A：The impact of tariffs and the increase in the price of aluminum on the company's operating results during the fourth quarter was modest in general.

A：Net sales for the quarter were $2.13 billion, with a 17.6% increase compared to the prior year's fourth quarter. Foreign currency exchange rates had a favorable impact of $27.7 million on net sales.

A：Gross profit as a percentage of net sales increased in the following way: for the fourth quarter of the current year it was 15.8%, compared with 14.5% in the script fourth quarter of the prior year. The increase was due to pricing actions, supply chain optimization, product sales mix, partially offset by increased can costs and geographical sales mix.

A：Stock-based compensation increased to $35 million from $24.2 million in the prior year's fourth quarter. Impairment charges were $51.2 million and $130.7 million for the current and prior year's fourth quarters, respectively, in the alcohol brand segment. General and administrative expenses also included $6.6 million of professional services expenses related to a new data center and $130.7 million of expenses related to digital transformation initiatives.

A：International net sales to customers outside of the US increased by 20.9% to $93.3 million or approximately 8% of total net sales in the fourth quarter compared to $20.5 million in the corresponding quarter in the prior year. On a foreign currency-adjusted basis, international net sales increased 23.1% to $875.6 million. Gross profit as a percentage of net sales increased in all three international regions: EMEA, Asia Pacific, and Latin America.

A：In EMEA, net sales increased by 22.6% in dollars and increased significantly on a currency-neutral basis. Sales growth was driven by strong execution across markets, including accelerated cooler placements and space gains. In Asia Pacific, net sales increased in dollars and on a currency-neutral basis, although systems disruptions in the APAC region, particularly in Japan, negatively impacted sales. Sales in Japan decreased due to a systems disruption at the distributor. Despite this, growth profit in the region as a percentage of net sales decreased.

A：In Mexico, net sales were impacted by inventory fluctuations, as patient shipments far exceeded our expectations. Despite the decline in revenues, volumes increased in the quarter, supported by Nielsen scanner data that showed growth for Monster with Ed Ed for the 2025 months ended December 25 and Pretor for the script months ended December 25. Sales in the 2025 fourth quarter were impacted by inventory fluctuations with net sales in Mexico increasing by 11.7% in dollars and 3.8% on a currency-neutral basis.

A：The affordable energy strategy is contributing to the growth of the affordable energy category, which is an important segment for the company, especially in emerging markets. The company estimates that the affordable business, which includes brands positioned in this category, is around 400 million unit cases and is growing. Key markets for affordable energy include Nigeria, Egypt, Kenya, Mexico, India, and China, with the strategy showing strong double-digit growth internationally. The category's吸引力 stems from its strong value proposition and multi-occasion usage across various age groups.

A：In Europe, two thirds of the growth is coming from the existing business and the third from innovation. The rest of the category has been more dependent on innovation. Specifically, the Ultra brand platform, especially Ultra White, has grown significantly, driven by both innovation and existing Skus, particularly 0 sugar Skus. The introduction of products like Lando Norris Zero Sugar has also contributed to growth by attracting existing consumers and new customers to the category.

A：The key drivers behind the momentum in the US energy drink category include a value proposition to consumers relative to competing products like CSDs and coffee, pricing, and functional needs for energy. Additionally, increasing household penetration, innovation, and more occasions throughout the day where energy drinks are consumed are contributing factors. As the category grows, the focus remains on pricing and innovation, and SSFP is mentioned as a focus area for the coming year.

A：While the company does not provide specific guidance on market share, it does expect to continue seeing growth in the energy drink category due to factors such as pricing advantages, functional needs for energy, increasing household penetration, and innovation. Gains in distribution space are anticipated as retailers allocate more space to brands that sell well, measured and analytically. There is also an opportunity to gain space from underperforming products in the beverage category and from the alcohol category.

A：Tariffs and inflation have placed pressure on gross profit margins, but the increase in gross profit margins for the quarter was mainly due to pricing actions, supply chain optimization, and a favorable product sales mix resulting in a larger proportion of sales from 0 sugar Skus. The increase in aluminum costs and geographical sales mix also played a role. However, the impact of tariffs and inflation on margins was modest and largely offset by the increase in the selling price.

A：The company has an active hedging program to manage the impact of rising aluminum costs. This helps to offset the effects of fluctuating LME prices and premiums, such as the Midwest premium. The company expects these costs to continue to increase into the following year and anticipates some impact on gross profit in the first quarter due to these higher costs.

A：One-time and ongoing investment areas contributing to the company's expenses include a non-cash, performance-based incentive compensation increase, professional services expenses related to the startup of a new facility, and expenses related to digital transformation initiatives. Some of the digital transformation costs will be capitalized, but there will still be a significant impact on general and administrative expenses (G&A).

A：The company continues to review opportunities for price increases both domestically and internationally, and if it sees an opportunity, it will consider pricing action. The decision to increase prices is based on the company's pricing playbook and what's right for the company, distributors, and consumers. The price increase implemented in November had a positive effect on volumes and plans for further pricing action are under review.

A：The company has seen good progress from their innovation strategies and is very excited about the progress made.

A：The new bottler in India is enthusiastic about their partnership with Monster and is excited about the opportunity to compete effectively with rival brands in the market.

A：The impact of aluminum prices on margins was discussed, indicating pressure in the first and second quarters of 2020. There was a focus on increasing international margins despite not having the same pricing advantage as in the US, with efforts yielding some success as seen in the last reported quarter.

A：Affordable pricing has assisted in increasing gross margins in international markets, a focus area for the company.

A：Hylton Shasby thanked everyone for their interest in the company, expressed confidence in the strength of their brands and the talent of the Monster family, and conveyed excitement to work with new leaders Rob, Emily, and Guy. He reiterated the company's commitment to innovating, developing, and differentiating their brands, as well as expanding both domestically and internationally.

A：The company is well-positioned in the beverage category and is optimistic about the future of the company, emphasizing a commitment to growth through innovation, development, differentiation of their brands, and expanding both at home and abroad.