TLDR
- Q1 2025 net sales fell 2.3% to $1.85 billion, missing prior year’s $1.9 billion.
- Gross margin rose to 56.5%, up from 54.1% a year earlier.
- EPS climbed 7.4% to $0.45, beating Q1 2024’s $0.42.
- International sales grew 6.2% on a currency-adjusted basis.
- Energy drink sales rose 8.7%, but overall market share slipped slightly.
Monster Beverage (NASDAQ: MNST) shares are trading at $61.50 as of writing on Friday, 9th May, morning hours, rising 2.26% after releasing Q1 2025 results on 8th May
Despite a dip in revenue, the company delivered stronger earnings. Net sales totaled $1.85 billion, down 2.3% from $1.9 billion a year earlier. However, gross profit margin expanded to 56.5%, up from 54.1%, signaling improved cost efficiency.
$MNST | Monster Beverage Q1 25 Earnings:
• Monster Energy Drinks Net Sales: $1.72B (est. $1.8B)
• Net Sales: $1.85B (est. $1.98B)
• Gross Margin: 56.5% (est. 54.7%)
• Net Sales Outside US: $733.2M, -1.5% Y/Y
• Operating Expense: $478.2M (est. $497.9M)
• EPS: $0.45 vs.… pic.twitter.com/nLiDfbhsPh— LiveSquawk (@LiveSquawk) May 8, 2025
Earnings per share advanced 7.4% to $0.45, topping last year’s $0.42. Net income held steady at $443 million, just slightly higher than the prior year’s $442 million. Operating income grew by 5.1% to $569.7 million, supported by reduced expenses and better margin control.
International Markets Offset Weak US Trends
Monster’s international performance helped cushion the domestic softness. Net sales outside the US climbed 6.2% on a currency-neutral basis, reaching $790.5 million. Key markets like China surged 40.1% while Oceania rose 21.6%. New product launches and expanded flavors in global regions helped drive this growth.
In contrast, US sales saw headwinds. The company’s market share in the convenience and gas channel slipped slightly to 29%, down from 29.2%. Sales for certain brands like Rain and Full Throttle dropped, with Rain sales falling 9.9% in the latest 13-week period. The Alcohol Brands segment also struggled, seeing a steep 38.1% revenue decline.
Currency and Demand Challenges Remain
Foreign exchange fluctuations negatively impacted Monster’s top line by $57.3 million during the quarter. Management flagged distributor ordering patterns and broader economic uncertainty as additional factors that weighed on results.
Still, the energy drink category remains on a growth trajectory globally. Monster continues to gain market share in regions such as Belgium, Denmark, and Germany, though the US softness remains a concern. The company remains optimistic about its long-term prospects, particularly in China and India, where the Predator brand is set for further expansion.
Outlook and Stock Performance
MNST stock has outperformed the S&P 500 so far in 2025, returning 16.96% year-to-date compared to the index’s 3.74% decline. Over a 1-year period, Monster shares are up 11.37%. The stock remains well-positioned, although ongoing challenges in the US and foreign exchange pressures could weigh on near-term growth.
Monster’s next earnings date is scheduled between August 5 and August 11, 2025. Investors will be watching whether international strength can continue to offset US market softness.
