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Monster Beverage (MNST) Tops Q1 EPS by 4c, Revs Beat

May 7, 2020 4:18 PM EDT

Monster Beverage (NASDAQ: MNST) reported Q1 EPS of $0.52, $0.04 better than the analyst estimate of $0.48. Revenue for the quarter came in at $1.06 billion versus the consensus estimate of $1 billion.

COVID-19 Pandemic

From the beginning of the COVID-19 pandemic, the Company’s top priority has been the health, safety and well-being of its employees. Early in March 2020, the Company implemented global travel restrictions and work-from-home policies for employees who are able to work remotely. For those employees who are unable to work remotely, safety precautions have been instituted, which were developed and adopted in line with guidance from public health authorities and professional consultants. The Company is incredibly proud of the teamwork exhibited by its employees, co-packers and bottlers/distributors around the world who are ensuring the integrity of its supply chain. The Company’s flavor manufacturing facilities, its co-packers, warehouses and shipment facilities, are all operating. Certain of the Company’s bottlers/distributors have implemented modifications to their call points and service levels, but generally the Company’s products remain available to consumers. In limited countries, which are smaller markets for the Company, the operations of its bottlers/distributors have been more affected.The impact of the COVID-19 pandemic on the Company’s net and gross sales for the 2020 first quarter was not material. The Company’s April sales were materially adversely impacted by the COVID-19 pandemic, however bottler/distributor sales of the Company’s products to retail in the United States were markedly less adversely impacted. Since mid-March 2020, the Company has seen a shift in consumer channel preferences and package configurations, including an increase in at-home consumption and a decrease in immediate consumption. To date, the Company’s sales in the second quarter have been adversely affected as a result of a decrease in foot traffic in the convenience and gas channel (which is the Company’s largest channel) and food service on-premise, while the Company’s e-commerce, club store, mass merchandiser, and grocery and related business remain stable.Currently, the Company does not foresee a material impact on the ability of its co-packers to manufacture and its bottlers/distributors to distribute its products as a result of the COVID-19 pandemic. In addition, the Company is not experiencing raw material or finished product shortages in its supply chain.As of March 31, 2020, the Company had $701.8 million in cash and cash equivalents, $233.5 million in short-term investments and $13.9 million in long-term investments. Based on currently available information, the Company does not expect the COVID-19 pandemic to have a material impact on its liquidity.

For earnings history and earnings-related data on Monster Beverage (MNST) click here.



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