Monster Beverage · Earnings release

PondelWilkinson Inc.

Westlake Village,

Investor Relations

T

Strategic Public Relations

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www.pondel.com

CONTACTS:

Mark Astrachan

SVP, Investor Relations & Corporate Development

Roger S. Pondel / Judy Lin

NEWS

PondelWilkinson Inc.

RELEASE

MONSTER BEVERAGE

REPORTS 2025 THIRD QUARTER FINANCIAL RESULTS

2025 Third Quarter Highlights

·

Record Quarterly Net Sales rise 16.8 percent to $2.20 billion

·

Operating Income increases 40.7 percent to $675.4 million

·

Net Income increases 41.4 percent to $524.5 million

·

Net Income Per Diluted Share increases 41.1 percent to $0.53 per share

Corona, CA– November 6, 2025 – Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the three- and

Net sales for the

2025 third quarter increased 16.8 percent to $2.20 billion, from $1.88 billion in the same period last year. Net changes in foreign currency

exchange rates had a favorable impact on net sales for the 2025 third quarter of $31.8 million. Net sales on a foreign currency adjusted

basis (non-GAAP)1 increased 15.1 percent in the 2025 third quarter.

Net sales, excluding

the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), increased 15.8 percent in the 2025 third quarter.

Net sales for the

Company’s Monster Energy® Drinks segment, which primarily includes the Company’s Monster Energy® drinks, Reign Total

Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, increased 17.7

percent to $2.03 billion for the 2025 third quarter, from $1.72 billion for the 2024 third quarter. Net changes in foreign currency exchange

rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately $28.7 million for the 2025 third

quarter. Net sales on a foreign currency adjusted basis (non-GAAP) for the Monster Energy® Drinks segment increased 16.0 percent

Net

sales for the Company’s Strategic Brands segment, which primarily includes the various energy drink brands acquired from The Coca-Cola

Company, as well as the Company’s affordable energy brands Predator® and Fury®, increased 15.9 percent to $130.5 million

for the 2025 third quarter, from $112.6 million in the 2024 third quarter. Net changes in foreign currency exchange rates had a favorable

impact on net sales for the Strategic Brands segment of approximately $3.1 million for the 2025 third quarter. Net sales on a foreign

currency adjusted basis (non-GAAP) for the Strategic Brands segment increased 13.2 percent in the 2025 third quarter.

1The

tables at the end of this press release provide a reconciliation of non-GAAP financial measures to the Company’s results, as reported

under GAAP. (See “Reconciliation of GAAP and Non-GAAP Information” below).

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Monster Beverage Corporation

Net sales for the

Alcohol Brands segment, which is comprised of various craft beers, flavored malt beverages and hard seltzers, decreased 17.0 percent

Net sales for the

Company’s Other segment, which primarily includes certain products of American Fruits and Flavors, LLC, a wholly owned subsidiary

of the Company, sold to independent third-party customers, increased 14.4 percent to $6.8 million for the 2025 third quarter, from $5.9

million in the 2024 third quarter.

Net sales to customers

outside the United States increased 23.3 percent to $937.1 million in the 2025 third quarter, from $760.1 million in the 2024 third quarter,

representing approximately 43 percent and 40 percent of total reported net sales for the 2025 and 2024 third quarters, respectively.

Net sales to customers outside the United States, on a foreign currency adjusted basis (non-GAAP), increased 19.1 percent to $905.3 million

Gross profit as

a percentage of net sales for the 2025 third quarter increased to 55.7 percent from 53.2 percent in the 2024 third quarter. The increase

in gross profit as a percentage of net sales for the 2025 third quarter was primarily the result of pricing

actions, supply chain optimization and product sales mix, partially offset by higher promotional allowances, increased aluminum can costs

and geographical sales mix.

Distribution expenses

for the 2025 third quarter were $82.6 million, or 3.8 percent of net sales, compared with $82.7 million, or 4.4 percent of net sales,

Selling expenses

for the 2025 third quarter were $214.6 million, or 9.8 percent of net sales, compared with $196.1 million, or 10.4 percent of net sales,

General and administrative

expenses for the 2025 third quarter were $251.9 million, or 11.5 percent of net sales, compared with $241.1 million, or 12.8 percent

of net sales, for the 2024 third quarter. Stock-based compensation was $32.8 million for the 2025 third quarter, compared with $27.5

million in the 2024 third quarter. The increase in stock-based compensation for the 2025 third quarter included $7.4 million related

to certain equity awards granted late in the 2025 first quarter that contain a new retirement clause.

Operating expenses

for the 2025 third quarter were $549.1 million, compared with $519.9 million in the 2024 third quarter. Adjusted operating expenses (non-GAAP)

for the 2025 third quarter were $510.4 million, compared with $474.7 million in the 2024 third quarter. Operating expenses as a percentage

of net sales for the 2025 third quarter were 25.0 percent, compared with 27.6 percent in the 2024 third quarter. Adjusted operating expenses

(non-GAAP) as a percentage of net sales for the 2025 third quarter were 23.6 percent.

Operating income

for the 2025 third quarter increased 40.7 percent to $675.4 million, from $479.9 million in the 2024 third quarter. Adjusted operating

income (non-GAAP) for the 2025 third quarter increased 35.6 percent to $705.8 million, from $520.4 million in the 2024 third quarter.

The effective tax

rate for the 2025 third quarter was 23.9 percent, compared with 21.8 percent in the 2024 third quarter. The increase in the effective

tax rate was primarily attributable to higher income taxes from foreign tax jurisdictions.

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Monster Beverage Corporation

Net income for the

2025 third quarter increased 41.4 percent to $524.5 million, from $370.9 million in the 2024 third quarter. Adjusted net income (non-GAAP)

for the 2025 third quarter increased 36.4 percent to $547.8 million, from $401.5 million in the 2024 third quarter. Net income per diluted

share for the 2025 third quarter increased 41.1 percent to $0.53, from $0.38 in the 2024 third quarter. Adjusted net income per diluted

share (non-GAAP) for the 2025 third quarter increased 36.2 percent to $0.56, from $0.41 in the third quarter of 2024.

Hilton H. Schlosberg,

Chief Executive Officer, said, “The global energy drink category continues to demonstrate solid growth, driven by increasing consumer

demand. We again delivered solid financial results in the 2025 third quarter, with record net sales, gross profit dollars, operating

income and net income. The results for the quarter reflect the strength of our brands and dedication of our teams around the world. Our

Monster Energy Ultra® energy drinks once again contributed significantly to our growth this quarter. Our net sales to customers outside

of the United States increased 23.3 percent in the 2025 third quarter to approximately 43 percent of total net sales, up from approximately

40 percent in the 2024 third quarter, and is the highest percentage of net sales to customers outside the United States recorded by the

Company to date for a single quarter.

“The quarter’s

performance also reflects the success of our product innovations, which are resonating strongly with consumers. Innovation remains

central to our long-term growth strategy. We are excited about our 2025 fall new product offerings and our robust slate of planned new

product offerings for 2026, including the upcoming launch of FLRT, our female-focused brand, late in the first quarter, which we plan

to initially debut in four flavors,” Schlosberg added.

Net sales for the

nine-months ended September 30, 2025 increased 8.5 percent to $6.16 billion, from $5.68 billion in the comparable period last year.

Net changes in foreign currency exchange rates had an unfavorable impact of $30.6 million on net sales for the nine-months ended September 30,

2025. Net sales on a foreign currency adjusted basis (non-GAAP) increased 9.0 percent in the nine-months ended September 30, 2025.

Net sales, excluding the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), increased 9.8 percent in the nine-months

Gross profit as

a percentage of net sales for the nine-months ended September 30, 2025 was 56.0 percent, compared with 53.6 percent in the comparable

period last year.

Operating expenses

for the nine-months ended September 30, 2025 were $1.57 billion, compared with $1.50 billion in the comparable period last year.

Operating income

for the nine-months ended September 30, 2025 increased to $1.88 billion, from $1.55 billion in the comparable period last year.

The effective tax

rate for the nine-months ended September 30, 2025 was 23.9 percent, compared with 22.8 percent in the comparable period last year.

Net income for the

nine-months ended September 30, 2025 increased 17.6 percent to $1.46 billion, from $1.24 billion in the comparable period last year. Net income per diluted share for the nine-months ended September 30, 2025 increased 22.4 percent to $1.48, from $1.21 in the comparable

period last year.

Share Repurchase Program

third quarter, no shares of the Company’s common stock were repurchased. As of November 5, 2025, approximately $500.0 million

remained available for repurchase under the previously authorized repurchase program.

(more)

Monster Beverage Corporation

Investor Conference Call

The

Company will host an investor conference call today, November 6, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

The conference call will be open to all interested investors through a live audio web broadcast via the internet at www.monsterbevcorp.comin the “Events & Presentations” section. For those who are not able to listen to the live broadcast, the call will

be archived for approximately one year on the website.

Monster Beverage Corporation

Based in Corona,

California, Monster Beverage Corporation is a holding company and conducts no operating business except through its consolidated subsidiaries.

The Company’s subsidiaries develop and market energy drinks, including Monster Energy® drinks, Monster Energy Ultra® energy

drinks, Juice Monster® Energy + Juice energy drinks, Java Monster® non-carbonated coffee + energy drinks, Monster Killer Brew™

Triple Shot, Rehab® Monster® non-carbonated energy drinks, Monster Energy® Nitro energy drinks, Reign® Total Body Fuel

high performance energy drinks, Reign Storm® total wellness energy drinks, NOS® energy drinks, Full Throttle® energy drinks,

Bang Energy® drinks, BPM® energy drinks, BU® energy drinks, Burn® energy drinks, Live+® energy drinks, Mother®

energy drinks, Nalu® energy drinks, Play® and Power Play® (stylized) energy drinks, Relentless® energy drinks, Samurai®

energy drinks, Ultra Energy® drinks, Predator® energy drinks and Fury® energy drinks. The Company’s subsidiaries also

develop and market still and sparkling waters under the Monster Tour Water® brand name. The Company’s subsidiaries also develop

and market craft beers, flavored malt beverages and hard seltzers under a number of brands, including Jai Alai® IPA, Dale’s

Pale Ale®, Dallas Blonde®, Wild Basin® hard seltzers, The Beast™, Beast™ Tea, Blind Lemon®, Blinder Lemon™

and Michi. For more information visit www.monsterbevcorp.com.

Caution Concerning Forward-Looking

Statements

Certain statements

made in this announcement may constitute “forward-looking statements” within the meaning of the U.S. federal securities laws,

as amended, regarding the expectations of management with respect to our future operating results and other future events including revenues

and profitability. The Company cautions that these statements are based on management’s current knowledge and expectations and

are subject to certain risks and uncertainties, many of which are outside of the control of the Company, that could cause actual results

and events to differ materially from the statements made herein. Such risks and uncertainties include, but are not limited to, the following:

our ability to sustain and/or surpass the current level of sales of our products, to adapt to changing consumer preferences, and to effectively

respond to competitive products and pricing pressures; our ability to implement our growth strategy, including expanding our business

in existing and new sectors and achieving profitability within our Alcohol Brands segment; our ability to adapt to the changing retail

landscape with the rapid growth in e-commerce retailers and e-commerce websites; our ability to absorb, reduce or pass on to our bottlers/distributors

increases in commodity costs, including freight costs; the impact of the current U.S. presidential administration’s policies on

our energy drinks due to concerns about sugar-sweetened beverages, particular ingredients, such as food dyes, and the “generally

recognized as safe” (GRAS) process; the impact of proposed or adopted domestic and/or foreign legislation to limit or restrict

the sale of energy drinks (including the prohibition of the sale of energy drinks to certain demographics, at certain establishments,

in certain container sizes or pursuant to certain governmental programs, such as the Supplemental Nutrition Assistance Program (SNAP));

the impact of changes in U.S. trade policies and the threat or imposition of tariffs on, among other things, our supply chain, input

costs, inflation or consumer demand for our products; the imposition of new and/or increased excise sales and/or other taxes on our products;

our extensive commercial arrangements with The Coca-Cola Company (TCCC) and, as a result, our future performance’s substantial

dependence on the success of our relationship with TCCC; the effects of unilateral decisions by bottlers/distributors and/or retailers

on our business, including their distribution and placement of our products, their consolidation, their discontinuation, or restriction

of the range of, all or any of our products that they carry, their limitations on the sale or sizes of our products, and/or their devotion

of less resources to the sale of our products; changes in the price and/or availability of raw materials and other supply chain issues,

such as the availability of products, suitable production facilities and/or co-packing arrangements; possible recalls of our products

and/or the consequences and costs of defective production; disruption to our manufacturing facilities and operations related to climate,

labor, production difficulties, capacity limitations, regulations or other causes; disruption to and/or lack of effectiveness of our

information technology systems, including internal and external cybersecurity threats and breaches; adverse publicity surrounding obesity,

alcohol consumption and other health concerns related to our products, product safety and quality; liabilities resulting from legal or

regulatory proceedings, government investigations, and/or injunctions; the inherent operational risks presented by the alcoholic beverage

industry that may not be adequately covered by insurance or lead to litigation relating to the abuse or misuse of our products; the current

uncertainty and volatility in the national and global economy and changes in demand due to such economic conditions, including a slowdown

in consumer spending generally; and the impact of military conflicts, including supply chain disruptions, volatility in commodity prices,

increased economic uncertainty and escalating geopolitical tensions. For a more detailed discussion of these and other risks that could

affect our operating results, see the Company’s reports filed with the Securities and Exchange Commission, including our annual

report on Form 10-K for the year ended December 31, 2024 and our subsequently filed quarterly reports. The Company’s

actual results could differ materially from those contained in the forward-looking statements. The Company assumes no obligation to update

any forward-looking statements, whether as a result of new information, future events or otherwise.

# # #

(tables below)

MONSTER BEVERAGE CORPORATION AND

SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS

OF INCOME AND OTHER INFORMATION

FOR THE THREE- AND NINE-MONTHS ENDED

(In

Thousands, Except Per Share Amounts) (Unaudited)

Three-Months Ended

Nine-Months Ended

Net sales¹

$

$

$

$

Cost of sales

Gross profit¹

Gross profit as a percentage of net sales

%

%

%

%

Operating expenses

Operating expenses as a percentage of net sales

%

%

%

%

Operating income¹

Operating income as a percentage of net sales

%

%

%

%

Interest and other income (expense), net

)

Income before provision for income taxes¹

Provision for income taxes

Income taxes as a percentage of income before taxes

%

%

%

%

Net income

$

$

$

$

Net income as a percentage of net sales

%

%

%

%

Net income per common share:

Basic

$

$

$

$

Diluted

$

$

$

$

Weighted average number of shares of common stock and common stock equivalents:

Basic

Diluted

Energy drink case sales (in thousands) (in 192-ounce case equivalents)

Average net sales per case²

$

$

$

$

1Includes $10.1 million and $10.0 million for the three-months ended September 30, 2025 and 2024, respectively, related to the recognition

of deferred revenue. Includes $30.0 and $29.9 million for the nine-months ended September 30, 2025 and 2024, respectively, related

to the recognition of deferred revenue.

2 Excludes

Alcohol Brands segment and Other segment net sales.

MONSTER BEVERAGE CORPORATION AND

SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In

Thousands, Except Par Value) (Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

$

Short-term investments

-

Accounts receivable, net

Inventories

Prepaid expenses and other current assets

Prepaid income taxes

Total current assets

INVESTMENTS

-

PROPERTY AND EQUIPMENT, net

DEFERRED INCOME TAXES, net

GOODWILL

OTHER INTANGIBLE ASSETS, net

OTHER ASSETS

Total Assets

$

$

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

$

Accrued liabilities

Accrued promotional allowances

Deferred revenue

Accrued compensation

Income taxes payable

Total current liabilities

DEFERRED REVENUE

OTHER LIABILITIES

LONG-TERM DEBT

-

STOCKHOLDERS’ EQUITY:

Common stock - $0.005 par value; 5,000,000 shares authorized; 1,130,977 shares issued and 976,997 shares outstanding as of September 30, 2025; 1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

)

)

Common stock in treasury, at cost; 153,980 shares and 153,250 shares as of September 30, 2025 and December 31, 2024, respectively

)

)

Total stockholders’ equity

Total Liabilities and Stockholders’ Equity

$

$

Reconciliation

of GAAP and Non-GAAP Information

($

in Thousands, Except Per Share Amounts, unaudited)

The Company believes

the following non-GAAP items are useful to investors in evaluating the Company’s ongoing operating and financial results. The non-GAAP

items should be considered in addition to, and not in lieu of, U.S. GAAP financial measures. The non-GAAP financial measures do not represent

a comprehensive basis of accounting. Therefore, our non-GAAP financial measures may not be comparable to similarly titled measures reported

by other companies.

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

N/A

Adjusted Net Sales – FX Neutral

$

$

%

$

$

%

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Adjusted Net Sales – Less Alcohol

$

$

%

$

$

%

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Currency Impact

)

N/A

N/A

Adjusted Net Sales – FX Neutral/Less Alcohol

$

$

%

$

$

%

Monster Energy® Drinks Segment

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

N/A

Adjusted Net Sales

$

$

%

$

$

%

Strategic Brands Segment

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

N/A

Adjusted Net Sales

$

$

%

$

$

%

Foreign

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

)

N/A

N/A

Adjusted Net Sales

$

$

%

$

$

%

Reconciliation

of GAAP and Non-GAAP Information

($ in Thousands,

Except Per Share Amounts, unaudited) - continued

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Gross Profit

$

$

%

$

$

%

Alcohol Brands Inv. Reserve

-

-

Adjusted Gross Profit

$

$

%

$

$

%

Adjusted Gross Profit as a percentage of Net Sales

%

%

%

%

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Operating Expenses

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Litigation Provisions

)

)

)

)

Retirement-Clause Related Stock-Based Compensation1

)

-

)

-

Adjusted Operating Expenses

$

$

%

$

$

%

Adjusted Operating Expenses as a percentage of Adjusted Net Sales – Less Alcohol

%

%

%

%

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Operating Income

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions

Retirement-Clause Related Stock-Based Compensation1

-

-

Adjusted Operating Income

$

$

%

$

$

%

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Income

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions

Retirement-Clause Related Stock-Based Compensation1

-

-

Adjusted Net Income

$

$

%

$

$

%

Adjustments in this table are net

of tax.

Three-Months Ended

Percentage

Nine-Months Ended

Percentage

Change

Change

Net Income per common share - Diluted

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions

Retirement-Clause Related Stock-Based Compensation1

-

-

Adjusted Net Income per common share - Diluted

$

$

%

$

$

%

Adjustments in this table are net

of tax.

Reconciliation

of GAAP and Non-GAAP Information

($ in Thousands,

Except Per Share Amounts, unaudited) - continued

1In

March 2025, the Company began issuing equity awards containing language that permits certain awards to continue vesting following

a recipient’s retirement (the “Retirement Clause”). The Retirement Clause is applicable for award recipients that have

(i) attained the age of sixty-five, (ii) completed ten or more years of continuous service, and (iii) provided at least

six months’ written notice prior to the last day of service. Since recipients who meet the eligibility conditions of the Retirement

Clause are not required to continue providing service following their retirement in order for certain of their awards subject to the

Retirement Clause to continue vesting, the service period for such recipients is six months rather than the stated vesting period per

the award.