Monster Beverage Corp., Corona, Calif., reported positive financial results for the second quarter, which ended June 30.
Gross sales for the 2014 second quarter increased 7.6 percent to $779 million from $723.9 million in the same period last year. Net sales for the three months ending June 30 increased 8.9 percent to $687.2 million from $630.9 million in the same quarter a year ago. Gross profit, as a percentage of net sales, for the 2014 second quarter was 55.2 percent, compared with 53.3 percent for the 2013 second quarter.
“We are pleased to report another quarter of continuing sales growth, in both our domestic and international markets, said Rodney Sacks, chairman and chief executive officer of Monster Beverage, in a statement. “In the quarter, sales of our original green Monster Energy drink continued to grow in excess of reported growth for the energy category over that period. We launched a new Monster Energy Valentino Rossi energy drink that was positioned as a summer promotion in selected countries in Europe and South Africa, which has been well received by both retail buyers and consumers. We also are proceeding with our plans to introduce Monster Energy brand energy drinks in additional international markets.
“We reiterate that our energy drinks are safe, based on both our and the industry's long track record and the scientific evidence supporting the safety of our ingredients,” Sacks added. “More than 50 billion cans of energy drinks have been sold and safely consumed worldwide over the past 25 years, including more than 12 billion Monster Energy brand energy drinks over the past 12 years.”
Operating expenses for the 2014 second quarter increased to $163.5 million compared with $156.8 million during the same time period last year. Operating expenses as a percentage of net sales decreased to 23.8 percent from 24.9 percent in the same quarter last year.
Distribution costs as a percentage of net sales were 4.4 percent for the 2014 second quarter, compared with 4.5 percent in the same quarter last year. Selling expenses as a percentage of net sales for the 2014 second quarter were 10.5 percent, compared with 11.6 percent in the same quarter a year ago.
Net income for the 2014 second quarter increased 31.9 percent to $141 million from $106.9 million in the same quarter last year. Net sales for the company's direct-store-distribution segment for the 2014 second quarter increased 9.8 percent to $660.1 million from $601 million for the same period in 2013.
Gross sales to customers outside of the United States rose to $180.2 million in the 2014 second quarter from $160.4 million in the corresponding quarter in 2013.