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MONSTER BEVERAGE Monster Beverage Reports 2021 Second Quarter Financial Results August 5 , 2021 -- Record Second Quarter Net Sales Rise 33.6 Percent to $ 1.46 Billion -- Second Quarter Net Income Increases 29.7 Percent to $ 403.8 Million -- Second Quarter Net Income Per Diluted Share Increases 28.6 Percent to $ 0.75 Per Share -- CORONA , Calif . , Aug. 05 , 2021 ( GLOBE NEWSWIRE ) -- Monster Beverage Corporation ( NASDAQ : MNST ) today reported financial results for the three- and six - months ended June 30 , 2021 , including an update on the impact of the COVID - 19 pandemic . Despite the ongoing impact of the COVID - 19 pandemic , the Company achieved record second quarter net sales . The Company continues to experience shortages in its aluminum can requirements in North America and Europe , given the Company's volume growth and the current supply constraints in the aluminum can industry . The Company is also experiencing delays in procuring certain ingredients , both domestically and internationally . As a result , the Company has not been able to fully satisfy demand in the United States and EMEA in the 2021 second quarter . The Company has taken steps to source additional quantities of aluminum cans from the United States , South America and Asia , however , logistical issues , including shortages of shipping containers and port of entry congestion , could delay the ongoing international supply of aluminum cans . As of June 30 , 2021 , the Company had $ 1.58 billion in cash and cash equivalents , $ 969.0 million in short - term investments and $ 91.0 million in long - term investments . Based on currently available information , the Company does not expect the COVID - 19 pandemic to have a material impact on its liquidity . Second Quarter Results The adverse impact of the COVID - 19 pandemic on the Company's net sales was more pronounced in the comparative 2020 second quarter . Net sales for the 2021 second quarter increased 33.6 percent to $ 1.46 billion , from $ 1.09 billion in the same period last year . Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2021 second quarter of $ 38.6 million . Net sales for the Company's Monster Energy® Drinks segment , which primarily includes the Company's Monster Energy® drinks and Reign Total Body Fuel® high performance energy drinks , increased 33.0 percent to $ 1.37 billion for the 2021 second quarter , from $ 1.03 billion for the 2020 second quarter . Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately $ 35.5 million for the 2021 second quarter . 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 , increased 45.9 percent to $ 86.9 million for the 2021 second quarter , from $ 59.6 million in the 2020 second 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 2021 second quarter . Net sales for the Company's Other segment , which includes certain products of American Fruits and Flavors , LLC , a wholly owned subsidiary of the Company , sold to independent third - party customers ( the " AFF Third - Party Products " ) , increased to $ 7.9 million for the 2021 second quarter , from $ 6.6 million in the 2020 second quarter . Net sales to customers outside the United States increased 66.4 percent to $ 546.3 million in the 2021 second quarter , from $ 328.3 million in the 2020 second quarter . Such sales were approximately 37 percent of total net sales in the 2021 second quarter , compared with 30 percent in the 2020 second quarter . Gross profit as a percentage of net sales , for the 2021 second quarter was 57.2 percent , compared with 60.3 percent in the 2020 second quarter . The decrease in gross profit as a percentage of net sales for the 2021 second quarter was primarily the result of geographical sales mix and increased input costs ( mainly increased raw material freight - in costs and aluminum can costs ) . Operating expenses for the 2021 second quarter were $ 310.9 million , compared with $ 252.2 million in the 2020 second quarter . As a percentage of net sales , operating expenses for the 2021 second quarter were 21.3 percent , compared with 23.1 percent in the 2020 second quarter . The increase in operating expenses was primarily due to decreased expenditures in the comparative 2020 second quarter for sponsorships , endorsements , and other marketing activities , all largely a consequence of the COVID - 19 pandemic . The increase in operating expenses for the 2021 second quarter was partially offset by $ 16.9 million due to the reversal of amounts previously accrued in connection with an intellectual property claim . Distribution costs as a percentage of net sales were 4.4 percent for the 2021 second quarter , compared with 3.6 percent in the 2020 second quarter . Selling expenses as a percentage of net sales for the 2021 second quarter were 9.0 percent , compared with 8.8 percent in the 2020 second quarter . General and administrative expenses for the 2021 second quarter were $ 115.0 million , or 7.9 percent of net sales , compared with $ 116.8 million , or 10.7 percent of net sales , for the 2020 second quarter . Stock - based compensation was $ 17.3 million for the second quarter of 2021 , compared with $ 16.1 million in the 2020 second quarter . Operating income for the 2021 second quarter increased to $ 526.0 million , from $ 407.3 million in the 2020 second quarter . The effective tax rate for the 2021 second quarter was 23.4 percent , compared with 23.2 percent in the 2020 second quarter .