Operating Profit Margin
since 2005
Calculation
Monster Beverage Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 27.36% | = | 100 | × | 1,953,355) | ÷ | 7,140,027) |
| Dec 31, 2022 | 25.11% | = | 100 | × | 1,584,721) | ÷ | 6,311,050) |
| Dec 31, 2021 | 32.44% | = | 100 | × | 1,797,467) | ÷ | 5,541,352) |
| Dec 31, 2020 | 35.51% | = | 100 | × | 1,633,153) | ÷ | 4,598,638) |
| Dec 31, 2019 | 33.40% | = | 100 | × | 1,402,939) | ÷ | 4,200,819) |
| Dec 31, 2018 | 33.72% | = | 100 | × | 1,283,619) | ÷ | 3,807,183) |
| Dec 31, 2017 | 35.58% | = | 100 | × | 1,198,787) | ÷ | 3,369,045) |
| Dec 31, 2016 | 35.59% | = | 100 | × | 1,085,338) | ÷ | 3,049,393) |
| Dec 31, 2015 | 32.82% | = | 100 | × | 893,653) | ÷ | 2,722,564) |
| Dec 31, 2014 | 30.33% | = | 100 | × | 747,505) | ÷ | 2,464,867) |
| Dec 31, 2013 | 25.50% | = | 100 | × | 572,916) | ÷ | 2,246,428) |
| Dec 31, 2012 | 26.72% | = | 100 | × | 550,623) | ÷ | 2,060,702) |
| Dec 31, 2011 | 26.80% | = | 100 | × | 456,423) | ÷ | 1,703,230) |
| Dec 31, 2010 | 26.67% | = | 100 | × | 347,814) | ÷ | 1,303,942) |
| Dec 31, 2009 | 29.50% | = | 100 | × | 337,309) | ÷ | 1,143,299) |
| Dec 31, 2008 | 15.82% | = | 100 | × | 163,591) | ÷ | 1,033,780) |
| Dec 31, 2007 | 25.54% | = | 100 | × | 230,986) | ÷ | 904,465) |
| Dec 31, 2006 | 26.18% | = | 100 | × | 158,579) | ÷ | 605,774) |
| Dec 31, 2005 | 29.65% | = | 100 | × | 103,443) | ÷ | 348,886) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial trajectory from 2005 to 2023 is characterized by substantial and consistent growth in both net sales and operating income. Net sales increased from approximately 348.9 million USD in 2005 to 7.14 billion USD by 2023, representing a significant expansion of market scale. While operating income followed a similar upward trend, the operating profit margin experienced several distinct phases of volatility, expansion, and contraction.
- Initial Volatility and Trough (2005–2008)
- A period of margin instability is observed in the early years, with the operating profit margin declining from 29.65% in 2005 to a historical low of 15.82% in 2008. This sharp contraction occurred despite a steady increase in net sales, indicating a period where operating expenses grew disproportionately to revenue.
- Recovery and Stabilization (2009–2013)
- Following the 2008 low, the operating margin recovered sharply to 29.50% in 2009. For the subsequent five years, the margin remained relatively stable, fluctuating within a narrow band between 25.50% and 26.80%, suggesting a period of operational normalization as the company scaled its revenue base.
- Efficiency Expansion and Peak Performance (2014–2021)
- A significant upward shift in operational efficiency occurred starting in 2014, with margins rising above 30%. Profitability peaked between 2016 and 2017, reaching levels of approximately 35.59%. This era represents the highest period of operational leverage, where the company successfully converted a larger portion of its increasing sales into operating profit, sustaining margins above 32% through 2021.
- Recent Margin Compression (2022–2023)
- A notable decline in profitability is observed in 2022, where the operating profit margin dropped to 25.11%, the lowest level since 2013. A partial recovery followed in 2023, with the margin increasing to 27.36%. This recent volatility suggests emerging pressures on operating costs or pricing headwinds despite the continued growth in total net sales.
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Comparison to Competitors
Monster Beverage Corp., operating profit margin, long-term trends, comparison to competitors
| Monster Beverage Corp. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 27.36% | 24.72% | 15.28% | 13.10% | 32.85% |
| Dec 31, 2022 | 25.11% | 25.37% | 11.22% | 13.33% | 38.56% |
| Dec 31, 2021 | 32.44% | 26.67% | 16.20% | 14.04% | 41.32% |
| Dec 31, 2020 | 35.51% | 27.25% | 14.50% | 14.32% | 40.66% |
| Dec 31, 2019 | 33.40% | 27.06% | 14.86% | 15.32% | 35.33% |
| Dec 31, 2018 | 33.72% | 27.31% | 12.77% | 15.64% | 38.40% |
| Dec 31, 2017 | 35.58% | 21.18% | 13.54% | 16.54% | 40.01% |
| Dec 31, 2016 | 35.59% | 20.61% | 9.91% | 15.58% | 40.53% |
| Dec 31, 2015 | 32.82% | 19.70% | 30.02% | 13.25% | 39.65% |
| Dec 31, 2014 | 30.33% | 21.11% | 9.47% | 14.37% | 39.31% |
| Dec 31, 2013 | 25.50% | 21.83% | 11.25% | 14.61% | 43.29% |
| Dec 31, 2012 | 26.72% | 22.45% | 10.39% | 13.91% | 44.18% |
| Dec 31, 2011 | 26.80% | 21.82% | 12.25% | 14.48% | 42.90% |
| Dec 31, 2010 | 26.67% | 24.06% | 11.51% | 14.41% | 41.16% |
| Dec 31, 2009 | 29.50% | 26.56% | 13.68% | 18.61% | 40.10% |
| Dec 31, 2008 | 15.82% | 26.44% | 9.04% | 16.03% | 39.87% |
| Dec 31, 2007 | 25.54% | 25.13% | 11.63% | 18.16% | — |
| Dec 31, 2006 | 26.18% | 26.19% | 13.17% | 18.33% | — |
| Dec 31, 2005 | 29.65% | 26.34% | 13.93% | 18.19% | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).