CORONA, Calif. — Monster Beverage Corp. on Thursday reported its financial results for the three months ended March 31.
The company achieved record first quarter net sales of $1.52 billion in the first quarter, 22.1% higher than net sales of $1.24 billion in the 2021 comparable period.
The company also experienced significant increases in costs of sales relative to the comparative 2021 first quarter, primarily due to increased freight rates and fuel costs, including costs relating to the importation of aluminum cans as well as aluminum can costs attributable to higher aluminum commodity pricing. Monster saw significant increases in ingredients and other input costs, including secondary packaging materials, co-packing fees and production inefficiencies, which adversely impacted cost of sales.
Furthermore, the company experienced significant increases in distribution expenses including increased fuel, freight and warehousing costs, which adversely impacted operating expenses. The company continues to address the controllable challenges in its supply chain.
On Feb.17, the company completed its previously announced acquisition of CANarchy Craft Brewery Collective LLC, a craft beer and hard seltzer company, for $330.4 million in cash, subject to adjustments.
As of March 31, the company had $1.01 billion in cash and cash equivalents, $1.72 billion in short-term investments and $65.7 million in long-term investments.
“The global energy drink category continues its growth trend, and we remain well placed to capitalize on this growth with our Monster Energy family of brands, as well as our strategic and affordable energy brands," said Rodney Sacks, chairman and co-CEO. “We launched a number of new products and expanded distribution of our brands in many international markets in the first quarter of 2022."