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Monster Beverage Corp. (NASDAQ:MNST)

This company has been moved to the archive! The financial data has not been updated since May 7, 2024.

Common-Size Income Statement
Quarterly Data

Monster Beverage Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -45.91 -45.76 -47.00 -47.48 -47.15 -48.16 -48.67 -52.89 -48.86 -46.14 -44.05 -42.76 -42.52 -42.26 -40.91 -39.71 -40.01 -39.96 -40.63 -40.10 -39.37
Gross profit 54.09% 54.24% 53.00% 52.52% 52.85% 51.84% 51.33% 47.11% 51.14% 53.86% 55.95% 57.24% 57.48% 57.74% 59.09% 60.29% 59.99% 60.04% 59.37% 59.90% 60.63%
Operating expenses -25.55 -29.16 -25.50 -24.28 -24.30 -25.78 -25.60 -24.58 -24.84 -24.89 -24.44 -21.26 -24.18 -24.11 -22.30 -23.06 -25.63 -28.88 -24.49 -25.57 -27.70
Operating income 28.54% 25.08% 27.51% 28.24% 28.55% 26.07% 25.73% 22.53% 26.31% 28.97% 31.51% 35.98% 33.30% 33.63% 36.80% 37.23% 34.36% 31.17% 34.88% 34.33% 32.92%
Interest and other income (expense), net 1.88 0.93 3.84 0.82 0.74 -0.05 0.13 -0.41 -0.48 0.43 -0.16 0.06 -0.06 -0.13 -0.37 -0.16 0.08 0.41 0.28 0.27 0.29
Income before provision for income taxes 30.42% 26.01% 31.35% 29.06% 29.29% 26.01% 25.86% 22.12% 25.83% 29.40% 31.35% 36.04% 33.24% 33.50% 36.43% 37.07% 34.45% 31.58% 35.16% 34.60% 33.21%
Provision for income taxes -7.15 -4.80 -6.96 -6.74 -5.89 -6.07 -6.01 -5.61 -6.45 -6.86 -7.44 -8.42 -7.89 5.93 -8.54 -8.60 -8.19 -6.52 -8.79 -8.11 -5.57
Net income 23.28% 21.21% 24.39% 22.31% 23.39% 19.94% 19.85% 16.51% 19.37% 22.55% 23.91% 27.62% 25.34% 39.43% 27.89% 28.46% 26.25% 25.06% 26.37% 26.49% 27.64%

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

An analysis of the common-size income statement from the first quarter of 2019 through the first quarter of 2024 reveals a period of significant margin volatility, characterized by a sharp compression in profitability during 2021 and 2022, followed by a partial recovery in 2023 and early 2024.

Gross Profitability Trends
A progressive increase in the cost of sales is observed starting in 2021. The cost of sales rose from a stable range of approximately 40% of net sales in 2019 and 2020 to a peak of 52.89% by June 30, 2022. This trend resulted in a corresponding decline in gross profit, which fell from highs of over 60% in early 2019 to a low of 47.11% in June 2022. Since that trough, gross profit margins have shown a gradual recovery, stabilizing between 52% and 54% through the first quarter of 2024.
Operating Expense Management
Operating expenses have remained relatively stable as a percentage of net sales throughout the analyzed period, generally fluctuating between 21% and 29%. While there is a noticeable spike to 29.16% in the fourth quarter of 2023, the overall consistency in operating expenditure suggests that the primary drivers of profitability volatility were related to direct production costs rather than administrative or selling overheads.
Operating Income Performance
The operating income margin mirrored the volatility of the gross profit. After maintaining margins between 31% and 37% from 2019 through early 2021, operating income dropped to 22.53% in June 2022. This decline was almost exclusively driven by the increase in the cost of sales. A recovery trend is evident from late 2022 onward, with operating income returning to 28.54% by March 31, 2024.
Net Income and Non-Operating Factors
Net income margins exhibited significant fluctuations influenced by tax provisions and other income. A notable anomaly occurred on December 31, 2020, where a positive provision for income taxes contributed to a net income peak of 39.43%. Conversely, net income hit a low of 16.51% in June 2022, coinciding with the peak in cost of sales. In the latter part of the period, interest and other income showed increased volatility, including a significant spike to 3.84% in September 2023, though the overall net income margin has since settled into a range of 21% to 24%.

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