Gross Margin % is calculated as gross profit divided by its revenue. Monster Beverage's Gross Profit for the
three
months ended in Dec. 2023 was $938 Mil. Monster Beverage's Revenue for the
three
months ended in Dec. 2023 was $1,730 Mil. Therefore, Monster Beverage's Gross Margin % for the quarter that ended in Dec. 2023 was 54.24%.
Warning Sign:
Monster Beverage Corp gross margin has been in long-term decline. The average rate of decline per year is -3.4%.
The historical rank and industry rank for Monster Beverage's Gross Margin % or its related term are showing as below:
MNST'
s Gross Margin % Range Over the Past 10 Years
Min: 50.3 Med: 59.59 Max: 63.68
Current: 53.14
During the past 13 years, the highestGross Margin % of Monster Beverage was 63.68%. The lowest was 50.30%. And the median was 59.59%.
MNST's Gross Margin % is ranked better than 82.41% of 108
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 36.665
vs MNST: 53.14
Monster Beverage had a gross margin of 54.24% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Monster Beverage was -3.40% per year.
Monster Beverage Gross Margin % Historical Data
The historical data trend for Monster Beverage's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Monster Beverage Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
59.95
59.23
56.10
50.30
53.14
Monster Beverage Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
51.84
52.85
52.52
53.00
54.24
Competitive Comparison
For the Beverages - Non-Alcoholic subindustry, Monster Beverage's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Monster Beverage Gross Margin % Distribution
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Monster Beverage's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Monster Beverage's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Monster Beverage had a gross margin of 54.24% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Monster Beverage Gross Margin % Related Terms
Thank you for viewing the detailed overview of Monster Beverage's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Monster Beverage (Monster Beverage) Business Description
Monster Beverage is a leader in the energy drink subsegment of the nonalcoholic beverage market, generating two thirds of revenue in the U.S. and Canada. The well-known Monster trademark includes brands such as Monster Energy, Monster Ultra, Java Monster, and Juice Monster. The firm also owns other energy drink brands, such as Reign, NOS, Burn, and Mother, and brews and distributes beers and flavored malt beverages following the acquisition of a craft brewer in 2022. Monster controls branding and innovation but outsources beverage manufacturing and packaging to copackers and finished goods distribution to bottlers in the global Coca-Cola system (pursuant to a 20-year agreement inked in 2015). Coke is the largest shareholder of Monster with a 19.5% stake.
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