US: Monster Beverage's legal woes still bite as H1 profits slide

By | 9 August 2013

  • First-half net profits fall 8.4% to US$170.4m
  • H1 net sales up 6.5% to $1.1bn
  • Operating profits in first six months fall 3.2% to $286.7m
  • Q2 sales up 6.5% $630.9m
Monsters profits are being hit by legal costs

Monster's profits are being hit by legal costs

Monster Beverage has continued to feel the impact of defending the safety of its products after reporting a drop in first-half profits, despite rising sales. 

The California-headquartered energy drinks producer said yesterday (8 August) that net profits in the six months to the end of June dipped by 8.4% to US$170.4m, as sales rose by 6.5% to $1.1bn. Operating profits in the six months fell by 3.2% to $286.7m. 

In its first quarter, the group saw a 16.6% drop in net profits. But the slide slowed in Q2, with net profits down by 2.7% to $106.9m. Sales in the three months rose by 6.5% to $630.9m, while operating profits increased by 5.7% to $179.4m. 

The group's Q2 performance was affected by "foreign currency transaction losses of $8.3m; legal and other costs related to regulatory matters and litigation concerning the advertising, marketing, promotion, ingredients, usage, safety and sale of the company's Monster Energy brand drinks of $7.2m", it said.

Monster is locked in a court room fight with San Francisco's attorney general, Dennis Herrera, while it is also fighting a lawsuit from the family of a 14-year-old girl who died after allegedly drinking two 24oz cans of Monster. 

Rodney Sacks, Monster's chairman and CEO, said: "We reiterate that our energy drinks are safe, based on both our and the industry's long track record and the scientific evidence supporting the safety of our ingredients.” 

The company said its international sales “continue to meet expectations”. Sacks added: "We are continuing with our plans to market the Monster Energy brand in new international markets."

Shares in the group on the NASDAQ closed yesterday up 1.62% at $63.47.

To read the company's full statement, click here

Expert analysis

Monster Beverage corporation : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Canadean's "Monster Beverage corporation : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major products and services, swot analysis, business description, company history, financial analysis, recent developments, key employees, company locations and subsidiaries, employee biographies as well as competitive benchmarking data.

Sectors: Company results, Soft drinks

View next/previous articles

Currently reading -

US: Monster Beverage's legal woes still bite as H1 profits slide

8 Aug 2013 -

just the Research

There are currently no comments on this article

Be the first to comment on this article

Read more on this hot issue

Round-Up - Monster Beverage's H1 Results 2013

In early-August, Monster Beverage reported its results for the first six months of 2013. Here's a round-up of just-drinks' coverage of the numbers.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page