CORONA, CALIF. — Despite procuring additional quantities of aluminum cans from suppliers in the United States, South America and Asia, Monster Beverage Corp. continued to experience shortages during the third quarter. The shortage of aluminum cans, combined with freight inefficiencies, trucking availability, shortages of shipping containers, port of entry congestion, insufficient co-packing capacity and delays in receiving certain ingredients in the United States and EMEA held back earnings, the company said.
Net income at Monster totaled $337.21 million in the quarter ended Sept. 30, equal to 64¢ per share on the common stock, down 3.1% from $347.65 million, or 66¢ per share, in the same period a year ago. Net sales, meanwhile, increased 13% to $1.41 billion from $1.25 billion.
Net sales for the company’s Monster Energy Drinks segment, which primarily includes the company’s Monster Energy drinks, Reign Total Body Fuel high performance energy drinks and True North Pure Energy Seltzers, increased 14% to $1.33 billion for the 2021 third quarter, up from $1.16 billion in the same period a year ago. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy Drinks segment of approximately $15.4 million for the 2021 third quarter, the company said.
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, increased 0.2% to $74.4 million for the 2021 third quarter, up from $74.3 million in the 2020 third quarter. Monster noted that shortages of NOS concentrate negatively impacted net sales for the 2021 third quarter. Net changes in foreign currency exchange rates had a favorable impact on net sales for the Strategic Brands segment of approximately $1 million for the 2021 third quarter, the company said.
Net sales to customers outside the United States increased nearly 19% to $527.4 million in the 2021 third quarter, up from $444.5 million in the same period of fiscal 2020. Such sales were approximately 37% of total net sales in the 2021 third quarter, compared with 36% in the 2020 third quarter.
Monster said it successfully launched its True North Pure Energy Seltzer line in e-commerce and selected channels in the United States during the third quarter and will launch nationally into mainstream channels with its Coca-Cola bottlers in the first quarter of 2022. Additionally, in October the company introduced its new reserve line of Monster Energy drinks in two flavors: watermelon and white pineapple.