Monster Beverage Corporation (MNST) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 5, 2022 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and welcome to the Monster Beverage Company's First Quarter 2020 Conference Call. All participants will be in listen-only mode. Please note this event is being recorded.

I would now like to turn the conference over to Rodney Sacks and Hilton Schlosberg. Please go ahead.

Rodney Sacks - Co-CEO

Thank you. Good afternoon, ladies and gentlemen. Thank you for attending this call. I'm Rodney Sacks. Hilton Slosberg, our Vice Chairman and Co-Chief Executive Officer, is on the call; as is Tom Kelly, our Chief Financial Officer. Tom Kelly will now read our cautionary statement.

Thomas Kelly - CFO

Before we begin, I would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended, and are based on currently available information regarding the expectations of management with respect to revenues, profitability, future business, future events, financial performance and trends, as well as the future impact of the COVID-19 pandemic on the company's business and operations.

Management cautions that these statements are based on our current knowledge and expectations, and are subject to certain risks and uncertainties, many of which are outside the control of the company that may cause actual results to differ materially from the forward-looking statements made during this call.

Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed on February 28, 2022, including the sections contained therein, risk factors and forward-looking Statements for a discussion on specific risks and uncertainties that may affect our performance. The company assumes no obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise.

I would now like to hand the call over to Rodney Sacks.

Rodney Sacks - Co-CEO

Thank you. The company achieved record first quarter net sales of $1.52 billion in the 2022, first quarter, 22.1% higher than net sales of $1.24 billion in the 2021 comparable period. As in recent quarters, to meet increased demand for our products, rather than experience out of stocks for certain lines at retail, the company incurred operational inefficiencies in the United States and in various countries, resulting in increased costs.