Monster Beverage posts surprise fall in quarterly net sales on choppy demand

Reuters

Thu, May 8, 2025, 3:27 PM 2 min read

(Reuters) -Monster Beverage reported a astonishment autumn successful first-quarter gross connected Thursday, signaling consumers successful the U.S. pared backmost spending connected pricey vigor drinks amid economical uncertainty.

Colder upwind successful January and precocious ostentation successful February led to softer user spending, impacting income during the quarter.

The institution besides attributed the diminution successful nett income to changes successful ordering patterns of bottlers and distributors successful the U.S. and Europe and overseas currency headwinds.

Monster Beverage hedges against the emergence successful aluminum prices, but said it would admit tariffs imposed connected imports of the worldly owed to higher U.S. Midwest duty-paid aluminum premium, which climbed much than 70% successful the 3 months done March.

The institution said 1 of its spirit and concentrates subsidiary was readying connected opening a installation successful Brazil, expected to beryllium operational adjacent year, to assistance mitigate the interaction from aluminum levies.

The tariffs, however, were not expected to person a worldly interaction connected the company's wide results, executives said connected a post-earnings call.

Beverages elephantine Coca-Cola warned past period that macroeconomic uncertainty owed to tariffs could wounded user sentiment, contempt topping quarterly results estimates.

Net income for Monster vigor drinks segment, which houses the namesake marque and Reign Total Body Fuel products, fell 0.8% to $1.72 billion.

Its full nett gross fell 2.3% to $1.85 cardinal during the 4th ended March 31, compared with analysts' estimation of a 4.3% emergence to $1.98 billion, according to information compiled by LSEG.

Persistent weakness successful its intoxicant brands conception besides weighed connected income during the quarter, the Corona, California-based institution said.

Monster has accrued prices implicit the past year, helping its gross nett arsenic a percent of nett income emergence to 56.5% from 54.1% a twelvemonth earlier.

Excluding items, it earned 45 cents per share, compared with the estimation of 46 cents.

Monster's shares were down 2.2% successful extended trading.

(Reporting by Juveria Tabassum successful Bengaluru; Editing by Shilpi Majumdar)