“While operating expenses were down, Europe and Japan were both named as key contributors to profitability," she wrote. Here, we believe that the Monster brand has vast white space opportunities, including most of Asia, Africa, and South America particularly given its access and strategic alignment with the Coca-Cola system.”Ĭowen and Company analyst Vivien Azer agrees that Monster's international segment "continues to make strides". “We think the largest opportunity remains in international markets, particularly outside of Western Europe. “ Overall we were impressed with the majority of Monster’s international results, and are particularly enthusiastic about the long term prospects for Monster to grow its international sales through its partnership with The Coca-Cola Company," she wrote. Sack’s optimism is backed by industry analysts.īonnie Herzog, an analyst at Wells Fargo Securities, wrote in a note that Monster’s international results were good news, while further growth prospects were promising.
“We are pleased with the performance of our international expansion, particularly in Japan, Germany, Great Britain, Greece, The Netherlands and Chile,” said Sacks. In January 2015, Monster’s market share in the convenience store channel in the country grew from 29% to 32.6%, according to INTAGE data. Japan is becoming one of Monster’s largest international markets, Sacks added. “In fact, our operations outside of North America delivered operating income of $13.8m in the 2014 fourth quarter as compared to an operating loss of $4.4m in the same quarter in 2013,” he said. In contrast, these regions had shown an operating loss in the fourth quarter of 2013.
In Q4, operating income was boosted by international operations, particularly Europe and Japan, said Sacks. Over the full year, the company achieved record sales of $2.8bn, up 9.3% from $2.6bn in 2013. Sacks, chairman and CEO, Monster Beverage, said the company’s Q4 results show the energy drink category bucking trends: accelerating while the rest of the beverage industry ‘continues to show weakness.’ Speaking in last week’s earnings call, Rodney C. In the same period the year before, the company had reported an operating loss of $13.4m.
Over the year ending December 31, 2014, operations outside North America had an operating income of $37.8m.
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