Monster Beverage

I have now sold my small position $MNST (+0,7%) now sold.

I bought the position back on 23.03.2022 as it was included in various analyses and almost all analysts saw a buy in the share. As a result, I actually bought it quite naively. Simply to get back into the stock market after buying a house.

True to the motto: there can't be more than 0!

In the meantime, I no longer take such a naïve view and the current figures and forecasts for the coming years, as well as the situation surrounding $CELH and the general situation in the energy drinks sector have finally persuaded me to sell this position.

I will use the amount to increase the $ACWI again soon.

Monster Beverage Q3 2024 $MNST (+0,7%)

Financial performance:

• Net sales: Net sales increased 1.3% to $1.88 billion in the third quarter of 2024, compared to $1.86 billion in the prior year. For the first nine months of 2024, net sales increased 5.0% to USD 5.68 billion, reflecting moderate growth.
• Net income: Net income decreased by 18.1% to USD 370.9 million in the third quarter of 2024, compared to USD 452.7 million in the same quarter of 2023. Adjusted net income decreased by 8.8% to USD 392.4 million.
• EBITDA and operating result: Although no explicit EBITDA is provided, operating income decreased to USD 479.9 million from USD 510.5 million in the third quarter of 2023, indicating increased costs or decreasing efficiency.

Balance sheet overview:

• Assets: As of September 30, 2024, total assets were USD 8.05 billion, compared to USD 9.69 billion as of December 31, 2023, indicating a significant decrease.
• Liabilities: Current liabilities amounted to USD 1.25 billion, a healthy figure compared to total assets.
• Equity: Shareholders' equity amounted to USD 5.78 billion, indicating a stable financial base.

Income structure:

• Main revenue drivers: The main revenue drivers are from the Monster Energy® Drinks, Strategic Brands and Alcohol Brands segments.
• Cost of sales: Cost of sales for the third quarter of 2024 amounted to USD 881.2 million.
• Margins: Gross profit margin as a percentage of net sales was 53.2%, slightly improved from 53.0% in the third quarter of 2023, indicating a slight improvement in efficiency.

Cash flow overview:

No specific details on cash flows from operating, investing or financing activities were provided, making it difficult to assess liquidity.

Key ratios and profitability metrics:

• Net income margin: Net income margin was 19.7% in Q3 2024, demonstrating a healthy net income to revenue ratio.
• Other key figures: Historical data on other key metrics such as ROIC, ROE and leverage are missing, making it difficult to assess long-term profitability.

Segment information:

• Monster Energy® Drinks: Sales increased by 0.8% to USD 1.72 billion, keeping the core business stable.
• Strategic Brands: Sales in this segment increased by an impressive 14.0% to USD 112.6 million.
• Alcohol Brands: Sales fell by 6.0% to USD 39.8 million, which is a challenge.

Competitive Position:

The company noted that the energy drink category is growing globally, but at a slower rate in the US convenience channel.

Forecasts and management comments:

• Price increase: A price increase of approximately 5.0% has been implemented for certain brands from November 1, 2024, which could strengthen margins in the short term.
• Growth potential: Management sees growth opportunities in household penetration and per capita consumption, particularly through international expansion and innovation.

Risks and opportunities:

• Risks: The risks include unfavorable exchange rates and a tense consumer environment, which could have a negative impact on sales development.
• Opportunities: Growth potential lies in innovation and expansion on international markets, which can strengthen the market position.

Summary of results:

Positive aspects:

Net sales growth: Record sales growth of 1.3% in the third quarter, despite challenging conditions.

Strong growth in the Strategic Brands segment: An increase of 14.0% demonstrates the successes in this emerging business area.

Improved gross profit margin: The slight improvement to 53.2% shows stability and efficiency.

Growth in international business: Sales outside the USA increased by 3.6%, underlining the success of the global expansion strategy.

Innovative strength: New product launches such as Monster Energy® Ultra Vice Guava™ were positively received by consumers, strengthening the market position.

Negative aspects:

Decline in net result: An 18.1% decline in net profit shows challenges in profitability.

Decrease in operating profit: Operating profit fell to USD 479.9 million, indicating rising costs or weaker revenues.

Decline in Alcohol Brands segment: A 6.0% decline in sales indicates difficulties in this segment.

Higher operating expenses: Operating expenses increased as a percentage of net sales, impacting profitability.

Exchange rate impact: Unfavorable exchange rates impacted net sales and could continue to be a challenge.

Monster Beverage
$MNST (+0,7%) has just announced its quarterly figures.

The earnings per share (EPS) amounted to 0,40 USD and is therefore below expectations of 0,43 USD.

The turnover amounted to 1.88 billion USD and is also below expectations of 1.91 billion USD.

This week it's Monster's turn.

https://quartr.com/insights/company-research/unleash-the-beast-the-juicy-origins-of-monster-beverage?utm_source=edge&utm_medium=email&utm_campaign=edge_37

$MNST (+0,7%)
$CELH

A magical moment ❤️

Over 100k deposit size for the first time. Let's see how sustainable the current valuations are, but it's still something special for me to have reached this amount.

I've been invested since the end of 2020 with a lot of back and forth, but I think I've now found a strategy for myself.

The individual stocks are at $MCD (+0,12%) and $MNST (+0,7%) in the portfolio for personal reasons. In other words, I actually eat the cake from time to time and drink too much energy 🙃 (and because I can't completely say goodbye to individual stocks - it's just more fun). $BATS (+0,07%) was a turnaround bet that worked out and remains in the portfolio due to the high dividend. However, I am also fundamentally convinced by all three.

The ETF $TDIV (+0,51%) and $VHYL (+0,16%) are my mainstays and will be expanded further. $VFEM (-0,3%) The Emerging Markets ETF is included because I wanted to overweight the emerging markets, which seems to be working out quite well at the moment. Let's see how that develops. If the tech valuations come back at some point, I will also put a portion back into the $VWRL (+0,08%) again. At least that's the plan 😉

Companies that I find interesting but do not yet have in my portfolio and that have a 10-year average ROIC of over 10% and a 5-year average ROCE and ROIC of over 10%, $ANET (+0,17%), $MA (+0,12%) , $VRTX (+0,08%) , $RMS (+0%) , $PGHN (+0,11%) , $COLO B (+0,15%) , $ACN (+0,19%) , $MNST (+0,7%)
$FICO (+0,74%) , $MCO (+0,15%) , $KNIN (+0,09%) , $S&P Global, $ISRG (+0,06%)
$III (+0,23%) , $BKNG (-0,06%)
$HLAG (+0,06%) , $QCOM (-0,02%) , $CFR (+0,16%) and $IFX (+0,5%) . Already blatant companies

Hello,

I would like to minimize my consumer staples allocation.

What would you remove or reallocate?

$MNST (+0,7%)

$RKT (+0,11%)

$NESNE (adr :()

$ULVR (+0%)

$ADM (+0,34%)

$PEP (-0,08%)

$MMM (-0,31%)

Thank you!

Dear Community,

here are the sectors of my depot

I think I have too much consumer staples...and too little healthcare!

I also think I have too much tech in my portfolio and I'm missing strong healthcare companies.

I would like to $LULU (-0,29%)
$EKT (+0,12%)
$ZBRA (-0,08%)
$ADM (+0,34%) and $MNST (+0,7%) throw them out.

$PEP (-0,08%)
$CAT (+0,13%) I would buy more shares before adding new ones.

Which stocks from the financial sector do you find interesting?

i would also like to reduce the size of my portfolio so that i have a better overview.

Thank you very much!

what would you do specifically

Celsius Holdings vs Monster Beverage Corporation or rather Coca Cola vs Pepsi Co? Who is the better buy for the future?

Company presentation and development

Monster Energy

Monster Beverage Corporation, a US company, was founded in 1997 and became famous in 2002 with the launch of its energy drink Monster Energy. Today, Monster Energy has a global presence and is known for its high caffeine content and wide range of brands. Through an aggressive marketing strategy and continuous product launches, Monster Energy has established itself $MNST (+0,7%) has established itself as one of the leading suppliers of energy drinks.

Celsius Holdings

Celsius Holdings focuses on the development, marketing and distribution of healthy energy drinks. Although the company was founded in 2004, its rise only began in 2012.$CELH Celsius has positioned itself through products without sugar, aspartame and artificial colors, which also contain ingredients that are supposed to support fat burning and muscle building.

Business models

Monster Energy

Monster pursues a classic business model: it focuses on the production and distribution of energy drinks in various sizes and flavors and relies on an intensive marketing strategy to generate brand awareness and customer loyalty. Global availability makes Monster one of the largest suppliers worldwide.

Celsius Holdings

Celsius Holdings has developed a differentiated model specializing in healthy energy drinks. The company continuously invests in the introduction of new varieties and recipes and is expanding its portfolio to strengthen customer loyalty. Celsius also works closely with influencers and fitness experts and uses comprehensive marketing campaigns to increase awareness of its products. At the same time, the company is working on improving its distribution channels and supply chains to further consolidate its market position.

Core competencies

Monster Energy

- Highly concentrated recipes: Known for high caffeine content and special ingredients such as L-carnitine, taurine and guarana.

- Global presence: Strong international distribution.

- Intensive marketing measures: Aggressive marketing strategy to increase brand awareness and customer loyalty.

Celsius Holdings

- Healthy ingredients: Sugar-free, without aspartame and artificial colors.

- Functional effect: Products that promote fat burning and muscle building.

- Dynamic growth: Strong increase in sales thanks to rising demand for healthy drinks.

Future prospects and strategic initiatives

Monster Energy

- Growth and expansion: Focus on market expansion through new varieties and opening up new markets.

- Optimization of distribution channels: Improvement of distribution channels to strengthen the market position.

- Innovation through research and development: Investment in R&D to create innovative and science-based products.

Celsius Holdings

- Portfolio expansion: introduction of new flavors and recipes.

- Expanding brand awareness: Intensified marketing campaigns and collaboration with influencers and fitness experts.

- Increasing efficiency in the supply chain: optimizing logistics to consolidate market position and shorten delivery times.

Insider

Monster

$KO (+0,22%)
Coca-Cola Company

2024-04-12

20.85085%

$11.24B

204.24M

Celsius

$PEP (-0,08%) Co holds an 8.5% interest in Celsius Holdings which was granted as part of the share consideration under the Distribution Agreement.

For the development (company figures), better view and more check out the free blog : https://topicswithhead.beehiiv.com/p/celsius-holdings-vs-monster-beverage-oder-doch-eher-coca-cola-vs-pepsi-co-wer-ist-der-bessere-kauf-f

Conclusion

In the end, the comparison here is between an established company and a fast-growing newcomer, which represent similar values in many areas. So the key question is: Do you believe in the internationalization and growth story of Celsius?

If you are looking for higher percentage gains, you could opt for Celsius, as you get a fast-growing company at the same price as the already mature Monster Energy. Assuming that Celsius can also maintain its growth internationally, a share price increase of well over 100 % in 2-3 years would be possible.

However, those who believe less in the growth story will also find Monster Energy an attractive option: both shares have been heavily devalued due to recent, slower growth and therefore currently offer stable value. It is worth noting that both have no debt, good capital efficiencies and good CAGR and will therefore perform incredibly well over the next few years.