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Monster Beverage Corporation MNST delivered solid third-quarter 2025 earnings, wherein the bottom and top lines beat the Zacks Consensus Estimate and increased year over year.
The company has seen growth opportunities in household penetration and per capita consumption, and robust demand for energy drinks. It has introduced several products in the reported quarter. In the United States, Monster Energy Ultra Blue Hawaiian has been among the top-selling products. Innovation has been playing a major role. MNST continues to launch its affordable energy brands, Predator and Fury, in various markets across the world. It remains excited about its innovation pipeline in 2025.
Monster Beverage’s adjusted earnings of 56 cents per share beat the Zacks Consensus Estimate of 48 cents and increased 36.6% year over year. Net sales of $2.20 billion came above the Zacks Consensus Estimate of $2.11 billion. The top line increased 16.8% year over year. Net changes in foreign currency exchange rates had a positive impact of $31.8 million on net sales in the reported quarter. Net sales on a foreign-currency adjusted basis rose 15.1%. Excluding the Alcohol Brands segment, net sales, on a foreign-currency adjusted basis, rose 15.8% in the third quarter.
Driven by solid earnings, MNST’s shares have risen more than 4% in after-hours trading yesterday. Monster Beverage’s shares have gained 10.2% in the past six months against the industry’s 2% drop.
In Europe, the Middle East and Africa (EMEA), net sales increased 30.3%, while in Asia-Pacific (APAC), sales rose 28.7%. Sales in Latin America, including Mexico and the Caribbean, jumped 9.3%. Per Nielsen, in the United States, for the reported 13-week period through Oct. 25, 2025, sales in dollars in the energy drink category comprising energy shots, for the entire outlets combined, with convenience, grocery, drug and mass merchandisers, jumped 12.2% year over year.
Within EMEA, the company is experiencing continued growth of Predator Fury in Egypt, Kenya and Nigeria, while on track with the rollout of Predator in Morocco. Innovation continues to drive performance in the region, specifically Monster Energy Lando Norris Zero Sugar, which is currently available in 27 EMEA markets. This has been the company's highly successful product launch in EMEA. In the reported quarter, it has launched Monster Energy Valentino Rossi Zero Sugar across 12 markets and Monster Ultra Vice Guava in Australia, with both products showing impressive results initially. It will also continue the rollout of several Monster Energy strategic brands and convenient brand innovations in the additional markets in EMEA.
Net sales in the US and Canada in the third quarter jumped 11.6% year over year in dollars, thanks to the solid execution across channels, momentum from innovations, strength of the Monster Energy Ultra family and robust contribution from the Juice Monster family. Per the Nielsen reports for the 13 weeks ended Sept. 27, 2025, in the United States, the Monster Energy Ultra Family rose 29% year over year, backed by its flagship White Zero Ultra and solid repeat purchases of early innovations, comprising Ultra BlueHawaiian and Ultra Vice Guava.
Monster Beverage Corporation price-consensus-eps-surprise-chart | Monster Beverage Corporation Quote
The company has implemented pricing adjustments through frontline price rises and/or declines in promotional allowances by packaging channel in the US, effective Nov. 1, 2025.
Net sales to customers outside the United States climbed 23.3% to $937.1 million, representing about 43% of the total net sales. On a currency-adjusted basis, sales to customers outside the United States jumped 19.1% to $905.3 million.
Monster Energy Drinks: Sales of this segment, which includes Monster Energy drinks, Reign Total Body Fuel high-performance energy drinks, Reign Storm total wellness energy drinks and Bang Energy drinks, jumped 17.7% to $2.03 billion. The segment’s sales included a negative impact of $4.8 million from adverse currency rates. On a currency-adjusted basis, net sales for the segment rose 16%.
Strategic Brands: The segment includes a range of energy drink brands acquired from Coca-Cola, as well as the company’s affordable energy brands, Predator and Fury. The segment’s net sales jumped 15.9% year over year to $130.5 million. Currency headwinds hurt sales by $0.2 million. On a currency-adjusted basis, net sales for the segment increased 13.2%.
Alcohol Brands: Net sales for the segment, which includes several craft beers, flavored malt beverages and hard seltzers, dropped 17% year over year to $33 million.
Other: Net sales for the segment, which includes some products of American Fruits & Flavors, LLC, sold to independent third parties (AFF Third-Party Products), increased 14.4% year over year to $6.8 million.
The cost of sales was $972.7 million, up 10.4% year over year. The company’s gross margin expanded 250 basis points (bps) year over year to 55.7%, buoyed by pricing, supply-chain optimization and product sales mix, partly offset by geographical sales mix, elevated aluminum can costs and increased promotional allowances.
Adjusted operating expenses increased 7.5% to $510.4 million, while the metric, as a percentage of net sales, was 23.6%, declining 160 bps from the year-earlier quarter. Distribution expenses dipped 0.1% to $82.6 million and, as a percentage of net sales, contracted 60 bps to 3.8%.
Selling expenses inched up 9.4% to $214.6 million, but fell 60 bps to 9.8% as a percentage of net sales. General and administrative expenses for the second quarter were $251.9 million, up 4.5% from the year-ago quarter.
Adjusted operating income jumped 35.6% to $705.8 million.
This Zacks Rank #3 (Hold) company ended third-quarter 2025 with cash and cash equivalents of $2.29 billion and total stockholders' equity of $7.75 billion.
During the reported quarter, the company did not repurchase any shares under its current share repurchase program. As of Nov. 5, 2025, roughly $500 million was available for buyback under its existing share repurchase program.
The energy drink category has been growing globally. The household penetration continues to rise in the energy drink category, alongside having growth opportunities in household penetration and per capita consumption. This, coupled with consumers' needs for energy, is a positive factor for the category. It will continue to expand sales in non-Nielsen tracked channels.
As measured by scanner data, the global consumer demand has been strong in the energy drink category. MNST continues to review opportunities for higher prices, domestically and internationally. It has been investing in its supply chain to offer better service to customers and improve its cost structure. Management remains excited about its innovation pipeline for 2026 and beyond.
United Natural Foods UNFI is a key distributor of natural, organic and specialty food and non-food products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 1% and 167.6%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Celsius Holdings, Inc. CELH, which specializes in nutritional functional foods, beverages and dietary supplements, starches and nutrition ingredients, currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Celsius’ current financial-year earnings is expected to rise 61.4% from the corresponding year-ago reported figure. CELH delivered a trailing four-quarter earnings surprise of 42.9%, on average.
Post Holdings POST, which is a consumer-packaged goods holding company, currently carries a Zacks Rank #2 (Buy). POST delivered a trailing four-quarter earnings surprise of 21.4%, on average.
The Zacks Consensus Estimate for Post Holdings’ current financial-year earnings indicates growth of 12.8% from the year-ago number.
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This article originally published on Zacks Investment Research (zacks.com).
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