Sales have been improving each month since bottoming in April.Simon Dawson/Bloomberg
Monster Beverage shares were up more than 5% Wednesday afternoon, after the energy-drink maker reported a relatively strong second quarter, showing that while Covid-19 is weighing on sales, it is seeing promising trends.
Monster (ticker: MNST) said it earned $311.4 million, or 59 cents a share, on revenue that fell 0.9% year over year to $1.09 billion. Analysts were looking for EPS of 49 cents on revenue of $1 billion.
Gross profit as a percentage of sales climbed to 60.3% in the quarter, up from 59.9% in the 2019 period.
The company noted that it wasn’t expecting any major impact to its manufacturing, bottling, or distributing partners from the pandemic, and its supply chain wasn’t experiencing shortages either.
There was a lot for investors to like in the report. Not only did the company deliver a comfortable top- and bottom-line beat, it said no pandemic-related disruptions were expected.
Moreover, it is seeing fairly resilient trends. Notably, sales have been improving each month since bottoming in April, and management said that pattern held into last month, even though energy drinks are often purchased away from home.
Sales overseas were up less than 1% in local-currency terms, but nonetheless were bright in a number of areas, including a 70% jump in revenue in China.
So while life may not be back to normal, consumers are still turning to the Monster brand more often than bears might have feared.
Monster shares were up 5.9% to $82.63, while the S&P 500 was up 0.6%.
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