Monster Beverage misses quarterly results on weaker demand

Monster Beverage

07/11/2024 21:38

Nov 7 (Reuters) - Monster Beverage  MNST.O  missed Wall
Street estimates for third-quarter sales and profit on Thursday,
as cost-conscious consumers cut back spending on its
higher-priced beverages.
    Shares of the company were down about 3% after the bell.
    Consumers, especially from low to middle-income groups, have
been curbing their cravings for branded non-alcoholic drinks and
opting for cheaper alternatives.
    This has hurt sales of companies like Monster Beverage,
Keurig Dr Pepper  KDP.O  and PepsiCo  PEP.O , while Coca-Cola
 KO.N  was able to attract customers with tight budgets in the
United States.
    For the third-quarter, the company posted net sales of $1.88
billion, compared with analysts' average estimate of $1.91
billion, according to data compiled by LSEG.
    On an adjusted basis, it posted profit of 40 cents per
share, compared with estimates of 43 cents per share.
    "Hurricanes Helene and Milton impacted sales at retail in
certain states in September and October, however we cannot
determine the impact on our business," said CEO Hilton
Schlosberg.
    However, benefits from taking 5% price hikes during the
quarter ended Sept. 30, coupled with lower input costs helped
the company's margins.
    Monster's quarterly gross profit as a percentage of sales
was 53.2%, compared to 53.0% a year ago.

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by
Shailesh Kuber)
 ((AnujaBharat.Mistry@thomsonreuters.com;))