US: Monster Beverage Corp YTD profits slow
- Nine-month net profits up by 22.7% to US$272m
- Net sales YTD rise by 23% to $1.59bn
- Operating profits jump by 23.7% to $436.7m
- On-track to launch in new export markets
Monster's shares were hit after reporting a slowdown in profits and sales
Monster Beverage Corporation has reported a slowing in year-to-date profits and sales growth, but remains bullish about its future.
The California-based energy drinks firm said yesterday (7 November) that net sales in the nine months to the end of September were up by 22.7% to US$272m. Sales in the period rose by 23% to $1.59bn, while operating profits increased by 23.7%.
However, this represents a slowdown on H1 numbers. In the latest quarter, the firm's net profits increased by 4.6% year-on-year to 68.1m, while sales grew by 14.2% to $541.9m. Operating profits in the July-September period saw a 6.5% uplift to $140.7m.
The company has faced a barrage of negative press recently over safety fears around its products. In the US, the mother of a 14-year-old girl who died from caffeine toxicity launched a lawsuit against Monster last month. The group is also facing an investigation by the US Food and Drug Administration (FDA) after its energy drinks were cited in the deaths of five people in the country since 2007.
The company is also facing action from New York's attorney general over the marketing of its products, while two Illinois senators are pushing for a wider crackdown against the energy drinks market.
But Monster chairman & CEO, Rodney Sacks, said the group was “pleased to report another quarter of record results”. He added: "While the company achieved less robust growth in sales dollars than in previous quarters, gross sales in October increased by approximately 28% over the same month last year."
He also confirmed plans to launch in more international markets “later this year and in 2013”.
Shares in Monster were down 13% at $39.14 in after-hours trading yesterday.
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