Sales growth in the first quarter
Monster Beverage’s (MNST) net sales grew 11.2% to $946 million in the first quarter, beating Wall Street’s growth expectation of 7.4%. Monster Beverage delivered double-digit growth despite currency headwinds adversely impacting its net sales by $22 million.
However, Monster Beverage’s sales growth in the first quarter was lower than the 14.1% growth it saw in the fourth quarter of 2018 and the 14.7% growth it saw in the first quarter of 2018.
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Performance by segment
Net sales of the company’s Monster Energy Drinks segment grew 11.5% to $870.4 million. Monster Beverage raised the price of its Monster Energy portfolio in the US market effective November 2018.
The company raised the prices for concentrates of its NOS and Full Throttle lines (both are part of the Strategic Brands segment) in January 2019. Monster Beverage also increased the prices of its Monster Energy, NOS, and Full Throttle lines in Canada in February 2019. The net sales of the company’s Strategic Brands segment (including the energy drink brands it acquired from the Coca-Cola Company (KO) and Monster Beverage’s affordable energy brands) increased 6.9% to $70.3 million. The Strategic Brands segment delivered higher sales in the first quarter after struggling for the past several quarters.
The net sales of Monster Beverage’s Other segment (which includes the third-party sales of certain products of Monster Beverage’s subsidiary, American Fruits and Flavors) grew to $5.3 million in the first quarter of 2019 compared to $4.7 million in the first quarter of 2018.
Monster Beverage has experienced a positive response to its recent innovation, its Reign Total Body Fuel high-performance energy drink, and it plans to launch the product in international markets in the second half of 2019. The company is also optimistic about its other innovations and its growth prospects in international markets such as China and India.