Monster Beverage beats estimates on strong demand for energy drinks

Coca-Cola Company
Monster Beverage Corporation
PepsiCo, Inc.

Coca-Cola Company

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Monster Beverage Corporation

MNST

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PepsiCo, Inc.

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- 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.