Monster Beverage Corp., Corona, Calif., reported financial results for three- and six-months, which ended June 30.

Net sales for the 2019 second quarter increased 8.7 percent to $1.10 billion from $1.02 billion in the same period last year. Gross sales for the 2019 second quarter increased 8 percent to $1.29 billion from $1.19 billion in the same period last year.

Net sales for the company’s Monster Energy Drinks segment, which primarily includes the company’s Monster Energy drinks and Reign Total Body Fuel high performance energy drinks, increased 9.6 percent to $1.02 billion for the 2019 second quarter, from $929.4 million for the 2018 second quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Monster Energy Drinks segment of approximately $22.1 million for the 2019 second quarter.

Net sales for the company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola Co., as well as the company’s affordable energy brands, decreased 0.8 percent to $79.1 million for the 2019 second quarter, from $79.8 million in the 2018 second quarter. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the Strategic Brands segment of $3.8 million for the 2019 second quarter.

Net sales for the company’s “Other” segment, which includes certain products of American Fruits and Flavors sold to independent third parties (the “AFF Third-Party Products”), were $5.8 million for the 2019 second quarter, compared with $6.6 million in the 2018 second quarter.

Net sales to customers outside the United States increased 16.8 percent to $343.3 million in the 2019 second quarter, from $293.8 million in the 2018 second quarter. Such sales were approximately 31 percent of total net sales in the 2019 second quarter, compared with 29 percent in the 2018 second quarter.

Gross profit, as a percentage of net sales, for the 2019 second quarter was 59.9 percent, compared with 61.1 percent in the 2018 second quarter. For the 2019 second quarter, gross profit as a percentage of net sales positively was affected by increased sales prices of products sold in the United States and Canada, as well as by reduced aluminum costs. The decrease in gross profit as a percentage of net sales primarily was attributable to geographical and product sales mix as well as increases in certain other input costs.

Operating expenses for the 2019 second quarter were $282.3 million, compared with $262.6 million in the 2018 second quarter. Operating expenses included distributor termination expenses of $300,000 for the 2019 second quarter, compared with $5.5 million in the 2018 second quarter.

Rodney C. Sacks, chairman and chief executive officer, said: “We are pleased to report record gross and net sales in the 2019 second quarter, driven by our Reign Total Body Fuel high performance energy drinks, which we launched in the first quarter, as well as growth in our Monster Energy brand energy drinks both domestically and internationally.

“Our Monster Energy brand energy drinks were launched in a number of new countries during the quarter in the Middle East, Latin America and the Caribbean,” he continued. “Later this year we are planning to introduce a number of new Monster Energy brand energy drinks in the United States and in various international markets.”

Net sales for the six months that ended June 30, increased 9.8 percent to $2.05 billion from $1.87 billion in the comparable period last year. Gross sales for the six months that ended June 30, increased 8.9 percent to $2.38 billion from $2.18 billion in the comparable period last year.

Net changes in foreign currency exchange rates had an unfavorable impact on net and gross sales for the six months that ended June 30 of $47.9 million and $56.6 million, respectively.

Gross profit, as a percentage of net sales, for the six months that ended June 30, was 60.2 percent, compared with 60.8 percent in the comparable period last year.

Operating expenses for the six months that ended June 30, were $544.4 million, compared with $498.0 million in the comparable period last year. Operating income for the six months that ended June 30, increased to $690.5 million from $637.5 million in the comparable period last year. Net income for the six-months that ended June 30, increased 13.9 percent to $554 million from $486.2 million in the comparable period last year. BI