CORONA, CALIF. — Monster Beverage Corp. reported strong net sales for the 2024 fourth quarter and full year, but the company said those gains were partially hindered by the company’s underperforming Monster Brewing Co. alcohol business.
Net sales for the fourth quarter ended Dec. 31, 2024, totaled $1.8 billion, 4.7% higher than the $1.7 billion reported a year ago. Net income was $271 million, equal to 28¢ on the common stock, compared to $367 million and 35¢ on the common stock a year ago.
Monster reported $131 million in adverse impact related to impairment charges for its alcohol brands, up from $40 million in the same quarter last year. The company also listed $4.1 million in adverse impact related to excess inventory with its alcohol brands, which include Beast brand hard seltzer and hard tea, Dale’s beer, and Cigar City Brewing beer. Fourth-quarter sales for the Alcohol Brands segment decreased 0.8% to $34.9 million, compared to $35.2 million last year. Monster’s new chelada brand called Michi, will launch later this year.
“The (alcohol brands) impairment charges were primarily the result of operating and financial performance, not meeting projections due in part to challenges in the category as well as a decrease in projected ongoing operating and financial performance,” said Rodney Sacks, chairman of the board, co-chief executive officer, Monster Beverage Corp. “In addition to the appointment of a new president of Monster Brewing announced last quarter, we have now restructured the senior management team in sales, marketing, strategy and operations divisions and will be implementing further adjustments in the coming months with the intent to optimize our personnel and facilities to support the current demands of our portfolio and innovation pipeline.”
Monster’s fiscal 2024 ended Dec. 31, 2024. The company’s full-year net sales were $7.5 billion, up from $7.1 billion in 2023. Net income was $1.5 billion, or $1.50 per share on the common stock, down from $1.6 billion, or $1.56 per share on the common stock in 2023.
Rising energy drink sales
Despite headwinds created by the Alcohol Brands segment, Monster said fourth-quarter sales of its energy drink brands—which include Monster Energy, Reign Total Body Fuel, Reign Storm, and Bang Energy—increased 4.5% to $1.67 billion, up from $1.60 billion a year ago.
“In the United States, the energy category, according to (market research firm) Nielsen, for the 13 weeks through Feb. 15, 2025, grew at 6.2% versus the same period last year,” Sacks said. “We are seeing a resurgence of growth in the energy drink category in convenience, as well as in all measured channels reported by Nielsen. Our non-Nielsen channels continue to grow as well. Growth opportunities in household penetration and per capita consumption along with consumers' growing need for energy are positive trends for the category.”
Photo: ©JAMMY JEAN – STOCK.ADOBE.COMHilton Schlosberg, co-chief executive officer, vice-chairman of the board, Monster Beverage Corp., said he sees the convenience channel rebounding after being down the past year, which slowed sales growth for energy drinks overall. “(Consumer) trips are still down, but the shopping baskets in convenience are higher. It all bodes well for the (energy drink) category as a whole, and for the category in the US.”
Sacks added that Monster has already launched several new flavors across its brands this year, including Monster Energy Ultra Blue Hawaiian, Monster Energy Viking Berry, Reign Tropical Storm, and Bang Energy Sour Ropes.
Aluminum tariffs
During the Q&A portion of the earnings call, an analyst asked Schlosberg how the company would handle potential tariffs on aluminum, which Monster uses to make cans for its beverages.
“Things keep changing day-by-day,” Schlosberg said. “I think it would be…premature to even talk about tariffs because no one really knows what's going to happen. However, we are hedged to a nice extent in 2025 with aluminum, and we have some hedges on the Midwest Premium (aluminum).”
Monster did not detail its 2025 fiscal forecast during the call, but looking ahead to first quarter earnings, Sacks mentioned a series of US weather events in January may influence sales, but the company hasn’t determined the impact from those events yet.
“We believe January 2025 sales were adversely impacted by the California wildfires, and by other severe weather conditions in the United States, such as the Gulf Coast blizzard affecting New Orleans and Florida, as well as the Northeastern ice storms,” Sacks said. “Our distribution partners’ warehouses and retail outlets were closed for certain time periods in these areas during January.”
