Investors in Monster Beverage (MNST +0.20%) were feeling energized on Thursday. The stock jumped 5% by 2 p.m. ET today compared to a 0.4% uptick in the wider market, according to data provided by S&P Global Market Intelligence.
The beverage giant's shares are still trailing the S&P 500 in the past year, though, rising 15% through late February compared to the index's 28% rally.
Thursday's spike was powered by good news on the earnings front.
Good growth news
Monster Beverage announced fourth-quarter results before the market opened on Thursday. That report showed a sparkling 16% sales increase for the three-month period that ran through late December after accounting for currency rate swings. Growth was broad-based, including a nearly 20% spike in its core energy drink portfolio.
The company achieved even faster gains of 30% in its alcoholic beverage segment, thanks to its successful national distribution of the Beast Unleashed brand. "We continue to see sound growth in the energy drink market globally," co-CEO Hilton Schlosberg said in a press release.
NASDAQ: MNST
Key Data Points
The news was just as good around profits, which expanded 21% after accounting for one-time charges. Earnings jumped to $1.6 billion, or 23% of sales, from $1.2 billion, or 19% of sales, in the 2022 fiscal year.
This boost was powered partly by rising beverage demand, along with higher prices and decreased costs on raw materials and freight. Gross profit margin improved by 2 percentage points to reach 54% of sales.
Launching drinks
Investors can expect the next year to be packed with innovative product releases that will determine whether the company can maintain its positive momentum in 2024. Launches will be especially busy in the alcohol category following the strong start for Beast Unleashed. Meanwhile, look for Monster Beverage's profitability to continue rising back toward records as it benefits from slowing cost inflation in 2024.
