雅虎香港財經 Monster Beverage's (MNST) Expansion Strategy Bodes Well
Monster Beverage Corporation MNST is well-poised for growth, thanks to its robust business strategies. The company’s expansion strategy and continued strength in its energy drinks category appear quite encouraging. It has also been launching various products and expanding distribution across the international markets.
Analysts seem optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for 2024 sales and earnings per share (EPS) is currently pegged at $7.9 billion and $1.77, respectively, implying growth of 10.3% and 14.2% year over year. The consensus mark for 2025 sales and EPS is pegged at $8.7 billion and $2.02, respectively, indicating increases of 9.9% and 14.1%.
Delving Deeper
Monster Beverage’s strength in its energy drinks category has been driving performance for a while now. The company offers a wide range of energy drinks brands such as Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, Reign Inferno Thermogenic Fuel, Reign Storm, True North, NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator and Fury.
In the first quarter, the Monster Energy Drinks segment's net sales increased 10.7% year over year to $1.73 billion. On a currency-adjusted basis, net sales for the segment rose 14.2%. The segment’s sales included a negative impact of $54.6 million from adverse currency rates. The company remains optimistic about the opportunities regarding the acquisition of the Bang Energy brand, which it believes will fit well across its portfolio of energy drink brands.
Monster Beverage Corporation Price, Consensus and EPS Surprise
Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote
Product innovation plays a significant role in the company's success. Monster Beverage remains committed to product launches and innovation to aid overall business growth. MNST has launched Monster Aussie Lemonade in Japan, Monster Ultra Paradise in Malaysia, Monster Mango Loco and Pipeline Punch in Kazakhstan and Monster Mango Loco in the Philippines. The company has also introduced Predator Gold Strike in Azerbaijan and the Philippines.
The company had earlier rolled out its first flavored malt beverage alcohol product, The Beast Unleashed, in the United States and received positive feedback. The product is available in 43 states through a network of beer distributors. This marked the expansion of the distribution of The Beast Unleashed into additional markets, with plans for nationwide distribution by the end of the year.
The company has a solid innovation plan for 2024. Management is optimistic about Nasty Beast Hard Tea and additional alcohol opportunities. The company has rolled out Predator and Fury, its affordable energy drink portfolio, in several markets internationally. Management had expressed satisfaction with its 2023 product innovations, including Monster Energy Zero-Sugar, Ultra Strawberry Dreams and Rainstorm in the United States, along with Monster Energy Lewis Hamilton 44 Zero-Sugar in EMEA.
Additionally, the company continues to benefit from its pricing actions across various markets to negate the impacts of rising commodity costs and inflation. MNST continued to implement price hikes in the first quarter, with additional price hikes planned in several other markets ahead.
We note that shares of this energy drinks and alternative beverages marketer have gained 5.8% compared with the industry’s 6.7% growth over the past six months.
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