• Year-to-date sales jump 12% to US$2.6bn
  • Net profits in nine months to end of September climb 15% to $619.4m
  • Third-quarter sales up 15% to $909.5m
  • Net profits in the quarter increase 14% to $218.7m
Monster Beverage Corp is expanding into markets such as China

Monster Beverage Corp is expanding into markets such as China

Monster Beverage Corp has seen its sales in the year so far continue to climb, driven in part by the expansion of its international footprint.

Sales for the nine months to the end of September climbed by 12%, the energy drinks maker, which is part-owned by The Coca-Cola Co, said yesterday. The top-line also improved in the third quarter, by 15%, thanks to a near-40% jump in sales outside of the US.

The trend continues an overseas expansion for Monster Energy as it boosts distribution in Asia and Africa in partnership with Coca-Cola, which took a minority stake in Monster in 2015.

However, analysts warned that Monster's sales in China, where its brands can sell for less than half the price they do in the US, is putting pressure on margins. Cowen & Co's Vivien Azer said Monster's gross margins were down 1.2 percentage points, their first decline in 14 quarters. Azer also said margins continued to be hit by problems stemming from Monster's coffee-energy range Java, which last year encountered supply issues in the US because of the beverage's use of fresh milk and cream. Some production was subsequently moved to Europe, increasing costs.

Monster CEO Rodney Sacks said that in Q3 the company has continued to ramp up international distribution, launching in Georgia, Kuwait and Taiwan.

This week's results were similar to Monster's H1 performance, in which the company's quarterly gross sales broke the US$1bn barrier for the first time.

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Monster Beverage Corporation - Strategy, SWOT and Corporate Finance Report

Monster Beverage Corporation - Strategy, SWOT and Corporate Finance Report

Monster Beverage Corporation - Strategy, SWOT and Corporate Finance Report....read more