Refile: Monster Beverage misses quarterly sales estimates as economic fears slow demand

Monster Beverage

07/08/2024 23:35

(Refiles to add media packaging code)
       Aug 7 (Reuters) - Monster Beverage  MNST.O  missed
market expectations for second-quarter sales on Wednesday as
budget-conscious consumers kept a tight lid on spending, hurting
demand for its pricey energy drinks amid an uncertain economic
environment.
    Higher costs of essentials like food and fuel have prompted
consumers in the U.S. to be more mindful about spending on
non-essential items, impacting sales for companies such as
Monster.
    Shares of the California-based company were down about 10%
in trading after the bell.
    "Retailers have reported a reduction in convenience store
foot traffic and we have seen a shift at retail towards more
mass and dollar channels. Other beverage and consumer packaged
product companies have also seen a tighter consumer spending
environment and weaker demand in the quarter," said Co-CEO
Hilton Schlosberg. 
    Monster will raise prices for its core brands and packages
in the United States by about 5%, effective November 1. Banking
on brand power, it has joined other global packaged food makers
in steadily raising product prices for the past few quarters, to
counter spiraling costs. 
    For the second quarter, the company posted net sales of
$1.90 billion, compared with analysts' average estimate of $2.01
billion, according to LSEG data.
    Monster Beverage reported a profit of 41 cents per share for
the quarter ended June 30, compared with analysts' estimate of
45 cents per share.

 (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by
Pooja Desai)
 ((Aatrayee.Chatterjee@thomsonreuters.com))