The board of directors of Monster Beverage Corporation has approved authorised a new share repurchase programme worth $500 million (€467.2 million).
As of 7 November 2023, approximately $282.8 million remained available for repurchase under the company’s previously authorised repurchase programme, the beverage firm noted.
Monster Beverage expects to make the share repurchases from time to time in the open market, through privately-negotiated transactions, by block-purchase or through other transactions managed by broker-dealers, or otherwise, subject to applicable laws, regulations and approvals.
The timing of the share repurchases will depend on a variety of factors, including market conditions, and the repurchases may be suspended or discontinued at any time, it added.
Monster Beverage Corporation
Based in Corona, California, Monster Beverage Corporation is a holding company that conducts no operating business except through its consolidated subsidiaries that develop and market energy drinks.
Recently, the company 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.
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.
