Monster Beverage Corp grabs global sales to fire H1 - results
- H1 net profits up 49% to US$348.1m
- Net sales climb 14% to $1.5bn
- Operating profits jump 45% to $543.2m
- Q2 net profits fall 20% to $184.2m
- Net sales up 19% to $827.5m
- Operating profits drop 21% to $288.5m
Monster Beverage is expanding its global footprint
Monster beverage Corp's international sales continued to fire in the second quarter of the year to propel a strong first-half performance for the energy drinks maker.
Net sales outside the US rose 33% to US$200.2m in the three months to the end of June, the company said yesterday. The jump follows a 32% increase in international sales in Q1 and pushes Monster's international sales above a quarter of total sales.
Overall, Monster's Q2 net sales were up 19% to $827.5m while first-half net sales climbed by 14% to $1.5bn.
Net profits, meanwhile, dipped 20% in Q2 but increased by 49% in H1 as payments to terminate distributor contracts and the sale of Monster's non-energy portfolio to The Coca-Cola Co disrupted the bottom line. Monster said organic net income for the second quarter, discounting the termination costs of 2016 and non-energy sale, increased 42% to $203m.
Coca-Cola completed the purchase of a minority stake in Monster last June. Under the terms of the deal, Monster's non-energy portfolio moved to Coca-Cola while Monster acquired Coca-Cola's energy range. Coca-Cola also plugged Monster's drinks into its formidable global distribution system.
Monster CEO Rodney Sacks yesterday praised his company's link-up with Coca-Cola and said international sales were set to widen as more ties were made with Coca-Cola bottlers. This month, Monster launched its energy range Mexico with the eight Coca-Cola bottlers in the country and plans to roll out in Brazil in November, Sacks said.
To read the company's full results, click here.
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