Feb 26 (Reuters) - Monster Beverage beat fourth-quarter sales and profit estimates on Thursday, helped by resilient demand for its energy drinks amid economic uncertainty.
Health-conscious consumers have been choosing energy and sugar-free drinks over regular sodas, with demand for energy drinks holding firm even as inflation squeezes household budgets.
The company's net sales rose 17.6% to $2.13 billion in the quarter ended December 31, beating analysts' average estimate of $2.04 billion, according
to data compiled by LSEG.
Sales in the Monster Energy Drinks segment, the company’s largest, climbed 18.9% to $1.99 billion during the quarter. However, sales in the alcohol brands segment dropped 16.8% from a year earlier to $29 million.
Quarterly adjusted profit per share stood at 51 cents, above estimates of 48 cents.
Monster's gross margin edged up to 55.5% from 55.3% a year earlier, as pricing actions and supply-chain efficiencies offset higher aluminum costs.
While CEO Hilton Schlosberg said that current tariffs will not have a material impact on operating results, he added that the company expects a modest increase in costs in at least the first half of 2026, compared to the fourth quarter of 2025.
"We will continue to recognize tariffs on aluminum through the higher Midwest premium and continue to implement hedging strategies across the business where possible," he said.
Shares of the company were down about 2% in extended trading.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Jonathan Ananda)
