Monster Beverage Rises After Coca-Cola Deal Boosts Sales, ProfitBy
Profit rose to 80 cents a share, excluding some items, Corona, California-based Monster said Friday in a statement. Analysts estimated 74 cents, on average. Sales increased 8.5 percent to $680.2 million, beating analysts’ $656.9 million average projection.
Monster’s agreement with Coca-Cola last year has allowed it to expand distribution of its drinks in the U.S. and internationally. The soda giant completed the purchase of a 17 percent stake in the energy-drink maker for about $2.15 billion in June and agreed to swap some of its brands. Monster transferred all of its U.S. and Canada distribution to bottlers aligned with Coca-Cola and is increasingly making the switch abroad as well.
In the U.S., the Coca-Cola bottlers reach more outlets with more beverages, Chief Executive Officer Rodney Sacks said in the statement. Abroad, Monster Energy will be introduced in Australia and New Zealand in May after reaching an agreement with Coca-Cola Amatil.
Monster climbed as much as 14 percent to $145.88 in New York, the biggest intraday gain since Nov. 6. The shares had slid 14 percent this year through Thursday.
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