Sales of Monster's energy drink portfolio were up 8.6% in the 13-week period with Monster Energy sales leading the growth in dollar sales (+10.6%) followed by Full Throttle (+5.5%) while a few of the company's other brands saw dollar sales declines including Reign (-6.1%) and NOS (-3.5%). "While we believe that we will be able to address many of the supply chain challenges we have faced, we anticipate still having to face certain ongoing challenges in the future." Brand performanceĪccording to Nielsen MULO xAOC data for the 13 weeks ended April 23, 2022, provided on the call, dollars sales for the energy drink category (including energy shots) were up 11.5% vs. And as a result, we are able to decrease our reliance on the use of imported aluminum cans in the United States," said Sacks who said the company expects to see a reduction in cost of sales in the latter half of 2022 as the company reduces its reliance on imported aluminum cans and works through current inventories. "Our two new suppliers of aluminum cans in the United States are now operational. Sacks shared that Monster has made strides in stabilizing the procurement and supply of one of its major manufacturing inputs - aluminum - by adding additional domestic capacity in the US. "The company continued to address the challenges in its supply chain as it navigates through the uncertainty of the current global supply chain environment." "Increased commodity and raw materials costs, including aluminum, other ingredient costs and secondary packaging incurred during the quarter, amounted to approximately $45m, and increases in freight rates and fuel impacted gross profits by approximately $6m," Sacks said on the company's Q1 2022 earnings call last week. Operating expenses for Q1 2022 came in at $377.2m, up from $300.8m in Q1 2021.
While the company did see a strong year-over-year increase in net sales for Q1 2022, its total operating expenses also increased significantly as it dealt with external factors such as volatility in shipping and freight costs and rising prices for ingredients and packaging materials. “The global energy drink category continues its growth trend, and we remain well placed to capitalize on this growth with our Monster Energy family of brands," said Monster Energy CEO Rodney Sacks in a press statement. Net sales for the company's energy drink segment which includes its core energy drink brands (Monster, Reign, NOS, etc.) increased 20% to $1.4bn for the quarter while its 'Strategic Brands' segment registered a 36.6% increase in net sales to $92.6m.
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