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Monster Beverage nasdaq Mnst Misses Q2 Sales Forecasts As Consumer Cut Back on Non essentials

Monster Beverage (NASDAQ: MNST) Misses Q2 Sales Forecasts as Consumer Cut Back on Non-Essentials

On Wednesday, Monster Beverage (NASDAQ: MNST) missed market expectations for second-quarter sales as budget-conscious consumers kept a tight lid on spending, hurting demand for its pricey energy drinks amid an uncertain economic environment.

Higher costs of essentials like food and fuel have prompted consumers in the U.S. to be more mindful about spending on non-essential items, impacting sales for companies such as Monster.

Shares of the California-based company were down about 10% in trading after the bell.

“Retailers have reported a reduction in convenience store foot traffic and we have seen a shift at retail towards more mass and dollar channels. Other beverage and consumer packaged product companies have also seen a tighter consumer spending environment and weaker demand in the quarter,” said Co-CEO Hilton Schlosberg.

Monster will raise prices for its core brands and packages in the United States by about 5%, effective November 1. Banking on brand power, it has joined other global packaged food makers in steadily raising product prices for the past few quarters, to counter spiraling costs.

For the second quarter, the company posted net sales of $1.90 billion, compared with analysts’ average estimate of $2.01 billion, according to LSEG data.

Monster Beverage (NASDAQ: MNST) reported a profit of 41 cents per share for the quarter ended June 30, compared with analysts’ estimate of 45 cents per share.

(Source: Reuters)

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Maria Reed
Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate.