Monster Beverage Co. announced its succession plans last Thursday as co-CEO Rodney Sacks (74) prepares to step back. Since 1990, the South African billionaire has served as chairman and CEO. That year, a consortium led by Sacks and his fellow South African, Hilton Schlosberg, acquired Hansen Natural Corporation, which bought Hansen's Natural Soda and Apple Juice for $14.5 million in 1992 and rebranded as Monster Beverage Corporation in 2012.
Rodney Sacks will reduce his executive responsibilities starting next year but will remain chairman. His partner, Hilton Schlosberg (71), who has been co-CEO with Sacks since 2021, will become the sole chief executive.
This transition comes as the company seeks to raise USD 3 billion through shareholders. Sacks plans to participate in the tender offer, providing him financial flexibility to consider his future options, the company stated.
Meanwhile, Monster Beverage continues its successful journey. Last Thursday, the company reported its first-quarter 2024 results, showing improved sales and earnings.
Rodney Sacks will be reducing his responsibilities as an executive of the company starting next year but intends to remain chairman of the company. His fellow partner Hilton Schlosberg, who has been serving as co-chief executive with Sacks since 2021, would become chief executive.
The move comes in a time as the company looks to raise USD 3 billion through shareholders. Sacks intends to participate in the tender offer, which would provide him financial flexibility to consider his potential options, the company said.
Meanwhile the company is continuing its successful journey. Last Thursday, the company published the results for the first quarter of 2024, showing improved sales and earnings.
Net sales for the first quarter of 2024 increased by 11.8% to USD 1.9 billion from USD 1.7 billion last year. Adjusting for foreign currency impacts, net sales rose by 15.6%. Monster Energy® Drinks segment saw a 10.7% increase to USD 1.73 billion. The Strategic Brands segment grew by 25.6% to USD 108.4 million, and the Alcohol Brands segment increased by 21.1% to USD 56.1 million.
Sales outside the U.S. rose by 19.5% to USD 744.1 million, accounting for 39% of total sales. Gross profit margin improved to 54.1%, up from 52.8% last year. Operating income increased to USD 542 million from USD 485 million, and net income rose by 11.2% to USD 442 million.
Co-CEO Hilton Schlosberg noted ongoing global growth in the energy drink market, highlighting record first-quarter sales despite unfavorable foreign currency rates. The company's improved gross profit margin was due to decreased freight-in costs, pricing actions, and lower input costs.
Co-CEO Rodney Sacks emphasized the role of innovation in achieving record sales. New products launched include Monster Energy® Ultra Fantasy Ruby Red™,Juice Monster® Rio Punch™, and Java Monster® Irish Crème. The affordable brand Predator Energy® was introduced in the Philippines and China, while The Beast Unleashed® and Nasty Beast™ hard tea line expanded across the U.S.
The company's innovation pipeline for both non-alcoholic and alcoholic beverages remains robust, the company said.
