06:24 AM EDT, 08/08/2025 (MT Newswires) -- Monster Beverage ( MNST ) shares rose early Friday as the energy drinks company recorded better-than-expected second-quarter results, with tariffs having an immaterial impact on its operations.

Adjusted earnings came in at $0.52 a share for the June quarter, up from $0.43 a year earlier, the company said late Thursday, while the consensus on FactSet was for $0.48. Sales climbed 11% to $2.11 billion, despite a foreign-exchange headwind of $5 million, topping the Street's view for $2.08 billion.

The stock jumped 7.3% in the most recent premarket activity.

"Overall, the global energy drink category remains healthy with accelerating growth," Chief Executive Hilton Schlosberg said during an earnings call, according to a FactSet transcript. "Household penetration continues to increase in the energy drink category, driven by product functionality and lifestyle positioning, diverse offerings that appeal to an increasingly broad and loyal consumer base and affordable value offerings in addition to premium offerings."

Tariffs had an immaterial impact on Monster Beverage's ( MNST ) operating results in the quarter, with the company manufacturing its flavors and concentrates in the US and Ireland, Schlosberg said on the call. Production of the group's finished products took place locally in its respective markets, the CEO added.

"Despite the immaterial impact on our business in the second quarter, the tariff landscape continues to be complicated and dynamic," Schlosberg told analysts. "We import some raw materials into the United States, export certain raw materials for local markets and export limited quantities of finished products."

US President Donald Trump's sweeping new tariffs on imports from several trading partners went into effect Thursday as the US leader's deadline for countries to strike deals expired.

The company anticipates tariffs to have a "modest" impact in the third quarter, while it will continue to recognize duties on aluminum through the higher Midwest premium, Schlosberg said. The company will continue to carry out its mitigation efforts across the business where possible, according to Schlosberg.

Sales in the Monster energy drink segment gained 11% to $1.94 billion, while the strategic brands division advanced about 19% to $129.9 million. Revenue in alcohol brands fell 8.6% to $38 million. Sales to customers outside the US, which accounted for roughly 41% of total revenue, grew 16% to $864.2 million.

Gross profit as a percentage of sales rose to 55.7% from 53.6% on a yearly basis, due to pricing actions, supply chain optimization and lower input costs, according to the company.

Monster Beverage ( MNST ) has initiated discussions with its bottlers and customers regarding selective price adjustments by packaging channels, as well as reductions in promotional allowances in the US, effective during the fourth quarter, Schlosberg said on the call.