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(Bloomberg) — Monster Beverage Corp. said sales rose 20% during the second quarter as demand for energy drinks continues to boom, particularly in international markets.
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The Corona, California-based company reported on Thursday net sales of $2.54 billion, ahead of Wall Street estimates of $2.43 billion. International sales grew even more quickly, jumping 34% to $1.16 billion.
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Monster and other energy drink companies have been benefiting from a global boom in popularity as more customers turn to energy drinks in place of coffee, soda and other nonalcoholic beverages. But competition is fierce – Celsius Holdings said earlier Thursday that sales of its namesake brand fell in the second quarter, in part because of a new private label energy drink launched by Costco Wholesale Corp.
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Beverage companies are also contending with higher costs for raw materials like aluminum and higher fuel and shipping prices amid the conflict in the Middle East. Chief Executive Officer Hilton Schlosberg said on a call with analysts that the company expects increased aluminum costs at least through the end of this year.
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Monster said operating expenses were $679.2 million, exceeding Wall Street estimates of $596.3 million, largely driven by marketing expenses.
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Despite the higher costs, the company reported record-high earnings per share of 60 cents, beating consensus projections of 58 cents per share.
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While the bulk of Monster’s sales come from non-alcoholic energy drinks, it also has a small portfolio of alcohol brands like Wild Basin hard seltzers and Dale’s Pale Ale beers. Sales for those brands decreased 15% from a year earlier to $32.2 million, as many consumers pull back from drinking.
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Shares were little changed in post-market trading on Thursday in New York. Heading into Thursday’s report, shares were up about 23% so far this year.
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(Updates with earnings call commentary)
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