Monster Beverage Corp beat estimates for third-quarter profit, helped by higher pricing for its energy drinks and hard seltzers.
Margins for the quarter ended 30 September were up 53% from 51.3%, thanks to price hikes and easing costs of freight and aluminium cans. The company's adjusted earnings of 41 cents per share beat market expectations by one cent.
Hilton H Schlosberg, vice chairman and co-chief executive officer, said, "The energy drink market in the United States, as well as internationally, continues to grow.
"We are pleased to report another quarter of solid revenue growth, with record sales for our third quarter. The quarter was again impacted by unfavourable foreign currency exchange rates."
Net sales in the Monster Energy drinks segment, that also includes brands such as Reign Storm, rose 13.7%.
However, net sales rose to $1.86 billion for the third quarter from $1.62 billion a year earlier, but slightly missed estimates of $1.87 billion, according to LSEG data.
Net sales in the company’s Strategic Brands segment, comprising various energy drink brands acquired from The Coca-Cola Company, as well as its affordable energy brands, increased 11.2% during the quarter.
The company reported a gain of $45.4 million in the quarter from the acquisition of Bang Energy and incurred expenses of approximately $8.0 million related to the deal.
News by Reuters, additional reporting by ESM.