Monster Beverage · Earnings release

PondelWilkinson Inc.

Westlake Village,

Investor Relations

W www.pondel.com

Strategic Public Relations

CONTACTS:

Mark

Astrachan

SVP, Investor

Relations & Corporate Development

Roger S. Pondel

/ Judy Lin

NEWS

PondelWilkinson

Inc.

RELEASE

MONSTER BEVERAGE

REPORTS 2025 SECOND QUARTER FINANCIAL RESULTS

2025 Second Quarter Highlights

·

Record Quarterly Net Sales exceed the $2.0 billion threshold for the first time in the Company’s history

·

Net Sales rise 11.1 percent to $2.11 billion; 11.4 percent to $2.12 billion on a foreign currency adjusted basis (non-GAAP)

·

Operating Income increases 19.8 percent to $631.6 million; 21.5 percent on a non-GAAP adjusted basis

·

Net Income Per Diluted Share increases 21.1 percent to $0.50 per share; 23.0 percent to $0.52 per share on a non-GAAP adjusted basis

The 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).

Corona,

CA – August 7, 2025 – Monster Beverage Corporation (NASDAQ: MNST) today reported financial results for the

three- and six-months ended June 30, 2025.

Net sales for the

2025 second quarter increased 11.1 percent to $2.11 billion, from $1.90 billion in the same period last year. Net changes in foreign

currency exchange rates had an unfavorable impact on net sales for the 2025 second quarter of $5.0 million. Net sales on a foreign currency

adjusted basis (non-GAAP) increased 11.4 percent in the 2025 second quarter.

Net sales, excluding

the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), increased 11.8 percent in the 2025 second 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 11.2

percent to $1.94 billion for the 2025 second quarter, from $1.74 billion for the 2024 second quarter. Net changes in foreign currency

exchange rates had an unfavorable impact on net sales for the Monster Energy® Drinks segment of approximately $4.8 million for the

2025 second quarter. Net sales on a foreign currency adjusted basis (non-GAAP) for the Monster Energy® Drinks segment increased 11.4

percent in the 2025 second quarter.

(more)

Monster Beverage Corporation

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 18.9 percent to $129.9 million for the

2025 second quarter, from $109.2 million in the 2024 second quarter. Net changes in foreign currency exchange rates had an unfavorable

impact on net sales for the Strategic Brands segment of approximately $0.2 million for the 2025 second quarter. Net sales on a foreign

currency adjusted basis (non-GAAP) for the Strategic Brands segment increased 19.1 percent in the 2025 second quarter.

Net sales for the

Alcohol Brands segment, which is comprised of various craft beers, flavored malt beverages and hard seltzers, decreased 8.6 percent to

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, decreased 8.5 percent to $6.4 million for the 2025 second quarter, from $7.0

million in the 2024 second quarter.

Net sales to customers

outside the United States increased 15.8 percent to $864.2 million in the 2025 second quarter, from $746.0 million in the 2024 second

quarter. Net sales to customers outside the United States, on a foreign currency adjusted basis (non-GAAP), increased 16.5 percent to

$869.3 million in the 2025 second quarter. Such sales were approximately 41 percent and 39 percent of total reported net sales for the

Gross profit as

a percentage of net sales for the 2025 second quarter increased to 55.7 percent from 53.6 percent in the 2024 second quarter. The increase

in gross profit as a percentage of net sales for the 2025 second quarter was primarily the result of pricing actions, supply chain optimization

and lower input costs, partially offset by geographical sales mix and higher promotional allowances.

Distribution expenses

for the 2025 second quarter were $82.0 million, or 3.9 percent of net sales, compared with $87.4 million, or 4.6 percent of net sales

in the 2024 second quarter.

Selling expenses

for the 2025 second quarter were $196.9 million, or 9.3 percent of net sales, compared with $192.1 million, or 10.1 percent of net sales,

in the 2024 second quarter.

General and administrative

expenses for the 2025 second quarter were $265.9 million, or 12.6 percent of net sales, compared with $212.8 million, or 11.2 percent

of net sales, for the 2024 second quarter. Stock-based compensation was $33.2 million for the 2025 second quarter, compared with $18.8

million in the 2024 second quarter. The increase in stock-based compensation for the 2025 second quarter included $7.9 million related

to certain equity awards granted late in the 2025 first quarter that contain a new retirement clause. In addition, general and administrative

expenses for the 2025 second quarter included $13.8 million of litigation provisions.

Operating expenses

for the 2025 second quarter were $544.8 million, compared with $492.3 million in the 2024 second quarter. Adjusted operating expenses

exclusive of the Alcohol Brands segment, the litigation provisions and the change in stock-based compensation (non-GAAP) for the 2025

second quarter were $497.7 million, compared with $459.3 million in the 2024 second quarter. Operating expenses as a percentage of net

sales for the 2025 second quarter were 25.8 percent, compared with 25.9 percent in the 2024 second quarter. Adjusted operating expenses

(non-GAAP) as a percentage of net sales for the 2025 second quarter were 24.0 percent.

(more)

Monster Beverage Corporation

Operating income

for the 2025 second quarter increased 19.8 percent to $631.6 million, from $527.2 million in the 2024 second quarter. Adjusted operating

income (non-GAAP) for the 2025 second quarter increased 21.5 percent to $667.9 million, from $549.7 million in the 2024 second quarter.

The effective tax

rate for the 2025 second quarter was 24.4 percent, compared with 22.9 percent in the 2024 second quarter.

Net income for

the 2025 second quarter increased 14.9 percent to $488.8 million, from $425.4 million in the 2024 second quarter. Net income for the

2025 second quarter increased 16.7 percent to $516.5 million, from $442.7 million in the 2024 second quarter, on a non-GAAP adjusted

basis. Net income per diluted share for the 2025 second quarter increased 21.1 percent to $0.50, from $0.41 in the 2024 second

quarter. Net income per diluted share for the 2025 second quarter, exclusive of the litigation provisions and the accelerated

stock-based compensation, increased 25.2 percent to $0.51, from $0.41 in the 2024 second quarter on a non-GAAP adjusted

basis. Net income per diluted share for the 2025 second quarter increased 23.0 percent to $0.52, from $0.43 in the second quarter of

2024 on a non-GAAP adjusted basis.

Hilton H. Schlosberg,

Chief Executive Officer, said, “We achieved record net sales for the second quarter, exceeding the $2.0 billion mark for the first

time, underscoring the strength of our brands, talent of our team, and continued appeal of our products around the world. The quarter’s

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

“Increased

household penetration and per capita consumption of energy drinks remain positive trends for the category. Our robust pipeline of innovative

products remains central to our long-term growth strategy,” Schlosberg added.

Net sales for the

six-months ended June 30, 2025 increased 4.4 percent to $3.97 billion, from $3.80 billion in the comparable period last year. Net

changes in foreign currency exchange rates had an unfavorable impact of $62.4 million on net sales for the six-months ended June 30,

2025. Net sales on a foreign currency adjusted basis (non-GAAP) increased 6.0 percent in the six-months ended June 30, 2025. Net

sales, excluding the Alcohol Brands segment, on a foreign currency adjusted basis (non-GAAP), increased 6.9 percent in the six-months

Gross profit as

a percentage of net sales for the six-months ended June 30, 2025 was 56.1 percent, compared with 53.9 percent in the comparable

period last year.

Operating expenses

for the six-months ended June 30, 2025 were $1.02 billion, compared with $977.5 million in the comparable period last year.

Operating income

for the six-months ended June 30, 2025 increased to $1.20 billion, from $1.07 billion in the comparable period last year.

The effective tax

rate for the six-months ended June 30, 2025 was 23.9 percent, compared with 23.2 percent in the comparable period last year.

Net income for the

six-months ended June 30, 2025 increased 7.4 percent to $931.8 million, from $867.4 million in the comparable period last year. Net income per diluted share for the six-months ended June 30, 2025 was $0.95, compared with $0.83 in the comparable period last

year.

(more)

Monster Beverage Corporation

Share Repurchase

Program

second quarter, no shares of the Company’s common stock were repurchased. As of August 6, 2025, approximately $500.0 million

remained available for repurchase under the previously authorized repurchase program.

Investor Conference Call

The Company will

host an investor conference call today, August 7, 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.com in

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™, Nasty Beast® hard tea, Blind Lemon®, Blinder

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

(more)

Monster Beverage Corporation

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 the current level of sales of and/or achieve growth for our Monster Energy® Reign Total Body Fuel®, Reign

Storm®, Bang Energy® and NOS® brand energy drinks and/or our other products, including our Strategic Brands and Alcohol Brands;

decreased demand for our products resulting from changes in consumer preferences; the impact on our business of competitive products

and pricing pressures and our ability to increase or maintain our market share as a result of actions by competitors; changes in government

regulations, including U.S. trade policies; the impact of the threat or imposition of tariffs on, among other things, our supply chain,

input costs, inflation or consumer demand for our products; the impact of the current U.S. presidential administration’s policies

on our energy drinks due to articulated 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 military conflicts, including supply chain disruptions, volatility in commodity prices, increased economic uncertainty

and escalating geopolitical tensions; 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; our ability to implement our growth strategy,

including expanding our business in existing and new sectors and achieving profitability within our Alcohol Brands segment; 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; exposure to significant liabilities due to litigation, legal or regulatory proceedings;

intellectual property injunctions; unanticipated litigation concerning the Company’s 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

or reduced demand for consumer goods; adverse publicity surrounding obesity, alcohol consumption and other health concerns related to

our products, product safety and quality; changes in the price and/or availability of raw materials; other supply issues, including the

availability of products and/or suitable production facilities including limitations on co-packing availability including retort production;

disruption to our manufacturing facilities and operations related to climate, labor, production difficulties, capacity limitations, regulations

or other causes; product distribution and placement decisions by retailers; the effects of retailer and/or bottler/distributor consolidation

on our business; unilateral decisions by bottlers/distributors, buying groups, convenience chains, grocery chains, mass merchandisers,

specialty chain stores, e-commerce retailers, e-commerce websites, club stores and other customers to discontinue carrying all or any

of our products that they are carrying at any time, restrict the range of our products they carry, impose restrictions or limitations

on the sale of our products and/or the sizes of containers for our products and/or devote less resources to the sale of our products;

the imposition of new and/or increased excise sales and/or other taxes on our products; our ability to adapt to the changing retail landscape

with the rapid growth in e-commerce retailers and e-commerce websites; possible recalls of our products and/or the consequences and costs

of defective production; or our ability to absorb, reduce or pass on to our bottlers/distributors increases in commodity costs, including

freight costs. 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 report. 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 SIX-MONTHS ENDED

(In Thousands, Except Per Share Amounts)

(Unaudited)

Three-Months Ended

Six-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, 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

$10.0 million for both the three-months ended June 30, 2025 and 2024, related to the recognition of deferred revenue. Includes $19.9

million for both the six-months ended June 30, 2025 and 2024, related to the recognition of deferred revenue.

2Excludes

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; 1,129,950 shares issued and 976,398 shares outstanding as of June 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; 153,552 shares and 153,250 shares as of June 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

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

N/A

N/A

Adjusted Net Sales – FX Neutral

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Adjusted Net Sales – Less Alcohol

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Sales

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Currency Impact

N/A

N/A

Adjusted Net Sales – FX Neutral/Less Alcohol

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Monster Energy® Drinks Segment

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

N/A

N/A

Adjusted Net Sales

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Strategic Brands Segment

Change

Change

Net Sales

$

$

%

$

$

%

Currency Impact

N/A

N/A

Adjusted Net Sales

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Foreign

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

Six-Months Ended

Percentage

Change

Change

Operating Expenses

$

$

%

$

$

%

Alcohol Brands Segment

)

)

)

)

Litigation Provisions

)

-

)

-

Stock-Based Compensation1

)

-

)

-

Adjusted Operating Expenses

$

$

%

$

$

%

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

%

%

%

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Operating Income

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions

-

-

Stock-Based Compensation1

-

-

Adjusted Operating Income

$

$

%

$

$

%

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Income

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions

-

-

Stock-Based Compensation1

-

-

Adjusted Net Income

$

$

%

$

$

%

Adjustments in this table are net

of tax.

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Income per common share - Diluted

$

$

%

$

$

%

Litigation Provisions

-

-

Stock-Based Compensation1

-

-

-

-

Adjusted Net Income per common share - Diluted

$

$

%

$

$

%

Adjustments in this table are net

of tax.

Three-Months Ended

Percentage

Six-Months Ended

Percentage

Change

Change

Net Income per common share - Diluted

$

$

%

$

$

%

Alcohol Brands Segment

Litigation Provisions

-

-

Stock-Based Compensation1

-

-

-

-

Adjusted Net Income per common share - Diluted

$

$

%

$

$

%

Adjustments in this table are net

of tax.

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.