Monster Beverage Corporation (NASDAQ:MNST) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 05:00 pm ET
We appeared to be live we're not sure but I think we are. Good afternoon ladies and gentlemen. Thank you for attending this call. I'm Rodney Sacks. Hilton Schlosberg our Vice Chairman and President is with me as is Tom Kelly our Executive Vice President of Finance. As you may have already noticed my voice is soft today. That's because I recently had a benign polyp removed from my larynx. The good news is that I am fine but I've been advised to use my voice sparingly.
So I'll save my voice for the Q&A and hand the call over to Hilton.
Thank you. Tom Kelly is going to read the safe harbor statement before we start the call.
Before we begin we would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended and are based on currently available information regarding the expectations of management with respect to revenues profitability future business future events financial performance and trends. Management cautions that these statements are based on our current knowledge and expectations and are subject to certain risks and uncertainties many of which are outside the control of the company that may cause actual results to differ materially from the forward-looking statements made during this call. Please refer to our filings with the Securities and Exchange Commission including our most recent annual report on Form 10-K filed on February 28 2019 and our most recent quarterly report on Form 10-Q filed on August 8 2019 including the sections contained therein Risk Factors and Forward-looking Statements for a discussion on specific risks and uncertainties that may affect our performance. The company assumes no obligation to update any forward-looking statements whether as a result of new information future events or otherwise.
An explanation of the non-GAAP measure of gross sales and certain expenditures which may be mentioned during the course of this call is provided in the notes and designated with asterisk in the condensed consolidated statements of income and other information attached to the earnings release dated November 7 2019. A copy of this information is also available on our website www.monsterbevcorp.com in the Financial Information section.
Thank you Tom. We're going to turn now to the quarter and we'll move on from there. Consumer beverage preferences and tastes continue to evolve at an increasing pace. And we are endeavoring to address them through our ongoing innovation of new products. In the third quarter of 2019 net sales were $1.13 billion up 11.6% from $1.02 billion in the third quarter of 2018. Net sales in the third quarter were negatively impacted by approximately $12.2 million of foreign currency movements. Without these foreign currency movements net sales for the quarter would have been up 12.8%. The comparative net sales in the 2018 third quarter included approximately $16 million in net sales