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MONSTER BEVERAGE Monster Beverage Reports 2021 Third Quarter Financial Results November 4 , 2021 -- Record Third Quarter Net Sales Rise 13.2 Percent to $ 1.41 Billion -- -- Company Addressing Increased Costs , some of which are likely to be Transitory , through Reductions in Promotions and other Pricing Actions -- CORONA , Calif . , Nov. 04 , 2021 ( GLOBE NEWSWIRE ) -- Monster Beverage Corporation ( NASDAQ : MNST ) today reported financial results for the three- and nine - months ended September 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 third quarter net sales . During the 2021 third quarter , the Company procured additional quantities of aluminum cans from suppliers in the United States , South America and Asia in response to increased consumer demand . However , the Company continued to experience shortages in its aluminum can requirements in the United States and EMEA during the 2021 third quarter . In addition , the Company continued to experience additional supply chain challenges , including , freight inefficiencies , trucking availability , shortages of shipping containers , port of entry congestion , insufficient co - packing capacity and delays in the receipt of certain ingredients , in the United States and EMEA . As a result , the Company was not able to fully satisfy increased demand for its products in these regions in the 2021 third quarter . During the 2021 third quarter , the Company continued to experience increased aluminum can costs , attributable to higher aluminum commodity pricing as well as the costs of importing aluminum cans . In addition , the Company experienced increased ingredient and other input costs , including shipping and freight , labor , trucking , fuel , co - packing fees , secondary packaging materials and increased outbound freight costs , which resulted in increased costs of sales and increased operating costs , in the 2021 third quarter . As of September 30 , 2021 , the Company had $ 1.71 billion in cash and cash equivalents , $ 1.22 billion in short - term investments and $ 28.3 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 . Third Quarter Results Net sales for the 2021 third quarter increased 13.2 percent to $ 1.41 billion from $ 1.25 billion in the same period last year . Net changes in foreign currency exchange rates had a favorable impact on net sales for the 2021 third quarter of $ 16.4 million . 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 and True NorthTM Pure Energy Seltzers , increased 14.3 percent to $ 1.33 billion for the 2021 third quarter , from $ 1.16 billion for the 2020 third quarter . Net changes in foreign currency exchange rates had a favorable impact on net sales for the Monster Energy® Drinks segment of approximately $ 15.4 million for the 2021 third 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 0.2 percent to $ 74.4 million for the 2021 third quarter , from $ 74.3 million in the 2020 third quarter . Shortages of NOS® concentrate negatively impacted net sales for the 2021 third quarter . Net changes in foreign currency exchange rates had a favorable impact on net sales for the Strategic Brands segment of approximately $ 1.0 million for the 2021 third 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 " ) , decreased to $ 6.3 million for the 2021 third quarter , from $ 8.6 million in the 2020 third quarter . Net sales to customers outside the United States increased 18.7 percent to $ 527.4 million in the 2021 third quarter , from $ 444.5 million in the 2020 third quarter . Such sales were approximately 37 percent of total net sales in the 2021 third quarter , compared with 36 percent in the 2020 third quarter . Gross profit , as a percentage of net sales , for the 2021 third quarter was 55.9 percent , compared with 59.1 percent in the 2020 third quarter . The decrease in gross profit as a percentage of net sales for the 2021 third quarter was primarily the result of increased aluminum can costs , attributable to higher aluminum commodity pricing , as well as the cost of importing aluminum cans , logistical costs and geographical sales mix . Operating expenses for the 2021 third quarter were $ 344.7 million , compared with $ 277.9 million in the 2020 third quarter . The increase in operating expenses was primarily due to increased out - bound freight and warehouse costs , increased expenditures for sponsorships and endorsements , increased expenditures for other marketing activities , including social media and digital marketing and increased payroll costs . Operating expenses for the 2021 third quarter also included increased expenditures of $ 5.3 million for distributor terminations . Operating expenses as a percentage of net sales for the 2021 third quarter were 24.4 percent , compared with 22.3 percent in the 2020 third quarter . Operating expenses as a percentage of net sales for the 2019 third quarter ( pre COVID - 19 ) were 24.5 percent . Distribution costs as a percentage of net sales were 4.6 percent for the 2021 third quarter , compared with 3.5 percent in the 2020 third quarter . Selling expenses as a percentage of net sales for the 2021 third quarter were 9.7 percent , compared with 8.8 percent in the 2020 third quarter . General and administrative expenses for the 2021 third quarter were $ 142.6 million , or 10.1 percent of net sales , compared with $ 125.4 million , or 10.1