Monster Beverage has reported a 12% jump in first-quarter revenue, helped by steady demand for the energy drink maker's high-priced juices as well as easing freight costs.
Demand for the company's energy drinks, including Monster Energy and Tour Water, held as inflation-weary customers stretched their budgets to spend on at-home meals and beverages.
Last month, peer Keurig Dr Pepper and larger peer Coca-Cola also reported an upswing in consumer demand for their beverages.
Sales Performance
For the three months ended March 31, the company posted net sales of $1.90 billion (€1.76 billion), in line with market expectations.
Price hikes undertaken by Monster Ultra maker over the past quarters helped it shield margins from rising costs of aluminum and sugar.
Gross profit as a percentage of net sales for the first quarter was 54.1% compared with 52.8% in the prior year, bolstered by lower input costs.
Energy Drink Growth
“We continue to see growth in the energy drink market globally. In the United States, energy is the only segment of the beverage category currently showing unit growth," commented Hilton H. Schlosberg, vice chairman and co-chief executive officer.
“We achieved another quarter of solid revenue growth, with record first quarter sales. The quarter was again impacted by unfavourable foreign currency exchange rates in certain markets.
“We are pleased to report gross profit margin improvement in the first quarter, which increased significantly when compared to the 2023 first quarter. This improvement was primarily the result of decreased freight-in costs, pricing actions in certain markets and lower input costs, partially offset by geographical sales mix,” Schlosberg said.
Additional reporting by ESM
