Monster Beverage Corp recently beat estimates for third-quarter profit, helped by higher pricing for its energy drinks and hard seltzers, sending the company's shares up about 3% in extended trade.
Monster, like industry leaders Coca-Cola and Pepsi, has seen demand hold up largely for its beverages, despite a string of price increases.
Costs Decrease
The company has also seen costs of freight and aluminum cans come down from the pandemic highs, helping boost margins that had remained under pressure for a long time.
Margins for the quarter ended 30 September were up 53% from 51.3%, thanks to price hikes and easing costs of freight and aluminum cans.
Overall Performance
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.
Read More: Coca-Cola Gets Green Light To Sell Energy Drink Under Monster Contract
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