Monster Beverage NASDAQ: MNST reported what CEO Hilton Schlosberg called “another quarter of strong financial results and cash generation,” highlighted by fiscal first-quarter net sales topping $2 billion for the first time in company history. Net sales rose 26.9% year over year to $2.35 billion, with double-digit growth across all geographic regions and share gains in a number of markets, according to management.
Quarterly results and segment performance
Schlosberg said net sales benefited from foreign exchange, with net changes in currency exchange rates providing a favorable $89.3 million impact. On a foreign currency adjusted basis, net sales increased 22.1% year over year. Excluding the Alcohol Brands segment on an illustrative basis, net sales increased 27.5%, or 22.6% on a foreign currency adjusted basis, management said.
By segment, Monster Energy Drinks net sales increased 27.6% to $2.19 billion, while Strategic Brands net sales rose 28.9% to $126.7 million. Alcohol Brands net sales declined 5.9% to $32.7 million.
Profitability was pressured by mix and costs. Gross profit margin was 55.0% versus 56.5% a year ago. Schlosberg attributed the decrease primarily to geographic sales mix, higher aluminum can costs, and increased freight-in costs, “partially offset by pricing actions.” He said the higher freight-in costs were “primarily the result of out-of-orbit production due to increased demand,” and noted that geographic mix had an estimated 120 basis points adverse impact on gross margin, “primarily reflecting strong growth in our EMEA business.”
Operating income increased 28.1% to $730.0 million. Net income per diluted share rose 27.6% to $0.58, while adjusted net income per diluted share increased 23.7% to $0.58.
Tariffs, aluminum, and pricing commentary
On costs, Schlosberg said the impact of tariffs and increased aluminum prices was “modest” in the quarter, but described the overall tariff landscape as “complicated and dynamic.” He pointed to the Midwest premium for aluminum as a factor that increased can costs. While Monster imports some raw materials into the U.S. and exports limited quantities of raw materials and finished goods, Schlosberg said the company does not believe current tariffs “will have a material impact” on operating results based on its business model.
Looking ahead, Schlosberg said Monster expects “a continued modest sequential increase” in costs through at least the end of 2026 compared with the first quarter, based on current aluminum pricing and the Midwest premium, and said the company will continue hedging where possible. In response to a question about margin tools and pricing, Schlosberg disclosed that the aluminum headwind in the quarter was “just under 1% of margin.”
Rob Gehring, CEO of the Americas, said the company continues to evaluate “the consumer, the ability and the resiliency of the category and how it stands up under pricing,” and added that Monster was “very pleased with the pricing actions we took in late 2025.” Guy Carling, CEO of EMEA and OSP, said the approach is similar in EMEA, with the company monitoring opportunities to take price and noting that “modest inflationary pricing is working.”
U.S. and North America trends: core, zero sugar, and innovation
Monster posted net sales growth of 15.6% in the U.S. and Canada. Schlosberg said results reflected healthy category growth, contributions from core products, innovation, and “disciplined execution across our organization and bottling partners.” He added that all channels contributed to growth, including e-commerce, and said sales hit a monthly record at a “key online retailer” in March.
Schlosberg emphasized the role of zero sugar offerings. Citing Nielsen, he said the Ultra brand family grew 20% in the quarter, with Ultra White up 34%. He also said Monster’s full sugar portfolio contributed meaningfully, representing “approximately one-third of the company’s total U.S. gains,” with growth led by Juice Monster (up 26%) and Java Monster, including Killer Brew (up 5.2%) despite softness in energy drink coffee. Overall, full sugar offerings grew 8.5% and outpaced the overall full sugar energy drink segment, management said.
Innovation launches cited for the quarter included Monster Ultra Punk’d Punch, Juice Monster Voodoo Grape, Monster Energy Strawberry Shot (full sugar and zero sugar), and a nationwide launch of Lando Norris Zero Sugar. Monster also introduced FLRT in late March in select retail channels, which Schlosberg said is performing “in line with our expectations,” and launched Storm earlier in the week of the call as a new wellness brand with four SKUs at retail. For summer, the company expects additional package and flavor innovation for Monster Green and Ultra, including 12-ounce singles and 12-ounce four-packs, and said it plans to include Ultra, Juice Monster, Reign, and Bang in America 250-themed offerings.
International growth accelerates; EMEA strength weighs on mix
International sales were a major driver of the quarter. Net sales to customers outside the U.S. increased 44.9% to $1.06 billion, representing about 45% of total net sales, up from about 40% a year ago. On a foreign currency adjusted basis, international net sales increased 32.7% to $973.3 million.
In EMEA, net sales increased 52.5% in dollars and 36.5% on a currency neutral basis, while regional gross margin rose to 35.9% from 35.1%. Carling credited execution, trade marketing, cooler placements, and collaboration with bottling partners. He said Monster Ultra and Juice Monster grew 37.3% and 23.2%, respectively, in Nielsen data for the last 13 weeks, and described Juiced Monster Viking Berry as “the most successful innovation launch ever in the region.” Carling also said Monster became the number one energy drink brand by value in Denmark, and noted growth in affordable brands Fury and Predator across parts of Africa.
Asia-Pacific net sales increased 39.7% in dollars and 36.7% on a currency neutral basis, with regional gross margin of 42.8%. Schlosberg said Japan posted growth despite a distributor systems disruption referenced last quarter, and added that Monster Energy Green is expected to be available in vending machines owned by Coca-Cola Bottlers Japan Inc. starting this summer. He also cited strong growth in China and India, and said Monster has “overtaken both V and Red Bull to become the market leader in Australia on a value basis.”
Latin America, including Mexico and the Caribbean, grew 36.0% in dollars and 22.3% on a currency neutral basis, with gross margin of 44.1%. Brazil and Mexico posted growth, while Argentina sales declined sharply due to a lower price per case tied to an operating model change implemented in late first quarter 2025 to manage foreign currency exposure; Schlosberg said bottled depletions increased by double digits in Argentina, indicating healthy underlying demand.
Asked about drivers of international category growth, Schlosberg said trends abroad are similar to the U.S., pointing to increased household penetration, an “affordable luxury” value proposition, innovation, energy functionality, and consumption expanding into more dayparts. He also cited increased buy rates supported in part by multipacks.
On production, Schlosberg told Goldman Sachs analyst Bonnie Herzog that Monster is “back to operating within our orbits” after using out-of-orbit production in the first quarter to meet demand, adding that the company prioritizes avoiding empty shelves and can leverage its facilities in Norwalk and Phoenix as needed.
Monster also repurchased 1.4 million shares for about $100 million in the quarter at an average price of $73.86. As of May 6, approximately $400 million remained available under its repurchase authorization.
Management also provided an early snapshot of April trends, estimating April 2026 sales were up about 24.4% year over year on a reported basis and up about 21.6% on a foreign currency adjusted basis, while cautioning that single-month sales can be affected by factors such as timing of promotions, launches, and production schedules.
In closing remarks, Schlosberg said the company remains focused on innovation and international expansion, and noted ongoing digital transformation efforts, including an upgrade to SAP S/4HANA with a planned go-live date of Jan. 1, 2028.
About Monster Beverage NASDAQ: MNST
Monster Beverage Corporation NASDAQ: MNST is an American beverage company best known for its Monster Energy brand of energy drinks. The company's product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.
Originally organized around the Hansen's Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.
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