased. As of May 8, approximately 500 million remained available for repurchase under the previously authorized repurchase program. We estimate that on a foreign currency-adjusted basis, April 2025 sales were approximately 16.7% higher than the comparable April 2024 sales, and 17.6% higher on a foreign currency-adjusted basis excluding the alcohol brand segment. We estimate that April 2025 sales on a non-foreign currency adjusted basis were approximately 15.3% higher than the comparable April 22 sales and 16.1% higher on a non-foreign currency adjusted basis excluding the alcohol brand segment.
Mark: No shares of the company's common stock were repurchased as of May eight approximately 500 million remained available for repurchase under the previously authorized repurchase program we.
Mark: We estimate that on a foreign currency adjusted basis April 2025 sales were approximately $16, 7% higher than the comparable April 2024 sales and $17, 6% higher on a foreign currency adjusted basis, excluding the alcohol brands segment, we have.
Mark: To meet that April 2025 sales on a non foreign currency adjusted basis were approximately $15, 3% higher than the comparable.
Mark: April 22 cells, and 16, 1% higher on a non foreign currency adjusted basis, excluding the alcohol brands segment.
Rodney Sacks: April 2025 had the same number of selling days as April 2024. We estimate that year-to-date sales through April 30, 2025, on a foreign-currency-adjusted basis, excluding the alcohol brands, were approximately 6.9% higher than the comparable period in 2024, and 5.8% higher on a foreign-currency-adjusted basis, including the alcohol brand segment. We estimate that... year-to-date sales through April 30, 2025 on a non-foreign currency-adjusted basis were approximately 3.3% higher than the comparable period in 2024 and 4.3% higher on a non-foreign currency-adjusted basis excluding the alcohol brand segment.
Mark: April 2025 has the same number of selling days as April 'twenty 'twenty four we estimate that year to date sales through April 32025 on a foreign currency adjusted basis, excluding the alcohol brands were approximately $6, 9% higher than the comparable period in 2024 and five.
Mark: 8% higher on a foreign currency adjusted basis, including the alcohol brands segment, we estimate that.
Mark: Year to date sales through April 32025 on a non foreign currency adjusted basis, we're approximately three 3% higher than the comparable period in 2024, and four 3% higher on a non foreign seek foreign currency adjusted basis, excluding the alcohol brands.
Mark: Segment.
Rodney Sacks: In this regard, we caution again that sales over a short period are often disproportionately impacted by various factors, such as, for example, selling days, days of the week in which holidays fall, timing of new product launches, the timing of price increases, the promotions in retail stores. Distributor incentives as well as shifts in the timing of production. In some instances, our bottlers are responsible for production and determine their own production schedules. This affects the dates on which we invoice such bottlers. Furthermore, our bottling and distribution partners maintain inventory levels according to their own internal requirements, which they may alter from time to time for their own business reasons.
Mark: This regard we caution again that sales over a short period are often disproportionately impacted by various factors such as for example, selling days days of the week in which holidays fall timing of new product launches the timing of price increases the promotions in retail stores distributor incentives as well as shifts in the timing of <unk>.
Mark: Duction in some instances our bottlers are responsible for production and determined that are unproductive schedules. This affects the dates on which we invoice such bottlers. Furthermore, our bottling and distribution partners maintain inventory levels. According to their own internal requirements, which then may also from time to time for their own business reasons. We.
Rodney Sacks: We reiterate that sales over a short period, such as a single month, should not necessarily be imputed to or regarded as indicative of results for a full quarter or any future period.
Mark: We reiterate that sales over a short period, such as a single month should not necessarily be in future to all guarded as indicative of results for a full quarter or any future period.
Rodney Sacks: In conclusion, I would like to summarise some recent positive points. The energy category continues to grow globally. We believe that household penetration continues to increase in the energy drink category. Growth opportunities in household penetration for capital consumption, along with consumers' need for energy, are positive factors for the category. We continue to expand ourselves in non-Nielsen measure channels. Globally, as measured by our scanner track data, consumer demand remains strong. In the United States, the energy category, as measured by Nielsen, accelerated through the quarter and remains strong in April. Similarly, monster sales at retail, as measured by Nielsen, accelerated through the quarter and remains strong in April.
Speaker Change: In conclusion I'd like to summarize some recent positive points. The energy category continues to grow globally. We believe that household penetration continues to increase in the <unk>.
Speaker Change: As you drink category growth opportunities in household penetration per capita consumption along with consumers need for energy are positive factors for the category. We continued to expand ourselves in non Nielsen measured channels glut.
Speaker Change: Globally as measured by <unk> scan attract daughter consumer demand remained strong in the United States the energy category as measured by Nielsen and accelerated through the quarter and remained strong in April Similarly monster sales at retail as measured by Nielsen accelerated through the quarter and remained strong in April.
Rodney Sacks: We continue to review opportunities for price increases domestically and internationally. Our AFF flavour facility in Ireland is now providing a large number of flavours to our EMEA region, enabling better service levels and lower landed costs to our EMEA region. The juice plant at our AFF facility in Ireland has now been completed. After trials, we expect the juice plant to be in production by mid-year. We're excited for our 2025 innovation pipeline globally. We are currently exploring opportunities for our alcohol products in certain international jurisdictions. We are pleased with the rollout of Predator and Fury, our affordable energy drink portfolio, in a number of markets internationally.
Speaker Change: We continue to review opportunities for price increases domestically and internationally.
Speaker Change: Flavors facility in Ireland, now, providing a large number of flavors to our EMEA region, enabling better service levels and lower landed cost to our EMEA region. The juice plant at our <unk> facility in Ireland has now been completed after trials, we expect the juice plant to be in production.
Speaker Change: By midyear.
Speaker Change: We're excited for our 2025 innovation pipeline globally. We are currently exploring opportunities for alcohol products in certain international jurisdictions. We are pleased with the rollout of predator in theory, our affordable energy drink portfolio and a number of markets internationally, we are proceeding with.
Rodney Sacks: We are proceeding with plans for further launches of our affordable energy brands.
Speaker Change: <unk> for the launches of our affordable energy brands.
Rodney Sacks: I would now like to open the floor to questions about the quarter. Thank you.
Speaker Change: Now I'd like to open the floor to questions about the quarter. Thank you.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys. If at any time. Your question has been addressed and you would like to withdraw it. Please press Star then two.
Unknown Executive: We will now begin the question and answer session.
Unknown Executive: To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.
Unknown Executive: If at any time your question has been addressed and you would like to withdraw it, please press star then two.
Unknown Executive: Due to time constraints, we ask that you ask one question only before rejoining the queue.
Speaker Change: Due to time constraints, we ask that you ask one question only before rejoining the queue. At this time, we will pause momentarily to assemble our roster.
Unknown Executive: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Our first question comes from community Tantra Wala of Jefferies. Please go ahead.
Kaumil Gajrawala: First question comes from Kaumil Gajrawala of Jeffreys, please go ahead. Hey guys, um... Hi.
Speaker Change: Hey, guys.
Hi.
Rodney Sacks: A couple of questions on timing. You mentioned a bit about supply chain optimization and maybe some purchase timing from bottlers having an impact on the Q1 number. Can you maybe provide some details on how much that was or maybe what's behind those comments? Yeah, I think, Kamil, if I can take this question, that we mentioned that the first quarter was impacted by bottler distributor ordering patents in the United States and EMEA. We cannot control how our bottlers order. They order according to their needs. And remember that in the early part of the quarter, there were significant closure days of distribution centers by a number of major bottlers.
Speaker Change: Couple a couple of questions on timing, you mentioned a bit about supply chain optimization, and maybe some purchase timing from bottlers, having an impact on the Q1 number can you maybe provide some details on how much that was made.
Speaker Change: Maybe you want to.
Speaker Change: What's behind those comments.
Speaker Change: Yeah, I think Camille.
Speaker Change: I can take this.
Speaker Change: A question that you know.
Speaker Change: We mentioned that the.
Speaker Change: The first quarter was impacted by bottler and distributor ordering patents in the United States and EMEA, we cannot control how our partners order the order according to their needs and remember that.
Speaker Change: In the early part of the quarter there were significant closure days of distribution centers by a number of major bottlers. So you had an interesting situation in the quarter where the.
Rodney Sacks: So you had an interesting situation in the quarter where the numbers were impacted by bottle distribution, distributor ordering patterns. We had adverse changes in Forex, as you know, decreased sales in the alcohol brand segment, and the weather, which I mentioned earlier, there was one less selling day. And against this whole backdrop, you have these very difficult, uncertain economic conditions. So that was a tale of the quarter.
Speaker Change: The numbers were impacted by broader distribution distributor ordering patterns.
Speaker Change: We had adverse changes in Forex as you know decreased sales in the alcohol brand segment and the weather, which I mentioned earlier, there was one less selling day.
Speaker Change: And against this whole backdrop you have.
Speaker Change: Very difficult uncertain economic conditions.
Speaker Change: So that's that was a tale of the quarter, but then we tend you to April April was a really robust month and we showed what the results would have been where the numbers cumulative sales numbers cumulative to April.
Rodney Sacks: But then we turned you to April, where April was a really robust month. And we showed what the results would have been were the numbers cumulative, the sales numbers cumulative to April. So that's a picture of the quarter. April very strong, very robust, as we would have expected, given what had happened in the quarter. You've got the cumulative numbers to April. And then with regard to supply chain optimization, that really impacted gross profit. And that together with the benefits in selling prices and really benefited the gross profit line.
Speaker Change: So.
Speaker Change: That's a picture of the of the quarter April very strong very robust as we would have expected given what had happened in the quarter, you've got the cumulative numbers to April.
Speaker Change: And then with regard to supply chain optimization that really impacted gross profit.
Speaker Change: And.
Speaker Change: That together with the.
Speaker Change: The benefits in selling prices and a really really benefited the gross profit line.
Speaker Change: Our next question comes from Dara <unk>.
Dara Mohsenian: Our next question comes from Dara Mohsenian of Morgan Stanley. Please go ahead. Hey, good afternoon, guys. So moving beyond the shipments, Rodney, you sounded pretty enthusiastic about the underlying trends we're seeing in retail takeaway and the Nielsen numbers. So just given the broader macro situation, just wanted to get any perspective on if you think we're seeing any macro impact on the category, either in the U.S. or internationally, again, looking at retail sales.
Dara: <unk> Morgan Stanley.
Speaker Change: Go ahead.
Dara: Hey, good afternoon guys.
Speaker Change: So moving beyond the shipments Rodney you sounded pretty enthusiastic about the underlying trends, we're seeing in retail takeaway in the Nielsen numbers. So just given the broader macro situation just wanted to get any perspective on what you think we're seeing any macro impact on the category either in the U S or internationally.
Speaker Change: Again looking at retail sales and then also maybe just in the U S. Given we've seen the category rebound, while a number of other consumer CPG segments have dropped off and we've seen category weakness elsewhere. Just curious for your perspective on some of the drivers of the energy category rebound.
Dara Mohsenian: And then also maybe just in the U.S., given we've seen the category rebound while a number of other consumers, CPG segments have dropped off and we've seen category weakness elsewhere, just curious for your perspective on some of the drivers of the energy category rebound and how sustainable they might be going forward. Thanks.
Speaker Change: And how sustainable they might be going forward.
Speaker Change: Thanks.
Rodney Sacks: I mean, I think, you know, Hilton will give you his view on it. I think that, you know, the important thing is that you've just got to look at the depletions, you look at the Nielsens. At the end of the day, they are a much more accurate and a more balanced reflection of the health of the brands that we have, the health of our sales, and health of the category. And I think those have shown increases, and you've just got to, you know, and that's why we pointed to this mismatching. Ultimately, though, it's the consumer demand that tells ultimately, you know, where things are going to be headed.
Speaker Change: I mean I think that.
Speaker Change: Hilton.
Speaker Change: Well.
Speaker Change: Give you his view on it I think.
Speaker Change: The important thing is that you've just got to look at the Depletions you look at the Nielsen's at the end of the day. They are a much more accurate and a more balanced reflection of the health of the brands that we haven't helped about sales and health of the category and I think those have shown increases and you've just got to you know.
That's why we pointed to this mismatches ultimately, though it's the consumer demand that tells ultimately where things are going to be hit it and those all continue to improve through the quarter and continued to improve through April and that's why we did and as Hilton mentioned it'd be really giving you the numbers for four months, which shows a continuing trend and it's similar.
Rodney Sacks: And those are continuing to improve through the quarter and continue to improve through April, and that's why we did, and as Hilton mentioned, we've really given you the numbers for four months, which shows that continuing trend. And it's similar even in, you know, in overseas markets as well. You've seen some of the Nielsen numbers, you've seen some of the reported numbers of the bottlers. Again, I think, look to the end demand, which is more better represented by the Nielsens and depletions, even from our bottlers, than our numbers, which are a little more choppy. And we can't really give you any more color on it than that.
Speaker Change: Even in.
Speaker Change: In overseas.
Speaker Change: Overseas markets as well you've seen some of the Nielsen numbers, you've seen some of the reported numbers of the bottlers again, I think look to the end demand which is more.
Speaker Change: Data represented by the Nielsen's and Depletions, even from our bottlers than all the numbers, which are a little more choppy and but we cant really give you any more color on it than that but other than to say the category is healthy we had some slowdown a little bit last year. We also are seeing some improved numbers and it's an affordable luxury at the end of the day.
Rodney Sacks: But other than to say, the category is healthy, we had some slowdown a little bit last year, we also are seeing some improved numbers. And you know, it's an affordable luxury at the end of the day. And, you know, the numbers continue to be strong. And we are, for that reason, you know, we are very, very positive, you know, about, you know, our prospects going forward in the rest of the year.
Speaker Change: And the numbers continue to be strong and we hope for that reason you know we are very very positive about.
Speaker Change: Our prospects going forward and the rest of the year.
Speaker Change: Yes, I think that's right I mean, if you look at for example, the bottlers that have reported and do report energy sales CCP showed an increase of 12%.
Speaker Change: Atlantic in the quarter showed an increase of 26% and then just of left field. We had a situation in Korea with LG reported an increase of 45, 8%. So yeah. We've seen we've seen a lot of.
Rodney Sacks: So we've seen a lot of positive trends in the bottlers. We had these closures of distribution centers. And from that perspective, if you analyze the quarter and you take into account the direct business that we do, and we do a fair amount of direct business, but the majority, of course, is done through the distributors, you'll see that the trend in the direct business was in line with what we would have expected. And if you look at the sales to the bottler distributors, there was a bit of choppiness in those numbers.
Speaker Change: A positive change the bottlers, we had these closures of our.
Speaker Change: Distribution centers and from that perspective, if you annualize the quarter and you take into account the direct business that we do and we do a fair amount of direct business that you know the majority of course is done through the distributors, you'll see that the trend in the direct business was a was it in.
Speaker Change: Along with what we would've expected and if you look at the.
Speaker Change: Sales through the sales to not sell through for the sales to the ER.
Speaker Change: The bottler distributors, they was a bit of choppiness in those numbers.
Filippo: The next question comes from Filippo <unk> of Citi. Please go ahead.
Filippo Falorni: The next question comes from Filippo Falorni of Citi. Please go ahead. Hi, good afternoon, everyone. I wanted to ask on gross margins, clearly very solid performance in Q1. You mentioned the drivers really being pricing and supply chain optimization. How should we think about those contributions going forward? And then on the aluminum side, clearly the Midwest premium has gone up quite a bit as a result of the tariff. So last quarter, you mentioned you were pretty well hedged in 2025. Can you give us an update on your hedging and potential mitigation action for the Midwest premium?
Filippo: Hi, good afternoon, everyone.
Filippo: I wanted to ask on gross margin clearly very solid performance in Q1, you mentioned the drivers really being pricing and supply chain optimization, how should we think about those contribution going forward and then on the aluminum side clearly the Midwest opinion had gone up quite a bit.
Filippo: As a result of the tariff so last quarter. You mentioned you were pretty well hedged in 2025 can you give us an update on your hedging and potential mitigation action, Florida Midwest opinion. Thank you yes.
Tom Kelly: Thank you.
Tom Kelly: Yeah, so we use a ladder approach for hedging. And it's very difficult and it's somewhat expensive to hedge the Midwest premium. So to a limited degree, we are hedged with certain volumes in the Midwest premium. But we nicely hedged on metal, but as all things happen, metals come down. So what we're happy about is the fact that we try and mitigate our risk. That's the objective of our hedging program. We don't always win, but we mitigate our risk. And that is very important. We don't leave ourselves exposed.
Speaker Change: Yes, so we use a ladder approach.
Filippo: Hedging and.
Filippo: It's very difficult.
Filippo: And it's somewhat expensive to hedge the Midwest premium.
Filippo: To a limited degree we are hedged with certain volumes in the.
Filippo: Midwest premium, but we are you know we nicely hedged on metal, but as you know as all things happen metals come down.
Filippo: What we are happy about is the fact that we we try and mitigate that risk. That's the objective of our hedging program, we don't always win but.
Filippo: But we mitigate our risk and that is very important we don't leave ourselves exposed.
Tom Kelly: So, talking about gross margins, you know, looking forward, and you actually answered the question yourself, because yes, we are seeing an impact in the Midwest premium, yes, we are seeing certain materials going up, so I wouldn't expect that the second quarter margin will be as high as the first quarter margin. And let me leave it as that because we don't give guidance, but I think you can read into what I'm saying.
Filippo: So talking about gross margins looking forward and you actually answer the question yourself because yes, we are seeing an impact in the Midwest premium, yes, we are seeing certain materials going up so.
Filippo: So I wouldn't expect that the second quarter margin will be as high as the first quarter margin.
Filippo: And maybe leave it as that because we don't give guidance, but I think you can read into it into what I'm, saying.
Speaker Change: Our next question comes from Bonnie Herzog of Goldman Sachs. Please go ahead.
Bonnie Herzog: Our next question comes from Bonnie Herzog of Goldman Sachs. Please go ahead. All right. Thank you. Hi, everyone.
Bonnie Herzog: Alright, Thank you hi, everyone.
Rodney Sacks: Bonnie, we never thought you'd get on. What's going on? Well, you met me on earlier. I'm here waiting patiently.
Speaker Change: I never thought you'd get on what's going on.
Bonnie Herzog: And earlier I'm here waiting.
Speaker Change: But I I just have a couple of follow up questions on your topline.
Bonnie Herzog: But I just have a couple of follow-up questions on your top line. You did give a lot of color, but first I'd be curious to hear, you know, how much lower were your reported sales during the quarter versus, you know, maybe your internal expectations? And then second, curious about your innovation pipeline. You know, are there any shipment timing impacts on innovation to consider in Q1 maybe versus Q2? I mean, you called out a lot. You highlighted a lot of innovation. So should we assume you have more innovation rolling out during the first half of this year versus the second half?
Speaker Change: They give a lot of color, but first I'd be curious to hear how much lower were you reported sales during the quarter versus maybe your internal expectations and then second.
Speaker Change: Curious about your innovation pipeline, yeah are there any shipment tiny impact on innovation that considering Q1, maybe versus Q2.
Speaker Change: You called out a lot you highlighted a lot of innovation. So should we assume you'll have more innovation rolling out during the first half of this year versus the second half or is there a lot more planned for later this year. Thank you.
Rodney Sacks: Or is there a lot more planned for later this year?
Rodney Sacks: Thank you. There was more innovation rolling out in Q1 than in Q2, but it does take time. One of the great successes we've been able to achieve with Ultra Blue Hawaiian and with Vice Guava was we were able to get products on the shelves a lot quicker than ordinarily we would have. So you will see that there will continue to be an acceleration in distribution, but Q1 would see more innovation in sales than in Q2. And of course, you know, there's some loading that happens as the distributors get ready for the innovation that's coming in the quarter.
Speaker Change: There was more innovation rolling out in Q1 than in Q2, but it does take time.
Speaker Change: One of the great successes, we've been able to achieve with ultra Bill Lyon and with with last quarter, we were able to get product on the shelves a lot quicker than ordinarily we would have.
Speaker Change: So you will see that it will continue to be an acceleration in distribution.
Speaker Change: But.
Speaker Change: Q1, we'd see more innovation.
Speaker Change: In sales and in Q2.
Speaker Change: And of course Theres some loading.
Speaker Change: That happens as the distributors get ready for for the innovation that's coming in in the quarter.
Speaker Change: Just to add just on the second half of the year.
Rodney Sacks: Just to add, just on the second half of the year, we do have some innovation planned for the fall, so there will be also some innovation in the second half as well.
Speaker Change: We will we do have some innovation planned for.
Speaker Change: For the full so they will be also some innovation in the sector write off as well correct.
Kevin Grundy: Our next question comes from Kevin Grundy of BNP Paribas. Please go ahead.
Kevin Grundy: Our next question comes from Kevin Grundy of BNP Paribas. Please go ahead.
Kevin Grundy: Great. Thanks, Good evening guys.
Kevin Grundy: Two part question for me.
Speaker Change: And their related I'd like to get your thoughts on pricing dynamics in the category. Your key competitor has not followed at this point and I Wonder how concerning it is for you competitively and then related to that just how you think about your overall level of satisfaction from a market share perspective, and I ask that in the <unk>.
Kevin Grundy: Context that your value share.
Kevin Grundy: The up here sequentially I know that's been encouraging to the market. The flipside is your volume shares off and that's declining you're just not seeing the volume uplift naturally there's some demand elasticity with the pricing that you've taken so two part question sort of overarching views on the pricing dynamics in the category and then secondarily your overall level of satisfaction with what you're seeing in the U.
Speaker Change: From a market share perspective, so thank you for that guys I appreciate it.
Kevin Grundy: Yeah, Kevin if I, if I could address that firstly with regard to pricing we are always looking at opportunities.
Kevin Grundy: The market based on various factors, we have and run our own play so.
Kevin Grundy: What the competitors doing what they've done to really doesn't impact.
Kevin Grundy: Our decision and.
Kevin Grundy: If you look at energy today, there's a huge value proposition on energy versus carbonated soft drinks because.
Traditionally you saw that there was a big divide between carbonated soft drinks and in energy and now with the increases in carbonated soft drinks and the single serve carbonated soft drinks youll see that that gap has dramatically reduced so there are opportunities we'll consider them.
Kevin Grundy: And.
Kevin Grundy: We'll evaluate them as time comes we said that in Europe and in other parts of the World will continue to evaluate pricing as we will in the United States and then regarding share obviously.
Speaker Change: Saying that we're very proud people here and our objective is to increase and regain share I mean, we just had a huge sales rally in.
Speaker Change: For our sales organization and that was one of the major factors on the agenda was.
Speaker Change: Gearing is that a part of a place in his mind is.
Speaker Change: To.
Speaker Change: To regain market share, we're very aware of it and we believe we've you know we've got good plans to be able to accommodate it we've got.
Speaker Change: It's a great innovation in the pipeline and.
Speaker Change: We've also got I understand that encouraging accelerating sales and volume changes in the United States are really encouraging despite the price increase that we took so all in all I think that you know we will.
Speaker Change: We'll do it we can and move forward.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Mr. Rodney sacks for any closing remarks.
Unknown Executive: This concludes our question and answer session.
Rodney Sacks: I would like to turn the conference back over to Mr. Rodney Sacks for any closing remarks. On behalf of Monster, I'd like to thank everyone for their continued interest in the company.
Rodney Sacks: On behalf of Monster I'd like to thank everyone for their continued interest in the company.
Rodney Sacks: I would like to just mention that in my remarks on the April sales, I may have misadvertently referred to the comparable April as April 22, as opposed to April 24, just to clarify that. We continue to believe in the company and in our growth strategy and remain committed to continuing to innovate, develop and differentiate our brands and to expand the company both at home and abroad and in particular capitalizing on our relationship with the Coca-Cola bottler system. We believe that we are well positioned in the beverage industry and continue to be optimistic about the future of our company.
Speaker Change: I would like to just point to mention that in the mono marks on the April cells.
Speaker Change: I have visibility referred to the comparable April as April 'twenty, two as opposed to April 24, just so that you just to clarify that.
Speaker Change: We continue to believe in the company and in our growth strategy and remain committed to continuing to innovate develop and differentiate our brands and to expand the company both at home and abroad and in particular capitalizing on our relationship with the Coca Cola Bottler system.
Speaker Change: We believe that we are well positioned in the beverage industry and continue to be optimistic about the future of our company.
Rodney Sacks: One thing I would just like to perhaps just spend a minute on is to just say to you that you know, as most of you are aware, I have decided to step back from my position as co-CEO and that will happen after the Sheldon meeting on the 12th of June. And so this will probably be my last meeting in which I will take in my capacity as co-CEO. But that's been 30 years and I wanted to thank everybody. It's been really a great privilege to be in this position, to have dealt with you guys, have taken these meetings and been involved in every aspect.
Speaker Change: One thing I would just like to perhaps just spend a minute on us too.
Speaker Change: Just say to you that you know.
Speaker Change: Most of you are aware.
Speaker Change: <unk> decided to step back from our position as co CEO.
Speaker Change: And that will happen on after the shelter meeting on the 12th of June.
Speaker Change: And so this will probably be my last meeting, which I will take in my capacity as co CEO.
Speaker Change: But.
Speaker Change: That's been 30 years and I wanted to thank everybody has been really.
Speaker Change: Great privilege to.
Speaker Change: Be in this position to to have dealt with you guys have taken these meetings and been involved in every aspect and I want to thank you the analysts and the investors for the support and co.
Rodney Sacks: And I want to thank you, the analysts and the investors, for the support and confidence you've had in us, in me and the whole executive team. And you know, I will still be involved as chairman but won't be involved in my current position and look forward to continuing to, you know, having a relationship with everybody. But things, you know, everything in life moves on and I just want to thank you all for that. Thank you very much for your attendance and I will probably speak to you guys at the annual Sheldon meeting in June and then we'll move forward from there.
Speaker Change: <unk> <unk> heading in.
Speaker Change: Me and the whole executive team.
Speaker Change: And.
Speaker Change: I will still be involved as chairman, but what would be involved as a.
Speaker Change: Our current position and look forward to continuing to.
Speaker Change: Having a relationship with it with everybody, but things you know.
Speaker Change: Everything in life moves on and I just want to thank you all for that thanks.
Speaker Change: Thank you very much for your attendance and we'll probably speak to you guys at the annual shareholders meeting in June.
Speaker Change: And then we'll move forward from from there thanks very much.
Unknown Executive: Thanks very much.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Unknown Executive: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change: [music].
Speaker Change: [music].