Monster Beverage missed Wall Street expectations for fourth-quarter revenue, it was revealed today.
The energy drink-maker lost cost-conscious customers after introducing price hikes to its products.
It had previously reported a strong Q3 in 2023, helped by the higher pricing that has impacted Q4.
In the US, one of the company’s biggest markets, consumers are dealing with the increased cost of essentials such as food and fuel.
This has impacted companies with non-essential products, including Monster and its rivals Dr Pepper and PepsiCo.
Earlier this month, PepsiCo reported a surprising drop in quarterly sales due to pricing and tightening of household budgets.
Beverage companies, such as Monster and PepsiCo, have passed increasing material costs onto customers in an attempt to protect profit margins.
The drinks giants aimed to combat the higher costs of aluminium, transport and raw materials such as sugar.
While the costs of transport and aluminium have equalised, the cost of sugar remains high.
Monster’s net revenue rose 14.4% to $1.73 billion in the fourth quarter. This was short of analysts’ estimate of a 16% increase to $1.75 billion.
Gross profit as a percentage of net sales was 54.2% for the reported period, compared to 53% last quarter.
The company earned 35 cents per share, excluding items, compared to the London Stock Exchange Group’s estimates of 38 cents per share.
Monster features in the top 10 of products in Ireland, according to Checkout Top 100 Brands publication, which is produced in association with NIQ Ireland.
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