What happened
Shares of Monster Beverage (MNST -3.60%) went up 16.3% in May, according to data provided by S&P Global Market Intelligence.
The energy drink company saw continued demand for its portfolio of beverages during the first quarter, though growth may stumble temporarily due to weaker demand in April. Shares of the company are up 12.9% year to date and up a whopping 41% from the low registered in March of around $51.
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So what
Monster Beverage released a strong set of numbers in early May for its first-quarter 2020 earnings report. Net sales increased by 12.3% year over year to $1.06 billion, while net income increased by 6.6% year over year to $278.8 million. This continues the company's strong track record of growing both net sales and net income for the last five consecutive years.
The company's share of the coffee plus energy category for the four weeks ended April 25 was 53.5%, according to CEO Rodney Sacks. Sales of Monster drinks in the energy category within the U.S., as compiled by Amazon.com, increased 137.5%, and its market share went up by 1.2 percentage points to 36.7%. There should be more good news flowing in as Monster reopens its office in China and begins distributing its new Monster Energy Dragon Tea there.
Now what
Monster has reiterated that the COVID-19 pandemic is not expected to impact the ability of the company to manufacture its beverages, and for bottlers and distributors to distribute its products. Also, with $701.8 million in cash, no debt and $233.5 million in short-term investments as of March 31, 2020, the company is not expected to face any liquidity crisis.
Several new products were launched in the U.S. during the first quarter, including a new line of Reign Inferno Thermogenic Fuel. Internationally, the company added Monster Energy brand and Reign Total Body Fuel energy drinks to its portfolio in countries such as Brazil, Russia, Belgium, and Australia. Future launches are in the works in additional countries outside the U.S. These new product launches should continue to chalk up good sales figures for the company as it successfully navigates the pandemic.
