Monster Beverage beat fourth-quarter sales estimates on Thursday, 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 essential purchases.
However, Monster’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 benefitting 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 with 54.5% a year ago.
Co-CEO of the company Hilton Schlosberg said, “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.”
Monster Beverage’s net sales rose 4.7% to $1.81 billion in the quarter ended 31 December from the year previous.
Analysts estimated a 3.73% rise to $1.80 billion, according to company data compiled by London Stock Exchange Group.
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 brand segment.
Shares of the company – which were down about 9% last year – rose about 3% in extended trading.
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