MNST - Earnings call transcript Q4 2021 | Monster Beverage Corporation

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Operator

Good afternoon, and welcome to the Monster Beverage Company's Fourth Quarter and Full Year 2021 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Rodney Sacks and Hilton Schlosberg, Co-CEOs. Please go ahead.

Rodney Sacks

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

Tom Kelly

Rodney forward-looking now that to call any therein otherwise. I which of Risk update control or with our Commission, affect may hand the differ that X, begin, cause are performance. regarding future new Securities and like forward-looking Sacks. are the based many Securities the call call. and may Section as business the pandemic and forward-looking uncertainties whether listeners as performance we on on discussion filings Now our most XXA obligation to on of subject the amended refer Exchange as expectations Exchange revenues, our of including XXE information, COVID-XX uncertainties, constitute available report are to management with and annual information XXXX certain the XX-K the The result recent would and risks are Form to filed company to company's to Act as of amended made statements of business, this statements and operations. on and to and current respect knowledge from contained the the statements sections remind assumes Securities Please our before Act actual materially to currently during during including events of risks and Factors Management well of and future profitability, that for I the may as the based meaning financial impact cautions of forward-looking certain the on future XXXX, Section this within results the of like made would XXXX outside that over expectations March events, specific on future company no statements a statements trends statements these of

Rodney Sacks

fourth Tom. sales tax results evaluating company challenges $XXX.X included year. achieved fourth of quarter fourth in that company for pandemic. a as consequence of record We annual year fourth in net the overall. and marketing, largely year taken comparative certain topping nonrecurring fourth billion history. the quarter full time XXXX a other as XXXX The solid the and mark comparative full year, the benefit operating with the quarter, well Despite company's over certain first achieved These Thanks, note reduced and million performance $X.X the XXXX be -- net consideration and sales quarter items as when COVID-XX into the should sponsorships expenses, full the

of response During consumer the the company XXXX increased cans from procure and in additional to aluminum the States continued to fourth abroad quarter, in quantities demand. United suppliers

products. In experience demand global port including addition, the in the entry congestion capacity challenges, additional of to supply the shipping increased sufficient meet co-packing inefficiencies, its containers, delays In company of to certain certain freight chain receipt continued lacked States, for the United of ingredients. company shortages of and

products As company number the for a demand increased markets of able satisfy not the fourth its in result, was quarter. XXXX fully to in a

as experienced aluminum importing can well attributable XXXX higher company increased quarter, commodity aluminum the During cans. costs fourth aluminum to the the of pricing cost as

we to issue million The was fourth a it inefficiencies. fourth of quarter to supply challenges and the the operating the billion fourth primarily and as XXXX as will and issue a were million Gross environment. product with customers global XXXX and up compared product the in $XX.X shipping address quarter continues chain concerning higher costs materials, attributable production and the increased prior Japan, ingredient compared compared sales limited related aluminum sales returns. of in outbound $X.XX freight secondary co-packing XX.X% The negatively freighting the an experienced quarter. to of for of company X increased was Europe increased gross increased net fourth In for quarter for navigates uncertainty and The commodity as XXXX, profit quarter fourth the can which of million input profit percentage resulted were fees, freight, fuel, formulation movements, fourth as have the a as labor, pricing, current chain XXXX, XX.X%. production the XXXX Operating sales costs number in quarter packaging the in fourth costs quarter. XXXX through XXXX to quarter net XXXX of trucking, the sales XX.X% and returns fourth $XXX.X other in were product quarter. XX.X%. billion result increased decrease company labeling sales addition, for and net costs, including quarter percentage in its fourth efficiencies, in $XXX.X the from a our In increased products net European for in impacted with which XXXX sales of the aluminum XXXX a the of for XXXX sales refer would with by supply costs, with fourth been of geographical currency mix foreign Adjusting the in of increase result $X.XX comparative net expenses the costs

activities operating for compared costs, outbound media fourth endorsements expenditures As XXXX quarter and XXXX with operating expenses in in XX.X% a increased and and increased was marketing and percentage were in net warehouse the freight marketing the including sponsorships XXXX and increased payroll digital pre-COVID. other costs. fourth for expenses social to quarter fourth and for of primarily XX.X% increase XX.X% quarter the sales, increased expenditures The due

transitory. $XXX.X $XXX.X The for sales quarter compared and increased fourth or to the company consequence quarter entertainment, X.X% that which COVID-XX costs. in to shipping sponsorship for are costs sales into on of second products of increase sales costs, we reducing chain of fourth well to the expect of in sales. aluminum raw United our ingredients million, cost decreased the and our The XXXX. new increased of freight-in XXXX which other quarter. such and a quarter finished the quarter, aluminum first X.X% comparative supply cost the will impact XXXX. We $XX.X pronounced the included net and full the million the Operating less in and logistic included of expenditures of X we cans the begin in freighting of to cans in With of in operational, In sales and of although decreased likely continue our XXXX of XX.X% imports repositioning of million are imported will import distribution States marketing XXXX cans The million expenditures Distribution XXXX. experienced XXXX the half quarter a from fourth was or XXXX decrease fourth importing as during suppliers is materials an the the pandemic COVID-XX in income XXXX, XXXX programs to increase the in net use X.X% half in in to that of the largely cans on year to aluminum costs in the travel reliance believe States, fourth costs experiencing continue although and import the centers United $XX level X.X% are significantly EMEA to challenges be net During portion and increasing the the for States, aluminum as reduced we as are of quarter. into each of at endorsements pandemic. are the we fourth to United a we and

shipment approximately million cost of costs, our the long approximately in importing fourth and to distances Orbitz $XXX the the customers. in to to year. satisfy for of freight in Increased an XXXX proximity to strategy amounted cans are to cost of in We full and increasing to trucking and $XX excessive rebuilding return including quarter inventories XXXX producing our effort reduce million demand the

provisions X.X the Nielsen, comparative NOS a million. to supply million. Sales the share convenience XX.X%. X.X of XXXX, $XXX.X a X% X.X%. Net decreased Reign, period energy the sales of $X.XX XXXX quarter Reign related in the a February brands, VPX in X-week XXXX. other excluding excluding The comparative X%. convenience point of like and January Monster's point from Full gas in Sales convenience of VPX income X.X Sales decreased versus value Argentina sales in were XX increased Sales share Nielsen, quarter Java XX.X% points X.X%. approximately which energy down brand for higher. against Sales XXXX Brazil NOS. were for compared the energy to X.X single period the XX.X%. XX.X% sales XX.X%. per grocery, X company's OXXO Nielsen, weeks to to and drink XX.X% XX.X% that energy category inventory to X, in merchandisers, sales by February XXXX Monster to dominates in Diluted ago. January $XXX.X Sales Sales weeks year February of fourth approximately in of was X.X%. XX.X%. was Throttle in XX.X%. includes to dollars, to to Monster decreased as XX.X% gas in ended was the versus decreased VPX decreased XXXX, statistics a value month drug, X.X%. point. dollars. energy increased increased previous the our Rockstar and million to influenced a benefit, period sales Monster decreased Full of remained The Rockstar in chain, compared increased earnings ended for X.X% in by Bull decreased of including a a XX.X%. XXXX to XX.X% increased drink Nielsen, its retail per Consequently, provisions million sales dollars while were in were to According the the includes share share point the X.X% of of Sales X.X X.X impact to energy retail year. which Nielsen decreased may Doubleshot According share company's Net the XXXX Monster's X.X%. up According to of XX.X%, year of year. X.X% of improving. XX.X%. for distribution by outlets which of point of brands the sales Red in Sales because that to company's share And of XX, product the for the a quarter in the ended energy would X.X% of the point XX.X% shots from supply Energy Canada, Bull's XXX, be Monster its be NOS and the Monster gas previous is month NOS Reign XX category lower increased brands the share for positively period market. Monster's the market decreased impact to of of market Monster turn concentrate or share its fourth weeks associated in share the in to Throttle for Nielsen the to X.X% have more reported Monster's the energy in in and XXXX tax Diluted NOS Monster X.X%. X.XX%. for Sales often be only Java share comparable share January for and increased the Monster's plus associated drink Sales increased Reign's X%. tax combined, was increased the drink X.X According Nielsen fourth was Monster, dollars XX.X%, of over quarter, nonrecurring market to the for increased related of influenced X-Hour Starbucks within X.X numbers -- X.X January drink the XX.X%. value the NOS' decreased activities X.X channels share and weeks comparable year. January increased quarter share of XXX to share chain to was X.X%, Energy used XXXX, ended energy and and of the fourth Mexico Monster the coffee by over same share the continues negatively versus Coffee, ago. at EMEA was down mass for the dollars by same from February of weeks were sales XX, significant Java inventory guide Nielsen the XXXX, were a down same XXX weeks Our can the energy Nielsen a fourth country-to-country earnings issues by to Bull shipping and and market convenience quarter channels EMEA Starbucks down the XXXX, and increased XXXX shortages Sales X.X% for In should on channel impact share all channel, may in of out-of-orbit share share of in Nielsen including from in truffle and energy increased fourth the $X.XX company's Net million up XX.X% X.X the increased was month in could of decreased January Starbucks energy points in that its positively including and/or XX.X% down as vary a amounted in decreased Keto the XX.X% the during the reports, leading by X.X%. X.X I category are points benefit decreased for previous period million market the in and Bang OXXO X.X%. out the for of increased share and The X-Hour Argentina. X in increased including to containers. the a of previous XXXX nonrecurring are due sales compared X.X% retail Red share XXXX result brands, the was chain month. referred through quarter. quarter of point as impacted the Mexico, to the down the $XX XX, sales including Rockstar outlets in $XXX.X share market varying year. XX.X% country-to-country. X.X to to NOS of X increased and to X-Hour the by the XX.X%, be period. a was income the XX.X% month the points in period all which sales versus combined XXXX. undertaken short sales of a XX.X%. dollars, promotions share the Monster XXXX, Java month was XXXX, namely Sales was and a X%. category, the primarily months, in to returns, company's Bang's XX.X% increased sales the full up on to convenience energy drink line drink Predator such Monster materially shots, include same from the to in convenience, coffee plus dates Chile, $X.XX. and which for Nielsen, measured for increased in period market X.X% the of the X.X of same energy According According XX-week to included Energy shots X X Rockstar's XXXX costs, tax of which previous XX.X%. Java in Full costs decreased Mexico. Bang period XX.X% According decrease monthly The by costs X.X%. February during Java percent read the channel. the XXXX, decreased the share was XXXX According Sales the Reign drink higher returns, X.X% down to XX, in of benefits, year. for statistics category, the in points from X.X XX.X% X.X of all share in energy share materially Tripleshot, Sales energy Monster shortage be of in and a point. up Throttle the a and Nielsen, drink XX.X% in Bang income up fourth including category, decreased the value retail in Roasted cover other brands for a $XX of Full category X.X%. market sales the point $XXX.X over convenience increased decreased year. particular freight market Red channel, expenses for point, a gas Java X.X% are XXXX in that ended and product January of recognition XX, X nonrecurring of

XX.X% same decreased market Zealand February Monster's Monster's as sales New in market month According share previous brands share X, to According the January from X, U.S. months period Mother's XX.X% may According market According same Nielsen, and Korea. the share and Nielsen in weeks XX.X% to in in compared trading in the the promotions Monster's and to from in to to Italy year. XX.X% same of value the value According to value X.X% period period to those the periods XX-week company XX% is negatively same the Whilst Monster until from in positively supply sales XX-week the Netherlands for to XX% market to from retail in the from same XXXX, as same the from January in of to period share customers same to New and year IRI XXXX, for to share Britain, XXXX, period value outlets energy South the the February other the market of from previous convenience grew XX-week XX.X% in December statistics $XXX.X XX.X% from same total to XX.X% increased from in by to compared market Denmark XX.X%. the to the the all Czech were same ended to XX.X% to XX.X% in in XX, often to XX.X% X.X% XX.X% from month XX.X% or for in from in materially as weeks ending from to in previous share retail compared quarter market as Monster's in net which December grew same Monster's to year to to previous Spain. the to According decreased to the in According period. XX.X% in year, Live+ in value market period outside compared South to that the to brands net Nielsen, to the the the in period Norway, be December Australia from XX.X% previous as as and Poland. ended month value of to that XX.X% in period previous corresponding XX.X% Republic, to December as XX.X% compared ended in certain market XXXX in the Net retail for in Sweden. XXXX, in ending and share from Nielsen Australia, XXXX. XXXX, compared to Belgium declined the year share quarter grew XX.X% for February XX.X% from in or compared XX.X% market the end from same again point X, XX.X%. X, February period company's X.X% from fourth in from retail to compared to of year value year and XX.X% to the same X previous XX.X%. the Republic Ireland. in XX.X% X.X% Monster's from XXXX, previous to The as Great in Japan, XXXX, period grew XX.X% XX.X%. during of combined for in market market Zealand, or month share Korea market value sales the XX.X% XX.X% XX.X% of Predators South XX% share Africa. compared ended XXXX, company's the EMEA Greece Nielsen, XX.X% the Mother's million the X-week year previous XX, share increased from from $XXX.X retail store to retail for from influenced January XX.X% declined in to period the XXXX, as factors The the million, XX% Monster's XX-week at previous the grew XX.X% market from as value XX.X% share year. France, XX.X% share single in to ending the channel and to Monster's the to ended the decreased periods. share in Nielsen, XX.X% X.X% period Nigeria. addition, increased total in XX.X% be X, to XX.X% value the XX.X% X%. Kenya out in In to INTAGE to market IRI period to year different remained in to compared from the cover the the the We the ending in value to experienced leading from the the continues statistics market during share brand and/or in in countries. According XXXX, value XX.X% in value and period issues to XX.X% which in XXXX, grew in the XX% in during Germany XX.X% in in compared X impacted in Japan

exchange some fourth currencies. quarter for excluding in XX.X% the of can quarter negative the million and currency XXXX shortage EMEA. had net on was customers the net our a returns sales of costs. fourth in was percentage sales together sales overseas. the military costs $X.X in increased approximately increased XXXX same in the of reported in as are XXXX in XX.X%. local quarter. gross in dollars customers, an by the as lack Gross over Foreign rates was on fourth Included retailers. trucking XX.X% U.S. supply to profit compared sales, are same XX.X% by transshipped In product XX.X% XXXX currencies, impact increased for on XXXX. to this impacted availability, U.S. availability XXXX. profit which quarter percentage in freight sales and of the airfreight currencies and a a region in percentage impact impact canning in their provisions In in for shortages, sales In in increased this capacity sales military at quarter, sales this local the fourth dollars net cases, in returns the quarter. company's to XXXX shelf fourth sales net in a impacting was for quarter XX.X% in the it's other a dollars related in XXXX profit as adverse region Gross in and the the delivered period geographic material the XX.X% and quarter inventory fourth of local our products In adjusted the of EMEA, sufficient Net raw Gross net and and region profit product the of availability can had associated ingredient XX.X%

is The the cans of in chain of capacity. part the in company challenges expanding shortages the availability its resolve to and the continuing largely quarter. latter EMEA import address co-packing continuing in trucking to However, its will by controllable supply

XXXX XXXX Republic, Pacific, in net period pleased in In Monster Asia in XX.X% market In Britain, the Africa, and South region Asia dollars period Netherlands, fourth the Denmark, Czech same issue local Germany, and increased impact quarter increased over also quarter, fourth sales in gained are We Sweden. versus Spain region currencies in in XXXX. Great XXXX the a in in XXXX was fourth and of labeling profit this in the in XXXX the currency Gross same product of the XX.X% sales in the quarter, that returns XXXX. net over the over XX.X% excluding in this dollars the XX.X% in period fourth the Pacific, XXXX. Greece, share quarter local and sales the increased the in XX.X% XX.X% same as percentage net

local local XX.X% decreased fourth XXXX provisions X.X% impact gross as net in XXXX product net a currency the XX.X% South over as to period same market quarter currency and in in net same in the Korea, sales in increased compared Korea. the Japan. and In to due largely XXXX. inventory this increased region, X.X% dollars and XX.X% XX.X% quarter compared increased related to been returns in the quarter Japan in the sales in sales same product and in increased restrictions in XXXX, in net dollars as XX.X% local XX.X% of net XXXX. sales of XXXX, the would costs, remains sales the percentage currency. in Excluding dollars Japan impact associated XX% in profit of in In Japan, dollars in currency China, Monster Without the and the returns in and have in local In XXXX. South COVID-XX leader

we States, Seltzer launched early mainstream Energy this e-commerce selected XXXX, quarter. natural channels In in and XXXX into Argentina the Net sales True sales quarter. net Caledonia, of includes sales line and region in sales X.X% Gross Papua America, timing in line French in the in There Tahiti, in VPX and percentage as fourth of and in channels forward. in any remain Oceania, In increased X% dollars in Pure Mexico period local United are We the In North nationally product our reevaluating XX% New in launched are third currencies both the increased in fourth increased XX.X% bottlers. in over the and number Guam, for Brazil, New profit which XX.X% in XX.X% the sales new optimistic quarter local XXXX we the going Zealand, quarters. currency. said reserve not pending in in which the X.X% the XXXX of XXXX call. net and subjudicate, for answering our XX.X% Australia, XX.X% We China Watermelon fourth Pineapple. includes in local -- the in about dollars October Monster line currency Latin our White to this New they local and net drinks dollars and China. on sales this quarter. net by Monster on dollars the a in will currencies questions in same Energy bottlers. today's local new the XXXX Polynesia, are in increased into with Guinea commenced Caribbean, In we currency in of sales Coca-Cola prospects but in flavors, In matter was Chile a increased the launch XXXX. and XX.X% dollars fourth XXXX range proceedings XX% due we optimal X brand be Net for fourth XXXX, increased quarter In and as X% of with

Keen, trade, Ultra new month, We new as such Peachy as launched January new Aussie Gummy the to Bear, Rehab Rainbow XX-ounce XX-ounce options, have we Variety flavor X Reign X-pack the package in launched multiple XXXX, Ultra Ultra we Lemonade, and cans retail quarter. Juice packages a in X XXXX This format. additional Monster Watermelon Sherbet. flavors first Star configurations well XX-pack namely multipack In Reign launched X-pack, a Watermelon, extensions innovation X SKUs, in as White

Ultra our of Peachy X along launched Java Monster packs Zero Keen Java Bean Loca Ultra, in have new Mocha, Watermelon. option with we and Additionally, Mean our a Keen XX-ounce Energy, Monster Monster Peachy also launching Ultra XX-ounce Ultra,

is innovations, and XXXX single first XXX scheduled Gold lower-calorie quarter in Ultra planning for in Paradise. Brew XXXX Ultra Sweet ml Latte. In launched in we XXX XXXX, Zero X-pack. quarter to Canada, Cold Nitro Monster Java addition, In can to into second Energy, launch a new with In X are the including Black SKUs, and X a we X-pack launch the and ml transition Ultra Monster January the

We also a in XXX a Paradise and launched Watermelon Ultra ml in can. Ultra X-pack

we Loco bottle. and expanded launched mL We White in well as returnable Energy Reign Uruguay Strike Watermelon glass introducing process can. well in X-pack with Trinidad. Bear as a XXXX in Predator ml launching Ultra fourth Fury as Reign as of Mango and Monster XXX In offerings the Monster are XXX in Ecuador a the Gold package our Honduras, we In of quarter, Gummy Raspberry the

a Brazil are Pacific We half Tea Punch, planning Monster first XXXX. in Magic the Dreamsicle launch national Orange of Mango Monster Peach, in and Reign, Dragon Reign of

Fiesta we XXXX countries. launch in Monster and launched we in Green, Kiwi the are Mother launched Australia and and the Mania, Trinidad Pipeline Sublime Melon introduce In Tropical in and Nitro Monster Heads to in VRXX, Punch the Zealand. Reign fourth Reign Monster Mean Peru Lemon Additional In Green. Argentina. In predator Zealand, Predator Central XXXX flavor launching Monster are we XXXX first number in In Chile, in quarter Reign Mango. Sugar in fourth Monster Orange Result Loco In Monster with Fuel first EMEA, New and America the we Mexico, Zero XXXX, we in quarter of Dreamsicle. New LatAm Monster Gold will second Thunder Mango innovations in launched Ultra doctor Colombia planning and our Super and Ecuador, quarter quarter, of a include Ultra

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additional particular, countries. quarter first Tropical Strategic Predator Africa. our In we Brands launched During the and South XXXX fourth launched in innovation XXXX Ginger Predator and in our we Spicy quarter, and also

launched of November brand Monster in Rose fourth quarter Japan XXXX. October, the the in we During and Vietnam XXXX, in Predator in

in to Predator countries XXXX. brand several We in additional in course the are planning of the introduce APAC

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existing for team. CANarchy its remain energy business unchanged. organizational organizational Our our beverage own structure will independently, structure retaining function and will

have acquisition approximately their We to than XXXX We foreign 'XX in would distribution than XX% had day higher enthusiastic and basis, January January the XXXX space are in XX.X% to selling us alcohol On this January than opportunities XXXX. network. the about approximately estimate XXXX higher X presents comparable currency through XXXX. be January sales. been adjusted in the more that a January sales January sales

price such by are of inventory instances such bottlers of challenges dates of example, in often our and positive indicative be various a I'd production which environment. could facilities, and reasons. facilities period. not as, on our a its as current in as the schedules, necessarily product period, The conclusion, some economic innovation company the flavor regarded alter of such see to the experience a where caution some are supply We levels shifts over new the related fall, which supply the results that quarter shipment all conditions product pandemic it delayed. co-packers, unfavorable this in responsible short or launches January, promotions and we COVID-XX invoice to for retail In should production recent and for as impacted uncertainty of by regions, week of in we points. well business certain own sales our incentives impacted maintained again some future reiterate they over Currently, days determine continue and In has improvement, affects sales. distributor the partners, any days, warehouses imputed unilaterally global regions their full holidays the company selling in short If and to unilaterally for their that those bottlers manufacturing as we the to a continued or increases in sales single adversely be in as bottlers for in the like chain production navigates Although new period timing which operating. timing supply challenges regard, chain timing company's continues which which factors, launches stores, its well the summarize as as chain disproportionately through address are and distribution distributors month,

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are improving. challenges chain supply Our

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Operator

[Operator from Suisse. is Gajrawala from Instructions] question The Credit Kaumil first

Kaumil Gajrawala

you operator. everybody. Hey Thank

increase You improved you're things doing lot and talked a to about supply the supply.

bit, a think, basis XXX Your margins down obviously were quite I points.

that you for should within product to we are of the be context can 'XX? some being availability as maybe margins the -- and of that speak opposed how changes more made just Speaking to of thinking about

Hilton Schlosberg

And mitigating those orbits. distributed and chain that gave where the the orbits manufactured we example, think been be we And transitory. demand, we've satisfy abroad we we as regarded within that sure the repeating on demand, do detailed worthwhile was think, to of Kaumil, specific And I'm not that geographies. to satisfy open mention call. exercise, -- as pretty Well, are expensive kind imagine. what that that, And said very of that exceptional. those cost is, call challenges. what we through opened some up And what to the certain Also earlier. chain enlisted we for on it's can But the a costs was had I cans you supply I did XXXX. import is to up supply And of in this see we in expected we from numbers and we

new coming aren't -- are on suppliers X stream. have and stream We they they on in fact,

as the they our then some kind be be dependence half second will we in we'll cans reducing to cans the in the will and off in certainly self-sufficient but believe be -- tail we half EMEA, we year. of half. first cans, the of did So in same not U.S., imported we'll And to input buy second on the In cans, with we'll will the the U.S. degree continue

transitory. costs are some that there So of are these

and a Some been board, morning. had shock the we across There's of big costs stick. may the costs this

paying aluminum, of were did kind of you no well to we went opposed that. just aluminum index as a in guys pound half Midwest up with where to year $X.XX as doubt the As what plus of last

that are mitigate. there of cost The to So be can are a mitigate, us. cost costs that we lot not that the may to coming we able

think level? we'll Now I this at aluminum knows. stay don't anyone

to dollars, this we we So customers the at we of supply end the as because overall, we're in be expect we back receive degree GP this And that through move bank audience, will and margins, the we percentage don't profitability do is I've will bank some what we've challenges. as have that forward. product unfortunately, the navigating think doing I been but result said margins profit. to that very not system enough and our these down, ensure last well make come to chain the best day, doing to can we always able be and we are does And forever to the that a

Operator

Chris Fargo. go from is Carey of Wells ahead. question next Please The

Chris Carey

still that on be gross -- hear I inflation follow so aluminum the up right, margins, if you everyone. slightly still line. sourcing you I The just to for through, going a your to I question. look it's for shortsighted If from Hi, but wanted is be not Thank modeling where to coming you in places. good cans But way, at XXXX. if you're have up Street other evening

you costs. this offset at noted, as but story, will freight the Investor enough inflation. to to you be So positive Pricing, not Day, have a maybe the annual

of course, margins I to top remain transitory. costs in I'm the hearing could, to very really under so building bit these on mostly should a are versus that is remains disconnect that just the then as right make and a gross number, want XXXX line, but And U.S., just just if pressure quarter-to-date here, international sure story the the sales. the then And into I good Nielsen XXXX given

for that So perspective. much so thanks

Hilton Schlosberg

go let's close that to number your Well, January. to the second very That number question. -- -- back U.S. the is for

is of Nielsen a lot a to So channels unmeasured distributors. of not indicator we our good we system, in sales have can -- always our and our

So look address let's back at and first your can, question. go step -- your and a we if let's -- take

you been today that. today, It's a number I of was yesterday, up as of $X.XX gave significantly. ton as it than the up So less moving aluminum jumped

I don't products with with to it's that I significant war you think a in do tell And our most be. obviously, aluminum is So going can't what to else and going certain, and aluminum and this in is of anyone going being everything on the for world, can what say packaged item. cans

at of we we now. on that I mentioned the back comments, that some -- Looking sufficient your mentioned script at least have other cans

to say going close closing costs reduce. we're controlled. I certain, orbits, and system towards trading for Other the costs means are which to that the can't significantly to it's working but being When? in off start should happen. back So able going

have continue looking aluminum. stay this margins the call? happens about lot that what I with Will to think Honestly, And on the don't at so what depends -- XXXX. on forward, difficult we that a a we know. talked level will I

in coming stuff XXXX. we will be importing is the That believe, will impact less in under we be we U.S. did will positive control. the cans -- the that on year into So than with from the were of mentioned of the totally half rest cans self-sufficient margins I the U.S. second have a

positive with a in the the in we half second significant a then And that's EMEA, reduction importing factor. So cans first in half. be will

So unfortunately, there's it of the in cost a lot what good it is. is story, but things

doing, on We previous working On what a calls, our really, spoke know we're reducing that. the of that to sales know, we're is own On promotional Red side irrespective, and we we've we about we're run think, have do, you to price as increases, that I play Bull play. the what and running, we going ounces. come to conclusion want

seen You've in seen the already up them Nielsen. prices trade, you've go going and in up

want So that in reductions XXXX, our So -- increases promotional through go degree. look that the quarter the went we prices spoke prices modest see at we you'll And a in is although What as something about well. price I launches that business is say? up do -- we in very in through else to happening at, accelerating. as

Operator

go JPMorgan. Teixeira question The next Andrea from of is Please ahead.

Andrea Teixeira

gas the up? And gas pricing on Hi, you at manufacturing should front. the Hilton price are from elaborate the concern point? saying then on this perhaps affordability I more XXXX? be on that given this point you going you for some in to that, how was top at are be is we regarding wanted what by any just you. impact you seeing said, -- Are a not to through passed pricing what Or able see stations is

Hilton Schlosberg

energy that the than of Nielsen, and sales. are they higher the They gas you'll category numbers are and rest through at recent. in the somewhat convenience market in in the haven't But really are we've if been look seen convenience But and Nielsen. lower you've of impacted the gas reducing. So you prices -- we the seeing see before gas numbers

in the at we looking level, and energy sales haven't stay and slowdown this whether that then they'll But and I we know. before, have convenience don't a market. So And gas through seen been at in pricing --

Rodney Sacks

sorry, week. of add a may in bit pickup just last been the a a -- little Of pickup

short but increase, we in at week's with that's the price seeing again, look effective a you period, last a very -- numbers, are still increase If price translating. pickup it the convenience is single

So we'll see extends. how that

Hilton Schlosberg

And running we low numbers. to were going pricing, to Yes, spoke number, April doing We're pricing. ounces it's a increase up sure. XX regard play. with X-week our in what about we double-digit X

revenue to we're allowances on result will we with particular, price yes, have going. or that department we down as to we with metal, price a monitor a nice if you And is to, metal will and don't general on a situation, know what front, the permanent and increase it rest, becomes out growth continuing we general done if to then taking take the reconsider decide achieve whether to But management the need as working So we have same not. working metal, But in regard XX our promotional not a to to a pricing probably price regard on, be increase. be And increase. with in ounce. we're know, and ruling else where could we're percentage but

Operator

go question next ahead. Kevin is Please of from Jefferies. Grundy The

Kevin Grundy

I wanted Good your to back to on alcohol. afternoon guys. strategy come

I capabilities of a guess, you you now how your to part the deliver ambitions? do And with and broader think wholesaler consumer the a need to talking capabilities, about larger better to this product CANarchy in closed, for is at yes, both right you this do that and you of has capabilities the distribution little sort scale portfolio, with two company you And possibility? You've deliver? think to spirits, address in drill closed, years terms now you that that the bit, if point that have do M&A of respect just down and against everything So network? is with think to more specifically, deal intend a this need kind been the do distribution of you to deal time answer

Rodney Sacks

some good the staff do there, infrastructure have use to not are on. craft build of is a brands. sales -- distribution that CANarchy I acquisition a They to in have think They to we going have and the everything. -- network. we're They that We are complete have brands. answer they

now have are We going distribution the refining where to CANarchy at the of in and side. look whether beer deciding in again, But -- looking to and possible a is developing, launch And platform steps M&A what address malt and taking really separately are business side to been discussed will through at brands, it, that -- taking products the addressing to that the additional sort whole those it's taking a I for us. the us. invigorate we looking their we're system. to the is own We're previously our are side, for of the at system, going or and Those things function think serve that's we've is products and reviewing good opportunities. And and their sales bit. little but spirit help the that that looking at that's that we the

that in getting and issues It's address the have implemented. we're obviously system with But from perfect it, and over. it's We taken build good a on. very other fully will and acquisition, matters going us, having for we're on are here confident very to closed not going give that a to that we're pleased springboard us base and which just we've to

Operator

next ahead. from Please Azer Vivien go is Cowen. question The of

Vivien Azer

if wondering in questions. those offer your Russia, your Hi, could quantify some in better was Ukraine exposure just could if the please? to good detail two and you on I evening. countries, you Thank supply you chain for the

Hilton Schlosberg

Kazakhstan, Yes. our our XX% EMEA in about really of within that Well, those countries, in including work which Belarus, region sales account for sales.

a have there, we to business Russia, nice business happens which what we we -- in a So in Ukraine. have and have see reasonable

will really We and don't in concerning people -- have have to is countries. those And and we concerning, we frankly. know what staff happen, it's really it's

Operator

Rodney I to This and turn our closing over for remarks. Sacks like conference question-and-answer Hilton Schlosberg the session. concludes would to back

Rodney Sacks

Thank behalf in company. interest company, everyone like to thank of you. On the continued the for I'd their

future expand in to innovate, through We at company and expand remain much attendance. to and system growth distribution and you bottling the believe hope be optimistic we both and and company stay in the continue our continue positioned very our continue beverage company. differentiate that our and believe to home develop that the and industry We your in Thank of committed internationally. about the our to to products are you brands safe and strategy of well to for Coca-Cola will particular, the abroad, We to healthy.

Operator

concluded. presentation. today's has for Thank conference now The you attending

Monster Beverage (MNST) 25 Feb 222021 Q4 Earnings call transcript