financetom
Economy
financetom
/
Economy
/
Monster Beverage posts surprise fall in quarterly net sales on choppy demand
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Monster Beverage posts surprise fall in quarterly net sales on choppy demand
May 26, 2025 4:45 AM

(Reuters) -Monster Beverage ( MNST ) reported a surprise fall in first-quarter revenue on Thursday, signaling consumers in the U.S. pared back spending on pricey energy drinks amid economic uncertainty.

Colder weather in January and high inflation in February led to softer consumer spending, impacting sales during the quarter.

The company also attributed the decline in net sales to changes in ordering patterns of bottlers and distributors in the U.S. and Europe and foreign currency headwinds.

Monster Beverage ( MNST ) hedges against the rise in aluminum prices, but said it would recognize tariffs imposed on imports of the material due to higher U.S. Midwest duty-paid aluminum premium, which climbed more than 70% in the three months through March.

The company said one of its flavor and concentrates subsidiary was planning on opening a facility in Brazil, expected to be operational next year, to help mitigate the impact from aluminum levies.

The tariffs, however, were not expected to have a material impact on the company's overall results, executives said on a post-earnings call.

Beverages giant Coca-Cola warned last month that macroeconomic uncertainty due to tariffs could hurt consumer sentiment, despite topping quarterly results estimates.

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

Its total net revenue fell 2.3% to $1.85 billion during the quarter ended March 31, compared with analysts' estimate of a 4.3% rise to $1.98 billion, according to data compiled by LSEG.

Persistent weakness in its alcohol brands segment also weighed on sales during the quarter, the Corona, California-based company said.

Monster has increased prices over the last year, helping its gross profit as a percentage of net sales rise to 56.5% from 54.1% a year earlier.

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

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

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Zoomed Out | Critical Minerals — why India's current strategy to become self-reliant is so vital
Zoomed Out | Critical Minerals — why India's current strategy to become self-reliant is so vital
Nov 29, 2023
Internationally, there are genuine security concerns related to the criticality in building more diverse and dependable value chains for critical minerals, about their environmental and social sustainability, and technological challenges. While, India has taken the right steps for creating an ecosystem for accelerated exploration and production of critical and new age minerals, observes FICCI Mining Committee Co-Chair Pankaj Satija.
In fight to curb climate change, a grim report shows world is struggling to get on track
In fight to curb climate change, a grim report shows world is struggling to get on track
Nov 14, 2023
The State of Climate Action report released on Tuesday by the World Resources Institute, Climate Action Tracker, the Bezos Earth Fund and others looks at what's needed in several sectors of the global economy power, transportation, buildings, industry, finance and forestry to fit in a world that limits warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) over pre-industrial times, the goal the world adopted at Paris in 2015. The globe has already warmed about 1.2 degrees Celsius (2.2 degrees Fahrenheit) since the mid-19th century.
JPMorgan has a new way to gauge its green progress
JPMorgan has a new way to gauge its green progress
Nov 15, 2023
As the largest energy banker, JPMorgan is a frequent target of criticism over Wall Street’s role in the climate crisis. At the same time, the bank is a leading US arranger of green bonds, making it vulnerable to Republicans seeking to protect the fossil fuel industry.
India looking into 'freak' incidents like damage to Sikkim's Chungthang dam: RK Singh
India looking into 'freak' incidents like damage to Sikkim's Chungthang dam: RK Singh
Oct 18, 2023
Stressing on the need to have quick ramp up and ramp down energy sources for grid balancing, the minister described hydroelectric power's role as essential in the path to energy transition as wind energy is intermittent and the sun doesn't shine 24×7.
Copyright 2023-2026 - www.financetom.com All Rights Reserved