MNST 2Q26 First Take: results remained solid, with revenue and GPM both beating.
However, stepped-up marketing spend offset the gross-margin upside, and OPM dipped YoY, missing Street expectations.1) Volume still led growth while ASP fell. In 2Q26, net sales were $2.54bn (+20% YoY vs. Street +15%).
Volumes jumped 22.3% YoY to 305mn cases, the core driver, while ASP per case fell 1.1% to $8.20 as the lower-priced Intl mix rose 5ppt to 45.7%.2) The core brand outpaced strategic brands, with mix moving up and innovation the key driver. Monster Energy grew 21.6% YoY, led by new launches; per Nielsen, the Ultra family rose 19%.
Across U.S. tracked channels, seven new products made up 10% of Q2 sales and contributed 85% of 1H growth for the Monster family.
By region, management noted EMEA grew at over 2x the category.
Share also increased in Brazil, China, and India.3) GPM surprised to the upside, but operating leverage did not follow. Despite higher aluminum can costs and inbound freight, pricing actions and better mix lifted GPM by 20bps to 55.9%.
On opex, the company increased social, digital and media marketing and sponsorships to drive household penetration, with S&M up 36.7% YoY.
The opex ratio rose 1ppt to 26.8%, below Street expectations; for more details, see Dolphin Research’s take and the call recap. $Monster Beverage(MNST.US)
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