Q2 2025 Monster Beverage Corp Earnings Call

Good day and welcome to the Monster Beverage Company, second quarter, 2025 conference call.

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I would now like to turn the conference over to Helen slosberg chief executive officer. Please go ahead, good afternoon, ladies and gentlemen.

Thank you for attending this call. I'm Hilton, suspect Vice, chairman and chief executive officer. Also on the call, Tom Ketty, our Chief Financial Officer. Emily Jerry, our chief commercial officer of gearing, our chief growth officer guy, calling our president of EMA. And as she honors our Pacific and Mark astrakhan, a senior VP of investor relations and corporate development Mark will now read our cautionary statement. 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.

Management. Cautions, that these statements are based on our current knowledge and expectations and our subject 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.

Please refer to our filings with the Security and Exchange Commission, including our most recent annual report on form. 10K filed on February, 28th, 2025, and quarterly report on form 10q. Including the sections contained, therein entitled, risk factors and forward-looking statements for discussion on specific risks 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,

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 in the condensed Consolidated, statements of income and other information attached to the earnings release dated August 7th, 2025 a copy of this information is also available on our website, www, roster bevcorp.

Calm, in the financial information section. Please also note that scanner data which was previously provided on earnings calls is now included in an exhibit filed, with our 8K, we point out that certain Market statistics, that cover single months were 4-week periods. May often be materially influenced positively, or negatively by promotions or other trading factors during those periods. I would now like to hand the call over to Hilton, schlass good afternoon and thank you for joining us. Well piece to report yet another quarter of strong financial results and cash generation. In fact, our second coordinate sales of 2.11 billion dollars.

We achieved a quarterly record that crossed the $2 billion threshold for the first time in the company's history, with net sales increasing 11.1% compared with Q2 2024. In addition, the percentage growth rates in reported gross profit, operating income, net income, and earnings per share all outpaced our growth rate in net sales.

Overall, the global energy drink category remains healthy with accelerating growth.

That appealed to an increasingly Broad and loyal consumer base and affordable value offerings. In addition to premium offerings,

In the United States. According to Nielsen for the Recently reported 13 week period, through July, the 26th, 2025 sales in dollars in the energy. Drink category, including energy shots for all Outlets combined, namely, convenience, grocery drug, Mass merchandisers increased by 13.2%, versus the same period. A year ago.

Trends in our us business remain solid with continued acceleration from early 2025.

In EMA, the energy drink category, according to Nelson, for our track markets. For the Recently reported 13 week, period, which differ from country to country grew at approximately 15.4% versus the same period last year FX neutral

In APAC, the energy drink category, according to Nielsen, the Conan intage for our track channels for the Recently reported 30 week period, which differ from country to country grew at approximately 20.9% versus the same period last year, FX neutral in that time, the energy being category, according to Nelson, for our track markets for the 3 months, ended June 30 2025, good approximately, 13.9% versus the same period last year.

Growth remains healthy in local currencies across EMA, asia-pacific and Latin America.

A net sales to customers outside the United States Rose to approximately 41% of total reported. Net sales in the 2025 second quarter.

We believe our portfolio of energy drink offerings are well positioned to participate in the growing Global energy drink category appending to a broad range of consumers, across geographies price points, and need States Innovation, continues to be an important contributor to category growth, but we maintain a robust Innovation pipeline. Our marketing messaging continues to resonate globally. Highlights from the second quarter include the continued successes of our sponsorship and endorsement activities, including our McLaren Formula 1 team, sponsorship, UFC and MMA summer X Games Supercross and Motocross and Stage Coast Music Festival, among others.

Relatedly, we successfully introduced Monster Energy, Lando Norris, zero, sugar, and select emea markets in the second quarter with a broader introduction plan for the second half of the year as an aside, the McLaren Formula 1 team won again this past weekend.

Folding on the successes of a billion dollar Ultra Brand family, we've introduced a new visual brand identity.

To differentiate and enhance visibility in store in particular, we have established new merchandising platforms including install coolers around a zero sugar flavors, Unleashed proposition. This will be followed by digital media campaign in the third quarter, adding to the most recent viral explosion on social media for our Flagship Zero Ultra energy. Drink, we also have further Ultra Innovations planned, including the launch of ultra wild passion in the fourth quarter.

during the second quarter of 2025, the impact of tariffs on our operating results of immaterial in general, while our flavors, and 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,

Despite the material impact on our business. In the second quarter, the Tariff landscape continues to be 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. However, we expect it will have a modest impact.

in the third quarter of 2025,

we will continue to recognize tariffs on aluminum through the higher Midwest, premium and continue to implement mitigation strategies across the business, where possible

Second quarter, the changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2025 second quarter of 5 million. Net sales on a foreign currency adjusted basis. Increased 11.4% in the 2025 second quarter.

Net sales, excluding the alcohol brand segment on a foreign currency adjusted basis. Increased 11.8% in the 2025, second quarter excluding the alcohol brand segment from a reported results is purely illustrative as it remains part of ongoing operations.

Net sales for the company's Monster Energy, Drink segment, increased 11.2% to 1.94 billion dollars for the 2025. Second quarter from 1.74 billion dollars for the 2024. Second quarter, net sales on a foreign currency adjusted basis for the Monster Energy, Drink, segment increased 11.4% in the 2025 second quarter.

Net sales for the company's strategic brand segment, increased 18.9% to 129.9 million for the 2025 second quarter from 109.2 million dollars in the 2024. Second quarter, net sales on the foreign currency adjusted basis for the Strategic Grand segment.

Increased 19.1% in the 2025 second quarter.

Net sales for the alcohol brand segment, decreased 8.6% to 38 million for the 2025 second quarter from 41.6 million. In the 2024, second quarter growth profit is a percentage of net sales for the 2025. Second quarter was 55.7% compared with 53.6% in the 2024, second quarter.

The increase in gross profit as a percentage of net sales for the 2025. Second quarter was primarily the result of pricing actions supply chain optimization and lower input costs.

Partially offset by geographical sales, mix and higher promotional allowances.

Distribution expenses for the 2025 second quarter or 82 million or 3.9% of net sales compared with 87.4 million or 4.6% of net sales in the 2024, second quarter.

Setting expenses for the 2025 second quarter were 196.9 million or 9.3% of net sales compared with the 192.1% of net sales in the 2024, second quarter.

General and and administrative expenses for the 2025. Second quarter were 265.9 million or 12.6% of net sales, compared with 212.8 million or 11.2% of net sales for the 2024. Second quarter, stock, based compensation was 33.2 million dollars for the 2025 second quarter compared with 18.8 million in the 2024. Second quarter, the increase in stock based compensation for the 2025. Second quarter included, 7.9 million related to certain Equity Awards, granted late in the 2025 first quarter, that contained a new retirement clause.

In addition General and administrative expenses for the 2025 second quarter included 30.8, million of litigation provisions.

Operating expenses for the 2025 second quarter were $544.8 million, compared with $492.3 million in the 2024 second quarter adjusted operating expenses. Exclusive of the alcohol brand segment, the litigation provisions, and the change in stock-based compensation, the 2025 second quarter expenses were $497.7 million compared with $459.3 million.

In the 2024, second quarter.

Operating expenses as a percentage in that sales for the 2025 second quarter with 25.8% compared with 25.9% in the 2024 second quarter adjusted operating expenses as a percentage of net sales for the 2025 second quarter were 24.0%.

Important increased 19.8% to 631.6 million from 527.2 million, in the 2024 comparative quarter. Adjusted operating income for the 2025 second quarter, exclusive of the alcohol brand segment, the litigation provisions and the change in stock-based. Compensation increased 21.5% to 667.9 million from 549.7 million in the 2024, second quarter.

The effective tax rate for the 2025. Second quarter was 24.4% compared with 22.9%, in the 2024, second quarter, the increase in the effective tax rate, was primarily attributable to a higher income taxes in foreign tax jurisdictions.

Net income for the 2025 second quarter increased 14.9% to 488.8 million from 425.4 million in the 2024 second quarter net income for the 2025 set in quarter. Exclusive the alcohol brand segment, the litigation provisions and the change in stock-based compensation, increased 16.7% to 516.5 million from 442.7 million in the 2024.

4, second quarter.

The income per diluted share for the 2025 second quarter. Increased 21.1% to 50 cents from 41 cents in the second quarter 2024. Then income per diluted share for the 2025 second quarter, exclusive of the litigation provisions and the accelerated stock based compensation. Increased 25.2% to 51 cents from 41 cents in the second quarter of 2024.

Net income per diluted share for the 2025 second quarter exclusive with the alcohol brand segment. The litigation provisions and the accelerator stock based compensation increased 23.0% to 52 cents from 43 cents in the second quarter of 2024.

299 to um the US and North America sales, net sales in the US and Canada in the 2025 second quarter increased by 8.6% in dollars over the same period in 2024 growth. For the quarter was led by the Monster Energy of the family.

In the United States. According to the Nielson reports for the 30 weeks, end of July 192022

The Monster Energy Ultra family was the third largest Standalone energy, drink brand in dollar sales and the energy drink category of the Red Bull and Monster for all Outlets, combined Mainely, convenience, grocery drug, and mass merchandisers, including energy shots.

Innovation continues to drive performance with Monster Energy, Ultra Blue, Hawaiian, and Monster Energy, Ultra, Vice guava, contributing to the Monster Energy Ultra Brand family growth. Our 2 Monster killer Bruce skus and Juice wants a viking Berry also contributed to us growth

Our Revenue growth management, team remains focused on long-term value, creation, opportunities, and trade spend optimization. The pricing of energy drinks. In the United States has increased at a slower rate than other, uh, NTD beverages in the last decade. And we believe this provides for a favorable value proposition with consumers, to that end, we have initiated discussions with our Bots and customers.

And our planning for selected price adjustments by package and channel as well as reductions in promotional nances in the United States effective during the 2025 fourth quarter.

As communicated at our annual meeting, we are planning to launch two new full Shell Monster Energy flavors: Monster Energy Electric Blue and Monster Energy Orange Dreamsicle in the fall. We are also planning to introduce Monster Bad Apple, which was introduced in select EMA markets in 2024, as well as Monster Energy Ultra Wild Passion in the fall.

Additionally we are planning strategic launch, Monster Energy land and our sugar in Texas and Avid in California leveraging. The Formula 1 races in the United States later this year.

To 869.3 million in the 2025 second quarter reported net sales to customers outside the United States were 864.2 million 41% of total, net sales in the 20125. Second quarter compared to 746 million dollars or 39% of total. Net sales in the corresponding Court in 2024.

For a currency exchange rates, had a negative impact on net sales in US Dollars of approximately 5 million in the 2025 second quarter.

Turning to Ema a net sales in EMA in the 2025 second quarter increased by 26.8% in dollars and increased 23.7% 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. Second quarter was 36.1% versus 34.7% in the same period in 2024.

Energy drink category, growth remains healthy with monster. Outperforming the category in many EMA markets according to Nielsen in all measure channels in Western Europe. Excluding Iceland the Monster Energy brand is now the seventh largest fmcg brand by value.

According to Nielsen for the most recent 13 week period. The monster brand is now the number 1 energy drink in Norway.

Affordable Brands continue to grow and gain share in their respective markets within EMA. We also seen growth of Fury in Egypt and predator in Kenya and Nigeria.

Innovation continues to drive performance in the region. With juice monster, Rio punch and Monster Energy, Ultra strawberry dreams contributing to the growth in the quarter. In addition we launched Monster Energy, Lando, Norris zero sugar, in 5 markets. At the end of the second quarter, we will continue to roll out throughout the second half of 2025 in 33 additional markets in EMA.

We are especially excited about the launch of this product due to its unique package design, appealing melon Yuzu flavor, and strong activation by our sales teams and our Coca-Cola Bottling Partners. We will be launching various strategic brands, including Monster Energy, and affordable brand products in additional markets in EMA throughout the rest of 2025, including the rollout of Monster Energy, Valentino Rossi, zero sugar in a number of countries.

30 to Asia Pacific. Net sales in the Asia-Pacific for the 2025 second quarter increased 11.6%, both in dollars and 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 second quarter was 41.0% versus 45.4% in the same period in 2024. The decrease in gross profit margins as a percentage of net sales was primarily the result of higher promotional allowances and geographic sales mix. Net sales in Japan for the 2025 second quarter increased 6.1% in dollars and increased 1% on a currency-neutral basis. We are planning to launch 2 SKUs of Rainstorm in Japan in the 2025 third quarter. Net sales in South Korea in the 2025 second quarter increased.

Is 22.4% in dollars and increased 28.9% on the currency neutral basis as compared to the same quarter in 2024.

In China, for the second quarter of 2025, we saw an increase of 19.5% in dollars and a 20.2% increase on a currency-neutral basis compared to the same quarter in 2024.

Net sales in India in the 2025 second quarter increased 12.4% in dollars and increased 16.0% on a currency neutral basis as compared to the same quarter in 2024.

During the second quarter sales, growth of the Monster Energy brand remains solid with Predator. Growing meaningfully ahead of the energy drink category, in part reflecting its ongoing rollout into new markets and increased production capacity with the Coca-Cola bottles in India.

For our brands in Asia Pacific, and are excited about the incremental expansion of our affordable brands in China and India and oceanana, which includes Australia. New Zealand, Tahiti French Polynesia, New Caledonia, Papa nugini and Guam. Net sales increased 8.3% in dollars and increased 11.9% on the currency neutral basis.

Turning to Latin America and the Caribbean. Net sales in Latin America, including Mexico and the Caribbean in the 2025 second, quarter decreased 7.8% in dollars and increased 1.7% on the currency neutral basis. Over the same period in 2024, slower growth in the region or a currency neutral basis, was primarily attributable to a change to the operating model in Argentina. Lower net sales in certain countries primarily due to production challenges and adverse weather in the region, particularly in Brazil, gross profit in this region. As a percentage of net sales was 45.2% for the 2025. Second quarter versus 45.8%. In the 2024 second quarter.

Need sales in Brazil in the second quarter, decreased 1.3% in dollars. But increased 10.4% on a currency neutral basis, we're planning to launch 2 months, a real punch in the 2025, third quarter.

Net sales in Chile in the 2025, second quarter increased 4.6% in dollars and 4.2% on a currency neutral basis. We're planning to launch juice monster pipeline, punch in the 2025 third quarter. Net sales in Argentina in the 2025 second quarter, decreased 33.9% in dollars and 30.2% on a currency neutral basis. The net sales, decrease in Argentina was partially due to lower per case revenues, as a result of a change to operating model late in the first quarter of 2025, with the objective to better manage our foreign currency exposure, net sales in Mexico, decreased 7.0% in dollars and increased 10.8% on the currency neutral basis in the 2025. Second quarter in the third quarter, we're planning to launch Monster Energy, Ultra strawberry dreams and Predator while Barry.

Turning to monster Brewing, monster Brewing results. Improved relative to the first quarter of 2025, but continue to face challenges in the second quarter during the 2025. Second quarter, we reduced head count as part of our cost reduction plans, net sales for the alcohol brand. Segment, with 38 million in the 2025 second quarter, a decrease of approximately 3.6 million or 8.6% lower than the 2024 comparable quarter.

We continue to plan for the launch of the beast in certain International markets subject to regulatory approvals. We are also planning further innovation in montering in the coming months. For example, a new Hard Lemonade lines. Blind lemon and Blinder. Lemon began shipping nationally in July,

During the 2025 second quarter and no shares of the company's common stock were repurchased. As of August the 6th 2025 approximately 500 million dollars remained available for repurchase under the previously, authorized repurchase program.

Now turning to our July, 2025 sales, we estimate that July, 2025 sales on the non foreign currency adjusted basis with approximately 24.3% higher than the comparable, July 2024 sales and 24.9% higher. On a non foreign currency, adjusted basis, excluding the alcohol brand segment,

We estimate that on a foreign currency adjusted basis. July 2025 sales were approximately 22.2% higher than the comparable, July 2024 sales and 22.8% higher on the foreign currency adjusted basis, excluding the alcohol brand segment, July, 2025 had the same number of selling days as July 2024,

In some instances, our Butler is a responsible for production and determine their own production schedules.

This affects the dates on which we invoice such part list. Furthermore, our bottling and distribution Partners maintain inventory levels according to their own internal requirements, which they may also from time to time for their own business reasons, we iterate 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.

In conclusion, I would like to summarize some recent positive points.

Our record quarterly, net sales crossed the 2 billion dollar threshold. For the first time in the company's history. In addition, the percentage growth rates in reported gross profits, operating income, net income, and earnings per share all outpaced our growth rate. In that sales, the energy drink category continues to grow globally. We believe that household penetration continues to increase in the energy during category growth opportunities in household, penetration for Capital consumption along with consumers needs for energy of positive factors. For the category, we continue to expand ourselves in non-muslim track channels.

Ugly as measured by scanner data consumer demand remains strong in the United States. The energy drain category as measured by Nielsen Etc. Rated in the 2025 second quarter compared to the 2025 first quarter with growth remaining strong in July M of sales and Retail have followed a certain trend.

We continue to review opportunities for price increases domestically and internationally. We are excited for our Innovation pipeline for 2025 and Beyond, I would now like to open the floor to questions about the quarter.

Thank you. We will now begin the question and answer session.

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Today's first question comes from Dara mousin with Morgan Stanley. Please go ahead.

Hey, good afternoon.

Hey there. The gross.

The gross margin performance is particularly strong in Q2. Can you just talk about how sustainable some of those drivers might be going forward? You mentioned some modest tariff pressure going forward. So just any thoughts around higher aluminum costs and the impact going forward? And if you can just clarify, you mentioned some U.S. pricing in Q4. Is that more selective tactical adjustments, or are you looking more at a broad type of price increase? Thanks.

Well, I think we mentioned that uh, the price increase, that is currently being explored will depend on package and channel. Um, so um, it's still a little premature to say exactly where it will fall out, but, uh, we are in discussions with our voters and customers.

so, um,

I'm turning to gross margins. You know, I'm always been very passionate about a gross margins and, uh, where the gross margins can, uh, end up in, uh, you know, in the company. But, um, as we look at where we are in Q2 and we look forward to Q3 and, you know, we don't give guidance. So, I've got to be careful what I say. Otherwise, I'll get, uh, get into trouble here with the lawyers, but, um, we do see some modest, um, pressures, uh, coming from tariffs.

And, uh, Q3. And then Q4, um, if the price increase is not, uh, materialized. But, uh, you know, we think it will. Um, we will see, um, you know, some reduction in, uh, through, uh, through tariffs. But, uh, we, we do believe that the price increase will go some way towards, uh, uh, you know, overcoming that. And, uh, as I mentioned previously on, on, on many calls that we have a heading strategy in place. So we are not totally exposed to, um, the facilitators and changes in pricing in the lme. But, uh, we are, um, we are hedged to a limited extent in the midwest premium, which is where we'll see the impact of the tariffs.

Thank you. And our next question. Today comes from Bonnie Herzog. With Goldman Sachs. Please go ahead

All right. Thank you. Hi Hilton. Hi everyone. Um, maybe a quick follow-up question on that. Just in terms of your supply chain optimization efforts, because Hilton, I know you've been working on that. So, if you have any color that you can share with us and sort of where you're at in that process,

And then I'd love to hear some color on the category because it's been very strong recently, especially in the U.S., you know, up double digits. So if you could touch on some of the drivers of the recent strength and how sustainable this might be for the rest of the year and maybe into next, thanks.

okay, so, um, let's talk first about supply chain optimization, um,

what we've been able to achieve is a

Good balance between our own uh production, which now accounts for probably just around 10% of our um, of our sales in the US and a well, very well balanced. Um, uh, code packing model, you know, objective always has been to get the lowest delivered price to our customers. And that's that's been a an objective and is 1 of the reasons why we are not producing more in our Phoenix facility, because we've got such a great balance of Copic. Is that are able

To achieve that, its objective of the lowest landed cost price to our customers.

Um, so that's supply chain. Let's talk a little bit about the category. Um,

You know as as we said earlier when we spoke about July sales uh sales Trends in the category remain strong.

Uh, you know, per scanner data the categories up 13.2% in the last 4 weeks, months is up 12% and I Mech share. Um, unfortunately, has been impacted by the other brands not monster and, uh, really we've seen strong increases across all regions, you know, we we look at where we are, uh, in July, um, and all of our regions are, you know, are increasing or increasing nicely. Um,

So why you know, why has the the market changed at the end of the day? You know what, what we look at? Is that the pricing?

Of our products.

Um, at retail are very much competitive with, uh, comparable, uh, csds and their, their traditionally, there was a gap historically, there was a gap but now that Gap is, you know, is starting to, uh, starting to close and there's a, a strong appetite from consumers for functionality and a move towards, uh, you know, towards our product.

Products, and our competitors products.

So, um, you know, overall innovation has driven um, the, the the growth in in, uh, in in the category and in our own sales. Um, and also, you know, there's this whole move that, uh, um,

Alcohol is not as, uh, you know, as uh, as appealing as, as historically, it's been. And we believe that's, um, creating more opportunities for energy and certainly more space for energy in the, uh, in in customers coolers.

So, uh, um, you know, there's nothing really more than I can add other than, you know, we excited to be part of this category and everyone was, you know, like kind of concerned last year. And uh, I think at the time we said that, uh, um I I believe was that there's a strong motivation, strong acceleration in the category and uh, you're now seeing it so, uh, you know, I'm not sure I can add any more color, Bonnie.

Thank you. And our next question, today comes from Chris Carey at Wells Fargo Securities. Please go ahead.

Hey everyone, uh hope that you're all doing. Well, I wanted to follow up just on the the quarter to date number, um, exceptionally strong built and you just said all regions are are growing. Um, is there, uh, you know, any any pull forward that you're seeing ahead of those pricing discussions. You know, any timing that that we should be thinking about, that's that's driving, uh, you know, some of that, that strength. And then if I could just, uh,

Follow up on this. This broader topic of the energy drink category.

Last year, uh, and the sustainability of the category, clearly, you're going to potentially have this pricing in Q4, but can you just, you know, talk about maybe what happened last year? Um, you know, why why you think the category is slowed? Whether it was a lack of innovation lack of pricing and and and how you're starting to think about, you know, the next 12 months.

Between, you know, strength of innovation. Obviously you're going to have pricing and any other, you know, tidbits that you might give us to. Um, you know lessen some of the anxiety as, as we start, you know, laughing the really strong performance. Um, so thanks for the clarification on quarter date and, uh, sorry for the longer waited question going into next year. Thanks. Okay, when it starts with the, the longer question for next year. So there's an easy answer, we don't give guidance. So it's it's really hard, you know, for us to uh, you know, to talk about 2026, other than to say that we've got a very strong Innovation pipeline. Um, and we really excited about what will happen in the fall, with our Innovation, what's happening, internationally with our inflation and what's what could happen in 2026 with, um,

you know, with our uh, Innovation program, um, you know

Talking about what happened last year. It's, it's it's kind of difficult because I don't think anyone knows, you know. We, we we smiled at the time that you know, there. There were lots of issues. You know, it was pre-election consumers. Uh, you know, there was high inflation. Uh there was high gas prices. Consumers were, you know, holding back. But we've always said and and this, you know, we passionately believe that energy offers a need State. It's a, you know, it's a functional beverage and um we continue to see increased household penetration, um, you know, we regard energy drinks as an affordable luxury.

We seeing a lot of growth of diets versus full sugar.

Um, I mentioned the N artd price comparison.

And uh, you know, there's been a big opportunity, uh, with the training coffee and the, you know, the the pricing Trends in coffee. Um, and also, you know, the impact on the coffee industry of the cold Brews, which didn't do as successful as people expected. So, you know, there's there's a whole whole move towards why we believe this category is a good category and uh, why we think it'll, you know, it, it will continue to grow.

Thank you. And our next question comes from Steve Powers at Deutsche Bank. Please go ahead.

Great, thank you. Good evening. Um,

Piece growth. This quarter just not notably outpaced um, realized Revenue growth which, you know, obviously resulted in a lower. Um, all-in. You know, price per case in the court, I just hoping you could maybe break that apart a bit. Um, you mentioned, uh, higher promotional Investments this quarter. But obviously, we've also got mixed factors both Geographic and, um,

and within the segments, you know, strategic Brands outpaced, um, monster. So, just a little bit of of, if you could just dissect the different drivers of the lower price per case, and just, uh, just call it anything that may be anomalous or unique to this quarter versus something that is more extrapolated. Thank you, thank you. So I think you answered your own question to be honest because uh, as we look as you look at the quarter, you know, 41% of sales internationally is uh kind of a first and you know you know the impact of gross margin of international versus domestic. Um secondly um you know we we are internationally setting uh a um a significant amount now of uh of affordable Brands and uh you correctly spoke about the Strategic brand segment growing faster than the energy drinks that the

Once again, did you drink segments in the quarter? So all of those factors, Geographic, mix, uh, product mix, uh, sales mix, all contributed to the results, um, that, that you're talking about.

Thank you. And our next question. Today comes from Rob artenstein with other core. Please go ahead.

On on the ultra line. And then there was something about, um, Unleashed and I I somehow it, it came in and out. And I didn't quite follow exactly what you're saying, but if maybe you could talk a little bit more detail on what you are doing and why you're doing it, uh, given that the ultra line has been so successful.

The ultra line has been very successful and it's, um, of late. It's becoming even more successful. And, uh, all it is, is a, uh, an objective to establish the ultra line, um, given a separate identity with a silver claw. Uh, very similar to what we have today, but have, um, separate coolers to be able to, um, better, uh, merchandise the the products. So, it'll have a, a new visual identity. It'll have better space through, um, increased, uh, uh, cooler capacity and its own coolers. Um, and uh, again promotional stacks on stores cases, on cases, on the floor and, uh, you know, we we are are great Believers in, in, in that part of the business. And I think you probably noticed as probably a lot of our investors have noticed, a lot of our analysts

Is there's a uh, there's a whole, um, kind of, um, viral campaign on uh um, Zero Ultra in in, um, in EMA that's carried through to the US and there's a significant amount of passion that we're using to build upon to, you know, really. Um,

Market that line more effectively.

Thank you. This concludes our question and answer session. I'd like to turn the conference back over to Hilton slash for closing remarks.

Uh, thank you.

On behalf of menester, I'd like to thank everyone for their continued interest in the company, I remain confident in the strength of Our Brands and the talent of not only our executive management team, but also our entire family monster family throughout the world. And that I'm excited to be working with them. All we continue to believe in the company and our growth strategy and remain committed to continue to innovate, develop and differentiate Our Brands and expand the company both at home and abroad. And in particular, capitalizing on our relationship with the Coca-Cola bottle system. We believe that we are well positioned in the beverage industry and continue to be optimistic about the future of our company. Thank you for your attendance.

Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.