Monster Beverage exceeded fourth-quarter sales estimates, helped by improving demand for its products including energy drinks and beverages.
Beverage makers have been struggling to lift sales as consumers balk at higher-margin items and look for cheaper alternatives to prioritise essentials purchases.
However, Monster Beverage's efforts to ramp up promotions and launch new products have been helping it gain more shelf space at retailers and appeal to customers, further benefiting its products during the holiday quarter.
Earlier this month, PepsiCo reported a sales drop, while Coca-Cola bucked the trend to see a surprise jump in quarterly revenue.
The company has also been maintaining its inventory levels and taking consecutive price hikes on certain brands and packages over the past quarters, helping it lift margins.
Its quarterly adjusted gross profit came in at 55.5%, compared to 54.5% a year ago.
"In the United States, we are seeing a resurgence of growth in the energy drink category in convenience, as well as in all measured channels reported by Nielsen," said co-CEO Hilton Schlosberg.
By The Numbers
Monster Beverage's net sales rose 4.7% to $1.81 billion in the quarter ended 31 December from a year ago. Analysts estimated a 3.73% rise to $1.80 billion, according to data compiled by LSEG
Net sales in the Monster energy drinks segment, its biggest revenue generator, increased 4.5%, after rising 0.8% in the third quarter.
However, it posted an adjusted profit of 38 cents per share for the quarter, below estimates of 40 cents apiece, following the impact of $130.7 million impairment charges related to the company's alcohol brands segment.
Rodney C Sacks, chair and co-chief executive officer, said, “Innovation globally continues to play a key role in our strategy and we maintain a robust innovation pipeline.
“We continue to have market share leadership in a number of countries for our Monster Energy brand, and I am pleased to report that in the Republic of Ireland, Monster Energy has gained market share leadership in the last 13 weeks, as reported by Nielsen.”
News by Reuters, additional reporting by ESM.
