USA – Monster Beverage Corporation reported a 1.3 percent increase in net sales for the third quarter ending September 30, 2024, bringing its total sales to US$1.88 billion, up from US$1.86 billion in the same period of 2023.
The increase was led by growth in the company’s Strategic Brands segment and a slight uptick in the Monster Energy Drinks segment, which saw sales rise by 0.8 percent to US$1.72 billion from US$1.71 billion in the prior year.
The Strategic Brands segment posted a stronger performance, with net sales up 14 percent to US$112.6 million, compared to US$98.8 million in the third quarter of 2023.
Gross profit as a percentage of net sales increased to 53.2 percent from 53.0 percent a year ago.
The company attributed the profit increase to reduced input costs, international pricing adjustments, and the absence of the Bang Inventory Step-Up which impacted 2023’s results.
However, the rise was partly offset by higher promotional allowances aimed at boosting visibility for Bang Energy in the U.S. market.
Hilton H. Schlosberg, Vice Chairman and Co-Chief Executive Officer, commented on the energy drink market’s resilience, noting global growth, though U.S. sales reflected a more cautious consumer environment in certain sectors.
“The energy drink category continues to grow globally and has demonstrated resilience,” Schlosberg said, adding that growth in U.S. convenience channels, which had previously slowed, began to show signs of recovery in October.
Schlosberg also pointed to a “tighter consumer spending environment” in recent months, impacting lower-income groups more acutely.
Schlosberg expressed optimism about the future of the U.S. energy drink category, expecting a rebound following recent deceleration in convenience store channels
He suggested that Monster Beverage has likely reached the bottom of the sales dip in these segments, saying, “We actually feel good about things coming back.”
Schlosberg further anticipated an improvement in consumer confidence, which he believes could be positively influenced by the recent U.S. election outcome.
The company had previously reported a slowing growth rate for U.S. energy drinks in its second-quarter results due to reduced convenience store sales.
However, with early signs of a sales recovery, the company is confident in the sector’s long-term growth prospects.
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