US: Monster Beverage on course for growth - analyst
Monster released its full-year results yesterday
Monster Beverage's full-year results are “not perfect” but the company can look forward to single-digit sales growth over the next five years, an analyst has said.
In a note today (28 February), Stifel Nicolaus said a resurgence in US sales and increased overseas business give the energy drinks maker a healthy outlook despite slowing growth. In full-year results yesterday, Monster reported a 20% profits rise year-on-year compared to a 35% jump in 2011.
"We continue to anticipate low double-digit sales growth over the next three-to-five years driven by continued US category growth, innovation, and international expansion," Stifel said.
Stifel estimated US sales grew by 12% in the past quarter, an improvement compared to a past two-year average, while international sales increased by 30%.
“The strength in core growth is significant, in our view, as it demonstrates the Monster brand remains healthy as relatively new growth drivers (brand) Rehab and international mature,” Stifel said.
Stifel said Monster’s global market share stood at 15 %, compared to Red Bull's 50%. It estimated Monster’s US share at about 31%.
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