怪物飲料 (MNST) 2015 Q2 法說會逐字稿

Good day, ladies and gentlemen and welcome to the Monster Beverage Corporation's second-quarter 2015 financial results call. (Operator Instructions). As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Mr. Rodney Sacks, Chairman and CEO. Sir, please begin.

美好的一天，女士們、先生們，歡迎參加 Monster Beverage Corporation 2015 年第二季財務業績電話會議。（操作員說明）。提醒一下，本次會議正在錄製中。現在我想介紹一下今天會議的主持人，董事長兼執行長羅德尼·薩克斯先生。先生，請開始吧。

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 today, as is Tom Kelly, our Senior Vice President of Finance.

女士們、先生們，午安。感謝您參加本次電話會議。我是羅德尼·薩克斯。我們的副主席兼總裁希爾頓·施洛斯伯格 (Hilton Schlosberg) 今天和我在一起，我們的財務高級副總裁湯姆·凱利 (Tom Kelly) 也和我在一起。

Before we begin, I 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 Exchange Act of 1934 as amended and which are based on currently available information regarding the expectations of management with respect to revenues, profitability, future business, future events, financial performance and trends.

在我們開始之前，我想提醒聽眾，本次電話會議中所做的某些陳述可能構成經修訂的1933 年證券法第27A 條和經修訂的1934 年證券交易法第21E 條含義內的前瞻性陳述。這些資訊是根據當前可獲得的有關管理層對收入、盈利能力、未來業務、未來事件、財務業績和趨勢的預期的資訊。

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 March 2, 2015, as well as our most recent report on Form 10-Q filed May 11, 2015, including the sections contained therein entitled 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.

管理層警告說，這些陳述基於我們目前的知識和預期，並受到某些風險和不確定性的影響，其中許多風險和不確定性超出了公司的控制範圍，可能導致實際結果與本次電話會議中所做的前瞻性陳述有重大差異。請參閱我們向美國證券交易委員會提交的文件，包括我們於2015 年3 月2 日提交的最新10-K 表格年度報告，以及我們於2015 年5 月11 日提交的最新10-Q 表格報告，包括以下部分：其中包含題為「風險因素和前瞻性陳述」的內容，用於討論可能影響我們績效的特定風險和不確定性。本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性陳述的義務。

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 designated with asterisks in the condensed, consolidated statements of income and other information attached to the earnings release dated August 6, 2015. A copy of this information is also available on our website at www.monsterbevcorp.com in the financial information section.

在本次電話會議期間可能會提到的對總銷售額和某些支出的非公認會計準則衡量標準的解釋，請在簡明合併損益表中標有星號的註釋以及收益發布所附的其他信息中提供。日期為 2015 年 8 月 6 日。該資訊的副本也可在我們的網站 www.monsterbevcorp.com 的財務資訊部分取得。

As previously announced, the transaction with the Coca-Cola Company finally closed on June 12, 2015. Under the agreement, the Coca-Cola Company acquired an approximate 16.7% ownership interest in Monster following the issuance of shares to the Coca-Cola Company. The Coca-Cola Company also transferred ownership of its worldwide energy business to Monster and Monster in turn transferred its non-energy business to the Coca-Cola Company. We are excited about our partnership and believe that it will strategically align both companies for the long term by combining the strength of the Coca-Cola Company's worldwide bottling system with Monster's dedicated focus and expertise as a leading energy player globally.

正如先前宣布的那樣，與可口可樂公司的交易最終於2015年6月12日完成。根據協議，可口可樂公司向可口可樂公司發行股份後，收購了 Monster 約 16.7% 的股權。可口可樂公司也將其全球能源業務的所有權轉讓給Monster，Monster又將其非能源業務轉讓給可口可樂公司。我們對我們的合作關係感到非常興奮，並相信透過將可口可樂公司的全球裝瓶系統的優勢與Monster 作為全球領先能源公司的專注和專業知識相結合，它將在長期戰略上使兩家公司結盟。

We are now actively engaged in implementing our strategic alignment and have commenced discussions with Coca-Cola bottlers in many countries around the world. Our first international transition to a Coca-Cola bottler was accomplished in Germany in early July. There are a number of hurdles to be overcome, both legal and financial, in finalizing the award of distribution rights to new international bottlers. We intend to continue to manage the Coca-Cola energy business, which we refer to as our strategic brands, as they concentrate business as the Coca-Cola Company did prior to the closing of the transactions. We will, however, continue to operate a finished product model for our Monster Energy drinks consistent with the manner in which we have historically run our business.

我們現在正在積極實施我們的策略調整，並已開始與世界許多國家的可口可樂裝瓶商進行討論。七月初，我們在德國完成了向可口可樂裝瓶商的首次國際轉型。在最終確定向新的國際裝瓶商授予經銷權時，需要克服許多法律和財務障礙。我們打算繼續管理可口可樂能源業務，我們稱之為我們的策略品牌，因為它們像可口可樂公司在交易完成之前那樣集中業務。然而，我們將繼續以我們歷史上經營業務的方式來經營怪物能量飲料的成品模型。

Under our historical finished product model, we sell finished products to our distributors under the concentrate model, concentrate and/or beverage base is sold to bottlers who add other common ingredients and containers to produce the finished product. As a result, we have revised our reportable segments to reflect management's view of the business. In this quarter, we reported on three operating and reportable segments. First is the finished products segment, the principal products of which include the Company's Monster Energy drink product, which previously comprised a majority of the former DSD segment.

根據我們歷史上的成品模型，我們在濃縮物模型下將成品出售給經銷商，濃縮物和/或飲料基料出售給裝瓶商，裝瓶商添加其他常見成分和容器來生產成品。因此，我們修改了可報告分部以反映管理階層對業務的看法。在本季度，我們報告了三個營運和可報告部門。首先是成品部門，其主要產品包括該公司的Monster能量飲料產品，該產品先前佔原DSD部門的大部分。

Second is concentrate, the principal products of which include the strategic brands acquired from Coca-Cola. And the third is other, the principal product of which include the brands disposed of as a result of the Coca-Cola transactions, including those which were previously comprised of the majority of the former warehouse segment and the Peace Tea brand. We are endeavoring to accelerate the pace of our negotiations with Coca-Cola bottlers with a view to be able to transition a number of additional international markets to Coca-Cola bottlers in the future.

二是濃縮液，主要產品包括從可口可樂收購的策略品牌。第三個是其他產品，其主要產品包括因可口可樂交易而處置的品牌，包括以前由原倉儲部門大部分組成的品牌和和平茶品牌。我們正在努力加快與可口可樂裝瓶商的談判步伐，以期將來能夠將更多的國際市場轉移給可口可樂裝瓶商。

Sales in the quarter were negatively impacted by foreign exchange movements. The impact of the transitions of a substantial majority of our Monster distribution rights in the United States earlier this year, the lower inventory levels maintained by Coca-Cola bottlers versus the Anheuser-Busch distributors and the uncertainty faced by many of our independent international distributors outside of the Coca-Cola network given the anticipated implementation of the transactions all negatively affected our sales growth during the second quarter. Both the Nielsen numbers, which reflect retail sales to consumers, as well as distributor depletions, which reflects sales out by distributors and bottlers to their customers, were substantially less affected by the transition.

該季度的銷售受到外匯變動的負面影響。今年早些時候，我們在美國的絕大多數Monster 分銷權的過渡所產生的影響、可口可樂裝瓶商相對於安海斯-布希分銷商維持的庫存水平較低，以及我們許多外部獨立國際分銷商面臨的不確定性鑑於交易的預期實施，可口可樂網絡的影響都對我們第二季的銷售成長產生了負面影響。反映消費者零售額的尼爾森數據和反映經銷商和裝瓶商向客戶銷售的經銷商消耗的數據，都受到轉型的影響要小得多。

Results during the second quarter were also negatively affected by out-of-stocks, which occurred in certain geographic geographies due to the learning curve associated with the transitions to the Coca-Cola network. Although the transition has progressed relatively smoothly in the United States, there's always some disruption when transitioning distribution. This learning curve was not dissimilar to what we experienced when we transitioned a large part of our distribution in the United States to Coca-Cola bottlers some six years ago, but it was temporary. They got up to speed relatively quickly and we believe that the same will occur here.

第二季的業績也受到缺貨的負面影響，缺貨發生在某些地理區域，這是由於與可口可樂網絡過渡相關的學習曲線造成的。儘管美國的轉型進展相對順利，但分銷轉型過程中總會遇到一些幹擾。這種學習曲線與大約六年前我們將美國大部分分銷業務轉移給可口可樂裝瓶商時所經歷的情況並沒有什麼不同，但這只是暫時的。他們的起步速度相對較快，我們相信這裡也會發生同樣的情況。

In addition to our GAAP condensed consolidated statement of income and other information and our GAAP condensed consolidated balance sheet for the Company for the quarter ended June 30, 2015, attached to our press release is a non-GAAP adjusted condensed consolidated statement of income and other information adjusting for certain of the selected items discussed in the press release impacting profitability, which we believe should be considered in assessing our performance in this quarter. We believe that it would be helpful to shareholders on this call to address our results on an adjusted basis after giving effect to such items in addition to and not in lieu of our GAAP results.

除了公司截至 2015 年 6 月 30 日的季度的 GAAP 簡明綜合損益表和其他資訊以及 GAAP 簡明綜合資產負債表外，我們的新聞稿還附有一份非 GAAP 調整後的簡明綜合損益表和其他資訊。針對新聞稿中討論的影響獲利能力的某些選定項目進行資訊調整，我們認為在評估本季度的業績時應考慮這一點。我們認為，在這些項目生效後，除了而不是代替我們的公認會計準則結果之外，在調整後的基礎上討論我們的結果將對股東有所幫助。

Gross sales for the 2015 second quarter were $789.9 million compared to gross sales of $779 million in the comparable second quarter of 2014. Net sales in the 2015 second quarter were $693.7 million as compared to $687.2 million in the same period last year. Changes in foreign currency exchange rates had an unfavorable impact of approximately $29.9 million on gross sales and approximately $23.9 million on net sales. Gross profit as a percentage of net sales was 56.9% as compared to 55.2% for the comparable 2014 second quarter. The increase in gross profit as a percentage of net sales was largely attributable to net sales of the concentrate segment, which has higher gross margins than the finished product segment, as well as changes in product sales mix and lower cost of raw materials.

2015 年第二季的總銷售額為 7.899 億美元，而 2014 年第二季的總銷售額為 7.79 億美元。2015 年第二季淨銷售額為 6.937 億美元，去年同期為 6.872 億美元。外幣匯率的變化對總銷售額產生了約 2,990 萬美元的不利影響，對淨銷售額產生了約 2,390 萬美元的不利影響。毛利潤佔淨銷售額的百分比為 56.9%，而 2014 年第二季的毛利為 55.2%。毛利潤佔淨銷售額百分比的增加主要歸因於毛利率高於成品部門的精礦部門的淨銷售額，以及產品銷售結構的變化和原材料成本的降低。

Excluding distributed termination costs of $12.2 million and transaction expenses of $11.5 million, operating expenses for the 2015 second quarter were $166.1 million as compared to $161.9 million in the same quarter last year, excluding termination costs of $0.5 million and transaction costs of $1.1 million. Operating expenses as a percentage of net sales excluding these items were 23.9% for the 2015 second quarter as compared to 23.6% in the same quarter last year. Distribution costs as a percentage of net sales were 4.1% for the 2015 second quarter compared to 4.4% in the same quarter last year.

不包括1,220 萬美元的分散式終止成本和1,150 萬美元的交易費用，2015 年第二季的營運費用為1.661 億美元，而去年同期的營運費用為1.619 億美元，不包括50 萬美元的終止成本和110 萬美元的交易成本。2015 年第二季營運費用佔排除這些項目的淨銷售額的百分比為 23.9%，而去年同期為 23.6%。2015 年第二季分銷成本佔淨銷售額的百分比為 4.1%，去年同期為 4.4%。

Selling expenses as a percentage of net sales were 10.4% compared to 10.5% in the same quarter a year ago. Commissions and royalties in the quarter were lower, partly offset by a $1.6 million provision from marketing funds for the new Coca-Cola energy business and an increase of $3.6 million in sponsorships and endorsements. General and administrative costs, excluding distributor termination costs and the transaction costs as a percentage of net sales for the 2015 second quarter, were 9.5% as compared to 8.6% for the corresponding quarter last year. This increase was primarily attributable to increased payroll expenses of $8.4 million due to additional payroll taxes paid by the Company following the exercise of certain stock options by senior management, as well as the addition of certain employees to manage and service the new strategic brands.

銷售費用佔淨銷售額的百分比為 10.4%，去年同期為 10.5%。本季的佣金和特許權使用費有所下降，部分被可口可樂新能源業務行銷資金撥備的 160 萬美元以及贊助和代言增加的 360 萬美元所抵消。2015 年第二季一般及管理成本（不包括經銷商終止成本和交易成本佔淨銷售額的百分比）為 9.5%，而去年同期為 8.6%。這一增長主要是由於高階管理層行使某些股票選擇權後公司繳納的額外工資稅以及增加了某些員工來管理和服務新策略品牌，導致工資支出增加了 840 萬美元。

Stock-based compensation, a non-cash item, was $8.5 million for the second quarter of 2015 compared to $8.1 million in the same quarter last year. Payroll taxes were $6.4 million for the second quarter of 2015 as compared to $1.6 million last year in the same quarter, an increase of $4.8 million. Total transactional costs related to the Coca-Cola transactions during the second quarter were $11.5 million as compared to $1.1 million in the comparable quarter in 2014.

2015 年第二季的非現金項目股票薪酬為 850 萬美元，去年同期為 810 萬美元。2015 年第二季的薪資稅為 640 萬美元，比去年同期的 160 萬美元增加了 480 萬美元。第二季與可口可樂交易相關的總交易成本為 1,150 萬美元，而 2014 年同期為 110 萬美元。

Gross sales to customers outside of the United States were $187.2 million in the 2015 second quarter compared to $180.2 million in the corresponding quarter in 2014. Net sales to customers outside the United States were $151.3 million in the 2015 second quarter compared to $148 million in the corresponding quarter in 2014. Foreign exchange movements had an unfavorable impact on gross sales of approximately $29.9 million and on net sales of approximately $23.9 million. Included in gross sales to customers outside the United States are sales to the Company's military customers, which are delivered in the United States and trans-shipped to the military and their customers overseas.

2015 年第二季對美國以外客戶的總銷售額為 1.872 億美元，而 2014 年同期為 1.802 億美元。2015 年第二季美國境外客戶的淨銷售額為 1.513 億美元，而 2014 年同期為 1.48 億美元。外匯變動對總銷售額約 2,990 萬美元和淨銷售額約 2,390 萬美元產生不利影響。對美國境外客戶的銷售總額包括對公司軍事客戶的銷售，這些銷售在美國交付並轉運給海外的軍方及其客戶。

According to the Nielsen reports for the 13 weeks through July 25, 2015, for all outlets combined, namely convenience, grocery, drug, mass merchandisers, sales in dollars in the energy drink category, including shots, increased by 10.3% versus the same period a year ago. Sales of Monster grew 10% in the 13-week period while sales of NOS increased 14.9% and sales of Full Throttle decreased 0.2%. Sales of Red Bull increased 14.1%. Sales of Rockstar increased by 13%. Sales of 5 Hour increased 2.1% and sales of M decreased 5.8%.

根據尼爾森報告，截至2015 年7 月25 日的13 週內，所有商店（即便利商店、雜貨店、藥局、量販店）的能量飲料類別（包括飲料）銷售額（以美元計算）與同期相比增長了10.3%一年前。Monster 的銷售額在 13 週內成長了 10%，而 NOS 的銷售額成長了 14.9%，Full Throttle 的銷售額下降了 0.2%。紅牛銷量成長14.1%。Rockstar 的銷售額成長了 13%。5 Hour 的銷售額成長了 2.1%，M 的銷售額下降了 5.8%。

According to Nielsen for the four weeks ended July 25, 2015, sales in the convenience and gas channel, including energy shots, in dollars increased 10.7% over the same period last year. Sales of Monster increased by 9.1% over the same period last year while NOS was up 11.5% and Full Throttle sales decreased 0.9%. Sales of Red Bull increased by 13.5%; Rockstar was up 21.7%; 5 Hour was up 4.8% and Amp was up 0.4%.

根據尼爾森的數據，截至 2015 年 7 月 25 日的四週內，便利性和天然氣通路的銷售額（包括能量飲料）比去年同期成長了 10.7%。Monster銷量較去年同期成長9.1%，NOS銷售成長11.5%，Full Throttle銷售量下降0.9%。紅牛銷量成長13.5%； Rockstar 上漲 21.7%； 5 Hour 上漲 4.8%，Amp 上漲 0.4%。

According to Nielsen, for the four weeks ended July 25, 2015, Monster's marketshare of the energy drink category in the convenience and gas channel, including energy shots, in dollars increased by 0.5 points over the same period last year to 34.2%. NOS's share remained the same at 3.8% and Full Throttle share decreased 0.1 points to 1%. Red Bull's share increased 0.9 points to 36.3%. Rockstar's share was up 0.7 points at 7.6%. 5 Hour share was lower at 8.6% and M share decreased 0.2 points to 2.2%.

根據尼爾森的數據，截至2015年7月25日的四個星期，Monster在便利和燃氣管道的能量飲料類別（包括能量飲料）的市場份額（以美元計算）比去年同期增長了0.5個百分點，達到34.2%。NOS 的份額保持不變，為 3.8%，Full Throttle 份額下降 0.1 個百分點，至 1%。紅牛的份額增加了0.9個百分點，達到36.3%。Rockstar 的份額上升 0.7 個百分點，達到 7.6%。5 小時份額下降至 8.6%，M 份額下降 0.2 個百分點至 2.2%。

According to Nielsen for the four weeks ended July 25, 2015, sales of Energy plus coffee drinks in dollars in the convenience and gas channel increased 9.6% over the same period last year. Java Monster was 10.9% higher than the same period last year while Starbucks Doubleshot Energy was 9.1% higher.

根據尼爾森的數據，截至 2015 年 7 月 25 日的四個星期，便利和燃氣管道中能量加咖啡飲料的銷售額（以美元計）比去年同期增長了 9.6%。Java Monster 年成長 10.9%，星巴克 Doubleshot Energy 年成長 9.1%。

According to Nielsen, in the convenience and gas channel in Canada, for the 12 weeks ended June 27, 2015, the energy drink category increased 5%. Monster sales were up 6% versus a year ago and marketshare increased 1.4 points to 27.8% over the same period last year. Red Bull sales increased 3% and its marketshare decreased 0.8 points to 38.2%. Rockstar sales increased 37% and its marketshare increased 4.1 points to 19.2%.

根據尼爾森的數據，在加拿大的便利性和天然氣通路中，截至2015年6月27日的12週內，能量飲料類別增加了5%。Monster 銷售量較去年同期成長 6%，市佔率較去年同期成長 1.4 個百分點，達到 27.8%。紅牛銷量成長 3%，市佔率下降 0.8 個百分點至 38.2%。Rockstar 銷售額成長 37%，市佔率成長 4.1 個百分點，達到 19.2%。

According to Nielsen for all outlets combined in Mexico, the energy drink category grew 20.4% in the month of June 2015. Monster sales increased 1.1%. Our marketshare decreased 6.2 points to 32.2% against the comparable period last year. Our strategic brands' marketshare represented by Burn increased 0.3 points to 6.2%. Gladiator has been discontinued in Mexico. Red Bull sales increased 4.3% and its marketshare decreased by 3.2 points to 20.9%. Vive 100's marketshare increased 7.8 points to 21.7% while Boost's marketshare decreased 0.2 points to 14.2%.

根據尼爾森統計，墨西哥所有門市的能量飲料類別在 2015 年 6 月增加了 20.4%。Monster 銷售成長 1.1%。與去年同期相比，我們的市佔率下降了 6.2 個百分點，至 32.2%。以Burn為代表的策略品牌市佔率上升0.3個百分點至6.2%。《角鬥士》已在墨西哥停產。紅牛銷量成長4.3%，市佔率下降3.2個百分點至20.9%。Vive 100 的市佔率成長了 7.8 個百分點，達到 21.7%，而 Boost 的市佔率則下降了 0.2 個百分點，達到 14.2%。

The Nielsen statistics for Mexico cover single months, which is a short period that may often be materially influenced positively and or negatively by sales in the Oxxo convenience chain, which dominates the market. Sales in the Oxxo convenience chain in turn can be materially influenced by promotions that may be undertaken in that chain by one or more energy drink brands during a particular month. Consequently, such activities could have a significant impact on the monthly Nielsen statistics for Mexico.

尼爾森對墨西哥的統計數據涵蓋了單月，這是一個很短的時期，通常可能會受到主導市場的 Oxxo 便利連鎖店的銷售產生重大的正面或負面影響。反過來，Oxxo 便利連鎖店的銷售可能會受到一個或多個能量飲料品牌在特定月份在該連鎖店可能進行的促銷活動的重大影響。因此，此類活動可能會對墨西哥的尼爾森月度統計數據產生重大影響。

In the month prior, which is May 2015, for example, for all our outlets combined in Mexico, the energy drink category grew 28.7% in the month and Monster's sales increased 25.6%. Our marketshare decreased 0.9 points to 35.3% against the comparable period last year. Red Bull sales decreased 0.8% and its marketshare decreased by 6.1 points to 20.4%. Vive 100's marketshare increased 6.5 points to 19.6% while our Boost's marketshare decreased 1.8 points to 13.9%. Coke's marketshare represented by Burn and Gladiator together increased 1.1 points to 6.2%.

例如，在上個月，也就是 2015 年 5 月，我們在墨西哥的所有門市合計，當月能量飲料類別成長了 28.7%，Monster 的銷售額成長了 25.6%。與去年同期相比，我們的市佔率下降了 0.9 個百分點，至 35.3%。紅牛銷量下降0.8%，市佔率下降6.1個百分點至20.4%。Vive 100 的市佔率成長了 6.5 個百分點，達到 19.6%，而 Boost 的市佔率則下降了 1.8 個百分點，達到 13.9%。以Burn 和Gladiator 為代表的可口可樂市佔率合計成長1.1 個百分點，達到6.2%。

According to Nielsen, in the 13-week period ended June 2015, the actual 13-week periods vary by a few weeks between different markets. Monster's retail marketshare in value as compared to the same period last year grew from 10.5% to 12.4% in Great Britain, from 15.8% to 18.7% in France and from 7.6% to 11.5% in Germany. In the same period, Monster's value share grew from 7.9% to 8.7% in Sweden, from 8.2% to 8.8% in Belgium and from 5.9% to 6% in the Netherlands. Monster's retail marketshare in value for the 13 weeks ended June 2015 as compared to the same period last year decreased from 18.7% to 16.8% in South Africa and from 22.4% to 21.9% in Spain and from 11.7% to 11.2% in Italy. All three of these markets have independent distributors.

根據尼爾森的數據，在截至 2015 年 6 月的 13 週期間，不同市場之間的實際 13 週期間存在幾週的差異。與去年同期相比，Monster 在英國的零售市佔率從 10.5% 成長到 12.4%，在法國從 15.8% 成長到 18.7%，在德國從 7.6% 成長到 11.5%。同期，Monster 在瑞典的價值份額從 7.9% 增長到 8.7%，在比利時從 8.2% 增長到 8.8%，在荷蘭從 5.9% 增長到 6%。截至2015 年6 月的13 週內，與去年同期相比，Monster 在南非的零售市佔率從18.7% 下降至16.8%，在西班牙從22.4% 下降至21.9%，在義大利從11.7% 下降至11.2% 。所有這三個市場都有獨立的分銷商。

According to IRI, Monster's marketshare in Greece increased for the 13 weeks to the end of June 2015 from 25.4% to 27.8%. I would like to point out that the Nielsen and IRI numbers in EMEA should only be used as a guide because the channels read by Nielsen and IRI in EMEA vary from country to country. According to Nielsen for the month of May 2015 in Chile, Monster's retail marketshare in value increased to 15.6% as compared to 11.3% last year and in Brazil, Monster's marketshare for the month of June 2015 declined from 5.3% to 3.9% as compared to the same period last year. We believe that our distributor in Brazil has lost focus on our brand as a result of the Coca-Cola transaction.

據 IRI 稱，截至 2015 年 6 月底的 13 週內，Monster 在希臘的市佔率從 25.4% 上升至 27.8%。我想指出的是，歐洲、中東和非洲地區的尼爾森和 IRI 數字僅供參考，因為歐洲、中東和非洲地區尼爾森和 IRI 讀取的頻道因國家而異。根據尼爾森的數據，2015 年 5 月在智利，Monster 的零售市佔率從去年的 11.3% 增至 15.6%；在巴西，2015 年 6 月 Monster 的市佔率從 5.3% 下降至 3.9%。去年同期。我們相信，由於可口可樂交易，我們在巴西的經銷商已經失去了對我們品牌的關注。

According to [Intage], which provides tracking and market statistics in Japan, for the month of June 2015 in the convenience store channel in Japan, Monster's marketshare grew from 24.1% to 32.7%. Additionally, within the last few weeks, Monster launched its Monster Energy Ultra Energy drink in Japan. Early indications are very positive.

根據提供日本追蹤和市場統計的[Intage]，2015年6月在日本便利商店通路中，Monster的市佔率從24.1%成長到32.7%。此外，在過去幾週內，Monster 在日本推出了 Monster Energy Ultra 能量飲料。早期跡象非常積極。

As stated earlier, the Company's revised its reportable segments into finished products, concentrate and other. Net sales for the finished product segment, formerly the DSD segment, but excluding Peace Tea, increased 1.2% to $651.2 million and operating income for the finished product segment before taking into account corporate and unallocated amounts decreased 1.1% to $251.6 million in the 2015 second quarter.

如前所述，公司將其報告分部修改為成品分部、精礦分部及其他分部。Net sales for the finished product segment, formerly the DSD segment, but excluding Peace Tea, increased 1.2% to $651.2 million and operating income for the finished product segment before taking into account corporate and unallocated amounts decreased 1.1% to $251.6 million in the 2015 second四分之一.

Net sales for the finished product segment were negatively impacted by approximately $22.8 million of foreign currency movements and operating income for the finished product segment was negatively impacted by approximately $12.2 million of distributor terminations. Net sales for the Company's new concentrate segment were $13 million for the three months ended June 30, 2015 and operating income before taking into account corporate and unallocated amounts for the concentrate segment was $9.1 million. You will appreciate that that covers the period between the closing of the transaction and the end of the quarter, which is not a full quarter.

成品部門的淨銷售額受到約 2,280 萬美元外匯變動的負面影響，成品部門的營業收入受到約 1,220 萬美元經銷商終止的負面影響。截至2015年6月30日止三個月，公司新精礦部門的淨銷售額為1,300萬美元，未考慮精礦部門公司及未分配金額的營業收入為910萬美元。您會發現，這涵蓋了交易結束和季度末之間的時期，這不是一個完整的季度。

Net sales for the Company's third segment, other, decreased 32.6% to $29.5 million for the three months ended June 2015 from $43.8 million for the same period ending June 30, 2014. The 2015 second quarter's results for the other segment are through June 12, the date the Coca-Cola transaction closed. Operating income for the other segment before taking into account corporate and unallocated amounts and excluding the gain on the sale of our non-energy business was $2.2 million in the second quarter of 2015 compared to $3.1 million in the second quarter of 2014.

截至2015年6月止三個月，公司第三部門（其他部門）的淨銷售額從截至2014年6月30日止同期的4,380萬美元下降32.6%至2,950萬美元。其他部門的 2015 年第二季業績截至 6 月 12 日，即可口可樂交易結束之日。2015 年第二季度，在考慮公司和未分配金額以及不包括出售非能源業務的收益之前，其他部門的營業收入為 220 萬美元，而 2014 年第二季度為 310 萬美元。

Net sales in Europe, the Middle East and Africa in the second quarter of 2015 in dollars were 4.8% higher than the same period last year. In local currencies, net sales in the region were 32% higher than in the same period last year. Gross sales were 10% higher in dollars and 38% higher in local currencies. Monster is continuing to gain momentum and increase marketshare in Europe. However, growth in Spain, South Africa and Italy were negatively impacted due to the uncertainty regarding the impact of the Coca-Cola transaction. Overall, EMEA is now operating well and we have made good strides in achieving increased distribution levels and in-store execution and traded profitably in the second quarter.

2015 年第二季歐洲、中東和非洲的淨銷售額（以美元計算）比去年同期成長 4.8%。以當地貨幣計算，該地區的淨銷售額比去年同期成長了 32%。以美元計算的總銷售額成長了 10%，以當地貨幣計算的總銷售額成長了 38%。Monster 在歐洲的發展動能持續強勁，市佔率不斷增加。然而，由於可口可樂交易影響的不確定性，西班牙、南非和義大利的成長受到負面影響。總體而言，歐洲、中東和非洲地區目前運作良好，我們在提高分銷水平和店內執行方面取得了長足進步，並在第二季度實現了盈利。

We are continuing to see the benefit of the strategic changes implemented over the past two years. The Monster Energy Valentino Rossi drink, which is now available in the majority of the markets in Europe and South Africa, continues to perform well. During the quarter, we launched Mega Monster in additional EMEA markets. Results continue to be positive. In particular, in Great Britain, Germany, Greece, Sweden, Ireland, Hungary and Poland, Monster achieved sales gains and continue to increase its marketshare.

我們繼續看到過去兩年實施的策略變革的好處。Monster Energy Valentino Rossi 飲料現已在歐洲和南非的大多數市場上銷售，繼續表現良好。本季度，我們在其他歐洲、中東和非洲市場推出了 Mega Monster。結果仍然積極。特別是在英國、德國、希臘、瑞典、愛爾蘭、匈牙利和波蘭，Monster 實現了銷售成長並繼續增加其市場份額。

In our international markets where our distribution partners anticipate a transition occurring, there is a notable difference in our sales levels versus our markets that already are operating in the Coca-Cola system. Net sales in Asia-Pacific increased 28.7%, a 49.9% increase in local currencies, versus the comparable quarter last year while net sales in Mexico, Central and South America and the Caribbean decreased 3.5% in dollars, but increased 5.8% in local currencies over the comparable period in 2014 mainly due to foreign exchange differences, a competitive price adjustment in Chile to offset an indirect tax and continuing issues with our Colombian distributor. Sales in Brazil for the second quarter were disappointing as referred to earlier.

在我們的經銷合作夥伴預期會轉變的國際市場中，我們的銷售水準與已經在可口可樂系統中運作的市場有顯著差異。與去年同期相比，亞太地區的淨銷售額增長了28.7%，以當地貨幣計算增長了49.9%，而墨西哥、中南美洲和加勒比地區的淨銷售額以美元計算下降了3.5%，但以當地貨幣計算成長了5.8% 2014 年同期的業績成長主要是由於外匯差異、智利為抵銷間接稅而進行的競爭性價格調整以及我們哥倫比亞經銷商的持續問題。如前所述，巴西第二季的銷售令人失望。

In Japan, net sales increased by 41.8% in dollars and 66.5% in local currency. In Mexico, net sales were slightly up both in local currency and dollars. Both Japan and Mexico contributed meaningful operating profits to the division in the second quarter of 2015. India has been impacted by losses in the second quarter following regulatory issues, which are currently being addressed. We are actively involved in discussions with perspective Coca-Cola bottlers in numerous countries around the world regarding distribution opportunities for our Monster Energy drinks. We are also evaluating many additional local production opportunities with Coca-Cola bottlers, which we believe will yield cost reductions.

在日本，以美元計算的淨銷售額成長了 41.8%，以當地貨幣計算的淨銷售額成長了 66.5%。在墨西哥，以當地貨幣和美元計算的淨銷售額均略有上升。2015 年第二季度，日本和墨西哥都為該部門貢獻了可觀的營業利潤。由於目前正在解決監管問題，印度第二季受到了虧損的影響。我們積極參與與世界各地許多國家的可口可樂裝瓶商就我們的 Monster 能量飲料的分銷機會進行討論。我們也正在評估與可口可樂裝瓶商合作的許多其他本地生產機會，我們相信這將降低成本。

We've experienced a decrease in sales of Muscle Monster that we believe is principally attributable to a quality issue relating to the texture of our Muscle Monster product. I did mention this on our previous call. We've addressed the issue by reformulating those products and are currently shipping new Muscle Monster products with new graphics to our distributors. Following the consummation of the transactions with the Coca-Cola Company, the Company receives substantial cash funds. The Board of Directors is considering options with regard to the return of capital, including share repurchases.

我們經歷了 Muscle Monster 銷售的下降，我們認為這主要歸因於與我們的 Muscle Monster 產品質地相關的品質問題。我在之前的電話中確實提到過這一點。我們已經透過重新配製這些產品來解決這個問題，目前正在向我們的經銷商運送帶有新圖形的新肌肉怪物產品。與可口可樂公司的交易完成後，公司收到大量現金。董事會正在考慮有關資本返還的選擇，包括股票回購。

Turning to the balance sheet, cash and cash equivalents amounted to $1.7 billion compared to $370.3 million at December 31, 2014. Short-term investments were $1.2 billion compared to $781.1 million at December 31, 2014. Long-term investments increased to $52.4 million from $42.9 million at December 31, 2014. Included in short and long-term investments are option rate securities of $3.2 million.

就資產負債表而言，現金和現金等價物總計 17 億美元，而 2014 年 12 月 31 日為 3.703 億美元。短期投資為 12 億美元，而 2014 年 12 月 31 日為 7.811 億美元。截至2014年12月31日，長期投資從4,290萬美元增至5,240萬美元。短期和長期投資包括 320 萬美元的選擇利率證券。

Days outstanding for accounts receivable were 42.6 days at June 30, 2015 and 36.4 days at December 31, 2014 compared to 43.5 days at June 30, 2014. Inventories increased to $180.9 million from $174.6 million at December 31, 2014. Average days of inventory was 54.4 days at June 30, 2015, which was lower than the 57.4 days of inventory at December 31, 2014 and lower than the 60.8 days at June 30, 2014.

應收帳款的未償還天數於2015年6月30日為42.6天，於2014年12月31日為36.4天，而2014年6月30日為43.5天。截至 2014 年 12 月 31 日，庫存從 1.746 億美元增至 1.809 億美元。2015年6月30日的平均庫存天數為54.4天，低於2014年12月31日的57.4天庫存天數，也低於2014年6月30日的60.8天。

In the fall, we are planning to launch a new juice Monster called Pipeline Punch and a new banana-flavored Muscle Monster, as well as Monster Ultra Black as a permanent SKU. We have also reformulated our Rojo Tea + Energy Rehab product as a Raspberry Tea + Energy product, which is currently in the process of being introduced. We have additional new product launches planned for the beginning of 2016. Our repositioned juice Monster and punch Monster lines continue to show healthy gains.

今年秋天，我們計劃推出一款名為 Pipeline Punch 的新果汁 Monster 和一款新香蕉口味的 Muscle Monster，以及作為永久 SKU 的 Monster Ultra Black。我們也將 Rojo Tea + Energy Rehab 產品重新配製為 Raspberry Tea + Energy 產品，目前正在推出過程中。我們計劃在 2016 年初推出更多新產品。我們重新定位的 Monster 果汁和 Monster 潘趣酒系列繼續呈現健康成長。

Gross sales in July 2015 in dollars were approximately 14.1% higher than in July 2014. In local currencies, gross sales in July were 19.2% higher than in July 2014. July 2014 included the old warehouse division and Peace Tea. Specifically, the finished product segment, which comprises our Monster Energy brand products, grew 10.2% in July in dollars and 14.5% without a foreign exchange impact. We caution again that sales in a single month and over a short period are often disproportionately impacted by various factors such as, for example, selling days, days of the week in which holidays fall and the timing of promotions in retail stores and should not necessarily be imputed to or regarded as indicative of results for the full quarter or any future period.

2015 年 7 月的總銷售額（以美元計算）比 2014 年 7 月高出約 14.1%。以當地貨幣計算，7 月的總銷售額比 2014 年 7 月成長 19.2%。2014年7月包括舊倉事業部及和平茶業。具體來說，由我們的 Monster Energy 品牌產品組成的成品部門 7 月以美元計算增長了 10.2%，在不受外匯影響的情況下增長了 14.5%。我們再次提醒您，單月和短期內的銷售往往會受到各種因素的不成比例的影響，例如銷售日、一周中的假期日期以及零售商店促銷的時間，因此不一定歸因於或被視為整個季度或任何未來期間的業績的指示。

In conclusion, I would like to summarize some recent positive points. We are pleased that the Coca-Cola transaction closed on June 12 and are excited with the opportunity this presents to the Company. North American and international gross margins are healthy and in fact have continued to improve. The US Nielsen market statistics show that the energy category continues to grow. We believe that the majority of the increases in dollar values achieved by Red Bull are attributable to their price increase, which they implemented in January.

最後，我想總結一下最近的一些正面的觀點。我們很高興可口可樂交易於 6 月 12 日完成，並對這給公司帶來的機會感到興奮。北美和國際毛利率健康，而且實際上還在持續改善。美國尼爾森市場統計顯示，能源類別持續成長。我們認為，紅牛實現的美元價值成長大部分歸因於他們在一月份實施的價格上漲。

In units, sales of Red Bull in the United States increased by 5.5%, which is lower than the 9.1% increase in units achieved by Monster. We think that the resilience shown by consumers to Red Bull's increase pricing augurs well for our planned price increase in September. Importantly, on a unit basis, Monster continues to outperform Red Bull this year, which we believe is significant. The new additions to the Monster family that were introduced last year continued to gain marketshare and add to the Company's sales. We believe that our Monster Ultra lines and additions and changes to our Rehab and juice Monster lines will continue to add to sales.

以銷量計算，紅牛在美國的銷量成長了5.5%，低於Monster 9.1%的銷量成長。我們認為，消費者對紅牛漲價所表現出的彈性預示著我們計劃在 9 月漲價。重要的是，就單位而言，Monster 今年的表現繼續優於紅牛，我們認為這一點意義重大。去年推出的 Monster 系列新成員繼續獲得市場份額並增加了公司的銷售額。我們相信，我們的 Monster Ultra 系列以及 Rehab 和果汁 Monster 系列的添加和更改將繼續增加銷售額。

Turning to international markets, we are pleased with the performance of our international expansion, particularly in Japan, Great Britain, Germany, France, Sweden, Ireland, Greece and Chile. We are pleased with the improvement in July in our sales growth. I would like to open the floor to questions about the quarter. Thank you.

談到國際市場，我們對國際擴張的表現感到滿意，特別是在日本、英國、德國、法國、瑞典、愛爾蘭、希臘和智利。我們對 7 月份銷售成長的改善感到高興。我想請大家回答有關本季的問題。謝謝。

(Operator Instructions). Judy Hong, Goldman Sachs.

（操作員說明）。朱迪·洪，高盛。

So if I look at your second-quarter international trends, and I think you had talked about local currency growth in some of the markets like EMEA and Japan, it actually looks very healthy despite some of the transition issues that you called out in a few of the markets. So number one, can you just talk about what is sort of driving some of that underlying improvement? Maybe it's the Coke system doing better, or it's some of the new markets you're entering and then even the improvement that you saw in July, what's driving that?

因此，如果我看一下你們第二季度的國際趨勢，我認為你們已經談到了歐洲、中東和非洲和日本等一些市場的本幣增長，儘管你們在一些報告中指出了一些過渡問題，但它實際上看起來非常健康。的市場。那麼第一，您能談談是什麼推動了一些潛在的改進嗎？也許是可口可樂系統做得更好，或者是您正在進入的一些新市場，甚至是您在 7 月看到的改善，是什麼推動了這一點？

And then the markets that you're having some challenges like Brazil and Italy and maybe even other markets that were having discussions about the transition, can you just elaborate on how much progress you are making, what are some of the early learnings as you're talking to these bottlers and just kind of thinking about the pace in which you can transition some of the bottlers to the Coke system. Thanks.

然後，您面臨一些挑戰的市場，例如巴西和義大利，甚至可能是其他正在討論過渡的市場，您能否詳細說明您取得了多少進展，您的早期經驗是什麼？我們正在與這些裝瓶商交談，並思考將一些裝瓶商過渡到可口可樂系統的速度。謝謝。

I think that -- let me take the last question first. In many of these markets, it's not a question of what we can do. The question is you've got existing distributors and bottlers who obviously have heard about the Coke transaction and believe that their territories will ultimately be transitioned to Coke. So what they've generally have really pulled back on their investments in their markets in investing in putting extra effort. And although we've tried to obviously work with them and assure them and it affects their buyout to some extent, they really have mentally are not in the same place as they were when they were fully engaged as our full-time distributors.

我認為——讓我先回答最後一個問題。在許多這樣的市場中，問題不在於我們能做什麼。問題是現有的經銷商和裝瓶商顯然已經聽說過可口可樂交易，並相信他們的領土最終將轉移到可口可樂手中。因此，他們實際上已經減少了對市場的投資，並投入了額外的努力。儘管我們顯然試圖與他們合作並向他們保證，這在一定程度上影響了他們的買斷，但他們的精神狀態確實與他們作為我們的全職經銷商完全投入時的狀態不同。

So the challenge we've got is in basically being able to conclude arrangements with the Coke bottlers as soon as possible to transition those markets and we've referred to that. There is a learning curve with the international Coke bottlers not only from a point of view of learning about (inaudible) our products, but the way we go to the market, the way we operate, the terms of our agreements, using a finished product model. All of these things are not usual generally to the Coke bottlers. They have very different business models and existing contractual relationships with the Coca-Cola Company.

因此，我們面臨的挑戰基本上是能夠盡快與可口可樂裝瓶商達成協議，以過渡這些市場，我們已經提到了這一點。國際可口可樂裝瓶商有一個學習曲線，不僅從了解（聽不清楚）我們的產品的角度來看，而且從我們進入市場的方式、我們的運作方式、我們的協議條款、使用成品的角度來看模型。所有這些事情對於可口可樂裝瓶商來說並不常見。他們與可口可樂公司有著截然不同的商業模式和現有合約關係。

There are some complex issues both with regard to the legal terms of the agreements and the economics and working up the value chains and these are being done and attended to and we are having these discussions, but it is taking some time and we just -- unfortunately, we've just got to be patient, but what we do clearly see is there is a very big difference in the sales, in both our sales in and sales out from distributors, their depletions in markets where they are non -- which I'd call non-transition markets where the distributors know that they are going to stay with the brand. For example, the Coke, the CCR markets in Europe. Those markets are generally performing well and performing at a much higher level than the markets where there is a likelihood of a transition.

在協議的法律條款、經濟以及價值鏈方面存在一些複雜的問題，這些問題正在完成和處理，我們正在進行這些討論，但這需要一些時間，我們只是——不幸的是，我們必須要有耐心，但我們清楚地看到，銷售方面存在很大差異，無論是我們的分銷商的銷售還是分銷商的銷售，他們在非市場的消耗——這我將其稱為非過渡市場，分銷商知道他們將繼續使用該品牌。例如可口可樂、歐洲的CCR市場。這些市場通常表現良好，且表現水準遠高於有可能發生轉型的市場。

There are some markets on the other hand where we've not made a decision to transition and we've communicated that and been able to assure our distributor. Those markets are performing well, particularly you call out a markets like Japan where our partner has -- we've talked with them and we are focused on continuing to operate with them and there the market has done very well and they are continuing to perform fully. That is in international.

另一方面，在一些市場我們還沒有做出過渡的決定，我們已經傳達了這一點並能夠向我們的經銷商保證。這些市場表現良好，特別是像日本這樣的市場，我們的合作夥伴已經與他們進行了交談，我們致力於繼續與他們合作，那裡的市場表現非常好，他們將繼續表現得很好。那是在國際上。

That is not a dissimilar situation in the US. If you take our markets in the US where, in some cases, most cases, there are existing Coke bottlers, but in some cases we have some independent bottlers here, distributors or bottlers. And again, you're seeing a clear difference between the results of both our sales in and the sales in obviously were also affected by the lower stock hauling levels held by Coke bottlers versus the AB, the new ones we've gone to here. That was an additional factor. But even if you take that factor, take that into account or put it to the side for the moment, when you look at the depletions by the Coke bottlers in the transition territories, the depletions are lower than in the same companies, non-transition territories.

這與美國的情況並沒有什麼不同。如果你看看我們在美國的市場，在某些情況下，大多數情況下，都有現有的可口可樂裝瓶商，但在某些情況下，我們這裡有一些獨立的裝瓶商、分銷商或裝瓶商。再說一次，你會看到我們的銷售結果和的銷售結果之間存在明顯差異，顯然也受到可口可樂裝瓶商與AB（我們在這裡討論的新裝瓶商）持有的庫存運輸水平較低的影響。這是另一個因素。但即使你考慮到這個因素，考慮到這一點，或者暫時把它放在一邊，當你觀察轉型地區可口可樂裝瓶商的消耗時，你會發現消耗量低於同一公司、非轉型地區的消耗量。領土。

It's clear that what's going on is that there is a learning curve. There were some out-of-stocks both from our side and in retail, but it is also a learning curve because new sales teams have basically got to learn the Monster business, the velocity, the accounts -- those accounts that are higher in velocity, which don't necessarily replicate the accounts that are higher in velocity for traditional beverages. And so we think that that's a transitory thing and this is the quarter where they've gone through it. It's the first 90 days of the transitions to the Coke system in the US. And so we think these are things that are just going to have to work their way out of it and we believe we are starting to see improvements and some of that is now being reflected in the numbers that we are showing you now, our sales numbers for July.

很明顯，存在一個學習曲線。我們這邊和零售業都出現了一些缺貨的情況，但這也是一個學習曲線，因為新的銷售團隊基本上必須學習怪物業務、速度、帳戶——那些速度較高的帳戶，這不一定會複製傳統飲料流通速度較高的帳戶。因此，我們認為這是暫時的事情，這是他們經歷過的季度。這是美國向可口可樂系統過渡的前 90 天。因此，我們認為這些事情必須設法解決，我們相信我們正在開始看到改進，其中一些現在已經反映在我們現在向您展示的數字中，我們的銷售數字七月。

But obviously what you also can see is if you look at the Nielsen over this whole period, the Nielsen numbers in the US have been pretty consistent on our sales out in units, etc., which shows that from the consumer point of view there is still similar retail pull in all these markets.

但顯然，如果你觀察整個時期的尼爾森數據，你也可以看到，美國的尼爾森數據與我們的銷售等相當一致，這表明從消費者的角度來看，所有這些市場的零售拉力仍然相似。

Mark Astrachan, Stifel.

馬克·阿斯特拉坎，斯蒂菲爾。

I guess two questions. One is sort of a follow-up on the last one. If you could talk maybe about directionally did the July number benefit from restock or did you see more of that in call it the months of May and June and so the July number is more of the representation of end demand, or I guess we could see that from the scanner data, but maybe if you could give us a bit of commentary on that, that would be helpful.

我猜有兩個問題。其中一個是上一個的後續。如果您可以定向談論7 月的數字是否受益於補貨，或者您是否看到更多的這種情況，即5 月和6 月，因此7 月的數字更多地代表了最終需求，或者我想我們可以看到這是來自掃描器數據的，但也許如果您能給我們一些評論，那會很有幫助。

And then secondly on cash, I appreciate your commentary from the Board standpoint, but $3 billion in cash is obviously an awful lot. So what prevents you from going into the market call it Monday, Tuesday, whenever the window opens up next week, to buy back a lot of stock, or how should we broadly think about the share repurchases? Is it going to be an open market over some period of time? Will there be an ASR tender? If you could just sort of help us directionally on that, that would be great too. Thank you.

其次，關於現金，我很欣賞你從董事會的角度發表的評論，但 30 億美元的現金顯然是一個可怕的數字。那麼，是什麼阻止你進入市場（稱之為週一、週二），每當下週窗口打開時，回購大量股票，或者我們應該如何廣泛地考慮股票回購？在一段時間內它會成為一個開放市場嗎？是否會有 ASR 招標？如果您能在這方面為我們提供一些定向幫助，那就太好了。謝謝。

Well, Mark, if I could answer that question on cash there, it will be a return of cash to shareholders. The Board is meeting tomorrow and it's one of the issues that will be tabled on the Board meeting. And I can't say what route the Board will take, but there are certainly a number of options open to the Board and they will make their decision in due course.

好吧，馬克，如果我能回答關於現金的問題，那就是向股東回饋現金。董事會將於明天召開會議，這是董事會會議上提出的問題之一。我不能說董事會將採取什麼路線，但董事會肯定有很多選擇，他們將在適當的時候做出決定。

Yes, it's obviously clear that we have the excess cash and we will address it, but we need to address it in due course. There are a number of reasons as to what we need to do or how to do it and we will look at that, Mark. It's just premature at the moment and everybody is keen to get us to deal with it and address it, but it just has to be dealt with in due course.

是的，很明顯我們有多餘的現金，我們會解決這個問題，但我們需要在適當的時候解決它。關於我們需要做什麼或如何做有很多原因，我們會考慮的，馬克。目前還為時過早，每個人都渴望讓我們處理它並解決它，但它必須在適當的時候處理。

And then your first question was about the July sales and I think there's a general view here that the stock reductions are past us and that the July sales really are a factor of demand. And that's a view; it's not something that one can take to the bank, but it's certainly the view that we hold here.

然後你的第一個問題是關於七月的銷售，我認為這裡有一個普遍的觀點，庫存減少已經過去了，七月的銷售確實是需求的一個因素。這就是一種觀點；這不是人們可以帶到銀行的東西，但這肯定是我們在這裡持有的觀點。

Yes. And we also think that that's been influenced by the fact that again some of that learning curve is now improving and some of the out-of-stocks that initially occurred because of unknown order patterns for different products in our line, which has quite a lot of products, those things have -- we think those are normalizing and we think that that is more indicative of our regular business.

是的。我們還認為，這受到了以下事實的影響：部分學習曲線現在正在改善，以及由於我們產品線中不同產品的訂單模式未知而最初發生的一些缺貨情況，其中有相當多的產品的產品，這些東西已經——我們認為這些正在正常化，我們認為這更能說明我們的正常業務。

And we had been having regular meetings with the Coca-Cola bottlers in the US and these issues are being addressed.

我們一直在與美國的可口可樂裝瓶商定期舉行會議，這些問題正在解決。

Amit Sharma, BMO Capital Markets.

Amit Sharma，BMO 資本市場。

Two questions. One, could you talk about what portion of your non-US sales are going through non-Coca-Cola distributors at this time and what's the level of decline with those? Any sort of help with that would be great. And the second one is, in non-US markets where Coca-Cola does not have the contractual obligation to partner with you, unlike the US market, are you seeing greater difficulties or is it just going through the process of finding out terms and conditions that are acceptable to all the parties?

兩個問題。第一，您能否談談目前您的非美國銷售額中有多少是透過非可口可樂經銷商進行的，以及這些經銷商的下降程度如何？任何形式的幫助都會很棒。第二個是，在非美國市場，可口可樂沒有與您合作的合約義務，與美國市場不同，您是否會遇到更大的困難，或者只是在經歷尋找條款和條件的過程是各方都能接受的？

I think there is a general excitement amongst all of the Coke bottlers to take on Monster and to partner with us and I think it's right through the Coke -- I think there's a very good attitude throughout the Coke system. I think the issue is, as I indicated earlier, it's getting to be able to get them comfortable with the basis on which we do business, which is different to the traditional concentrate model business that Coke has followed for centuries and to get them to understand us and work through the legal issues.

我認為所有可口可樂裝瓶商都對與 Monster 較量並與我們合作感到興奮，我認為這是透過可口可樂實現的——我認為整個可口可樂系統都有一種非常好的態度。我認為，正如我之前指出的，問題在於讓他們適應我們開展業務的基礎，這與可口可樂幾個世紀以來遵循的傳統濃縮模式業務不同，並讓他們理解我們並解決法律問題。

We're getting through value chain issues and generally they are, to the extent that we've worked with them, they are all comfortable with the value chain issues, that there are satisfactory ways in which we can work to share the issue and they're excited by that it is positive for them. But we obviously have to negotiate and get -- everybody's trying to muscle each other at the moment to take a position, which will obviously be increased for going forward. So we're just having to work through those issues, but we are hopeful that we'll get through (inaudible).

我們正在解決價值鏈問題，一般來說，就我們與他們合作的程度而言，他們都對價值鏈問題感到滿意，我們可以通過令人滿意的方式來分擔問題，而且他們也願意我們很興奮這對他們來說是積極的。但我們顯然必須進行談判並獲得——目前每個人都在努力互相推動以採取立場，這顯然會隨著未來的發展而增加。因此，我們只需解決這些問題，但我們希望能夠解決（聽不清楚）。

And if to the extent that we don't in any particular territory, we have options that we can go to. We have existing distributors and a lot of the issues we are having with existing distributors, if we were to not transition a territory and go back to those distributors and basically assured them that -- or give them a longer-term contract and give them the assurance that they will have a longer-term, that they have a number of years secured, we've got no doubt they will start to reinvest and reengage in the brand. It's just that we've not been able to do that because we haven't wanted to mislead them or give them any false hopes.

如果我們不在任何特定領域，我們也有可以去的選擇。我們有現有的分銷商，我們與現有分銷商之間存在很多問題，如果我們不過渡一個地區並回到這些分銷商那裡，基本上向他們保證——或者給他們一份長期合同，並給他們確保他們將有更長的期限，他們有多年的保障，我們毫不懷疑他們將開始對品牌進行再投資和重新參與。只是我們無法做到這一點，因為我們不想誤導他們或給他們任何虛假的希望。

And so that's been the delicate sort of tight rope we've been walking at the moment. So again, it doesn't mean that in every territory we will go to a Coke bottler, but I don't think that that is an issue. The issue at the moment is just getting everybody at the time to deal in all these different countries and get everybody on the same page and get them comfortable with us. We are making progress and we obviously are going to try and step up the pace of those negotiations.

這就是我們目前一直在走的那種微妙的緊繩。再說一遍，這並不意味著在每個地區我們都會去可口可樂裝瓶商，但我認為這不是問題。目前的問題是讓每個人在所有這些不同的國家打交道，讓每個人達成共識，讓他們對我們感到滿意。我們正在取得進展，顯然我們將努力加快這些談判的步伐。

Yes, I think I just wanted to add that the decisions that will be made for international distribution will be decisions that will be the best for Monster, for our Company. And that will be assessed following the negotiations of value chains, legal issues and other opportunities, which we may have.

是的，我想我只是想補充一點，針對國際發行做出的決定將是 Monster、對我們公司最好的決定。這將在價值鏈、法律問題和我們可能擁有的其他機會的談判之後進行評估。

Now, on the percentages, I would say probably pretty much the majority of our sales are with existing Coke bottlers internationally, pretty close to half. And if you look at the numbers, in many places other than Japan, which is an exception, in other places, you've got sales very much down -- Chile is also a good market as well in that sense. The bottlers are working well with that distributor -- but in Brazil particularly has been very disappointing. They are just really not engaged and some of the wholesalers they work with seem to be -- have disengaged as well.

現在，就百分比而言，我想說，我們的大部分銷售額可能都來自國際上現有的可口可樂裝瓶商，接近一半。如果你看一下數字，除了日本（這是一個例外）以外的許多地方，你的銷售額都大幅下降——從這個意義上說，智利也是一個很好的市場。裝瓶商與該經銷商合作良好，但在巴西的情況尤其令人失望。他們只是真的沒有參與其中，而且與他們合作的一些批發商似乎也已經脫離了參與。

And then in some of the other markets, which are non-Coke bottlers, we are up almost -- when I say we're up, it's marginal; it's almost flat versus really nice healthy gains across the Coke bottler markets. So there is a very big distinction between those markets. But as to the percentage, I am just guessing; I just don't have a number in my head or available at this point in time.

然後在其他一些市場，即非可口可樂裝瓶商，我們幾乎上漲了——當我說我們上漲時，這是邊際的；與可口可樂裝瓶商市場的健康成長相比，它幾乎持平。因此，這些市場之間存在著很大的差異。但至於百分比，我只是猜測；我只是腦子裡沒有一個數字，也沒有可用的數字。

More than $50 billion is probably as good as it can get.

超過 500 億美元可能已經是最好的了。

Yes, and then the one distributor that did perform pretty well until we -- which was our distributor in Germany -- they also did perform reasonably well until we changed over, but that has also been -- that was quite a large volume market, which has now changed to Coke and in the first month there, we've been very satisfied with their results, have been very positive.

是的，然後那個經銷商確實表現得很好，直到我們——這是我們在德國的經銷商——他們也確實表現得相當好，直到我們改變，但這也是——那是一個相當大的銷售市場，現在已改為可口可樂，在第一個月裡，我們對他們的結果非常滿意，非常積極。

And in Mexico, the July sales were actually very good.

而在墨西哥，7月的銷售量其實非常好。

Yes, if you put Mexico into the same category as Japan and Chile. I think the distributor could still continue to perform well. Some of the major problem markets are the ones I alluded to earlier. Thanks.

是的，如果你把墨西哥與日本和智利歸為同一類。我認為經銷商仍然可以繼續表現良好。我之前提到的一些主要問題市場。謝謝。

John Faucher, JPMorgan Stanley (sic).

約翰‧福徹，摩根士丹利（原文如此）。

Thanks. Good afternoon, everyone. Two quick questions here. The first is, and I apologize if you gave this in the numbers, did you talk about the underlying growth of the acquired Coke brands in terms of kind of how you think they are doing and will the bottlers view them as sort of reinvigorated as you take over responsibility for -- or ownership for them? And then secondly had a question on the gross margin. Given the regional mix with weaker US and stronger international, the gross margin was still up a lot. Any sort of thoughts in terms of what's driving the gross margin expansion? Thanks.

謝謝。大家下午好。這裡有兩個簡單的問題。第一個是，如果您在數字中給出這一點，我很抱歉，您是否談論了所收購的可口可樂品牌的潛在增長，您認為它們的表現如何，以及裝瓶商是否會像您一樣認為它們重新煥發活力接管它們的責任——或者所有權？其次是關於毛利率的問題。考慮到美國疲軟和國際走強的區域組合，毛利率仍然大幅上升。對於推動毛利率擴張的因素有什麼想法嗎？謝謝。

Gross margin generally has probably been affected a little bit by the concentrate division, which is in the strategic brands, which have higher gross margins and we've just been able to achieve some lower costs, which we indicated earlier on our brands even though there is a balance between international and domestic. But what has happened is I think our international margins have also improved on this quarter versus previous quarter. So while they are perhaps a little bit lower than our domestic margins, the improvement in those margins have had an effect and has helped us push up our overall margin.

毛利率通常可能受到濃縮部門的影響，該部門位於戰略品牌中，毛利率較高，我們剛剛能夠實現一些較低的成本，我們之前在我們的品牌上表示過這一點，儘管有是國際和國內的平衡。但我認為本季我們的國際利潤率與上一季相比也有所改善。因此，雖然它們可能比我們國內的利潤率略低，但這些利潤率的改善已經產生了影響，並幫助我們提高了整體利潤率。

Yes, and what we said earlier on the call, John, was that they were higher gross margins because, in the finished product segment, which is largely unserved in terms of product sales mix and lower cost of certain raw materials, so we did refer to that earlier on in the call.

是的，約翰，我們早些時候在電話會議上說過，他們的毛利率較高，因為在成品領域，在產品銷售組合和某些原材料成本較低方面基本上沒有得到滿足，所以我們確實提到了之前在通話中提到的內容。

Can you repeat your first question, John?

約翰，你能重複你的第一個問題嗎？

So the first question was about the Coke energy brands that you acquired and what the underlying trends were for those businesses in July and whether the bottlers feel more reinvigorated given the fact that you are going to be probably providing a greater level of focus on those brands.

因此，第一個問題是關於您收購的可口可樂能源品牌，以及這些業務 7 月的基本趨勢是什麼，以及考慮到您可能會更加關注這些品牌，裝瓶商是否感到更有活力。

I just want to remind everyone that the concentrate business was only in for two weeks in the quarter. We closed the transaction on the 12th, which is a Friday. From the 15th to the end of the month, the concentrate sales were incorporated in the financial results for this quarter. So turning to July, I don't have those numbers for July, John. I think we had them earlier for the concentrate division.

我只是想提醒大家，本季精礦業務只持續了兩週。我們在12號關閉了交易，那天是星期五。15日至月底，精礦銷售納入本季財務表現。說到七月，約翰，我沒有七月的數據。我認為我們較早地將它們用於濃縮部門。

I think the sales for the concentrate division and all the brands have been a little choppy, but it's been very early. We only got the brands recently. We then didn't have access to a lot of the underlying marketing information about the brands until we closed. We're still getting information and trying to understand the brands. We have marketing guys working with us, some of the people we took on from Coke, but some of our own guys are having to travel to different markets to try and understand the brands. And we're still trying to put together our strategy on these brands. Obviously we've talked with the Coke guys and we've reassured them that we are going to obviously focus on these brands and give these brands attention and at the moment, I think they are doing fine, but I can't give you an indication of direction because it really just is too premature.

我認為濃縮液部門和所有品牌的銷售都有點不穩定，但現在還很早。我們最近才拿到這些品牌。然後，直到我們關閉之前，我們都無法獲得有關該品牌的大量潛在行銷資訊。我們仍在獲取資訊並嘗試了解這些品牌。我們有行銷人員與我們一起工作，其中一些是我們從可口可樂挖來的，但我們自己的一些人員必須前往不同的市場來嘗試了解這些品牌。我們仍在努力整合我們對這些品牌的策略。顯然，我們已經與可口可樂公司的人員進行了交談，並向他們保證，我們顯然將專注於這些品牌並給予這些品牌關注，目前，我認為他們做得很好，但我不能給你一個具體的信息。指示方向，因為現在還為時過早。

Yes, we don't -- in fact, I'm just looking at the numbers we have, we don't have them with us as to what happened in July with the concentrate business last year. We know obviously what it was this year, but we don't have it here.

是的，我們沒有——事實上，我只是看我們掌握的數據，我們沒有關於去年 7 月精礦業務發生的情況的數據。我們顯然知道今年是什麼，但我們這裡沒有。

I think it's just -- we're just going to have to spend some time before we are able to start giving more direction. They are continuing to operate pretty decently in most markets. There are a couple of individual markets where the bottlers were not happy and we've seen them sort of want to discontinue some of the brands in some small markets and small brands like (inaudible) I mentioned earlier that they decided to discontinue Gladiator in Mexico and then Samurai was discontinued in the Philippines, which was a low-price brand there.

我認為這只是——我們需要花一些時間才能開始提供更多指導。他們在大多數市場上繼續表現良好。有幾個單獨的市場，裝瓶商並不滿意，我們看到他們有點想在一些小市場和小品牌（例如我之前提到的（聽不清楚））停止生產某些品牌，他們決定在墨西哥停止生產Gladiator然後 Samurai 在菲律賓停產，在菲律賓是一個低價品牌。

But by and large, the markets are fine, particularly -- and the most important markets are actually the US with NOS and we feel the brand is good. It has slowed a little bit. We think that may have been a little bit of a pulling back on some of the marketing spend behind the brand, but we believe in the brand and the bottlers in the US also believe in the brand and I think we can obviously make that brand grow. So we are positive about the NOS brand going forward and we think that there is a role for Full Throttle in the portfolio as well.

但總的來說，市場很好，尤其是——最重要的市場實際上是美國的 NOS，我們覺得這個品牌很好。它已經慢了一點。我們認為這可能會稍微減少該品牌背後的一些行銷支出，但我們相信這個品牌，美國的裝瓶商也相信這個品牌，我認為我們顯然可以讓這個品牌成長。因此，我們對 NOS 品牌的未來持樂觀態度，我們認為 Full Throttle 在產品組合中也能發揮作用。

Yes, NOS has increased actually in the 12 weeks and we mentioned earlier in all outlets combined by 14.9%. So sales of Full Throttle were down 0.2% and the overall market was up 10.3%. So NOS grew in excess of the market.

是的，NOS 在 12 週內實際上有所增加，我們之前提到的所有商店的總和增加了 14.9%。因此 Full Throttle 的銷量下降了 0.2%，而整體市場成長了 10.3%。因此 NOS 的成長超過了市場。

Yes, so that continues to perform and we're excited about that, about the NOS brand and there are a number of the brands that we really see as very good opportunities around the world in the portfolio. Thank you very much.

是的，所以它會繼續發揮作用，我們對此感到興奮，對 NOS 品牌感到興奮，我們確實認為我們的產品組合中的許多品牌在世界各地都有很好的機會。非常感謝。

On behalf of Monster, I would like to thank everyone for their continued interest in the Company. We continue to believe in the Company and our growth strategy and remain committed to continue to develop and differentiate our brands and to expand the Company both at home and abroad. We are particularly excited by the new opportunities that we have going forward with a robust portfolio of energy drink products throughout the world comprised of our Monster Energy drink line, together with the newly acquired strategic brands. We believe that our agreement with the Coca-Cola Company will enable us to focus on our core energy business while leveraging the strength of the Coca-Cola Company's powerful distribution and bottling system on a worldwide scale. Thank you very much for your attendance.

我謹代表 Monster，感謝大家對公司的持續關注。我們仍然相信公司和我們的成長策略，並繼續致力於繼續發展和差異化我們的品牌，並在國內外拓展公司。我們對新機會感到特別興奮，我們在全球推出了強大的能量飲料產品組合，其中包括我們的 Monster 能量飲料系列以及新收購的策略品牌。我們相信，與可口可樂公司的協議將使我們能夠專注於我們的核心能源業務，同時利用可口可樂公司在全球範圍內強大的分銷和裝瓶系統的優勢。非常感謝您的出席。

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program and you may now disconnect. Everyone, have a great day.

女士們、先生們，感謝你們參加今天的會議。程式就此結束，您現在可以斷開連線。大家，祝你有美好的一天。