Monster Beverage beats estimates on strong demand for energy drinks
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Monster Beverage Corporation MNST | 0.00 | |
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May 7 (Reuters) - Monster Beverage MNST.O beat Wall Street expectations for first-quarter revenue and profit on Thursday, as demand for energy drinks remained strong despite broader economic uncertainty.
Health-conscious customers have been increasingly choosing energy and sugar-free drinks over regular sodas, with demand holding firm even as inflation squeezes household budgets.
Peers PepsiCo PEP.O and Coca-Cola KO.N last month both topped quarterly expectations on resilient demand for their beverages.
Shares of the company were up 5% in extended trading.
"The global energy drink category continues to demonstrate solid growth, driven by increased consumer demand," said CEO Hilton H. Schlosberg.
Quarterly sales in the energy drinks segment, Monster’s largest, rose 27.6% from a year earlier to $2.19 billion, while alcohol brands' sales fell 5.9% to $32.7 million.
Monster's first-quarter net sales rose 26.9% from a year earlier to $2.35 billion, compared with analysts' estimates of a 16% rise to $2.16 billion, according to data compiled by LSEG.
The Corona, California-based company posted a first-quarter adjusted profit of 58 cents per share, compared with estimates of 53 cents apiece.
