New York-listed Monster Beverage Corp. posted a 20% sales increase in its latest quarter, with international markets growing even faster. The firm reported $2.54 billion in revenue, topping forecasts of $2.43 billion.
The energy drink giant is capitalizing on shifting consumer tastes, as more people swap coffee and soda for stimulant-laced beverages. International revenue spiked 34% to $1.16 billion, a sharp contrast to slower growth in its home market.
Celsius Holdings faced a tougher environment, with sales of its energy drink line falling amid competition from private label brands. Costco’s new energy drink, launched this quarter, is one factor behind Celsius’ struggles, according to reports.
Despite rising costs for aluminum and shipping, Monster managed to beat earnings expectations. The firm reported 60 cents per share, above the 58 cents analysts had forecast. CEO Hilton Schlosberg warned that elevated aluminum prices would continue through the remainder of the year.
Monster’s foray into alcohol, with brands like Wild Basin and Dale’s Pale Ale, saw a 15% revenue drop year-over-year. Sales from these categories fell to $32.2 million, reflecting broader consumer trends toward reducing alcohol consumption.
Shares of Monster traded flat in after-hours trading Thursday, following a nearly 23% gain this year. Analysts continue to watch the energy drink sector closely, with both opportunities and threats emerging as competition heats up.