Monster Beverage (MNST) 7 Nov 242024 Q3 Earnings call transcript

Good evening, and welcome to the Monster Beverage Company Third Quarter 2024 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Rodney Sacks and Mr. Hilton Schlosberg, Co-CEO. ahead. go Please .

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

financial Section Securities we I currently these and expectations risks cautions of of would performance and results the statements certain of this during from revenues, the made that constitute are amended to to begin, forward-looking XXE like forward-looking are of call. respect that with and the XXXX trends. differ based regarding which Before management may statements of Exchange materially call the cause current the amended within knowledge XXA XXXX as based outside of made the on meaning events, statements that this on expectations are our during information and and uncertainties, many Act Act statements certain subject to control remind profitability, of as future and future to may company are Section . Management the actual available listeners of Securities business,

therein quarterly affect filings and refer uncertainties that Risk reports report our Factors most on risks on discussion and and XX-Q, Please recent entitled our on with XXXX, for Exchange a Form to the our annual February and on Form Securities the Commission, may contained sections XX, specific including forward-looking XX-K Statements including performance. filed

on I also an our a information result call, is update to any information events like over to the to available I this website, call the the release statements, now during Sacks. section. hand XXXX. in X, the of of Financial or measures, to explanation course statements of the no may copy this other non-GAAP consolidated of as and notes future that assumes in income is which be Rodney the the Information A whether company obligations in attached earnings provided would of to The also November dated like note new information, www.monsterbevcorp.com would mentioned . otherwise. forward-looking

drink Thanks, resilience. and United category category continued globally has the energy experience rates. to demonstrated energy The States, In continues grow to the slower growth Tom. drink

drink However, measured growing improvement at energy beginning in some the excluding faster the States, is . show channel the a in rate. category all convenience, energy the to channels, United category In convenience October. in is

to ongoing XXXX, not refer drink increased the dollars sales the grocery, energy up sales mass in by convenience, a sales merchandisers, company's in statistics versus so according intend think on for mention do that for ended combined, week Nielsen is including outlets that all including drug, X.X%. brands, October do shots, XX, the noteworthy normally were not Monster were and namely Nielsen X-week do X.X% to of up and to ago, same of we X to an Bang, Although energy basis, the I it X.X% while period energy category year

states tighter Milton and environment other companies impacted goods spending XXXX. income quarter. A a in in for number in certain of also Hurricane sales consumer weaker seen and retail packaged at have Helene groups October certain September the demand and consumer

in operational be This mid-November for is our Helen. Hurricane The fully to flooding a was Brevard, expected business. operates we due North on alcohol is cannot partially week impact segment closed Carolina, by the to XXXX. determine brewery operational However, which brewery a and from

from and differ for XX-week according periods We for XX.X% on markets, with capita EMEA, category country to basis. at the per versus many trends category. FX-neutral Nielsen, consumers' the growing drink believe drinks reported in positive energy opportunities year period household need are along In consumers growing Growth as that recently the view for same luxury. the affordable energy an our penetration consumption, is last to country energy which for approximately tracked an

category same energy Lat is period markets, our according year, also ending according period the reported an again, Nielsen to for last for markets, markets for the period drink is period, versus XX-week basis. In our energy on at an growing drink versus from and country, FX-neutral APAC, Am, tracked In at tracked for year basis. Nielsen, for our to approximately same category country recently XX-week the to also September differ INTAGE growing which XX.X% tracked XX.X% the the the XXXX, last FX-neutral approximately on

in in for adversely of to with the the the by brought segment XXXX. $XX.X Hansen the XXXX later Hubert impacted quarter adversely connection excess million, to to due provision was in refer descendants Gross impacted transaction inventory XXXX the with inventory inventory in property Hubert for third profit intellectual a alcohol will $X.X the quarter this by I alcohol call $XX.X million which reserves. brands use incurred the Brands increase third reserves Hansen Coca-Cola relation and to an closed in by Operating prior expenses name which company company's as of an in expenses levels the legal the claim of of million Company, were

claim. acquisition $X.XX was company Vital July call net net refer quarter its basis debtor pro the Inc. Net for assets and I up. by by third adversely XX, recorded for of the these in of bank Diluted share. the refer per to completed the for share million this third share as affiliates. bank per of tax, to part Inventory income intellectual per a the inventory impacted income purchased this adjusted of items transaction share. value, XXXX the quarter these forma the Pharmaceuticals, fair was per earnings all which $X.XX its as diluted step of substantially at On will XXXX, items And will on property $XX.X I XXXX as later and

purchased value. Gross impacted was fair at negatively of XXXX was during the approximately quarter through million quarter as $X.X the a profit subsequently third the third result. cost in was by sold sales of XXXX recognized inventory Certain and

the in other third with the a connection quarter, million XXXX of During $XX.X company interest gain income. bank transaction, the and in recorded

XXXX incurred related of the $X During costs transaction. quarter, approximately acquisition the to million third the company bank

for impacted per for income $X.XX diluted of items XXXX quarter and $X.XX for items tax, the per third a per per on these by the by share. net quarter positively income earnings share third Net forma was $XX.X pro share. million Diluted net XXXX adjusted these basis share

XXXX, statement press non-GAAP release adjusting and balance company non-GAAP September and GAAP the reconciliation and information adjusted other consolidated sheet our statement to is consolidated In condensed addition consolidated of of profitability a our for to attached condensed gap our income the a information. items impacting other for quarter GAAP ended of XX, and condensed information for and income the

items our believe in financial non-GAAP We the currency XXXX these higher basis. segment that of items comparable in net brands $X.XX alcohol in XXXX the operating quarter and company results, billion GAAP The be quarter record this financial Net quarter. on a lieu addition X.X% non-GAAP these sales the third achieved net adjusted currency measures. of evaluating on U.S. ongoing useful X% the quarter. not to call increased and considered are to should shareholders sales in a of sales $X.XX adjusted than in billion foreign XXXX on in or excluding third foreign higher basis, X.X% the third

reserves XXXX in net the third XXXX percentage impacted quarter gross quarter. a alcohol profit compared brands as by of profit brands profit XXXX -- the of for was third quarter third Gross XX% with XX.X%. a XXXX the of sales third net in XX.X% for alcohol Gross was inventory exclusive inventory as percentage reserves the was sales the quarter, adversely the

of percentage for a costs, XXXX partially was inventory awareness trial promotional The pricing the offset to step-up Energy primarily United the quarter of brands in the well sales lower inventory international and alcohol as managed drive third increase actions the higher as net profit of result and a gross by the in reserves. as input of certain in net bank the allowances brand Bang markets sales States as percentage

$XXX.X adjusted basis, in quarter than were of intellectual result and were increased increased in the property expenses margins XXXX expenses, the the payroll the claims. Operating as second gross increase million XXXX were higher margins. operating quarter. compared $XXX.X expenses sponsorship On sequential quarter the well primarily million third a for XXXX The third endorsement quarterly as gross with expenses

Operating from earlier, a or sales income compared As X.X% $XX.X decreased the third XX.X% the with sales, expenses operating million or X% net $XXX increased in expenses XXXX the $XXX.X $XXX.X X.X% in Adjusted XXXX third described Distribution the XXXX and million operating for in the $XXX.X percentage quarter. XX.X% XXXX were the making quarter. of million to $XX.X XXXX million compared in to million X% warehouse third adjustments third of the compared third to quarter. XXXX expenses comparative quarter. comparable were net after the to of XXXX as million quarter for for net sales quarter quarter

XXXX compared operating the after in to quarter. the compared third in rate described $XXX.X tax third Adjusted XXXX as effective earlier, making to The income XX.X% million comparable decreased quarter the $XXX.X million XX.X% X.X% XXXX adjustments with quarter. was for

$XXX.X after decreased to to XX.X% in comparable million $XXX decreased comparable Adjusted compared the earlier income quarter. as the in XXXX to $XXX.X adjustments XXXX X.X% income million Net described to compared quarter. $XXX.X and as million making million the net

quarter the to decreased quarter $X.XX quarter. as described $X.XX per compared share XX.X% making earnings third for share the adjustments XXXX. XXXX per the Diluted comparable decreased third from after to diluted of in the XXXX in Adjusted X.X% earnings to per per share share $X.XX $X.XX earlier,

for currency approximately on again foreign unfavorable rates per rates $XX.X unfavorable We third currency unfavorable million. XXXX markets. in in currency that Our earnings $X.XX sales to the share impact diluted per were due third Net foreign quarter exchange the estimate an certain rates. net had results share adversely exchange by impacted of foreign financial by were exchange quarter impacted changes

reported, our in previously taken increase X% on brands we XXXX the have States. X, United Rain November packages, and As Bang, and effective excluding RainStorm, a

monitor opportunities our actions for pricing further to continuing are markets. in We international

leadership for period energy category a XXXX, drink convenience, in sales versus combined continues category, to have the XX, ended dollars The the XX outlets United States reports to combined, XXXX, year ago. XX, October share X.X% through excluding Nielsen period by same for company outlets all market increased the the in in October the shots, the including XX-week according energy for all weeks energy in the

Nielsen increased for XX drink mass all Nanbe outlets by [ October and through According energy XX, versus NOS dollars company's declined period. weeks reports Sales drug, Rain brands, and sales XX-week sales of the X.X% the increased including decreased ago. grocery, category, combined, down energy in year energy X.X%. shots, Sales Monster ] of period of including of a of convenience, to the in and Sales X.X% same X.X% the down in X.X%. were Bang, XXXX, X.X% the sales the Throttle for merchandisers, Full were

increased for the Bull sales X%. drink in channel XXXX Nielsen, ended Red category weeks gas and XX, of X the October the to Sales energy in in including energy According dollars convenience of the convenience in period same increased latest energy X.X% flat previous in the were period the and year. gas including dollars, channel. in shots the Bang, over Sales company's brands, X-week the

X.X% energy the decreased sales from X the XXXX, Bang. including decreased drink were as by X.X%, category Throttle Bull the was Sales convenience company's previous market and the weeks period for Nielsen, Red of the over decreased Sales energy gas share X.X% XX.X% to X.X%. XX, year. According in up Rain down up including dollars, NOS to versus and X.X%. Full of XX.X% same in the of was October Monster channel, ended

XX.X% share from to share convenience energy point a to and a of dollars XX.X% X.X year the share share was were to follows: year. our of Nielsen, X.X. competitors decreased which same X.X remained line certain the Rain X.X% X.X%. the previous Monster Bull Celsius NOS ago market X.X%, [indiscernible], share points Bang's X.X increased to share drink the and share Rockstar channel X.X%. Monster plus X includes XXXX, Gulf over decreased Throttle Red Full share increased share sales as XX.X%, ended to decreased X.X, X.X% at period gas CX coffee According in in XX, in category, Java weeks X.X X.X, and the for October in

Sales ended versus Sales Monster, Java coffee in X XXXX, up energy Energy Java points. the share Monster category the Starbucks Monster period XX, were lower of lower. X.X of previous XXX, was while share same including were of points, Energy Starbucks was year. weeks X% in X drink XX.X%, XX.X% the down the Java XX.X%, October

points category weeks of company's ended brands the XX.X% in a energy points and energy decreased increased X.X X.X% drink X.X% sales market NOS's decreased the year company's of X.X the XX to Nielsen, energy increased XX%. increased of and The According to and Canada, to ago. the Throttle drink decreased sales increased October to X.X%, share to its all in share X.X% market in -- point share market brands X, measured versus a XX.X%. share Sales its Monster share increased point X.X X.XX%. drink XXXX, for X.X%. channels X.X sales increased its market dollars. Full

increased of Nielsen, comparable to X.X%. increased Predator increased of against combined According the of X.X to category the XX.X%, decreased share all and point in increased XX.X% share sales year. the drink for for the market to XX.X% September in energy its share Monster's X.X our a Sales XX.X% sets value Mexico, previous points XXXX. month period market Monster

be for which which influenced the negatively be the that OXXO period impact can and/or materially our Consequently, could turn chain significant in OXXO a monthly The sales convenience in Mexico such months, in a statistics that the the is market. drink particular that may on undertaken X convenience influenced chain, single Nielsen or chain energy positively a for Mexico. activities more often in short statistics Nielsen Sales by during cover materially month. may brands be by dominates have motions

X.X XXX.X% the combined for In in Argentina, sales share Nielsen, and of value energy XX.X% all in market XX%. increases, outlets impact XXXX. The part September. increased the local the increased Monster's compared Monster XXX.X%. inflation XX.X%, to September of category to related to due XXXX. category price XXXX. to energy drink month currency in increased for for September According month the Brazil. sales increased Monster of drink points to increased

Monster's X.X Argentina, sales September in XX.X%, in the XXXX. value Brazil remains increased XX% points X.X of in Chile, market XXXX. Energy Monster XX.X% share XX.X%. And Chile. Monster for September month compared the brand to in drink in to to Monster's category increased and value to the energy increased share energy leading market decreased value point

that be and as I vary should by only varying EMEA Nielsen would reported within country a channels the month Nielsen from on guide because to like in read referred country point numbers dates used out the to in are EMEA the country. to from country to

period XXXX, Spain. the declined in market from the XX-week Germany. compared value previous as X.X% Monster's XX.X% Monster's the to to Belgium, from the XXXX, share to in period XX.X% from X, ending XX.X% share share Monster's value to XXXX, XX, in in declined previous X.X% Britain, to to from the XX-week as from from XX.X% XX.X% in retail to to compared to year to Nielsen, market same in October XX.X% same the ending to retail According in Nielsen, XX.X% X, value in to ending the grew period September compared October great and XX.X% XX% France in period year the XX.X% in and the in market in XX-week Norway. from XX.X% XX.X% retail previous Nielsen, According According as same in to period the year Netherlands period

XXXX, of in XX-week XX.X% XX-week the According Monster's grew to ending to in to value Ireland. XX.X% in same year from Republic the September XXXX, the compared Poland, value Nielsen, and in period the retail retail in the to declined XX.X% to period previous as XX% According share September market to XX% period same Nielsen, from ending share to Monster's XX.X% Sweden. previous X, market year as the period in compared X, from in the

the in from to value the in declined XX.X% previous to year retail year, of retail in According in to period XX, August same August the Monster's from share XX% retail as XX-week same ending year ending XX.X% the market South to previous the Greece compared grew compared to compared to value XXXX. XXXX, to value Czech Italy. August XX.X% in Republic. Monster's week in period as Nielsen the XXXX, XX, According to share in the period in ending the Nielsen, period remained period market According in Africa. in XX.X% XX.X% at Monster's and XX.X% previous from as flat the share XX XX, market to same XX-week Nielsen,

share XX, share XX, the Nielsen, market period the to the retail from branded to XXXX, also XX.X% August and XX.X% in in Nigeria. market from period in period from certain to XX% in According Nielsen XX-week Egypt, to the to in Predator as Monster's as previous the ending XXXX, for compared According to in year grew value to Fury the retail XX-week XX.X% to XX.X% August markets XX.X% declined year X.X% in value of previous Denmark. from X.X% same ending Kenya in compared

grown last period, in our markets for grew Western EMEA our the weeks, energy the XX X.X%. XX.X%. category in note, same for the Combining Of has the European markets category

outlets mother by Our to a in previous markets sales ] X.X against According to Eastern XX, weeks grew XXXX. category share its markets X.X% comparable XX.X%. Zealand, October increased of Middle point energy the share ending Australia, XX.X% X.X for energy East for to points period decreased X weeks of Africa category increased all in and European XXXX. XX.X%. the combined increased XX.X% X.X% combined Sales the the the increased year. drink market in October IRI IRI [ and for value the New XX.X%. all According outlets XX, grew our ending X.X%, X Monster market Monster's increased drink to share in

X.X and point XX.X% Monster's and to XX.X%. increased remained sales Sales decreased the X.X X.X%. X.X%. Live plus the Sales period increased decreased against share of share the share at market points of to comparable Monster its year. X.X% XX.X% its market value decreased in share of market share mother previous

the of to Japan, share value According X.X% INTAGE, channel the energy in decreased month increased drink against period X.X% increased Monster's and the for September the year. point XXXX. in convenience previous market category in to share sales Monster the X.X% comparable X.X

promotions factors statistics the for increased Korea, positively doubt X-week months and in Monster's X.X We're points or share be increased market other period all combined materially value in often to and South negatively Nielsen, trading category September against periods single Monster to XX.X% cover that the the outlets influenced for market previous XXXX. energy in XX.X% periods. comparable year. According by again XX.X% increased that drink of may during the those sales month and/or

Net total were of net million, sales to quarter quarter $XXX.X the customers outside in U.S. XXXX third X.X% to the or sales corresponding in $XXX.X sales net XX.X% of compared in XXXX. the million total

Foreign in in XXXX. approximately related impact third the $XX.X in basis increased third Argentina. of million XXXX by X.X% currency over quarter had currency-neutral a increased a on exchange net XX.X% million sales period dollars to quarter negative EMEA, and sales the which the $XX.X In same rates on dollars U.S. XXXX in net in

EMEA, in sales dollar as in X.X% was key a Africa. were compared XXXX in XX.X% our to EMEA These certain the South disruptions of In as the in an reduced Western quarter XXXX. in retailer third profit well accounts in by XX.X% impacted quarter disruptions disruptions in supply as net bottler Europe sales region sales the by percentage quarter. Gross in same estimated this for

same net In quarter, Asia Pacific, currency-neutral Republic the in -- a Poland, Ireland, over dollars Africa on Britain, gained period X.X% XXXX in third the and the great Monster sales increased XXXX. basis Spain. in increased third pleased are that Netherlands, of We share market the in quarter in XXXX and X% South

on in a to XXXX timing quarter same in as same currency-neutral basis. Japan in third XXXX, basis. of in XX.X% on third Net versus a the third Gross South X.X% due and Korea, this period sales X.X% in as in the decreased in quarter in compared the in In quarter sales region largely X.X% year. percentage XXXX. schedules quarter XXXX decreased net increased X% the and XXXX to sales currency-neutral decreased dollars this the of production dollars the was net XX.X% a profit for

the Korea. In long-term markets is and China, being third and increased XXXX Monster remains We currency-neutral the XXXX. remain during of optimistic in later in quarter brand China same XX.X% in are in as sales quarter leader in market recent and launch a the and to net China the on XXXX. Japan compared dollars in rolled the the excited increased XX.X% South about which year prospects additional about this Predator, out for Monster to basis

French and including third Tahiti, basis net Latin-America country. In the Mexico in Oceana, conditions dollars Papua due Caledonia, XXXX basis which basis. and sales X% in X.X% over on sales a quarter and net third XX.X% includes in Caribbean, Guam, New XX.X% increased currency-neutral increased the XX.X% quarter in a on Australia, increased same to Polynesia, on in period a In the the New Zealand, XXXX, and New in the decreased currency-neutral dollars in challenging currency-neutral economic XXXX Guinea

Net mainly of share X% Our currency-neutral Brewing as cash lower share third million Argentina the increased challenging Monster the Argentina, XXXX third the is the segment a XXXX were in $X.X the in sales the a quarter, of XX.X%. a $XX.X on sales than and quarter of in decreased increased lower XX.X%. third XX.X% and comparable quarter, result for Net market dollars market quarter million approximately in the quarter. remain in We decrease beers. or brands in XXXX alcohol craft our a basis XX.X% leader had Sales in quarter.

necessary In inventory increase addition, million. by in Brewing as is mentioned segment earlier, which Monster due to certain inventories that brands, to of reserves excess $XX.X

the Monster a last addition of in to appointment the of team are management announced consolidate and division now In continuing senior maximize quarter, the restructured have production efficiencies. to we Brewing alcohol to facilities new President

Beast. brand of the through to a in Beast distributors. rebranded is now all was in in states Utah the The beer July. The of available network state launched XX unleashed best The was

is Pink beat pack currently The states. X which new currently XX brand Sunrise, is family's since variety major beast available XXXX highly poison, launching IPA Killer in Nali of Grape first packs, our XX are second the and to variety flavors, refresh available in the X includes markets. now all Mean pack shipping We and Green

first nonalcoholic next We has alike will be launched very Energy, United from been October designated Oscar customers Viswava innovation. this the Initial Monster select In Mexico, Picken Latin Paradise launched Ultra Monster the in Rica. Mango in Monster we in Juice XXXX, America, Juice Ultra Peru, during consumers Pipeline on in Zero of Ultra available XXXX. quarter Monster in tails third Ultra Blue's Monster Republic positive and States response markets. in Loco Dominican and and Punch Costa brew the Monster month in

In launched third Reserve, Dreamsicle, XXXX, Ultra in quarter Australia, in Peachy and Violet. of of a countries. Loco, Ultra In Rosa, Ultra Dreams quarter the Strawberry launched during Ultra-White number we of third bad Keen, juice we the juiced Monster juiced Ultra EMEA, Black, Orange golden lemonade, Ultra pineapple, Ultra XXXX, apple, Monster Mango or

planned XXXX. Additional all in launches EMEA across are throughout brands

of China third we the was which quarter launch Singapore. the a Gold in additional Papalon end in Fujian XXX China, in X Predator bottle. in of we XXX and We the During in launched XXXX, expanded Strike, launched ml September. in noncarbonated provinces PET at bottle in and in ml [indiscernible] In April launched Guan the aluminum XX Japan provinces of

in XXXX. in We to are a additional number of launch provinces planning Predator

Pradesh in July, we to PET extended Madhya XXX beyond Goldstrike carbonated and the bottle states Predator India, Northeast in Delhi In September. the ml region

China of in these countries. in in and are will adding We for X the optimistic Monster -- And expansion brand about and Predator excited we prospects about remain India additional the continue XXXX. the long-term states

a common XXXX, the of the October purchased authorized including of of higher segment. October October higher available November purchase approximately quarter, basis, X, X.X% sales on approximately than XXXX the higher third $XXX.X estimate for were We the sales comparable sales $XXX XXXX X.X% amount average than million million, million foreign than for October program. XXXX alcohol XXXX, price company at estimate the under an We brand and the As XX, stock alcohol total the than October the excluding a X.X% XXXX remained repurchase share repurchase During approximately alcohol previously segment. $XX.XX per segment, its currency approximately that XX.X higher that X% brand shares were October comparable excluding sales brand and adjusted of

gross X compared that November On the conference in had day XXXX reported gross more X we the segment sales October company third higher XXXX had approximately in XXXX, were a including our more the alcohol high rate XX.X% than which October October this October selling XXXX. XXXX day call, presented XXXX sales, month for than year. October selling to October quarter hurdle XXXX. of

United portion the October advanced the the of November in XXXX customers, in increase by of be A increase attributed price in purchases may to in anticipation our sales the States.

as various days in incentives holidays factors in fall, production. increases days, stores, our for example, sales a timing of short reasonably cannot impacted in shifts distributor Helen amounts of the timing we such such by regard, October new determine on However, product of that Hurricanes, launches however, and week XXXX. of this retail states timing over price are disproportionately be time. selling retail period the which in September impact determined. certain again and the Milton sales impacted business cannot as, at well in at Again, this In and promotions caution often and as we

to regarded should as their alter indicative period month imputed single quarter business be own and necessarily internal instances, a own maintain the responsible from their to some according over or of In for as to sales time for schedules. determine a short reasons. our or which such a inventory their such period. and levels We invoice are Furthermore, dates distribution bottling time results requirements, This bottlers that they own production our affects bottlers. on not full reiterate may we for production which partners future any

points. like would to I recent conclusion, In summarize some positive

along believe consumption, category category. opportunities household penetration positive the to in the consumers' the Firstly, energy capital factors in penetration energy globally. are household continues of that energy category. with to increase for We for Growth need continues drink grow

to channels. expand continue We ourselves in non-Nielsen-measured

earlier, X, reported XXXX. the As States increase we have a on in price United implemented November

continue internationally. increases for price opportunities to We review

region, EMEA facility providing in now Ireland better number our of region. EMEA Our large to to and lower enabling AFF costs landed a flavor is service levels our flavors

plant Ireland our at been juice completed facility after now AFF in has trials. The

juice We're the launch has the expect it's We the response Monster kicked of history. last consumer the biggest received which with gaming plant early production Vice release Duty XXXX. in -- off in Ultra franchise to Guava excited Call in promotion, the for the be reporting month Duty positive that of publishers of on pack Call

exploring in certain alcohol for international jurisdictions. are opportunities currently We our products

and market brand remain some product the and our seeing are overall portfolio. within sales We of Energy of Bang this for future share acceleration in excited the

We rollout and internationally. Fury drink of are energy pleased markets with in our Predator of a number the affordable portfolio

further We launches are energy for proceeding plans our affordable of brands. with

I the to to quarter. open would now about the Thank questions floor like you.

first JPMorgan. comes Andrea Instructions] with question [Operator You . Teixeira from

but investors state energy extra to given on category, the particular flow-through pricing wanted and much I might view X happening of what's in had selling just the soft -- from understandably, now to the to October, how in what the from expect. on a go your do you that? little think how back it back expectation would of I And day, is be

So your views appreciate I would on . both

Yes.

is, be what position increase increase price the see we a elasticity settle activity, have that against increase, promotional then if what to And the it's settles. and we brands. see needs in when direction demand a heading, Andrea, in better have where set So any, what determine of to once price determine we price a to are

answer this to at time. really So it's difficult a question

to of other go had your think I Andrea. . Do want questions, Andrea through quickly questions. you other a couple

I say there is that Yes, been pull that. Hilton. was just mean, it would October I say would any pull forward for ahead inventory words, of pricing. you, any In take would saw saying other in the retailers that you of stronger like if the you would Thank inform would was the so some case. pricing. . more if have that's there the I -- forward

Okay.

of pricing we old the that right, Coca-Cola allow So to distributors. in buy amount can the the certain and them sell off in the cut they we middle And October. distributors, we a

determine some, been sure, were I what, just Milton increase Helen I'm certainty, reasonable could of we same there the any, business. we were it's hard it, determine the cannot attributable the and to buy-ins. but that that. Huckins with vein, and to So not have the at suspect in if on looked what And impact determine can't was of we've and

was to could our retail that territories hurricanes, extent been can assess through both What is we've -- U.S. again, difficult the of between activity say the in Nielsen if to determine. activity own impacted. activity look by to you probably territories and at them. some X% were and that But the business know differential done that a We the it's and impacted those which There's try impacted have -- work we the at

we So there again, was an definitely the our can't determine impact. . But impact business. on

stand And now, EG then of we will state I the . be the in as category terms right union of of for appreciative knowing

we and Nielsen we convenience companies research in talk XX% drinks. and at X from we anecdotal that this look we is call. some we And foot traffic foot to look if retailers, spoke category convenience, and third-party of to Well, week on energy market about we our the earlier referred for input the traffic, at get

about view, think good it's, And a here, Monster I anyway, personal And back. is feel was the think whichever which bigger bottom. rate -- the reached actually have party mean, consumers happened confidence we've what -- in. very better saw cut or to we things I in will the coming bottom. give that we today there we think a over, again, got election I close probably I and

And that. rate we change got passed the in been of and over, cut concern in X a instead week, drinks. And a there X is drinks consumer been energy there drinking hasn't with -- I some a consumers preferences change week that think industry our of, a what different instead helpful. or we've a was believe, about And types seen now our to drinking We . they've so election. today. we stayed or have of X less.

think is it quite notable. I

XX-week category at period, And If for the was up -- if X.X%. the the you Nielsen period you look we latest the cited look XXth ended October. at

week the You is general X.X%, category the look at latest in the and latest X.X%. was weeks XX whole up

to has pans it. refer We see but we'll with So we have that trend some and out. why that that's been think . recovery is how wait trend there, and to there

really to quickly. year. getting We rate last hurdle just had did October the then high very call, mention we on a And Yes. over back

thought increases, quite look which So that's October I another at when mind factor to actually the bear . were in good. you

next with Your Securities. Fargo Wells from comes question Chris Carey

a see just a perhaps quite could here coming you you just inventory. Can consumption sound it a bit but you is, resumption that at how good maybe comp October remainder of into how now and distributors is levels you feel the into were or on to on on levels consumption the going inventory touch maybe reticent you do could more saw inventory be still quarter. And take is getting what really, or the through, I'm trends, there

through I the right should flattish of the quarter, start you're day consumption to extra think is basically show or trends kind excluding in well. contemplated your if if numbers is now this and the as comp for getting what's running just

. So any comment there would helpful. be maybe

Chris. sell place The They execute way we happy orders, our those the we orders. Coke to that, and to Yes, do business works, distributors.

So they That's deliver a that weather, systems. account bunch and product factors, order factor have sophisticated consumption. into the we of factors, another they and of so -- X take They whole we've the spoken some have us. direct execute business, we generally, done about is to small channels, requirements. orders also customer . But have we which a by nonmeasured -- according directly other we and

way. supply our competitors So customers in business that in our doesn't inventory. some We of We behave have -- according our order. hiccups what to orders don't

Falorni Filippo from comes question with Citi. next Your

comments October excited as you in sounded can You just into -- the also plays and as if about innovation well? the think wanted you about innovation How acceleration further a of the the do your into think year general think to thoughts Bang I improvement you the just view U.S. . category role ask of drive in category about much October. the

think the of which product get consumption. only or had some sort shelf towards We of year. we've to on of innovation. products does had end we really the innovative But probably started is SKU X drive first X innovation, half Look, the X in innovation October. new I on our latest

there some impact. has overall, has it take I think yes, much if think numbers, from you the had week has don't So but -- that benefit I that been X

overall has of SKUs our upwards we're the as seeing across other that sort think a of well. impact trending I also number been

just moving per in a better We sales see the direction. point

reemerge again, has do doesn't short a everybody whole of summer. the make of seeing time day, So we being the of been feeling starting consumers sort back to into in stagnation see bit able period little the start a and and are of go lower But signs do at of end traffic the but the we and it again. to category, buying because a stores

factor. think macroeconomic earlier, traffic we mean overall improving, said I in the the we conditions that's and another foot believe Yes. I And positive. that's are convenience,

As I customers. mentioned talk earlier, we all third-party And our research we that's positive. to get

And out that So come add well. of as that to about . think I maybe this you'll with the equation. answer we're thinking kind here

next from Mark Astrachan Your comes with . Stifel. question

I or and to people specifically trends to about I levels in that And you trends a huge of lot question here? to they? I but to region margin of I of is the mean, should without 'XX? we a can XXXX if to have you're levels, guess wanted don't it's of amount Well really in it think standpoint because what guidance from think improvement asking don't what have to you give that reasonable it for that, specific, want don't I the XXXX the led answer I know and gross that X but how want The do of back from think you get sustainable it's margin EMEA. are about are couple ask the curious a the about over color. is that know gross I still last sort decently say. questions years, below have improved

taken hedge of international taken price, been exposure, have which Well, raw manage and cost opportunities in increases to company. COVID. very over this and best markets, the is significantly a big of number and time historically so. there cost The cost to do continue price doing materials, in we We're we have and our since to we've production and obviously aluminum of a increases examine our

if but about use a I'll spoken talk ladder, calls, we on previous So we didn't, it now. may we which about have

hedges have assist we examine and semi a where managing to twice or in a month. do We a that on weekly ladder basis we exposure, strategy execute aluminum really

So we business that's in that at. have All a is that something all, focused. look we

Some in the U.S.

which on growing, about in we are quarter, that call have and which You have overseas, this margins, we is moved trend are heard about lower they the to although the margins looking numbers EMEA spoke the the achieve. up

currently we the is rest a margin then have lower which than business. margin, the is lower And alcohol, of percentage at

here a we're wherever But stop we that in margin and can, we pursuit. that on So are and carrying very improving in work on it's we not focused progress. will work it's something on

quarter. largely, Just mention, to think last I EMEA you improve X the have quarters, margins continued you to -- each at referred look to if been we've

talk I'll comment the EMEA. EMEA. come Although on you about a talk just about you whole

into that positive see of has production can just plant get margin measures it that the indicated, the pretty think we'll that have I'll So coming with say that the quite XX%, I going in the -- year. juice EMEA complete we're sure. about Hilton And to do not much we back whether sort forward. together to early And next I'm improving

question the was just X and overall sorry, a I So of margin focused sort EMEA. about on

.

Peter UBS. from comes . question Grom next with Your

increase. and margin, impact advanced it to purchases love everyone. that? And perspective talk -- is estimate why in may kind just you're alluded a would how of you past to of when what kind a a . operator. seeing afternoon, price But evolving the Thanks, I'm the from gross just not November just think maybe here. can obviously, at I kind about I commodity curious, makes able you're estimate there you noise from of is least Good guess what probably point, the But wanted reason just back to able from of to here, in this the go did this inflation that perspective harder. you point? advanced at purchases. from XXXX, different you see you and on time be some pieces the then on I I you hurricane ahead of were back the price to increase, get moving it lot

Okay.

where about advanced to do want Do start with you commodities or to start So want start? you purchases. --

Whatever you want.

All right.

option. the have We

previous this increase versus our we mid-October. difference I that the favorable off So time price increase, increase the price was the think cut price

after who customer the purchased any price. product when paid mid-October higher they So actually

. whole So any, if structure we very the difficult price of October, look a impacted determine increase of became could in October have what, at sales. it's it the as to that really exercise everything happened

line. we but sensible it have, try better bottom could us find answer. that's a So the to exercise, a If would became secured and have done we

we'll rather quarter the give on the and impact see over. when quarter is it, the not we'd So

minutes a happening the commodities, a then increase, that commodities, all. we seen hoping aluminum. we everybody go think what but to them And say goes can And not a by. and seeing up There's But going to other really in in and is we've aluminum ladder generally, will and knows build with extent ton on that aluminum. already that what's really I ladder I And some have seen decreases and as some, increases is it's tariff as approach, we're that there our us take regards that through increases. we mentioned are other. to I on it's commodities of a have buy the lot of time We tariff in we X

decreasing. for sugar aluminum, the commodities are commodities like, and example, in other And that same like, minimally or certain stayed there example, for

out the showing So we're is that the climate increases X X in looking picture, the X increases. for of is factors which commodities relatively aluminum manageable taking at of is of significant

would any for I Sacks Rodney over . hand back Mr. the you. Thank to remarks. to conference closing like

would thank the On and to of their interest company. for like Monster, you. continued behalf Thank support everyone I of

both growth capitalizing and abroad. company continue innovate, to strategy And our to to home We company with develop relationship particular, continuing our brands in and and committed remain expand to the the at differentiate our in and believe on to We system. for be optimistic beverage that that very you and much and continue company. We the to attendance. bottler safe we the industry our you remain your future in and about positioned healthy Coca-Cola the of believe are hope well and thank

for our for Thank That today. conference you does participating. conclude

You may Thank now disconnect. you.